(A) The license of a captive insurance company to conduct an insurance business in this State may be suspended or revoked by the director for:
(1) insolvency or impairment of capital or surplus;
(2) failure to meet the requirements of Section 38-90-40;
(3) refusal or failure to submit an annual report, as required by Section 38-90-70, or any other report or statement required by law or by lawful order of the director;
(4) failure to comply with its own charter, bylaws, or other organizational document;
(5) failure to submit to examination or any legal obligation relative to an examination, as required by Section 38-90-80;
(6) refusal or failure to pay the cost of examination as required by Section 38-90-80;
(7) use of methods that, although not otherwise specifically prohibited by law, nevertheless render its operation detrimental or its condition unsound with respect to the public or to its policyholders; or
(8) failure otherwise to comply with laws of this State.
(B) If the director finds, upon examination, hearing, or other evidence, that a captive insurance company has committed any of the acts specified in subsection (A) of this section, the director may suspend or revoke such license if the director considers it in the best interest of the public and the policy holders of the captive insurance company, notwithstanding any other provision of this title.
(C) In lieu of suspending or revoking the license of a captive insurance company, the director may impose fines as provided for in Section 38-2-10.
HISTORY: 2000 Act No. 331, Section 1; 2009 Act No. 28, Section 9, eff June 2, 2009; 2014 Act No. 282 (S.909), Section 13, eff June 10, 2014; 2018 Act No. 251 (H.4675), Section 1, eff May 18, 2018.
Effect of Amendment
2014 Act No. 282, Section 13, in subsection (C), substituted "In lieu of" for "Instead of".
2018 Act No. 251, Section 1, in (A)(2), deleted "or 38-90-50" following "Section 38-90-40".