(1) If an insurer commits any of the following acts, the authority may suspend the license of such insurer for a specified period or partially or completely prohibit such insurer from doing insurance business:-
(a) If the minimum paid-up capital is not maintained in accordance with the provisions of Section 36,
(b) If the decision regarding payment of claim or damages is not implemented within the specified period in accordance with the provisions of section 128 or 129,
(c) If allowing the insurer to carry on the insurance business would cause serious harm to the insured,
(d) If the insurance business is closed without the approval of the authority, (e) If any other act is prohibited in accordance with this Act or the rules, regulations and existing laws made under this Act,
(f) Instructions given by the authority or. If the order is repeatedly violated.
(2) According to sub-section (1), before suspending the license of the insurer or stopping the insurance business in whole or in part, the authority shall give reasonable opportunity to the concerned insurer to submit an explanation.
(3) If the explanation submitted by the insurer as per sub-section (2) is found to be satisfactory, the authority may release such suspension or withholding.
(4) In case the insurer is completely or partially prohibited from doing insurance business according to sub-section (1), the notice thereof shall be published for the information of the general public through at least two national level daily newspapers and the authority's website.