It is an improper claims practice for any domestic, foreign, or alien insurer transacting business in this state to commit any act defined in § 27-9.1-4 of this chapter if:

(1)  It is committed flagrantly and in conscious disregard of this chapter or any rules promulgated pursuant to this chapter; or

(2)  It has been committed with a frequency as to indicate a general business practice to engage in that type of conduct.