CHAPTER 165
FORMERLY
SENATE BILL NO. 280
AS AMENDED BY SENATE AMENDMENT NO. 1
AN ACT TO AMEND CHAPTER 3, TITLE 18, OF THE DELAWARE CODE BY PROVIDING FOR A GENERAL ADMINISTRATIVE PENALTY FOR VIOLATIONS OF ANY PROVISIONS OF THE DELAWARE INSURANCE CODE.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Title 18, Chapter 3, of the Delaware Code by adding a new section thereto to read as follows:
1334. Administrative Penalty.
(a) Notwithstanding any other provisions of Title 18 of the Delaware Code or any regulation implementing the provisions of said Title, the Commissioner may, if he finds after notice and hearing that any person, insurer, or insurance holding company, has violated any provision of Title 18 of the Delaware Code or any regulation implementing the provisions of said Title, impose or order an administrative penalty in an amount of money that is reasonable and appropriate in view of the facts and circumstances surrounding the violation. In determining what the amount of penalty shall be, the Commissioner may take into consideration such matters as the nature of the violation, the amount of loss resulting from the violator's conduct, the intent of the violator, the damages caused by the violation, any efforts made by the violator to correct the violation and prevent a reoccurrence, and the recommendations of any hearing officer. In no event shall the administrative penalty per violation exceed $15,000 for those licensed under Chapter 17, Title 18 of the Delaware Code, and ;50,000 per violation for insurance companies, insurance holding companies, and all other persons licensed under Title 18 of the Delaware Code.
(b) Before the Commissioner may Impose or order a penalty to be paid pursuant to the provisions of this section, the violator shall be given notice of the violation, and an opportunity to be heard at a public hearing. The procedures for said notice and hearing, and any appeal from the Commissioner's decision shall be the same as set forth in the State Administrative Procedures Act. 29 Del.C. Chapter 101.
(c) Upon written request reasonably made by a party to a hearing held pursuant to this section, and at such a person's expense, the Commissioner shall cause a full stenographic or electronic record of the proceeding to be made. If transcribed, a copy of such record shall be furnished to the Commissioner without cost to the Commissioner or the State and shall be part of the Commissioner's record of the hearing, and a copy shall likewise be furnished to any other party to the hearing, at the request and expense of such other party. If no such record is made or transcribed, the Commissioner shall prepare a summary record of the proceedings and evidence.
(d) Any administrative penalty imposed pursuant to this section may be in addition to any penalty, fine or sentence ordered by a court in any civil or criminal proceeding.
(e) Any penalty that may be imposed or ordered by the Commissioner after the hearing shall be paid to the State Treasurer for deposit in the General Fund."
Approved July 12, 1985.