26.1-19-16. Administrative findings and sanctions

26.1-19-16. Administrative findings and sanctions 1. The commissioner, consistent with chapter 28-32, may initiate proceedings to determine if a prepaid legal services organization has: a. Operated in a manner that materially violates its organizational documents; b. Materially breached its obligations to furnish the legal services specified in its contracts with enrolled participants; c. Violated this chapter, or any rule adopted under this chapter; d. Made any false statement with respect to any report or statement required by this chapter or by the commissioner under this chapter; e. Advertised, marketed, or attempted to market its services in a manner which misrepresents its services or its capacity to deliver services, or engaged in deceptive, misleading, or unfair practices with respect to advertising or marketing; or f. Attempted to prevent the commissioner from the performance of any duty imposed by this chapter or by other laws of this state. 2. After providing written notice and an opportunity for a hearing pursuant to chapter 28-32, the commissioner shall make administrative findings and, as appropriate, may: a. Impose a penalty of not more than five thousand dollars for each unlawful act committed under this chapter; b. Issue an administrative order requiring the prepaid legal services organization to cease or modify inappropriate conduct or practices by it or any of the personnel employed by or associated with it, to fulfill its contractual obligations, to provide a service which has been improperly denied, or to take steps to provide or arrange for any services which it has agreed to make available; or c. Suspend or revoke the certificate of authority of the prepaid legal services organization. 3. If its certificate of authority is suspended, the prepaid legal services organization may not, during the period of suspension, enroll any additional participants and may not engage in any advertising or solicitation. 4. If its certificate of authority is revoked, the prepaid legal services organization shall proceed under the supervision of the commissioner, immediately following the effective date of the revocation, to wind up its affairs, and may conduct no further business except as may be essential to the orderly conclusion of those affairs. The commissioner, by written order, may permit further operation of the organization if it is in the best interest of the participants and will allow the participants the greatest practical opportunity to obtain continued legal services coverage. 5. The commissioner may apply to any court for the legal or equitable relief deemed necessary to carry out the purposes of this chapter.