Conn. Agencies Regs § 12-568a-13 — Agent delinquencies

# (a)

Collection agents. The president may designate any person or entity as a collection agent to collect or receive settlements and delinquencies. Such collection agent shall be bonded in an amount established by the president as sufficient to protect and save harmless the CLC against any loss.

# (b)

CLC'S determination, division notices to agent.
(1) If the CLC determines that a settlement is improper in that all moneys due and owing the CLC have not been remitted or that an agent has failed to render a timely settlement, the agent shall be so notified by the CLC and shall be afforded a reasonable period of time as determined by the CLC within which to render a proper settlement. If after said period of time the agent remains delinquent, the president shall make a finding of delinquency and notify said agent and the executive director. Thereafter, the executive director shall charge the delinquent agent:
(A) The amount due but unremitted as of the stated past settlement date;
(B) A delinquency assessment equal to ten percent of the amount due and unremitted or ten dollars, whichever amount is greater;

Division of Special Revenue § 12-568a-13
(C) Interest at the rate of one and one half percent of the amount due for each month or fraction of a month computed from the date the settlement was due to the date of payment.
(2) Subject to the provisions of section 12-568a of the Connecticut General Statutes, the executive director may waive all or part of the penalties provided under subparagraph (B) of this subsection if it is proven to executive director's satisfaction that the failure to pay the moneys due to the state within the time allowed was due to reasonable cause and was not intentional or due to neglect.

# (c)

Opportunity for hearing, notice. Included conspicuously in the finding of delinquency shall be a notice informing the agent that its sales are suspended and informing the agent of its right to contest the finding at a delinquency assessment hearing before the executive director. The notice shall establish a date and time for the hearing which shall not be later that seven (7) calendar days from the date on the notice. The notice shall further inform the agent that failure to appear at the hearing will result in a conclusive presumption of delinquency with the attendant consequences thereof under the act and sections 12-568a-1 to 12-568a-23, inclusive, of the Regulations of Connecticut State Agencies. A request for a continuance by an agent will be granted only once in extraordinary circumstances and then for not more than seven (7) calendar days. To this end, the executive director may require a statement, under oath, from the agent explaining these extraordinary circumstances.

# (d)

Delinquency assessment hearing. At a delinquency assessment hearing, the following shall be received into evidence:

(1) the agent's settlement, if any;

(2) CLC and division reports;

(3) the initial notification of indebtedness;

(4) the finding of delinquency;

(5) the agent's past record regarding late settlements; and (6) any other relevant testimony or documents. The agent may then present any testimony, documents or other evidence designed to establish that the alleged delinquency is incorrect in any or all respects. At the conclusion of the hearing and based upon the evidence presented therein, the executive director is authorized to affirm, modify, or rescind the delinquency assessment. The agent shall be formally notified, in writing, of the executive director's decision in this regard.

# (e)

Delinquency assessment modification. If the executive director decides to modify the delinquency assessment, the executive director may, as a condition to the modification or the continued licensure of the agent, require that the agent:
(1) Remit the full amount due and owing pursuant to the terms of the modified assessment; or enter into a payment schedule with the CLC pursuant to the terms of the modified assessment;
(2) Thereafter post a bond in such form and amount as the division determines is required to protect and save harmless the CLC from any future loss.

# (f)

Delinquency assessment affirmance. If the executive director affirms the finding of delinquency at a delinquency assessment hearing, the executive director shall issue in writing a formal finding of delinquency assessment. Thereafter, the president may employ collection agents for the purpose of collecting the delinquency assessment. In this regard, the CLC shall prepare and the executive director may sign a warrant directed to any sheriff, deputy sheriff, constable or designated collection agent employed by the CLC for distraint upon any property (real, personal, tangible or intangible) owned by the agent, in whole or in part, and located in the state of Connecticut. There shall be attached to the warrant an itemized bill, certified by the executive director as a true statement of the full amount due from the agent.
Such warrant shall be considered equivalent to an execution issued in accordance with chapter 906 of the Connecticut General Statutes. Such warrant shall be levied

Division of Special Revenue§ 12-568a-13 on any applicable property and sale made pursuant to such warrant as provided for an execution under chapter 906 of the Connecticut General Statutes.

# (g)

Agency action. Notwithstanding any other provisions of this section, the division may at any time initiate the delinquency assessment hearing process against an agent.
(Adopted effective October 6, 1999; amended May 2, 2006)