§216.  Penalties

A.  Any person who shall solicit any application for or issue or cause to be issued any policy or membership certificate of any association within the provisions of this Subpart without a certificate of authority having been procured by such association from the commissioner of insurance or after such certificate has expired or become suspended or revoked, or any person representing himself to be a producer without having been duly licensed as provided in this Subpart shall be deemed guilty of a misdemeanor and upon conviction shall be fined not more than five hundred dollars or be imprisoned for not more than three months or both at the discretion of the court.

B.  Any officer, director, or producer of any association embraced within the provisions of this Subpart who shall wilfully commit any of the following acts  and any officer, director, or producer of any such association who shall wilfully condone or acquiesce in any of these acts shall be deemed guilty of a misdemeanor and upon conviction shall be fined not more than one thousand dollars or be imprisoned for not more than six months or both at the discretion of the court:

(1)  Soliciting or receiving any application which does not comply with R.S. 22:196(A) or (B).

(2)  Failing to retain the original applications for policies as required by R.S. 22:196(C).

(3)  Issuing any policy which does not comply with R.S. 22:197.

(4)  Failing to maintain the reserve fund required by R.S. 22:203.

(5)  Withdrawing any funds of such association in any other manner than is specifically authorized in this Subpart.

(6)  Issuing any policy or make or cause to be made any assessment not provided for or authorized by R.S. 22:205.

(7)  Failing to maintain books or records as required by R.S. 22:208.

(8)  Refusing to any duly authorized representative of the office of the commissioner of insurance access to the books and records of the association.

(9)  Failing to file or failing to file within the required time the reports required by R.S. 22:210.

(10)  Making or causing to be made any assessment without a certificate of authority having been secured from the commissioner of insurance or after such certificate has expired or become suspended or revoked.

(11)  Making or causing to be made any assessment for any death which occurred prior to the date as of which any previous assessment was made as shown by the statement and list accompanying such previous assessment.

(12)  Failing to furnish with any assessment a statement of the receipts and disbursements of the previous assessment and list of the names of the policyholders who have died since the previous assessment and the value or amount of benefit furnished each.

(13)  Failing to include in any assessment any policyholder who has received a policy more than sixty days prior to such assessment.

C.  Any person who at one time holds or is named as the beneficiary in more than one policy of any association embraced within the provisions of this Subpart; or who at one time holds or is named as the beneficiary in policies of more than one association embraced within the provisions of this Subpart shall in addition to incurring the penalty of the nullity of that one of the policies which was subsequently issued, forfeit all fees or assessments paid on account of such subsequently issued policy.

D.  The treasurer of any association who shall wilfully and without reasonable cause make any assessment on account of the death of any person who died prior to the date as of which the previous assessment was made as indicated by the statement of the receipts and disbursements of such previous assessment, the surety on his bond and any officer, director of any such association or any other persons who shall wilfully condone or acquiesce in such conduct, shall be liable in solido to the association at the instance of any policyholder for the amount of the benefit paid for such decedent.

Acts 1958, No. 125; Redesignated from R.S. 22:356 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2009, No. 503, §1.

NOTE:  Former R.S. 22:216 redesignated as R.S. 22:989 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009.