Engagement in new business after termination of prior business while owing premiums, interest or penalties to private carriers: Prohibitions; penalties.
1. Any person who:
(a) Is the legal or beneficial owner of 25 percent or more of a business which terminates operations while owing a premium, interest or penalty to a private carrier and becomes, or induces or procures another person to become, the legal or beneficial owner of 25 percent or more of a new business engaging in similar operations; or
(b) Knowingly aids or abets another person in carrying out such conduct,
Ê is liable in a civil action for the payment of any premium, interest and penalties owed to the private carrier and the reasonable costs incurred by the private carrier to investigate and act upon such conduct.
2. The private carrier shall not knowingly insure any business which engages in the conduct described in subsection 1 unless the premium and any interest and penalties owed to the prior insurer have been paid to that insurer.
3. As used in this section, “business” includes, but is not limited to, a firm, sole proprietorship, general or limited partnership, voluntary association or private corporation.
Last modified: February 25, 2006