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



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



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



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



(e)  Any officer, director, or employee of an
insurance holding company system who wilfully and knowingly subscribes to or
makes, or causes to be made, any false statements, false reports, or false
filings with the intent to deceive the commissioner in the performance of the
commissioner's duties under this article, upon conviction thereof, shall be
imprisoned for not more than one year, or fined $5,000, or both.  Any fines
imposed shall be paid by the officer, director, or employee in the person's
individual capacity. [L 1987, c 349, pt of §8; am L 1999, c 163, §15(1); am L
2000, c 182, §13; am L 2002, c 39, §14]