(a) The Insurance Commissioner, after notice and a hearing, shall suspend or revoke a certificate of authority of a captive insurance company if the commissioner finds that the captive insurance company:(1) (A) Is in an unsound condition or is in such condition, or is using methods and practices in the conduct of its business, as to allow further transactions of insurance in Arkansas hazardous or injurious to the policyholders of the captive insurance company or to the public.(B) For purposes of this section, the commissioner may consider the present, past, and future trends in the financial condition of the captive insurance company that may affect the solvency of the captive insurance company;(2) Refuses to be examined or to produce the accounts, records, or files of the captive insurance company for examination or if any of the officers of the captive insurance company have refused to give information with respect to the affairs of the captive insurance company when required by the commissioner;(3) Fails to pay any final judgment rendered against the captive insurance company within thirty (30) days of entry of the judgment; or(4) Knowingly, or with reckless disregard, violated or failed to comply with the Arkansas Insurance Code or with any lawful rule or order of the commissioner.
(1) (A) Is in an unsound condition or is in such condition, or is using methods and practices in the conduct of its business, as to allow further transactions of insurance in Arkansas hazardous or injurious to the policyholders of the captive insurance company or to the public.(B) For purposes of this section, the commissioner may consider the present, past, and future trends in the financial condition of the captive insurance company that may affect the solvency of the captive insurance company;
(A) Is in an unsound condition or is in such condition, or is using methods and practices in the conduct of its business, as to allow further transactions of insurance in Arkansas hazardous or injurious to the policyholders of the captive insurance company or to the public.
(B) For purposes of this section, the commissioner may consider the present, past, and future trends in the financial condition of the captive insurance company that may affect the solvency of the captive insurance company;
(2) Refuses to be examined or to produce the accounts, records, or files of the captive insurance company for examination or if any of the officers of the captive insurance company have refused to give information with respect to the affairs of the captive insurance company when required by the commissioner;
(3) Fails to pay any final judgment rendered against the captive insurance company within thirty (30) days of entry of the judgment; or
(4) Knowingly, or with reckless disregard, violated or failed to comply with the Arkansas Insurance Code or with any lawful rule or order of the commissioner.
(b) If the commissioner finds that one (1) or more grounds exist for the suspension or revocation of a certificate of authority of a captive insurance company, the commissioner may:(1) In lieu of suspension, impose upon the holder of the certificate of authority an administrative penalty in the amount of five thousand dollars ($5,000); or(2) In lieu of revocation, impose upon the holder of the certificate of authority an administrative penalty in the amount of ten thousand dollars ($10,000).
(1) In lieu of suspension, impose upon the holder of the certificate of authority an administrative penalty in the amount of five thousand dollars ($5,000); or
(2) In lieu of revocation, impose upon the holder of the certificate of authority an administrative penalty in the amount of ten thousand dollars ($10,000).