Section 21.59.200. Examination, investigations, enforcement, and penalties.

   (a) The director may conduct investigations or examinations of a provider, administrator, insurer, or other person to enforce the provisions of AS 21.59.110 - 21.59.290 and to protect service contract holders in this state in accordance with AS 21.06.
   (b) The director may take necessary or appropriate action to enforce this title, to the extent applicable, and protect service contract holders in this state, including the issuance of a cease and desist order, if the director determines that a person has violated a provision of this title, to the extent applicable to the person. A person aggrieved by the cease and desist order may request a hearing under AS 21.06.170 - 21.06.240.
   (c) Without prior hearing, the director may order summary suspension of the license of a provider if the director finds that protection of the public requires emergency action and incorporates this finding in an order. The suspension is effective on the date specified in the order or upon mailing by first class mail to the provider's business address on record with the division, whichever is later. If the provider requests a hearing, the director shall conduct a hearing on the suspension within a reasonable time but not later than 20 days after the effective date of the summary suspension unless the person whose license is suspended requests a later date. At the hearing, the director shall determine whether the suspension should be continued or withdrawn, and, if proper notice is given, may determine whether the license should be revoked. The director shall issue a decision within 30 days after the conclusion of the hearing. A suspension or revocation under this section must be based on one or more grounds in AS 21.27.410 or a finding that one or more of the circumstances in (d) of this section continue to exist. The summary suspension continues until the decision is issued. AS 21.06.190 and AS 44.64.030 do not apply to this subsection.
   (d) The director shall order summary suspension of the license of a provider if one or more of the following circumstances exist:
        (1) the provider is insolvent or impaired;
        (2) a proceeding for bankruptcy, receivership, conservatorship, or rehabilitation, or another delinquency proceeding regarding the provider has been commenced in any state or by a governmental agency of another jurisdiction;
        (3) the provider is in an unsound condition, or is in a condition or using methods or practices that render its further sale of service contracts in the state injurious to service contract holders or the public.
   (e) A person found to have violated AS 21.59.110 - 21.59.290 may be assessed a civil penalty in an amount determined by the director not to exceed $2,500 for each violation or, if the director determines that the person knowingly violated the provisions of AS 21.59.110 - 21.59.290, $5,000 for each violation. Penalties for violations may not exceed $50,000 in the aggregate for violations of a similar nature, except where the person knowingly violated the provisions of AS 21.59.110 - 21.59.290. In this subsection,
        (1) "knowingly" has the meaning given in AS 11.81.900;
        (2) "violation of a similar nature" means a violation consisting of the same or a similar course of conduct, action, or practice as another violation, notwithstanding the number of times the act, conduct, or practice occurred.
   (f) A service contract holder may bring an action in a court of competent jurisdiction for damages, injunctive relief, restitution, or other appropriate relief for a threatened or existing violation relating to the motor vehicle service contract.
   (g) The director may adopt regulations necessary for the implementation and enforcement of AS 21.59.110 - 21.59.290.

Notes

History

(Sec. 5 ch 78 SLA 2014)