2023 New York Laws › ISC - Insurance › Article 29 - Pharmacy Benefit Managers › 2907 - Revocation or Suspension of a Registration or License of a Pharmacy Benefit Manager.

§  2907.  Revocation  or  suspension of a registration or license of a
pharmacy benefit manager. (a) The  superintendent  may  revoke,  or  may
suspend  for  a period the superintendent determines the registration or
license of any pharmacy benefit manager if, after  notice  and  hearing,
the  superintendent  determines  that  the registrant or licensee or any
member, principal, officer,  director,  or  controlling  person  of  the
registrant or licensee, has:
(1)  violated  any insurance laws, section two hundred eighty-a of the
public health law or violated any regulation, subpoena or order  of  the
superintendent  or  of  another  state's  insurance commissioner, or has
violated any law in the course of his or her dealings in  such  capacity
after  such  registration or license has been issued or renewed pursuant
to this article;
(2) provided materially incorrect, materially  misleading,  materially
incomplete  or  materially  untrue  information  in  the registration or
license application;
(3) obtained or attempted to obtain a registration or license  through
misrepresentation or fraud;
(4)(A) used fraudulent, coercive or dishonest practices;
(B) demonstrated incompetence;
(C) demonstrated untrustworthiness; or
(D) demonstrated financial irresponsibility in the conduct of business
in this state or elsewhere;
(5)  improperly  withheld,  misappropriated or converted any monies or
properties  received  in  the  course  of  business  in  this  state  or
elsewhere;
(6)  intentionally  misrepresented  the terms of an actual or proposed
insurance contract;
(7) admitted or been found to  have  committed  any  insurance  unfair
trade practice or fraud;
(8)  had  a  pharmacy  benefit manager registration or license, or its
equivalent, denied, suspended or revoked in any other  state,  province,
district or territory;
(9)  failed  to pay state income tax or comply with any administrative
or court order directing payment of state income tax; or
(10) ceased to meet the requirements  for  registration  or  licensure
under this article.
(b)  Before  revoking or suspending the registration or license of any
pharmacy benefit manager pursuant to the provisions of this article, the
superintendent shall give notice to the registrant or licensee and shall
hold, or cause to be held, a hearing not less than ten  days  after  the
giving of such notice.
(c)  If  a  registration or license pursuant to the provisions of this
article  is  revoked  or  suspended  by  the  superintendent,  then  the
superintendent   shall  forthwith  give  notice  to  the  registrant  or
licensee.
(d) The revocation  or  suspension  of  any  registration  or  license
pursuant  to  the  provisions  of this article shall terminate forthwith
such registration or license and the authority  conferred  thereby.  For
good  cause  shown, the superintendent may delay the effective date of a
revocation or suspension to permit the registrant or licensee to satisfy
some or all of its contractual obligations to perform  pharmacy  benefit
management services in the state.
(e)(1)   No   individual,   corporation,  firm  or  association  whose
registration or license as a pharmacy benefit manager has  been  revoked
pursuant  to  subsection (a) of this section, and no firm or association
of which such individual is a member, and no corporation of  which  such
individual  is  an officer or director, and no controlling person of the

registrant or licensee shall be entitled to obtain any  registration  or
license under the provisions of this article for a minimum period of one
year  after  such  revocation,  or,  if  such  revocation  be judicially
reviewed, for a minimum period of one year after the final determination
thereof  affirming  the  action  of  the superintendent in revoking such
license.
(2) If any such registration or license held by a firm, association or
corporation be revoked, no member of such firm  or  association  and  no
officer or director of such corporation or any controlling person of the
registrant  or  licensee shall be entitled to obtain any registration or
license under this article for the  same  period  of  time,  unless  the
superintendent  determines,  after notice and hearing, that such member,
officer or director was not personally at fault in the matter on account
of which such registration or license was revoked.
(f) If any corporation, firm, association or  person  aggrieved  shall
file  with  the  superintendent a verified complaint setting forth facts
tending to show sufficient ground for the revocation  or  suspension  of
any   pharmacy  benefit  manager's  registration  or  license,  and  the
superintendent finds the complaint  credible,  then  the  superintendent
shall,  after  notice and a hearing, determine whether such registration
or license shall be suspended or revoked.
(g) The superintendent shall  retain  the  authority  to  enforce  the
provisions  of  and  impose  any  penalty  or  remedy authorized by this
chapter against any person or entity who is under investigation  for  or
charged  with  a  violation  of  this  chapter,  even if the person's or
entity's registration or license has been surrendered, or has expired or
has lapsed by operation of law.
(h) A registrant or licensee subject to this article shall  report  to
the   superintendent   any   administrative  action  taken  against  the
registrant  or  licensee  in  another   jurisdiction   or   by   another
governmental  agency  in  this  state  within  thirty  days of the final
disposition of the matter.   This report shall include  a  copy  of  the
order, consent to order or other relevant legal documents.
(i)  Within  thirty  days  of  the  initial  pretrial  hearing date, a
registrant or licensee subject to  this  article  shall  report  to  the
superintendent  any  criminal  prosecution of the registrant or licensee
taken in any jurisdiction. The  report  shall  include  a  copy  of  the
initial  complaint  filed,  the order resulting from the hearing and any
other relevant legal documents.