[§431:9J-113] License denial, nonrenewal, suspension, or revocation; fines. (a) After notice and hearing, the commissioner shall impose a fine pursuant to section 431:2-203 and issue a cease and desist order against any person who acts or holds out as an administrator without a license.
(b) After notice and hearing, the commissioner shall deny, refuse to renew, suspend, or revoke the license of an administrator if the commissioner finds that the administrator:
(1) Is in an unsound financial condition;
(2) Is using methods or practices in the conduct of business that renders the administrator's further transaction of business in this State hazardous or injurious to insureds or the public; or
(3) Has failed to pay a judgment rendered against the administrator in this State within sixty days after the judgment has become final.
(c) The commissioner may deny, refuse to renew, suspend, or revoke the license of an administrator if the commissioner finds the administrator:
(1) Has violated any lawful rule or order of the commissioner or this code;
(2) Has refused examination or production of the administrator's accounts, records, and files for examination, or if any individual responsible for or who exercises control or influence over the affairs of the administrator has refused to give information about the administrator's affairs, or has refused to perform any other legal obligation as to an examination, when required by the commissioner;
(3) Has, without just cause:
(A) Refused to pay proper claims or perform services arising under the administrator's contracts;
(B) Caused insureds to accept less than the amount due to the insureds; or
(C) Caused insureds to employ attorneys or bring suit against the administrator to secure full payment or settlement of claims;
(4) Has failed at any time to meet any qualification for which issuance of the license could have been refused, had the failure then existed and been known to the commissioner;
(5) Has been convicted of, or has entered a plea of guilty or nolo contendere to, a felony without regard to whether adjudication was withheld;
(6) Is under suspension or has a license revoked in another state; or
(7) Has failed to timely file the annual report pursuant to section 431:9J‑112.
(d) The commissioner may immediately suspend the license of an administrator, without advance notice or hearing, if the commissioner finds the following:
(1) The administrator is insolvent or impaired;
(2) A proceeding for receivership, conservatorship, rehabilitation, or other delinquency proceeding regarding the administrator has been commenced in any state; or
(3) The financial condition or business practices of the administrator otherwise are an imminent threat to the public health, safety, or welfare of the residents of this State.
(e) If the commissioner finds one or more grounds exist for the denial, nonrenewal, suspension, or revocation of the license, the commissioner may additionally impose a fine upon the administrator pursuant to section 431:2-203. [L 2019, c 72, pt of §1]