Suspension or cancellation of registration proceeds through notice, reply, and final order after enquiry report review. On receipt of an enquiry report, the Competent Authority must consider whether the findings warrant suspension or cancellation of registration and issue a show-cause notice to the managing general agent. The managing general agent must reply within twenty-one days. After considering the reply, or proceeding on the merits if no reply is filed, the Competent Authority may pass such order as it deems fit and must communicate the final order.