58-46-18Suspension or revocation of certificate of authority by director.

The certificate of authority of a captive insurance company to do insurance business in this state may be suspended or revoked by the director for any of the following reasons:

(1)    Insolvency or impairment of capital or surplus;

(2)    Failure to meet the requirements of § 58-46-8;

(3)    Refusal or failure to submit an annual report, as required by § 58-46-15, or any other report or statement required by law or by lawful order of the director;

(4)    Failure to comply with the provisions of its own organizational documents or bylaws;

(5)    Failure to submit to examination or any legal obligation relative thereto, as required by § 58-46-17;

(6)    Use of methods that, although not otherwise specifically prohibited by law, nevertheless render its operation detrimental or its condition unsound with respect to the public or to its policyholders;

(7)    Failure otherwise to comply with the laws of this state.

If the director finds, upon examination, hearing, or other evidence, that any captive insurance company has violated any of these provisions, its certificate of authority may be suspended or revoked if it is deemed to be in the best interest of the public and the policyholders of such captive insurance company, notwithstanding any other provisions of this chapter.

Source: SL 1996, ch 287, § 18; SL 2013, ch 257, § 15.