Section 415-I:6 Suspension and Revocation of Registration.


   I. The commissioner may suspend or revoke the registration of a discount medical plan organization to operate in the state if the commissioner finds that any of the following conditions exist:
      (a) The discount medical plan organization is not operating in compliance with this chapter.
      (b) The discount medical plan organization has advertised, merchandised, or attempted to merchandise its services in such a manner as to misrepresent its services or capacity for service or has engaged in a deceptive, misleading, or unfair practice.
      (c) The discount medical plan organization is not fulfilling its obligations as a discount medical plan organization.
   II. If the commissioner has cause to believe that grounds for the non-renewal, suspension, or revocation of the registration exists, the commissioner shall notify the discount medical plan organization in writing stating the grounds for the action and may pursue a hearing on the matter.
   III. When the registration of a discount medical plan organization is suspended or revoked, the discount medical plan organization shall proceed, immediately following the effective date of the order of revocation or, in the case of a non-renewal, the date of expiration of the license, to wind up its affairs transacted. The discount medical plan organization shall not engage in any further advertising, solicitation, collecting of fees, or renewal of contracts.
   IV. In lieu of or in addition to revoking a discount medical plan organization's registration under paragraph II, whenever the discount medical plan organization has been found to have violated any provision of this chapter, the commissioner may:
      (a) Issue and cause to be served upon the organization charged with the violation a copy of the findings and an order requiring the organization to cease and desist from engaging in the act or practice that constitutes the violation; and
      (b) Impose a civil penalty of not more than $2,500 for each violation.
   V. Each registered discount medical plan organization shall notify the commissioner immediately whenever the discount medical plan organization's certificate of registration or other form of authority, to operate as a discount medical plan organization in another state is suspended, revoked, or non-renewed in that state.

Source. 2008, 206:1, eff. Jan. 1, 2009.