(a) General. The Secretary may assess a civil monetary penalty, in an amount not exceeding the amount specified under § 50.83, against any insurer that the Secretary determines, on the record after opportunity for a hearing:

1. (1) Has failed to charge, collect, or remit the Federal terrorism policy surcharge under subpart J;
2. (2) Has intentionally provided to Treasury erroneous information regarding premium or loss amounts;
3. (3) Submits to Treasury fraudulent claims under the Program for insured losses;
4. (4) Has failed to provide any disclosures or other information required by Treasury; or
5. (5) Has otherwise failed to comply with provisions of the Act or these regulations.

(c) Procedure. Treasury shall notify in writing any insurer that it believes has committed one or more of the acts identified in paragraph (a) of this section. In that notification, Treasury shall identify the act or acts that it believes has been violated, and its basis for that belief, and shall set a schedule for further proceedings which shall include:

1. (1) The opportunity for a written submission by the insurer that provides all relevant facts and circumstances concerning the alleged conduct, including any information that the insurer wishes Treasury to consider in connection with the alleged conduct; and
2. (2) A hearing on the record, unless waived by the insurer, during which Treasury and the insurer may present further information respecting the conduct in question.