20-397. Penalties; exception

A. If the director finds that a person or organization has violated this article or any order of the director issued pursuant to this article after the effective date of such order, the director may, after a hearing, impose a civil penalty of not more than fifty dollars for each violation. If the director finds that a person or organization knowingly violated this article or any order of the director issued pursuant to this article after the effective date of such order, the director may, after a hearing, impose a civil penalty of not more than five hundred dollars for each violation. Such civil penalties, which may not in the aggregate exceed fifty thousand dollars, may be in addition to any other penalty provided by law.

B. It is not a violation of this article if an insurer or rate service organization files a rate or rate change pursuant to section 20-385 which is later disapproved by the director.

C. The director may suspend the license of any rate service organization or insurer which fails to comply with an order of the director within the time prescribed by such order, or any extension of the order which the director may grant. The director shall not suspend the license of any rate service organization or insurer for failure to comply with an order until the time prescribed for an appeal from the order has expired, or if an appeal has been taken, until such order has been affirmed. The director may determine when a suspension of a license becomes effective and it shall remain in effect for the period fixed by the director, unless the director modifies or rescinds such suspension, or until the order upon which such suspension is based is modified, rescinded or reversed.

D. The director shall not impose a penalty or suspend or revoke a license except upon a written order stating the director's findings, made after a hearing held upon not less than ten days' written notice to such person or organization specifying the alleged violation.