Section 10824 Of Article 3. Regulation From California Insurance Code >> Division 2. >> Part 2. >> Chapter 9. >> Article 3.
10824
. (a) The commissioner may take disciplinary action against a
purchasing alliance if the commissioner determines that the
purchasing alliance has committed any of the acts set forth in
Section 10823. The disciplinary action may include censuring the
purchasing alliance, or prohibiting for a period not exceeding 24
months or barring permanently, a person, partnership, corporation, or
trust from acting as a purchasing alliance.
(b) The commissioner shall notify the purchasing alliance of any
order that suspends or bars a person from engaging in operations as a
purchasing alliance. It shall be unlawful for any purchasing
alliance, after receipt of notice of the order, to enroll any new
employers or small employers.
(c) The commissioner may prohibit any person from serving as an
officer, director, employee, or associate of any purchasing alliance
or solicitor firm of any purchasing alliance, or any management
company of any purchasing alliance, or as a solicitor or agent if any
of the following applies:
(1) The prohibition is in the public interest and the person has
committed or caused, participated in, or had knowledge of, and failed
to properly report a violation of this chapter by a purchasing
alliance, management company, or solicitor firm.
(2) The person was an officer, director, employee, associate, or
provider of a purchasing alliance or of a management company or
solicitor firm of any purchasing alliance whose certificate has been
suspended or revoked pursuant to this section and the person had
knowledge of and failed to report, or participated in, any of the
prohibited acts for which the certificate was suspended or revoked.
(3) The person was an officer director, employee, or associate of
a purchasing alliance that has been the subject of an order of
suspension or bar from engaging in operations as a purchasing
alliance under this section and the person had knowledge of, or
participated in, any of the prohibited acts for which the order was
issued. A proceeding for the issuance of an order under this
subdivision may be included with a proceeding against a purchasing
alliance under this section, or may conduct a separate proceeding.
(4) The person has been convicted or pleaded no contest to a
crime, or committed any act involving dishonesty, fraud, or deceit,
which crime or act is substantially related to the qualifications,
functions, or duties of the person under this chapter.
(d) Any disciplinary action under Section 10823 and this section
shall be conducted in accordance with the Administrative Procedure
Act (Chapter 5 (commencing with Section 11500) of Part 1 of Division
3 of Title 2 of the Government Code).