KRS 304.99-126: Licensee's duties following suspension or revocation of license -- Civil

fines -- Referral to Division of Insurance Fraud Investigation.

(1) When a license issued under KRS 304.15-700 is suspended or revoked, the licensee,

if the commissioner directs, shall proceed, immediately following the effective date

of the suspension or revocation to conclude the affairs it is transacting under its

license. The licensee shall not solicit, negotiate, advertise, or effectuate new

contracts. The department shall retain jurisdiction over the licensee and trust until

all life contracts have been fulfilled or canceled or have expired.

(2) During the suspension or revocation period in which the licensee is concluding

existing contracts, the licensee shall continue to comply with KRS 304.15 -020,

304.15-700 to 304.15-720, and 304.42-190 and this section as if the license were in

force.

(3) Any person who violates any provisions of KRS 304.15-020, 304.15-700 to 304.15-

720, and 304.42 -190 and this section shall be subject to civil fines by the

commissioner in an amount not less than one thousand dollars ($1,000) and not

more than twenty-five thousand dollars ($25,000). Each violation shall constitute a

separate offense.

(4) The department shall refer violations to the Divi sion of Insurance Fraud

Investigation for further investigation, and, if appropriate, the Division of Insurance

Fraud Investigation shall proceed as set forth in KRS 304.47-050(5).