§431:11-111  Sanctions.  (a)  Anyinsurer failing without just cause to file any registration statement asrequired in this article shall be liable for a fine in an amount of not lessthan $100 and not more than $500 for each day of delinquency, to be recoveredby the commissioner, and the penalty so recovered shall be paid into the compliance resolution fund.  Thecommissioner may reduce the penalty if the insurer demonstrates to thecommissioner that the imposition of the penalty would constitute a financialhardship to the insurer.

(b)  Every director or officer of an insuranceholding company system who knowingly violates, participates in, or assents to,or who knowingly permits any of the officers or agents of the insurer to engagein any transactions or make investments that have not been properly reported orsubmitted pursuant to sections 431:11-105(a), 431:11-106(a)(2), or431:11-106(b), or who violates this article, shall be subject to a fine of notless than $100 and not more than $10,000 per violation.  In determining theamount of the fine, the commissioner shall take into account theappropriateness of the fine with respect to the gravity of the violation, thehistory of previous violations, and such other matters as justice may require.

(c)  Whenever it appears to the commissionerthat any insurer subject to this article or any director, officer, employee, oragent thereof has engaged in any transaction or entered into a contract whichis subject to section 431:11-106 and which would not have been approved had theapproval been requested, the commissioner may order the insurer to cease anddesist immediately any further activity under that transaction or contract. After notice and hearing, the commissioner may also order the insurer to void anyof the contracts and restore the status quo if that action is in the bestinterest of the policyholders, creditors, or the public.

(d)  Whenever it appears to the commissionerthat any insurer or any director, officer, employee, or agent thereof has committeda wilful violation of this article, the commissioner may cause criminalproceedings to be instituted against the insurer or the responsible director,officer, employee, or agent thereof.  Any insurer who wilfully violates thisarticle shall be subject to a fine of not less than $100 and not more than$10,000 per violation.  Any individual who wilfully violates this article shallbe subject to a fine in the individual's capacity of not less than $100 and notmore than $10,000 per violation, or be imprisoned for not more than one year.

(e)  Any officer, director, or employee of aninsurance holding company system who wilfully and knowingly subscribes to ormakes, or causes to be made, any false statements, false reports, or falsefilings with the intent to deceive the commissioner in the performance of thecommissioner's duties under this article, upon conviction thereof, shall beimprisoned for not more than one year, or fined $5,000, or both.  Any finesimposed shall be paid by the officer, director, or employee in the person'sindividual capacity. [L 1987, c 349, pt of §8; am L 1999, c 163, §15(1); am L2000, c 182, §13; am L 2002, c 39, §14]