A. After notice and opportunity for a hearing, the director may revoke a group’s certificate of approval if it:

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(1)     is found to be insolvent;

(2)     fails to pay any premium tax, regulatory fee or assessment or special fund contribution imposed upon it; or

(3)     fails to comply with any of the provisions of the Group Self-Insurance Act, with any rules or regulations promulgated thereunder or with any lawful order of the director within the time prescribed.

B. The director may revoke a group’s certificate of approval if, after notice and opportunity for hearing, he finds that:

fraud;

(1)     any certificate of approval that was issued to the group was obtained by (2)     there was a material misrepresentation in the application for the certificate of approval; or

(3)     the group or its administrator has misappropriated, converted, illegally withheld or refused to pay over, upon proper demand, any money that belongs to a member, an employee of a member or a person otherwise entitled to it and that has been entrusted to the group or its administrator in its fiduciary capacities.