Suspension, revocation, or voluntary surrender of qualification.

(1) A qualified limited service affiliate that proposes to terminate operations in this state shall surrender its qualification to the office and comply with such procedures as required by rule of the commission.

(2) A qualified limited service affiliate that fails to renew its qualification may be subject to a fine and penalty; however, such qualified limited service affiliate may renew its qualification within 30 days after expiration or may surrender the qualification in accordance with procedures prescribed by commission rule.

(3) The qualification of a qualified limited service affiliate in this state may be suspended or revoked by the office, with or without examination, upon the office’s determination that the qualified limited service affiliate does not meet all requirements for original or renewal qualification.

(4) If a qualified limited service affiliate surrenders its qualification or its qualification is suspended or revoked by the office, all rights and privileges afforded by this part to the qualified limited service affiliate cease.

(5) At least 60 days before a proposed date of voluntary termination of a qualification, a qualified limited service affiliate must provide to the office written notice by letter of its intention to surrender its qualification and terminate operations. The notice must include the proposed date of termination and the name of the officer in charge of the termination procedures.

(6) The office may conduct an examination of the books and records of a qualified limited service affiliate at any time after receipt of the notice of surrender of qualification to confirm the winding down of operations.

(7) Operations of a qualified limited service affiliate are deemed terminated effective upon the later of the expiration of 60 days from the date of the filing of the notice of voluntary surrender or upon the date provided in the notice of voluntary surrender, unless the office provides written notice specifying the grounds for denial of such proposed termination. The office may not deny a request to terminate unless it learns of the existence of any outstanding claim or claims against the qualified limited service affiliate, it finds that the requirements to terminate operations have not been satisfied, or there is an immediate and serious danger to the public health, safety, and welfare if the termination occurred.