Section 0780-01-83-.13 - SUSPENSION OR REVOCATION OF CERTIFICATE OF AUTHORITY(1) After notice and an opportunity for a hearing, unless the Commissioner meets the standards for summary proceedings contained in T.C.A. § 50-6-405(b)(4), the Commissioner may revoke or suspend the Certificate of Authority or a license issued under this Chapter upon a finding that any of the following exists: (a) The Employer is in a hazardous financial or operational condition. The Commissioner, in evaluating the financial or operational condition of an Employer, may utilize the criteria contained in Rule 0780-1-66 and Rule 0780-1-83-.04(3). The Commissioner may consider such other factors in evaluating the financial or operational condition of an Employer deemed to be appropriate;(b) The Employer has failed to maintain the security deposit required by Rule 0780-1-83-.05;(c) The Employer has failed to maintain excess insurance in the amount or form required by Rule 0780-1-83-.06;(d) The Employer has failed to pay any premium tax, regulatory penalty or assessment imposed upon the Employer at the time when such obligations are owed;(e) The Employer has failed to cooperate in any examination or investigation initiated by the Commissioner pursuant to Rule 0780-1-83-.12;(f) The Employer, or an officer or director thereof, has failed to comply with any of the provisions of this Chapter, or with any lawful orders of the Commissioner, within the time prescribed;(g) The Employer, or an officer or director thereof, has failed to comply with any of the provisions of the Tennessee Insurance Law or any applicable regulations issued thereunder;(h) The Employer, or an officer or director thereof, has provided incorrect, misleading, incomplete or materially untrue information to the Commissioner;(i) The Employer, or an officer or director thereof, has been convicted of a felony deemed by the Commissioner to be related to the Employer's overall fitness to self-insure and the Employer has failed to remove the officer or director;(j) The Employer has failed to comply with any law applicable to the Employer with respect to the prompt payment of claims, including, but not limited to, those found in Tennessee Code Annotated Title 50, Chapter 6, and Title 56;(k) The Employer is not sufficiently qualified or has not employed persons sufficiently qualified to administer a self-insurance program;(l) The Employer fraudulently obtained its Certificate of Authority: or(m) The Employer made a misrepresentation in the application for the Certificate of Authority.(2) An Employer's failure to file any financial statements or reports required under this Chapter, authorizes the Commissioner to assess a civil penalty of one hundred dollars ($100) per day for each day of delinquency.Tenn. Comp. R. & Regs. 0780-01-83-.13
Original rule filed August 11, 2005; effective October 25, 2005.Authority: T.C.A. §§ 50-6-405(b)(2)(A), 50-6-405(b)(4), and 50-6-405(b)(8).