Ala. Admin. Code r. 482-1-137-.07

Current through Register Vol. 43, No. 1, October 31, 2024

Section 482-1-137-.07 - Compliance Mitigation; Penalties; Enforcement

(1) An insurer is responsible for compliance with this chapter. If a violation occurs, either because of the action or inaction of the insurer or its producer, the commissioner may order any of the following:

(a) An insurer to take reasonably appropriate corrective action for any consumer harmed by a failure to comply with this chapter by the insurer, an entity contracted to perform the insurer's supervisory duties, or by the producer.

(b) A general agency, independent agency or the producer to take reasonably appropriate corrective action for any consumer harmed by the producer's violation of this chapter.

(c) Appropriate penalties and sanctions.

(2) Any applicable penalty under Section 27-12-1 et seq. Code of Ala. 1975 for a violation of Rule 482-1-137-.06(1), (2) or (3)(b) may be reduced or eliminated if corrective action for the consumer was taken promptly after a violation was discovered or the violation was not part of a pattern or practice.

(3) The authority to enforce compliance with this chapter is vested exclusively with the commissioner.

Ala. Admin. Code r. 482-1-137-.07

New Rule: May 19, 2006; effective January 1, 2007. Filed with LRS May 22, 2006. Rule is not subject to the Alabama Administrative Procedure Act.

Amended by Alabama Administrative Monthly Volume XXXIV, Issue No. 10, July 29, 2016, eff. 1/1/2017.

Amended by Alabama Administrative Monthly Volume XXXIX, Issue No. 09, June 30, 2021, eff. 1/1/2022.

Author: Commissioner of Insurance

Statutory Authority:Code of Ala. 1975, §§ 27-2-17; 27-12-1, et seq.