02-031 C.M.R. ch. 917, § 8 - Compliance; Mitigation; Penalties; Enforcement

1. An insurer is responsible for compliance with this rule. If a violation occurs, either because of the action or inaction of the insurer or its producer, the Superintendent may order:

A. An insurer to take reasonably appropriate corrective action for any consumer harmed by a failure to comply with this rule by the insurer, by an entity contracted to perform the insurer's supervisory duties, or by the producer;

B. A producer to take reasonably appropriate corrective action for any consumer harmed by the producer's violation of this rule;

C. A business entity that employs or contracts with a producer to sell, or solicit the sale, of annuities to consumers, to take reasonably appropriate corrective action for any consumer harmed by the producer's violation of this rule; and

D. Appropriate civil penalties and other disciplinary and remedial measures as provided in 10 M.R.S.A. §8003(5) and 24-A M.R.S.A. §§12-A, 417, 418, 1420-K.

2. Any applicable penalty for a violation of this rule may be reduced or eliminated if corrective action for the consumer was taken promptly after a violation was discovered or the violation was not part of a pattern or practice.

3. As provided in 10 M.R.S.A. §8003(5) and 24 A M.R.S.A. §§12-A & 214, the authority to enforce compliance with this rule is vested with the Superintendent and with the Attorney General. Nothing in this rule shall be construed as delegating or granting enforcement authority to any other party.

Notes

02-031 C.M.R. ch. 917, § 8