Section 0780-01-76-.19 - PENALTIES(1) After notice and an opportunity for a hearing, the Commissioner may revoke or suspend a self-funded qualified multiple employer welfare arrangement's certificate of authority upon a finding that any of the following exists:(a) The arrangement is in a hazardous financial condition;(b) The arrangement fails to pay any premium tax, regulatory fee or assessment, or special fund contribution imposed upon the arrangement at the time when such obligations are owed;(c) The arrangement fails to cooperate in any examination or investigation initiated by the Commissioner pursuant to Rule 0780-1 -76-. 11.(d) The arrangement fails to comply with any of the provisions of this rule, or with any lawful order of the Commissioner, including those issued pursuant to Rule 0780-1-76-.18, within the time prescribed;(e) The arrangement fraudulently obtained its certificate of authority;(f) The arrangement made a misrepresentation in the application for the certificate of authority; or(g) The arrangement has misappropriated, converted, illegally withheld, or refused to pay over upon proper demand any monies that belong to a member, an employee of a member, or a person otherwise in its fiduciary capacities.(2) With respect to any arrangement licensed or required to be licensed under this Chapter, and in addition to or in lieu of any action taken in Rule 0780-1-76-.18 or paragraph (1) of this rule, the Commissioner may assess a civil penalty against such arrangement in an amount not less than one thousand dollars ($1,000) nor more than five thousand dollars ($5,000) for each separate violation of a statute or rule applicable to the arrangement. Each day of continued violation constitutes a separate violation.Tenn. Comp. R. & Regs. 0780-01-76-.19
Original rule filed April 14, 2004; effective June 28, 2004.Authority: T.C.A. § 56-26-204(b).