20-487.04. Penalties

235 words·~1 min read·/az/title-20/20-487-04

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. If the director believes that a controlling producer or other person has not materially complied with this article or any rule adopted under this article, after notice and an opportunity for a hearing, the director may order the controlling producer to cease placing business with the controlled insurer.

B. If the director finds that due to material noncompliance a controlled insurer or policyholder of the controlled insurer has suffered loss or damage, the director may maintain a civil action or intervene in an action brought by or on behalf of the insurer or policyholder for the recovery of compensatory damages or other appropriate relief for the benefit of the insurer or policyholder.

C. If an order for the liquidation or rehabilitation of the controlled insurer is entered pursuant to chapter 3, article 4 of this title and a receiver who is appointed under that order believes that the controlling producer or other person has not materially complied with this article or rules adopted under this article and that the insurer suffered loss or damage, the receiver may maintain a civil action for the recovery of damages or other appropriate relief for the benefit of the insurer.

D. This section does not affect the right of the director to impose any other penalty provided for by law.

E. This section does not alter or affect the rights of policyholders, claimants, creditors or other third parties.