§431:15-323 Recovery of premiums owed. (a) A producer, premium finance company, or any other person, other than the insured, responsible for the payment of a premium shall be obligated to pay any unpaid collected premium held by such person at the time of the declaration of insolvency, whether earned or unearned, as shown on the records of the insurer. A producer, premium finance company, or any other person shall have no obligation to pay an uncollected, unpaid, unearned premium to the liquidator. The liquidator shall also have the right to recover from such person any part of an unearned premium that represents commission actually paid or credited to such person. Credits or setoffs or both shall not be allowed to a producer or premium finance company for any amounts advanced to the insurer by the producer or premium finance company on behalf of, but in the absence of a payment by, the insured. An insured shall be obligated to pay any unpaid, earned premium due the insurer at the time of the declaration of insolvency as shown on the records of the insurer.
(b) Upon satisfactory evidence of a violation of this section, the commissioner may pursue either one or both of the following courses of action:
(1) Suspend or revoke or refuse to renew the licenses of such offending party or parties; or
(2) Impose a penalty of not more than $1,000 for each and every act in violation of this section by said party or parties.
(c) Before the commissioner shall take any action as set forth in subsection (b), the commissioner shall give written notice to the person, company, association, or exchange accused of violating the law, stating specifically the nature of the alleged violation, and fixing a time and place, at least ten days thereafter, when a hearing on the matter shall be held. After such hearing, or upon failure of the accused to appear at such hearing, the commissioner, if the commissioner shall find such violation, shall impose such of the penalties under subsection (b) as the commissioner deems advisable.
(d) When the commissioner shall take action in any or all of the ways set out in subsection (b), the party aggrieved may appeal from said action to the circuit court of the first judicial circuit. [L 1987, c 347, pt of §2; am L 1993, c 165, §1; am L 2002, c 155, §87]