§1034 Civil penalties and injunctions for violations of section 1033

Summary

The Attorney General can sue a person in federal court if they break the rules in section 1033. If the government proves it is more likely than not that the person violated those rules, the person can be fined up to $50,000 for each violation or must pay back the money they received or offered for the bad conduct, whichever is larger. If the misconduct helped cause a court to order an insurer into conservation, rehabilitation, or liquidation, the fine must go to the proper regulator to help the insurer’s policyholders, claimants, and creditors. Collecting this penalty does not stop other criminal, civil, or administrative actions. If the Attorney General thinks someone is committing an offense under section 1033, the Attorney General can ask a federal court to order that person to stop. The court may issue such an order if it finds the conduct is an offense. Asking for this order does not prevent the United States or anyone else from using other legal remedies.