1. (1) An insurer is responsible for compliance with this chapter. If a violation occurs, either because of the action or inaction of the insurer or its producer, the commissioner may order any of the following:

   1. (a) An insurer to take reasonably appropriate corrective action for any consumer harmed by a failure to comply with this chapter by the insurer, an entity contracted to perform the insurer's supervisory duties, or by the producer.
   2. (b) A general agency, independent agency or the producer to take reasonably appropriate corrective action for any consumer harmed by the producer’s violation of this chapter.
   3. (c) Appropriate penalties and sanctions.
2. (2) Any applicable penalty under Section 27-12-1 et seq. Code of Ala. 1975 for a violation of Rule 482-1-137-.06(1), (2) or (3)(b) may be reduced or eliminated if corrective action for the consumer was taken promptly after a violation was discovered or the violation was not part of a pattern or practice.
3. (3) The authority to enforce compliance with this chapter is vested exclusively with the commissioner.

Author: Commissioner of Insurance

Statutory Authority: Code of Ala. 1975, §§27-2-17; 27-12-1, et seq.

History: New Rule: May 19, 2006; effective January 1, 2007. Filed with LRS May 22, 2006. Rule is not subject to the Alabama Administrative Procedure Act. Amended: July 21, 2016; effective January 1, 2017. Filed with LRS July 21, 2016. Rule is not subject to the Alabama Administrative Procedure Act. Amended: June 10, 2021; effective January 1, 2022. Filed with LRS June 10, 2021. Rule is not subject to the Alabama Administrative Procedure Act.