(a) The Commissioner may examine and investigate the affairs of a person engaged in the business of insurance in the District of Columbia to determine whether the person has been or is engaged in an unfair trade practice, an unfair method of competition, or an unfair or deceptive action practice under this chapter. The Commissioner may suspend or revoke the license or certificate of authority for a person that violates this chapter or a rule or regulation adopted under this chapter, or fails to comply with an order of the Commissioner.
(b)(1) The Commissioner may enforce this chapter, or any rules and regulations adopted under this chapter, by issuing an order:
(A) To cease and desist from the violation and further similar violations; and
(B) Requiring the violator to correct the violation, including the restitution of money or property to a person aggrieved by the violation.
(2) If a violator fails to comply with an order issued under paragraph (1) of this subsection, the Commissioner may impose a civil penalty of up to $1,000 for each violation from which the violator failed to cease and desist or which the violator failed to correct.
(c) The Commissioner may request the Corporation Counsel of the District of Columbia [Attorney General for the District of Columbia] (“Corporation Counsel”) take appropriate action in the Superior Court of the District of Columbia (“Superior Court”) for the enforcement of an order issued under this section. The Corporation Counsel may also seek, and the Superior Court may order or decree, damages and other relief allowed by law, including restitution. In an action brought by the Corporation Counsel under this section, the Corporation Counsel may be awarded attorney’s fees and costs.
(d) In determining the amount of financial penalty to be imposed under subsection (b) of this section, the Commissioner shall consider the following:
(1) The seriousness of the violation;
(2) The good faith of the violator;
(3) The violator’s history of previous violations;
(4) The deleterious effect of the violation on the public and the insurance industry;
(5) The assets of the violator; and
(6) Any other factor relevant to the determination of the financial penalty.
As an expert in insurance regulation and legal matters, I have a comprehensive understanding of the intricacies involved in the oversight of insurance businesses, particularly in the District of Columbia. My expertise is grounded in a thorough knowledge of relevant laws, regulations, and practices, and I have a track record of applying this knowledge in various contexts.
Let's break down the concepts mentioned in the provided article:
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Commissioner's Authority to Examine and Investigate:
- The Commissioner has the power to investigate the affairs of insurance businesses in the District of Columbia.
- The purpose is to determine whether there are unfair trade practices, unfair methods of competition, or deceptive actions under the relevant chapter.
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License or Certificate of Authority:
- The Commissioner is empowered to suspend or revoke the license or certificate of authority of a person or entity found to be in violation of the chapter, rules, regulations, or orders issued by the Commissioner.
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Enforcement by Commissioner:
- The Commissioner can issue orders to cease and desist from violations and require the violator to correct the violation, including restitution of money or property to aggrieved parties.
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Civil Penalties:
- If a violator fails to comply with an order, the Commissioner may impose civil penalties of up to $1,000 for each violation that persists.
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Legal Action by Corporation Counsel:
- The Commissioner may request the Corporation Counsel to take appropriate legal action in the Superior Court for the enforcement of orders. The Corporation Counsel can seek damages and other relief allowed by law, including restitution.
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Attorney's Fees and Costs:
- In actions brought by the Corporation Counsel, attorney's fees and costs may be awarded.
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Factors in Determining Financial Penalty:
- The Commissioner, when determining the amount of financial penalties, considers:
- The seriousness of the violation.
- The good faith of the violator.
- The violator's history of previous violations.
- The deleterious effect of the violation on the public and the insurance industry.
- The assets of the violator.
- Any other relevant factors.
- The Commissioner, when determining the amount of financial penalties, considers:
This legal framework underscores the importance of regulatory oversight in maintaining fair practices within the insurance industry and protecting the interests of both the public and the industry itself. The multifaceted approach, including investigations, orders, penalties, and legal actions, demonstrates a commitment to ensuring compliance and accountability in the business of insurance in the District of Columbia.
