§386-211 Revocation of certificate of approval. (a) After notice and opportunity for a hearing, the insurance commissioner may revoke a group's certificate of approval if the group:
(1) Is found to be insolvent;
(2) Fails to pay any premium tax, regulatory fee or assessment, or special compensation fund assessments imposed upon it; or
(3) Fails to comply with any provision of this chapter or any rule adopted under this chapter or with any lawful order of the insurance commissioner within the time prescribed.
(b) In addition, the insurance commissioner may revoke a group's certificate of approval if, after notice and opportunity for hearing, the insurance commissioner finds that:
(1) Any certificate of approval that was issued to the group was obtained by fraud;
(2) There was a material misrepresentation in the application for the certificate of approval; or
(3) The group or its administrator has misappropriated, converted, illegally withheld, or refused to pay over upon proper demand any moneys that belong to a member, an employee of a member, or a person otherwise entitled thereto and that have been entrusted to the group or its administrator in its fiduciary capacities. [L 1986, c 304, pt of §1]