A. After notice and opportunity for a hearing, the director may revoke a group's certificate of approval if it:
(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:
(1) any certificate of approval that was issued to the group was obtained by fraud;
(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.