New Hampshire Code of Administrative Rules
Ins - Commissioner, Insurance Department
Chapter Ins 3200 - SALES OF INSURANCE BY FINANCIAL INSTITUTIONS
Part Ins 3205 - COMPLIANCE, ENFORCEMENT AND PENALTY PROVISIONS
Section Ins 3205.02 - Penalties

Universal Citation: NH Admin Rules Ins 3205.02

Current through Register No. 40, October 3, 2024

(a) A violation of Ins 3202.01 through Ins 3205.01, shall result in an enforcement action under RSA 406-C. The department shall specify which sections, including specific subsections if any, of RSA 406-C are alleged violated in any enforcement action brought under this section.

(b) In addition to any other penalties provided by the laws of this state, a financial institution or individual who violates a requirement of the administrative rules sections cited in (a) above shall, after notice and hearing in accordance with the procedures set forth in Ins 201 through Ins 204, be subject to suspension, revocation or fine pursuant to RSA 406-C:18 unless in instances of an administrative fine the financial institution or individual requests no fine as set forth in (d) below.

(c) After appropriate notice and hearing, an administrative fine of $2,500 shall be levied for each finding of violation of a provision of the sections cited in (a) above as set forth in RSA 406-C. The financial institution or individual may request a reduced fine or no fine.

(d) The financial institution or individual may request no fine as set forth in (d) below, or a reduced fine as set forth in (c) above through demonstration by the financial institution or individual that:

(1) There is no or minimal damage or costs to consumers, the State or other licensed entities as a result of the violation;

(2) The financial institution or individual has not committed multiple or repeated violations;

(3) The act or omission in issue was not knowing, intentional, or committed in bad faith; and

(4) The requested reduced fine represents an appropriate penalty based on the nature and severity of the resultant harm.

(e) Financial institutions or individuals shall additionally be subject to suspension pursuant to RSA 406-C:18 when the violation of the sections noted in (a) above is ongoing or there is a high probability the violation will be repeated based on findings of record.

(f) Financial institutions or individuals shall be subject to revocation pursuant to RSA 406-C:18 if:

(1) The act or omission was knowing, intentional or committed in bad faith; or

(2) There was significant damage or cost to consumers, the State or other licensed entities as a result of the violation.

(g) A knowing violation of a section other than those cited in (a) above shall result in an enforcement action under RSA 400-A:15, III, subject to the requirements therein.

(h) After appropriate notice and hearing, an administrative fine of $2,500 shall be levied for each finding of violation of RSA 400-A:15, III if the penalty of suspension or revocation as specified below is not appropriate.

(i) The financial institution or individual may request at hearing a reduced fine or no fine imposed under (h) above through successful demonstration that:

(1) There is no or minimal damage or costs to consumers, the State or other licensed entities as a result of the violation;

(2) The financial institution or individual has not committed multiple or repeated violations; and

(3) The requested reduced fine represents an appropriate penalty based on the nature and severity of the resultant harm.

(j) Financial institutions or individuals shall be subject to suspension pursuant to RSA 400-A:15, III if one of the following occurs:

(1) The violation is continuing; or

(2) There is a high probability the violation will be repeated, based on findings of record; and

(3) Imposition of a penalty other than suspension, such as a fine, will not be a sufficient deterrent.

(k) Financial institutions or individuals shall be subject to revocation pursuant to RSA 400-A:15, III if:

(1) The violative act or omission was intentional or committed in bad faith; or

(2) There was significant damage or cost to consumers, the State or other licensed entities as a result of the violation.

(l) Repeated or multiple violations of this part shall constitute separate violations subject to penalty.

#7064, eff 7-24-99; ss by #7300, eff 7-1-00; amd by #7540, eff 8-1-01

Disclaimer: These regulations may not be the most recent version. New Hampshire may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.