[§392-42.5]  Insurer's requirements; failureto maintain a claims service office; penalty; injunction.  (a)  Eachinsurer shall maintain a complete claims service office or engage anindependent claims adjusting service as its claims agent in this State withdraft authority for the processing of temporary disability insurance payments.

(b)  If an insurer fails to comply withsubsection (a), the insurer shall be subject to a civil penalty of not lessthan $2,500 or $100 for every day during which such failure continues,whichever sum is greater, to be recovered in an action brought by the directorin the name of the State, and the amount so collected shall be paid into thespecial fund created by section 392-61.  The director, in the director'sdiscretion, for good cause shown, may remit all or any part of the penalty inexcess of $2,500, if the insurer in default forthwith complies with subsection(a).  With respect to such actions, the attorney general shall enforce thissubsection if so requested by the director.

(c)  If any insurer violates subsection (a) fora period of thirty days, the insurer may be enjoined by the circuit court fromcarrying on the insurer's business any place in the State so long as theviolation continues.  The action for injunction shall be commenced by theattorney general if so requested by the director. [L 1991, c 113, §1]