§ 23-76-105 - Penalties -- Enforcement. - Arkansas Statutes

23-76-105. Penalties -- Enforcement.

(a) In lieu of suspension or revocation of a certificate of authority under 23-76-123, the Insurance Commissioner may levy an administration penalty in an amount not less than two hundred fifty dollars ($250), nor more than two thousand five hundred dollars ($2,500), if reasonable notice in writing is given of the intent to levy the penalty and the health maintenance organization has a reasonable time within which to remedy the defect in its operations which gave rise to the penalty citation. The commissioner may augment this penalty by an amount equal to the sum that he or she calculates to be the damages suffered by the enrollees or other members of the public.

(b) Any person who willfully violates this chapter shall be guilty of a Class A misdemeanor.

(c) (1) If the commissioner or the Director of the Department of Human Services shall for any reason have cause to believe that any violation of this chapter has occurred or is threatened, the commissioner or the director may give notice to the health maintenance organization and to the representatives, or other persons who appear to be involved in the suspected violation, to arrange a conference with the alleged violators or their authorized representatives for the purpose of attempting to ascertain the facts relating to the suspected violation and, in the event it appears that any violation has occurred or is threatened, to arrive at an adequate and effective means of correcting or preventing the violations.

(2) Proceedings under this subsection shall not be governed by any formal procedural requirements and may be conducted in such manner as the commissioner or the director may deem appropriate under the circumstances.

(d) (1) The commissioner may issue an order directing a health maintenance organization or a representative of a health maintenance organization to cease and desist from engaging in any act or practice in violation of the provisions of this chapter.

(2) Within thirty (30) days after service of the order of cease and desist, the respondent may request a hearing on the questions of whether acts or practices in violation of this chapter have occurred. The hearings shall be conducted pursuant to the provisions of 23-61-303 -- 23-61-307, and judicial review shall be available as provided in 23-66-212.

(e) In the case of any violation of the provisions of this chapter, if the commissioner elects not to issue a cease and desist order or in the event of noncompliance with a cease and desist order issued pursuant to subsection (d) of this section, the commissioner may institute a proceeding to obtain injunctive relief or, seeking other appropriate relief, in Pulaski County Circuit Court for actions of this nature.