KRS 304.48-260: Commissioner's enforcement authority.

(1) After a hearing or upon agreement by the liability self -insurance group, the

commissioner may suspend or revoke the certificate of filing of a liability self -

insurance group, impose a civil penalty of up to five thousand dollars ($5,000) per

violation on a liability self-insurance group, or both, for:

(a) Violations of this subtitle or administrative regulations adopted thereunder;

(b) Obtaining a certificate of filing by unfair or deceptive means;

(c) Operating in a financially hazardous manner;

(d) Misappropriation, conversion, illegal withholding, or refusal to pay over upon

proper demand any moneys that belong to a member, an employee of a

member, or a person otherwise entitled thereto by the group or its

administrator; or

(e) Violations of Subtitle 12 o f this chapter or administrative regulations

promulgated pursuant thereto.

(2) The commissioner, in his or her discretion and without advance notice or a hearing

thereon, may suspend or revoke the certificate of filing of any liability self -

insurance group upon the commencement of the following proceedings:

(a) Receivership;

(b) Conservatorship;

(c) Rehabilitation; or

(d) Other delinquency proceedings.