Prohibited activities -- Penalties

(1) After a hearing or upon agreement by the self-insured employer-organized association group, the commissioner may suspend or revoke the certificate of filing of a self-insured employer-organized association group, impose a civil penalty of up to five thousand dollars ($5,000) per violation on a self-insured employer-organized association group, or both, for: (a) Violations of KRS 304.12-237, 304.17A-800 to 304.17A-844, or administrative regulations promulgated thereunder; (b) Obtaining a certificate of filing by unfair or deceptive means; (c) Operating in a financially hazardous manner; (d) Misappropriation, conversion, illegal withholding, or refusal to pay over upon proper demand any moneys that belong to a member, an employee of a member, or a person otherwise entitled thereto by the group or its administrator; or (e) Unfair or deceptive business practices. (2) The commissioner, in his or her discretion and without advance notice or a hearing thereon, may suspend or revoke the certificate of filing of any self-insured employer-organized association group upon the commencement of the following proceedings: (a) Receivership; (b) Conservatorship; (c) Rehabilitation; or (d) Other delinquency proceedings.