KRS 304.3-420: Authority of commissioner -- Actions.

(1) If the commissioner believes that the controlling producer or any other person has

not materially complied with KRS 304.3 -400 to 304.3 -430, or any administrative

regulation or order promulgated under KRS 304.3 -400 to 304.3 -430, the

commissioner may:

(a) Order the controlling producer to cease placing business with the controlled

insurer; or

(b) If it was found that because of the material noncompliance that the controlled

insurer or any policyholder has suffered any loss or damage, the commissioner

may maintain a civil action, intervene in an action brought by or on behalf of

the insurer or a policyholder for recovery of compensatory damages for the

benefit of the insurer or policyholder, or seek other appropriate relief.

(2) Appeals from orders issued under subsection (1) of this section shall be taken as

provided in Subtitle 2 of this chapter.

(3) If an order for liquidation or rehabilitation of the controlled insurer has been entered

pursuant to Subtitle 33 of this chapter, and the receiver appointed under that order

believes that the controlling producer or any other person has not materially

complied with KRS 304.3 -400 to 304.3 -430, or any administrative regulation or

order promulgated under KRS 304.3-400 to 304.3-430, and the insurer suffered any

loss or damage, the receiver may maintain a civil action for recovery of the damages

or seek other appropriate sanctions for the benefit of the insurer.

(4) Nothing contained in this section shall affect the right of the commissioner to

exercise any other authority granted to him or her by law.

(5) Nothing contained in this section is intended to or shall in any manner alter or affect

the rights of policyholders, claimants, creditors, or other third parties.