58-12-36. Cease and desist order--Monetary penalty--Suspension or revocation of license.
239 words·~1 min read·
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If, after the hearing, the director finds an insurer has engaged in an unfair claims practice, the director shall reduce the findings to writing and shall issue and serve the insurer a copy of the findings and an order requiring the insurer to cease and desist from engaging in the act or practice. The secretary of labor and regulation may order either or both of the following:
(1)The insurer to pay a monetary penalty of not more than one thousand dollars for each violation but not to exceed an aggregate penalty of one hundred thousand dollars, unless the violation was committed flagrantly and in conscious disregard of §§ 58-12-31 to 58-12-37 , inclusive, in which case the penalty may not be more than twenty-five thousand dollars for each violation, but not to exceed an aggregate penalty of two hundred fifty thousand dollars; and
(2)Suspension or revocation of the insurer's license if the insurer knew or reasonably should have known it was in violation of §§ 58-12-31 to 58-12-37 , inclusive.
This section only applies to violations of §§ 58-12-31 to 58-12-37 , inclusive. Any penalty imposed pursuant to this section is the sole and exclusive remedy for any act or violation brought by the director under §§ 58-12-31 to 58-12-37 , inclusive.
The director shall consider the size, the amount of surplus, and the premium volume of the insurer when determining a penalty pursuant to this section.