TITLE 33 INSURANCE

Section 20. Health Care Plans, 33-20-1 through 33-20-34.

ARTICLE 7 MISCELLANEOUS PROVISIONS

33-20-27. Imposition by Commissioner of administrative fine for certain acts of officers, employees, agents, or representatives of corporations.

1. The Commissioner may after a hearing impose upon a health care corporation an administrative fine if he finds that the corporation through the acts of its officers, employees, agents, or representatives has with such frequency as to indicate its general business practice in this state:
   1. Refused without just cause to pay proper claims arising under coverage provided by its contracts whether the claim is in favor of a subscriber or in favor of any other person entitled to the proceeds of a contract; or
   2. Compelled without just cause subscribers, claimants, or other persons entitled to the proceeds of its contracts in this state to accept less than the amount due them or to bring action against the corporation to secure full payment or settlement of their claims.
2. The administrative fine imposed for violations set forth in paragraph (1) or (2) of subsection (a) of this Code section shall not exceed $1,000.00 for each act of misconduct constituting a violation; provided, however, that a fine of not more than $5,000.00 for each act of willful misconduct constituting a violation may be imposed.

(Code 1933, § 56-1725a, enacted by Ga. L. 1976, p. 1461, § 1.)