(B) has violated, or is about to violate— 
(i) a law, rule, or regulation; 
(ii) any condition imposed in writing 
by the Commissioner in connection with 
the granting of any application, filing, 
statement, notice, or other request by the 
National Insurer, National Agency or the 
federally licensed insurance producer; or 
(iii) any written agreement entered 
into with the Commissioner. 
(2) CONTENTS.—The notice issued under para-
graph (1) shall— 
(A) contain a statement of the facts consti-
tuting the alleged violations; and 
(B) state the time and place at which a 
hearing will be held to determine whether an 
order to cease and desist should be issued 
against the National Insurer, National Agency, 
federally licensed insurance producer, or in-
surer-affiliated party. 
(b) HEARING.— 
(1) TIMING.—A hearing under this section shall 
be scheduled for a date which is not earlier than 30 
days nor later than 60 days after the service of no-
tice under subsection (a) unless another date is set 
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by the Commissioner at the request of any party so 
served. 
(2) CONSENT.—If a duly authorized representa-
tive of a party served notice under subsection (a) 
fails to appear at a hearing under this section, the 
party shall be deemed to have consented to the 
issuance of the cease-and-desist order. 
(c) CEASE-AND-DESIST ORDER.— 
(1) IN GENERAL.—If the Commissioner finds, 
upon the record made at a hearing under this sec-
tion, that any violation or conduct specified in the 
notice of charges has been established, or if the 
party consents, the Commissioner may issue and 
serve upon the National Insurer, National Agency, 
federally licensed insurance producer, or insurer-af-
filiated party, an order to cease and desist from any 
such violation or conduct. 
(2) 
CONTENTS.—A 
cease-and-desist 
order 
under this section may— 
(A) require the National Insurer, National 
Agency, federally licensed insurance producer, 
or insurer-affiliated party to cease and desist 
from the alleged violation or conduct; and 
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(B) take affirmative action to correct the 
conditions resulting from any such violation or 
conduct. 
(3) 
EFFECTIVE
DATE.—A 
cease-and-desist 
order shall— 
(A) take effect on the expiration of the 
date which is 30 days after the service of such 
order upon the party or on another date, if 
issued upon consent; and 
(B) remain in effect and enforceable as 
provided therein, unless stayed, modified, termi-
nated, or set aside by action of the Commis-
sioner or a reviewing court. 
(4) AUTHORITY TO LIMIT ACTIVITIES.—The au-
thority to issue an order under this section includes 
the authority to place limitations on the activities or 
functions of a National Insurer, National Agency, a 
federally licensed insurance producer or an insurer- 
affiliated party. 
(5) STANDARD FOR CERTAIN ORDERS.—No au-
thority under this section to prohibit any insurer-af-
filiated party from withdrawing, transferring, remov-
ing, dissipating, or disposing of any funds, assets, or 
other property may be exercised unless the Commis-
sioner meets the standards of Rule 65 of the Federal 
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Rules of Civil Procedure, without regard to the re-
quirement of such rule that the applicant show that 
the injury, loss, or damage is irreparable and imme-
diate. 
(d) TEMPORARY CEASE-AND-DESIST ORDERS.— 
(1) IN GENERAL.—If the Commissioner deter-
mines that the violation, threatened violation, or 
conduct specified in the notice of charges served 
under subsection (c)(1) is likely to cause insolvency 
or significant dissipation of assets or earnings of a 
National Insurer, a State insurer, a United States 
branch of a non-United States insurer or is likely to 
weaken the condition of a National Insurer, a State 
insurer, or a United States branch of a non-United 
States insurer or otherwise prejudice the interests of 
the policyholders of a National Insurer, a State in-
surer, or a United States branch of a non-United 
States insurer before the completion of the pro-
ceedings conducted under subsection (c)(1), the 
Commissioner may issue a temporary order requir-
ing the National Insurer, National Agency, pro-
ducer, or party to— 
(A) cease and desist from any such viola-
tion or conduct; and 
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(B) take affirmative action to prevent or 
remedy such insolvency, dissipation, condition, 
or prejudice pending completion of such pro-
ceedings. 
(2) CONTENTS OF ORDER; EFFECTIVE DATE.— 
An order under paragraph (1)— 
(A) may include any action authorized 
under section 144(2); 
(B) shall become effective upon service 
upon the National Insurer, National Agency, 
producer, or party; and 
(C) unless set aside, limited, or suspended 
by a court under paragraph (3), shall remain in 
effect and enforceable until the date on which— 
(i) administrative proceedings pursu-
ant to such order are completed; 
(ii) the Commissioner dismisses the 
charges specified in such order; or 
(iii) if a cease-and-desist order is 
issued against such National Insurer, Na-
tional Agency, producer, or party, such 
order is effective. 
(3) INJUNCTION.— 
(A) IN
GENERAL.—A National Insurer, 
National Agency, federally licensed insurance 
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producer, or insurer-affiliated party that has 
been served with a temporary cease-and-desist 
order may, not later than 10 days after the 
date of such service, apply to a court described 
in subparagraph (B) for an injunction setting 
aside, limiting, or suspending the enforcement, 
operation, or effectiveness of such order until 
the completion of administrative proceedings 
under this section. 
(B) JURISDICTION.—The United States 
District Court for the District of Columbia and 
the United States district court for the judicial 
district in which the producer, party, or main 
office of the National Insurer or National Agen-
cy is located shall have jurisdiction to issue an 
injunction under this paragraph. 
(4) INCOMPLETE OR INACCURATE RECORDS.— 
(A) TEMPORARY ORDER.—If a notice of 
charges served under subsection (a) specifies, 
on the basis of particular facts and cir-
cumstances, that the books and records of a 
National Insurer are so incomplete or inac-
curate that the Commissioner is unable, 
through the normal supervisory process, to de-
termine the financial condition of that National 
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Insurer or the details or purpose of any trans-
action or transactions that may have a material 
effect on the financial condition of that Na-
tional Insurer, the Commissioner may issue a 
temporary order requiring— 
(i) the cessation of any activity or 
practice which gave rise to the incomplete 
or inaccurate state of the books or records; 
or 
(ii) affirmative action to restore such 
books or records to a complete and accu-
rate state. 
(B) EFFECTIVE PERIOD.—Any temporary 
order issued under subparagraph (A)— 
(i) shall become effective upon service; 
and 
(ii) unless set aside, limited, or sus-
pended by a court in proceedings under 
paragraph (2), shall remain in effect and 
enforceable until the earlier of— 
(I) the completion of the pro-
ceeding initiated under subsection (a) 
in connection with the notice of 
charges; or 
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(II) the date the Commissioner 
determines, by examination or other-
wise, that the books and records of 
the National Insurer accurately reflect 
the financial condition of the National 
Insurer. 
SEC. 144. AFFIRMATIVE ACTION TO CORRECT CONDITIONS 
RESULTING FROM VIOLATIONS OR CONDUCT. 
The authority granted to the Commissioner under 
this subtitle to issue an order that requires a National In-
surer, National Agency, a federally licensed insurance pro-
ducer, or an insurer-affiliated party to take affirmative ac-
tion to correct or remedy any condition resulting from any 
violation or conduct with respect to which such order is 
issued includes the authority to require such National In-
surer, National Agency, producer or party to— 
(1) restrict the growth of the National Insurer; 
(2) dispose of any asset or insurance contract, 
including any insurance policy; 
(3) rescind any other agreements or contracts, 
other than insurance contracts, to which the Na-
tional Insurer is the issuer; 
(4) employ qualified officers or employees, sub-
ject to approval by the Commissioner; and 
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(5) take such other action as the Commissioner 
determines to be appropriate if— 
(A) such National Insurer, National Agen-
cy, producer, or party was unjustly enriched in 
connection with such violation or conduct; or 
(B) the violation or conduct involved a 
reckless disregard for the law or any applicable 
regulations or prior order of the Commissioner. 
SEC. 145. SUSPENSION, REMOVAL, AND PROHIBITION AU-
THORITY. 
(a) AUTHORITY TO ISSUE ORDER.—The Commis-
sioner may serve a written notice of the Commissioner’s 
intention to suspend or remove a party from office or to 
prohibit any further participation by such party in the 
conduct of the affairs of any National Insurer or National 
Agency, if the Commissioner determines that— 
(1) an insurer-affiliated party has— 
(A) violated— 
(i) any law or regulation; 
(ii) any final cease-and-desist order 
issued under section 143; 
(iii) any condition imposed in writing 
by the Commissioner in connection with 
the grant of any application, filing, state-
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ment, notice, or other request by such Na-
tional Insurer or National Agency; or 
(iv) any written agreement between 
such National Insurer or National Agency 
and the Commissioner; 
(B) engaged or participated in any conduct 
that— 
(i) is hazardous to the National In-
surer or National Agency; and 
(ii) involves an undue risk to the pol-
icyholders of such National Insurer or the 
policyholders serviced by such National 
Agency; or 
(C) committed or engaged in any act, 
omission, or practice, which constitutes a 
breach of fiduciary duty; 
(2) through any violation, conduct, practice, or 
breach described in paragraph (1)— 
(A) such National Insurer or National 
Agency has suffered, or will probably suffer, fi-
nancial loss or other damage; 
(B) the interests of the policyholders of the 
National Insurer or the policyholders serviced 
by the National Agency have been, or could be, 
prejudiced; or 
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(C) such party has received financial gain 
or other benefit by reason of such violation, 
practice, or breach; and 
(3) the violation, conduct, practice, or breach— 
(A) involves personal dishonesty on the 
part of such party; or 
(B) demonstrates willful or continuing dis-
regard by such party for the condition of such 
National Insurer or National Agency or the in-
terests of the National Insurer’s policyholders 
or the policyholders serviced by the National 
Agency. 
(b) TEMPORARY SUSPENSION ORDER.— 
(1) SUSPENSION
OR
PROHIBITION
AUTHOR-
IZED.—If the Commissioner serves written notice 
under subsection (a) on any insurer-affiliated party 
of the Commissioner’s intention to issue an order 
under such subsection, the Commissioner may issue 
a temporary order suspending such party from office 
or prohibiting such party from further participation 
in any manner in the conduct of the affairs of the 
National Insurer or National Agency, if the Commis-
sioner— 
(A) determines that such action is nec-
essary for the protection of the National In-
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surer or its policyholders or the National Agen-
cy or the policyholders serviced by such Agency; 
and 
(B) serves such party with the temporary 
order of suspension or prohibition. 
(2) EFFECTIVE PERIOD.—Any temporary order 
issued under paragraph (1)— 
(A) shall become effective upon service; 
and 
(B) unless a court issues a stay of such 
order under subsection (e), shall remain in ef-
fect and enforceable until— 
(i) the date the Commissioner dis-
misses the charges contained in the notice 
served under subsection (a) with respect to 
such party; or 
(ii) the effective date of an order 
issued by the Commissioner to such party 
under subsection (a). 
(3) COPY
OF
ORDER.—If the Commissioner 
issues a temporary order under paragraph (1) to any 
insurer-affiliated party, the Commissioner shall serve 
a copy of such order on any National Insurer or Na-
tional Agency with which such party is affiliated at 
the time such order is issued. 
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