State Codes and Statutes

Statutes > North-carolina > Chapter_58 > GS_58-30-60

§58‑30‑60.  Commissioner's summary orders and supervisionproceedings.

(a)        Whenever theCommissioner has reasonable cause to believe, and determines after a hearingheld under subsection (e) of this section, that any domestic insurer hascommitted or is engaged in, or is about to commit or engage in, any act,practice, or transaction that would subject it to delinquency proceedings underthis Article, he may make and serve upon the insurer and any other personsinvolved, such orders as are reasonably necessary to correct, eliminate, orremedy such conduct, condition, or ground.

(b)        The Commissionermay consider any or all of the following standards to determine whether thecontinued operation of any licensed insurer is hazardous to its policyholders,creditors, or the general public:

(1)        Adverse findingsreported in financial condition and market conduct examination reports;

(2)        The NAIC InsuranceRegulatory Information System and its related reports;

(3)        The ratios ofcommission expense, general insurance expense, policy benefits, and reserveincreases as to annual premium and net investment income that could lead to animpairment of capital and surplus;

(4)        Whether an insurer'sasset portfolio, when viewed in light of current economic conditions, is not ofsufficient value, liquidity, or diversity to assure the insurer's ability tomeet its outstanding obligations as they mature;

(5)        The ability of anassuming reinsurer to perform and whether the ceding insurer's reinsuranceprogram provides sufficient protection for the insurer's remaining surplus,after taking into account the insurer's cash flow and the classes of businesswritten as well as the financial condition of the assuming reinsurer;

(6)        Whether an insurer'soperating loss in the last 12‑month period or any shorter time, includingnet capital gain or loss, changes in nonadmitted assets, and cash dividendspaid to shareholders, is greater than fifty percent (50%) of the insurer'sremaining policyholders' surplus in excess of the minimum required;

(7)        Whether anyaffiliate, subsidiary, or reinsurer is insolvent, threatened with insolvency,or delinquent in payment of its monetary or any other obligation;

(8)        Contingentliabilities, pledges, or guaranties that either individually or collectivelyinvolve a total amount that in the Commissioner's opinion may affect aninsurer's solvency;

(9)        Whether anycontrolling person of an insurer is delinquent in the transmitting to orpayment of net premiums to the insurer;

(10)      The age andcollectibility of receivables;

(11)      Whether themanagement of an insurer, including officers, directors, or any other personwho directly or indirectly controls the operation of the insurer, fails topossess or demonstrate the competence, fitness, or reputation considered by theCommissioner to be necessary to serve the insurer in that position;

(12)      Whether themanagement of an insurer has failed to respond to the Commissioner's inquiriesabout the condition of the insurer or has furnished false and misleadinginformation in response to an inquiry by the Commissioner;

(13)      Whether themanagement of an insurer has filed any false or misleading sworn financialstatement, has released a false or misleading financial statement to a lendinginstitution or to the general public, or has made a false or misleading entryor omitted an entry of material amount in the insurer's books;

(14)      Whether the insurerhas grown so rapidly and to such an extent that it lacks adequate financial andadministrative capacity to meet its obligations in a timely manner; or

(15)      Whether the insurerhas experienced or will experience in the foreseeable future cash flow orliquidity problems.

To determine an insurer'sfinancial condition under this Article, the Commissioner may: disregard anycredit or amount receivable resulting from transactions with a reinsurer thatis insolvent, impaired, or otherwise subject to a delinquency proceeding; makeappropriate adjustments to asset values attributable to investments in ortransactions with parents, subsidiaries, or affiliates of an insurer; refuse torecognize the stated value of accounts receivable if the insurer's ability tocollect receivables is highly speculative in view of the age of the account orthe financial condition of the debtor; or increase the insurer's liability inan amount equal to any contingent liability, pledge, or guarantee not otherwiseincluded if there is a substantial risk that the insurer will be called upon tomeet the obligation undertaken within the next 12‑month period.

If upon examination or at anyother time the Commissioner has reasonable cause to believe that any domesticinsurer is in such condition as to render the continuance of its businesshazardous to the public or to holders of its policies or certificates ofinsurance, or if the domestic insurer gives its consent, then the Commissionershall upon the Commissioner's determination:

(1)        Notify the insurerof that determination; and

(2)        Furnish to theinsurer a written list of the Commissioner's requirements to abate thatdetermination.

The written list may includerequirements that the insurer: reduce the total amount of present and potentialliability for policy benefits by reinsurance; reduce, suspend, or limit thevolume of insurance being accepted or renewed; reduce general insurance andcommission expenses by specified methods; increase its capital and surplus;suspend or limit its declaration and payment of dividends to its stockholdersor policyholders; file reports in a form acceptable to the Commissionerconcerning the market value of its assets; limit or withdraw from certaininvestments or discontinue certain investment practices to the extent theCommissioner considers to be necessary; document the adequacy of premium ratesin relation to the risks insured; or file, in addition to regular annualfinancial statements, interim financial reports on the form adopted by the NAICor on such format prescribed by the Commissioner. Notwithstanding any otherprovision of law limiting the frequency or amount of premium rate adjustments,the Commissioner may include in the list of requirements any rate adjustmentsfor any kinds of insurance written by the insurer that the Commissionerconsiders necessary to improve the financial condition of the insurer.

(c)        If the Commissionermakes a determination to supervise an insurer subject to an order undersubsections (a) or (b) of this section, he shall notify the insurer that it isunder the supervision of the Commissioner. During the period of supervision,the Commissioner may appoint a supervisor to supervise such insurer. The orderappointing a supervisor shall direct the supervisor to enforce orders issuedunder subsections (a) and (b) of this section and may also require that theinsurer may not do any of the following things during the period ofsupervision, without the prior approval of the Commissioner or his supervisor:

(1)        Dispose of, convey,or encumber any of its assets or its business in force;

(2)        Withdraw from any ofits bank accounts;

(3)        Lend any of itsfunds;

(4)        Invest any of itsfunds;

(5)        Transfer any of itsproperty;

(6)        Incur any debt,obligation, or liability;

(7)        Merge or consolidatewith another company; or

(8)        Enter into any newreinsurance contract or treaty.

(d)        Any insurer subjectto an order under this section shall comply with the lawful requirements of theCommissioner and, if placed under supervision, shall comply with therequirements of the Commissioner within such period of time established by theCommissioner. The Commissioner may in his discretion extend the time forcompliance beyond such period of time for cause. In the event of such insurer'sfailure to comply within such period of time, the Commissioner may instituteproceedings under this Article to have a rehabilitator or liquidator appointed,or extend the period of supervision.

(e)        The notice ofhearing under subsection (a) of this section and any order issued pursuant tothat subsection shall be served upon the insurer pursuant to the applicablerules of civil procedure. The notice of hearing shall state the time and placeof hearing, and the conduct, condition, or ground upon which the Commissionerwould base his order. Unless mutually agreed upon between the Commissioner andthe insurer, the hearing shall occur not less than 10 days nor more than 30 daysafter notice is served and shall be either in Wake County or in some otherplace designated by the Commissioner. The Commissioner shall hold all hearingsunder subsection (a) of this section privately unless the insurer requests apublic hearing, in which case the hearing shall be public.

(f)         Any insurersubject to an order under subsection (b) of this section may request anadministrative hearing before the Commissioner or his designee to review thatorder. Such hearing shall be held as provided in subsection (e) of thissection, but the request for a hearing shall not stay the effect of the order.If the Commissioner issues an order under subsection (b) of this section, theinsurer may, at any time, waive the hearing and apply for immediate judicial reliefby means of any remedy afforded by law without first exhausting itsadministrative remedies. Subsequent to an administrative hearing, any party tothe proceedings whose interests are substantially affected is entitled tojudicial review of any order issued by the Commissioner.

(g)        During the periodof supervision the insurer may request the Commissioner to review any actiontaken or proposed to be taken by the supervisor, specifying wherein the actioncomplained of is believed not to be in the best interest of the insurer.

(h)        If any personviolates any supervision order issued under this section that as to him is thenstill in effect, he shall be liable to pay a civil penalty imposed by the Courtnot to exceed ten thousand dollars ($10,000). The clear proceeds of civilpenalties imposed pursuant to this subsection shall be remitted to the CivilPenalty and Forfeiture Fund in accordance with G.S. 115C‑457.2.

(i)         The Commissionermay apply for, and any court of general jurisdiction may grant, such restrainingorders, preliminary and permanent injunctions, and other orders as may bedeemed to be necessary and proper to enforce a supervision order.

(j)         In the event thatany person subject to the provisions of this Article, including any persondescribed in G.S. 58‑30‑25(a), knowingly and willfully violates anyvalid order of the Commissioner issued under the provisions of this sectionand, as a result of such violation, the net worth of the insurer is reduced orthe insurer suffers loss that it would not otherwise have suffered, said personshall become personally liable to the insurer for the amount of any suchreduction or loss. The Commissioner or supervisor is authorized to bring anaction on behalf of the insurer in the Court to recover the amount of the reductionor loss together with any costs. (1989, c. 452, s. 1; 1989(Reg. Sess., 1990), c. 1021, s. 6; 1991, c. 681, s. 43; 1998‑215, s. 86.)

State Codes and Statutes

Statutes > North-carolina > Chapter_58 > GS_58-30-60

§58‑30‑60.  Commissioner's summary orders and supervisionproceedings.

(a)        Whenever theCommissioner has reasonable cause to believe, and determines after a hearingheld under subsection (e) of this section, that any domestic insurer hascommitted or is engaged in, or is about to commit or engage in, any act,practice, or transaction that would subject it to delinquency proceedings underthis Article, he may make and serve upon the insurer and any other personsinvolved, such orders as are reasonably necessary to correct, eliminate, orremedy such conduct, condition, or ground.

(b)        The Commissionermay consider any or all of the following standards to determine whether thecontinued operation of any licensed insurer is hazardous to its policyholders,creditors, or the general public:

(1)        Adverse findingsreported in financial condition and market conduct examination reports;

(2)        The NAIC InsuranceRegulatory Information System and its related reports;

(3)        The ratios ofcommission expense, general insurance expense, policy benefits, and reserveincreases as to annual premium and net investment income that could lead to animpairment of capital and surplus;

(4)        Whether an insurer'sasset portfolio, when viewed in light of current economic conditions, is not ofsufficient value, liquidity, or diversity to assure the insurer's ability tomeet its outstanding obligations as they mature;

(5)        The ability of anassuming reinsurer to perform and whether the ceding insurer's reinsuranceprogram provides sufficient protection for the insurer's remaining surplus,after taking into account the insurer's cash flow and the classes of businesswritten as well as the financial condition of the assuming reinsurer;

(6)        Whether an insurer'soperating loss in the last 12‑month period or any shorter time, includingnet capital gain or loss, changes in nonadmitted assets, and cash dividendspaid to shareholders, is greater than fifty percent (50%) of the insurer'sremaining policyholders' surplus in excess of the minimum required;

(7)        Whether anyaffiliate, subsidiary, or reinsurer is insolvent, threatened with insolvency,or delinquent in payment of its monetary or any other obligation;

(8)        Contingentliabilities, pledges, or guaranties that either individually or collectivelyinvolve a total amount that in the Commissioner's opinion may affect aninsurer's solvency;

(9)        Whether anycontrolling person of an insurer is delinquent in the transmitting to orpayment of net premiums to the insurer;

(10)      The age andcollectibility of receivables;

(11)      Whether themanagement of an insurer, including officers, directors, or any other personwho directly or indirectly controls the operation of the insurer, fails topossess or demonstrate the competence, fitness, or reputation considered by theCommissioner to be necessary to serve the insurer in that position;

(12)      Whether themanagement of an insurer has failed to respond to the Commissioner's inquiriesabout the condition of the insurer or has furnished false and misleadinginformation in response to an inquiry by the Commissioner;

(13)      Whether themanagement of an insurer has filed any false or misleading sworn financialstatement, has released a false or misleading financial statement to a lendinginstitution or to the general public, or has made a false or misleading entryor omitted an entry of material amount in the insurer's books;

(14)      Whether the insurerhas grown so rapidly and to such an extent that it lacks adequate financial andadministrative capacity to meet its obligations in a timely manner; or

(15)      Whether the insurerhas experienced or will experience in the foreseeable future cash flow orliquidity problems.

To determine an insurer'sfinancial condition under this Article, the Commissioner may: disregard anycredit or amount receivable resulting from transactions with a reinsurer thatis insolvent, impaired, or otherwise subject to a delinquency proceeding; makeappropriate adjustments to asset values attributable to investments in ortransactions with parents, subsidiaries, or affiliates of an insurer; refuse torecognize the stated value of accounts receivable if the insurer's ability tocollect receivables is highly speculative in view of the age of the account orthe financial condition of the debtor; or increase the insurer's liability inan amount equal to any contingent liability, pledge, or guarantee not otherwiseincluded if there is a substantial risk that the insurer will be called upon tomeet the obligation undertaken within the next 12‑month period.

If upon examination or at anyother time the Commissioner has reasonable cause to believe that any domesticinsurer is in such condition as to render the continuance of its businesshazardous to the public or to holders of its policies or certificates ofinsurance, or if the domestic insurer gives its consent, then the Commissionershall upon the Commissioner's determination:

(1)        Notify the insurerof that determination; and

(2)        Furnish to theinsurer a written list of the Commissioner's requirements to abate thatdetermination.

The written list may includerequirements that the insurer: reduce the total amount of present and potentialliability for policy benefits by reinsurance; reduce, suspend, or limit thevolume of insurance being accepted or renewed; reduce general insurance andcommission expenses by specified methods; increase its capital and surplus;suspend or limit its declaration and payment of dividends to its stockholdersor policyholders; file reports in a form acceptable to the Commissionerconcerning the market value of its assets; limit or withdraw from certaininvestments or discontinue certain investment practices to the extent theCommissioner considers to be necessary; document the adequacy of premium ratesin relation to the risks insured; or file, in addition to regular annualfinancial statements, interim financial reports on the form adopted by the NAICor on such format prescribed by the Commissioner. Notwithstanding any otherprovision of law limiting the frequency or amount of premium rate adjustments,the Commissioner may include in the list of requirements any rate adjustmentsfor any kinds of insurance written by the insurer that the Commissionerconsiders necessary to improve the financial condition of the insurer.

(c)        If the Commissionermakes a determination to supervise an insurer subject to an order undersubsections (a) or (b) of this section, he shall notify the insurer that it isunder the supervision of the Commissioner. During the period of supervision,the Commissioner may appoint a supervisor to supervise such insurer. The orderappointing a supervisor shall direct the supervisor to enforce orders issuedunder subsections (a) and (b) of this section and may also require that theinsurer may not do any of the following things during the period ofsupervision, without the prior approval of the Commissioner or his supervisor:

(1)        Dispose of, convey,or encumber any of its assets or its business in force;

(2)        Withdraw from any ofits bank accounts;

(3)        Lend any of itsfunds;

(4)        Invest any of itsfunds;

(5)        Transfer any of itsproperty;

(6)        Incur any debt,obligation, or liability;

(7)        Merge or consolidatewith another company; or

(8)        Enter into any newreinsurance contract or treaty.

(d)        Any insurer subjectto an order under this section shall comply with the lawful requirements of theCommissioner and, if placed under supervision, shall comply with therequirements of the Commissioner within such period of time established by theCommissioner. The Commissioner may in his discretion extend the time forcompliance beyond such period of time for cause. In the event of such insurer'sfailure to comply within such period of time, the Commissioner may instituteproceedings under this Article to have a rehabilitator or liquidator appointed,or extend the period of supervision.

(e)        The notice ofhearing under subsection (a) of this section and any order issued pursuant tothat subsection shall be served upon the insurer pursuant to the applicablerules of civil procedure. The notice of hearing shall state the time and placeof hearing, and the conduct, condition, or ground upon which the Commissionerwould base his order. Unless mutually agreed upon between the Commissioner andthe insurer, the hearing shall occur not less than 10 days nor more than 30 daysafter notice is served and shall be either in Wake County or in some otherplace designated by the Commissioner. The Commissioner shall hold all hearingsunder subsection (a) of this section privately unless the insurer requests apublic hearing, in which case the hearing shall be public.

(f)         Any insurersubject to an order under subsection (b) of this section may request anadministrative hearing before the Commissioner or his designee to review thatorder. Such hearing shall be held as provided in subsection (e) of thissection, but the request for a hearing shall not stay the effect of the order.If the Commissioner issues an order under subsection (b) of this section, theinsurer may, at any time, waive the hearing and apply for immediate judicial reliefby means of any remedy afforded by law without first exhausting itsadministrative remedies. Subsequent to an administrative hearing, any party tothe proceedings whose interests are substantially affected is entitled tojudicial review of any order issued by the Commissioner.

(g)        During the periodof supervision the insurer may request the Commissioner to review any actiontaken or proposed to be taken by the supervisor, specifying wherein the actioncomplained of is believed not to be in the best interest of the insurer.

(h)        If any personviolates any supervision order issued under this section that as to him is thenstill in effect, he shall be liable to pay a civil penalty imposed by the Courtnot to exceed ten thousand dollars ($10,000). The clear proceeds of civilpenalties imposed pursuant to this subsection shall be remitted to the CivilPenalty and Forfeiture Fund in accordance with G.S. 115C‑457.2.

(i)         The Commissionermay apply for, and any court of general jurisdiction may grant, such restrainingorders, preliminary and permanent injunctions, and other orders as may bedeemed to be necessary and proper to enforce a supervision order.

(j)         In the event thatany person subject to the provisions of this Article, including any persondescribed in G.S. 58‑30‑25(a), knowingly and willfully violates anyvalid order of the Commissioner issued under the provisions of this sectionand, as a result of such violation, the net worth of the insurer is reduced orthe insurer suffers loss that it would not otherwise have suffered, said personshall become personally liable to the insurer for the amount of any suchreduction or loss. The Commissioner or supervisor is authorized to bring anaction on behalf of the insurer in the Court to recover the amount of the reductionor loss together with any costs. (1989, c. 452, s. 1; 1989(Reg. Sess., 1990), c. 1021, s. 6; 1991, c. 681, s. 43; 1998‑215, s. 86.)


State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_58 > GS_58-30-60

§58‑30‑60.  Commissioner's summary orders and supervisionproceedings.

(a)        Whenever theCommissioner has reasonable cause to believe, and determines after a hearingheld under subsection (e) of this section, that any domestic insurer hascommitted or is engaged in, or is about to commit or engage in, any act,practice, or transaction that would subject it to delinquency proceedings underthis Article, he may make and serve upon the insurer and any other personsinvolved, such orders as are reasonably necessary to correct, eliminate, orremedy such conduct, condition, or ground.

(b)        The Commissionermay consider any or all of the following standards to determine whether thecontinued operation of any licensed insurer is hazardous to its policyholders,creditors, or the general public:

(1)        Adverse findingsreported in financial condition and market conduct examination reports;

(2)        The NAIC InsuranceRegulatory Information System and its related reports;

(3)        The ratios ofcommission expense, general insurance expense, policy benefits, and reserveincreases as to annual premium and net investment income that could lead to animpairment of capital and surplus;

(4)        Whether an insurer'sasset portfolio, when viewed in light of current economic conditions, is not ofsufficient value, liquidity, or diversity to assure the insurer's ability tomeet its outstanding obligations as they mature;

(5)        The ability of anassuming reinsurer to perform and whether the ceding insurer's reinsuranceprogram provides sufficient protection for the insurer's remaining surplus,after taking into account the insurer's cash flow and the classes of businesswritten as well as the financial condition of the assuming reinsurer;

(6)        Whether an insurer'soperating loss in the last 12‑month period or any shorter time, includingnet capital gain or loss, changes in nonadmitted assets, and cash dividendspaid to shareholders, is greater than fifty percent (50%) of the insurer'sremaining policyholders' surplus in excess of the minimum required;

(7)        Whether anyaffiliate, subsidiary, or reinsurer is insolvent, threatened with insolvency,or delinquent in payment of its monetary or any other obligation;

(8)        Contingentliabilities, pledges, or guaranties that either individually or collectivelyinvolve a total amount that in the Commissioner's opinion may affect aninsurer's solvency;

(9)        Whether anycontrolling person of an insurer is delinquent in the transmitting to orpayment of net premiums to the insurer;

(10)      The age andcollectibility of receivables;

(11)      Whether themanagement of an insurer, including officers, directors, or any other personwho directly or indirectly controls the operation of the insurer, fails topossess or demonstrate the competence, fitness, or reputation considered by theCommissioner to be necessary to serve the insurer in that position;

(12)      Whether themanagement of an insurer has failed to respond to the Commissioner's inquiriesabout the condition of the insurer or has furnished false and misleadinginformation in response to an inquiry by the Commissioner;

(13)      Whether themanagement of an insurer has filed any false or misleading sworn financialstatement, has released a false or misleading financial statement to a lendinginstitution or to the general public, or has made a false or misleading entryor omitted an entry of material amount in the insurer's books;

(14)      Whether the insurerhas grown so rapidly and to such an extent that it lacks adequate financial andadministrative capacity to meet its obligations in a timely manner; or

(15)      Whether the insurerhas experienced or will experience in the foreseeable future cash flow orliquidity problems.

To determine an insurer'sfinancial condition under this Article, the Commissioner may: disregard anycredit or amount receivable resulting from transactions with a reinsurer thatis insolvent, impaired, or otherwise subject to a delinquency proceeding; makeappropriate adjustments to asset values attributable to investments in ortransactions with parents, subsidiaries, or affiliates of an insurer; refuse torecognize the stated value of accounts receivable if the insurer's ability tocollect receivables is highly speculative in view of the age of the account orthe financial condition of the debtor; or increase the insurer's liability inan amount equal to any contingent liability, pledge, or guarantee not otherwiseincluded if there is a substantial risk that the insurer will be called upon tomeet the obligation undertaken within the next 12‑month period.

If upon examination or at anyother time the Commissioner has reasonable cause to believe that any domesticinsurer is in such condition as to render the continuance of its businesshazardous to the public or to holders of its policies or certificates ofinsurance, or if the domestic insurer gives its consent, then the Commissionershall upon the Commissioner's determination:

(1)        Notify the insurerof that determination; and

(2)        Furnish to theinsurer a written list of the Commissioner's requirements to abate thatdetermination.

The written list may includerequirements that the insurer: reduce the total amount of present and potentialliability for policy benefits by reinsurance; reduce, suspend, or limit thevolume of insurance being accepted or renewed; reduce general insurance andcommission expenses by specified methods; increase its capital and surplus;suspend or limit its declaration and payment of dividends to its stockholdersor policyholders; file reports in a form acceptable to the Commissionerconcerning the market value of its assets; limit or withdraw from certaininvestments or discontinue certain investment practices to the extent theCommissioner considers to be necessary; document the adequacy of premium ratesin relation to the risks insured; or file, in addition to regular annualfinancial statements, interim financial reports on the form adopted by the NAICor on such format prescribed by the Commissioner. Notwithstanding any otherprovision of law limiting the frequency or amount of premium rate adjustments,the Commissioner may include in the list of requirements any rate adjustmentsfor any kinds of insurance written by the insurer that the Commissionerconsiders necessary to improve the financial condition of the insurer.

(c)        If the Commissionermakes a determination to supervise an insurer subject to an order undersubsections (a) or (b) of this section, he shall notify the insurer that it isunder the supervision of the Commissioner. During the period of supervision,the Commissioner may appoint a supervisor to supervise such insurer. The orderappointing a supervisor shall direct the supervisor to enforce orders issuedunder subsections (a) and (b) of this section and may also require that theinsurer may not do any of the following things during the period ofsupervision, without the prior approval of the Commissioner or his supervisor:

(1)        Dispose of, convey,or encumber any of its assets or its business in force;

(2)        Withdraw from any ofits bank accounts;

(3)        Lend any of itsfunds;

(4)        Invest any of itsfunds;

(5)        Transfer any of itsproperty;

(6)        Incur any debt,obligation, or liability;

(7)        Merge or consolidatewith another company; or

(8)        Enter into any newreinsurance contract or treaty.

(d)        Any insurer subjectto an order under this section shall comply with the lawful requirements of theCommissioner and, if placed under supervision, shall comply with therequirements of the Commissioner within such period of time established by theCommissioner. The Commissioner may in his discretion extend the time forcompliance beyond such period of time for cause. In the event of such insurer'sfailure to comply within such period of time, the Commissioner may instituteproceedings under this Article to have a rehabilitator or liquidator appointed,or extend the period of supervision.

(e)        The notice ofhearing under subsection (a) of this section and any order issued pursuant tothat subsection shall be served upon the insurer pursuant to the applicablerules of civil procedure. The notice of hearing shall state the time and placeof hearing, and the conduct, condition, or ground upon which the Commissionerwould base his order. Unless mutually agreed upon between the Commissioner andthe insurer, the hearing shall occur not less than 10 days nor more than 30 daysafter notice is served and shall be either in Wake County or in some otherplace designated by the Commissioner. The Commissioner shall hold all hearingsunder subsection (a) of this section privately unless the insurer requests apublic hearing, in which case the hearing shall be public.

(f)         Any insurersubject to an order under subsection (b) of this section may request anadministrative hearing before the Commissioner or his designee to review thatorder. Such hearing shall be held as provided in subsection (e) of thissection, but the request for a hearing shall not stay the effect of the order.If the Commissioner issues an order under subsection (b) of this section, theinsurer may, at any time, waive the hearing and apply for immediate judicial reliefby means of any remedy afforded by law without first exhausting itsadministrative remedies. Subsequent to an administrative hearing, any party tothe proceedings whose interests are substantially affected is entitled tojudicial review of any order issued by the Commissioner.

(g)        During the periodof supervision the insurer may request the Commissioner to review any actiontaken or proposed to be taken by the supervisor, specifying wherein the actioncomplained of is believed not to be in the best interest of the insurer.

(h)        If any personviolates any supervision order issued under this section that as to him is thenstill in effect, he shall be liable to pay a civil penalty imposed by the Courtnot to exceed ten thousand dollars ($10,000). The clear proceeds of civilpenalties imposed pursuant to this subsection shall be remitted to the CivilPenalty and Forfeiture Fund in accordance with G.S. 115C‑457.2.

(i)         The Commissionermay apply for, and any court of general jurisdiction may grant, such restrainingorders, preliminary and permanent injunctions, and other orders as may bedeemed to be necessary and proper to enforce a supervision order.

(j)         In the event thatany person subject to the provisions of this Article, including any persondescribed in G.S. 58‑30‑25(a), knowingly and willfully violates anyvalid order of the Commissioner issued under the provisions of this sectionand, as a result of such violation, the net worth of the insurer is reduced orthe insurer suffers loss that it would not otherwise have suffered, said personshall become personally liable to the insurer for the amount of any suchreduction or loss. The Commissioner or supervisor is authorized to bring anaction on behalf of the insurer in the Court to recover the amount of the reductionor loss together with any costs. (1989, c. 452, s. 1; 1989(Reg. Sess., 1990), c. 1021, s. 6; 1991, c. 681, s. 43; 1998‑215, s. 86.)