§431:2-203  Enforcement.  (a)  Thecommissioner may prosecute an action in any court of competent jurisdiction toenforce any order or fine made by the commissioner pursuant to any provision ofthis code.

 (b)(1)  A person who intentionally or knowingly violates,intentionally or knowingly permits any person over whom the person hasauthority to violate, or intentionally or knowingly aids any person inviolating any insurance rule or statute of this State or any effective orderissued by the commissioner, shall be subject to any penalty or fine as providedby this code or by the penal code of the Hawaii Revised Statutes.

(2)  If the commissioner has cause to believe that anyperson has violated any penal provision of this code or of other laws relatingto insurance, the commissioner shall proceed against that person or certify thefacts of the violation to the public prosecutor of the jurisdiction in whichthe offense was committed.

(3)  Violation of any provision of this code ispunishable by a fine of not less than $100 nor more than $10,000 per violation,or by imprisonment for not more than one year, or both, in addition to anyother penalty or forfeiture provided herein or otherwise by law.

(4)  The terms "intentionally" and"knowingly" shall have the same meanings as defined in section702-206(1) and (2).

(c)  If any licensee doing business in thisState, persistently or substantially violates this code or an order of thecommissioner, and there are grounds for delinquency proceedings against suchlicensee, or the licensee's methods and practices in the conduct of thelicensee's business endanger, or the licensee's financial resources areinadequate to safeguard, the legitimate interest of the licensee's customers orthe public, the commissioner may, after a hearing, in whole or in part,suspend, place on probation, limit, or refuse to renew the license orcertificate of authority pursuant to section 431:3-217 to section 431:3-221.

(d)  If the commissioner has cause to believethat any person is violating or is about to violate any provision of this codeor any order of the commissioner, the commissioner may issue a cease and desistorder to enforce compliance with this code or any order of the commissioner, orbring an action in any court of competent jurisdiction to enjoin the personfrom continuing the violation or doing any act in furtherance thereof.  Thecommissioner shall have the discretion to include in a cease and desist orderor request in an action brought in any court an assessment of a monetarypenalty against any person who violates this code or who has violated an orderof the commissioner.

(e)  If, upon examination or at any other time,the commissioner has reasonable cause to believe that any domestic insurerrequires supervision because it is in such condition as to render thecontinuance of its business hazardous to the public or to holders of itspolicies or certificates of insurance, or if the domestic insurer gave itsconsent, then the commissioner may summarily proceed pursuant to section431:15-201.

(f)  The attorney general, corporationcounsels, and county prosecuting attorneys, on behalf of the commissioner,shall bring an action in forfeiture against an insurer who violates any orderor notice of such order issued by the commissioner.  The notice shall be givento the insurer of the commissioner's intention to proceed under such orderagainst the person who does not comply with the order issued.  The order maycontain this notice of intention to seek a forfeiture if the order is disobeyed. The forfeiture shall be in an amount that the court considers just, but may notexceed an amount of $10,000 for each day that the violation continues after thecommencement of the action until judgment is rendered.  No forfeiture may beimposed under this subsection if at the time the forfeiture action iscommenced, the insurer was in compliance with the order, or if the violation ofthe order occurred during the order suspension period.  If, after a judgment isrendered, the insurer still does not comply with the order, the commissionermay commence a new action of forfeiture, and may continue commencing actions inforfeiture until the insurer complies.  All proceeds from actions of forfeitureshall be paid to the director of finance and paid into the complianceresolution fund.

(g)  A monetary penalty may be imposed inaddition to any applicable suspension, revocation, or denial of a license orcertificate of authority. [L 1987, c 347, pt of §2; am L 1995, c 232, §6; am L1999, c 163, §15(1) and c 246, §2; am L 2000, c 4, §6; am L 2002, c 39, §4; amL 2009, c 149, §3]