Sec. 38a-90f. Violations of the Managing General Agents Act. Hearing and notices. Fines. Loss or damage due to noncompliance rehabilitation or liquidation. Civil actions and other relief.
Sec. 38a-90f. Violations of the Managing General Agents Act. Hearing and
notices. Fines. Loss or damage due to noncompliance rehabilitation or liquidation.
Civil actions and other relief. (a) If the commissioner finds after reasonable notice
and hearing that the managing general agent or any other person has not materially
complied with any provision of sections 38a-90 to 38a-90h, inclusive, or any regulation
or order adopted thereunder, the commissioner may order: (1) For each separate violation, a penalty in an amount of fifteen thousand dollars, and (2) revocation or suspension
of the person's insurance license.
(b) If he finds that because of such material noncompliance the insurer has suffered
any loss or damage, the commissioner may maintain a civil action brought by or on
behalf of the insurer and its policyholders and creditors for recovery of compensatory
damages for the benefit of the insurer and its policyholders and creditors or other appropriate relief.
(c) If an order of rehabilitation or liquidation of the insurer has been entered pursuant
to section 38a-915 or section 38a-920, and the receiver appointed under that order determines that the managing general agent or any other person has not materially complied
with sections 38a-90 to 38a-90h, inclusive, or any regulation or order promulgated thereunder, and the insurer has suffered any loss or damage therefrom, the receiver may
maintain a civil action for recovery of damages or other appropriate relief for the benefit
of the insurer and its policyholders and creditors.
(d) Nothing contained in this section shall affect the right of the commissioner to
impose any other penalties provided for in the provisions of this title.
(e) Nothing contained in sections 38a-90 to 38a-90h, inclusive, shall in any manner
limit or restrict the rights of policyholders, claimants and auditors.
(P.A. 91-262, S. 16, 19; P.A. 93-57, S. 4; May 25 Sp. Sess. P.A. 94-1, S. 30, 130; P.A. 96-193, S. 2, 36; P.A. 08-178,
S. 5.)
History: P.A. 93-57 amended Subsec. (a) to make technical corrections for clarity, inserted new Subsecs. (b) and (c)
to address loss or damage due to noncompliance and re provisions governing civil action for recovery of damages or relief
when an order of rehabilitation or liquidation has been entered and relettered existing Subsecs. (b) and (c) as (d) and (e);
May 25 Sp. Sess. P.A. 94-1 amended Subsecs. (b) and (c) by making technical grammatical changes, effective July 1,
1994; P.A. 96-193 amended Subsec. (a) to substitute "person's insurance" for "agent's", effective June 3, 1996; P.A. 08-178 amended Subsec. (a) by making technical changes and increasing penalty from $10,000 to $15,000.