A. No insurance carrier who issues motor vehicle policies in this state shall use traffic complaints, traffic citations or other legal forms of traffic charges as a basis for cancellation of a motor vehicle insurance policy, increasing premium rates for a motor vehicle insurance policy or refusing to issue or renew a motor vehicle insurance policy, where:
1. the insured was acquitted of the charge;
2. the insured was arrested and no charges were filed; or
3. the insured was arrested and the charges were dismissed.
B. The Insurance Commissioner may suspend or revoke, after notice and hearing, the certificate of authority to transact insurance business in this state of any insurance carrier violating the provisions of this section or may censure the insurer or impose a fine.
Added by Laws 1990, c. 81, § 1, eff. Sept. 1, 1990.
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