§1034 Civil Penalties and Injunctions for Violations of Section 1033

Summary

The Attorney General can sue in federal court anyone who commits the prohibited conduct. If the government proves it is more likely than not that the person did it, the person must pay a civil penalty of up to $50,000 for each violation or the amount they received or offered for the illegal conduct, whichever is greater. If the misconduct helped cause a court to put an insurer into conservation, rehabilitation, or liquidation, the penalty is paid to the regulator to help policyholders, claimants, and creditors. Paying the penalty does not stop other criminal or civil actions. If the Attorney General believes someone is doing the prohibited conduct, the Attorney General can ask a federal court to order that person to stop. The court may issue the order if it finds the conduct is an offense. Asking for the order does not block other legal remedies.