Section 500.1239 - Probation, suspension, or revocation of insurance producer's license; refusal to reissue; causes; civil fine; notice of license denial; hearing; license of business entity; pena
THE INSURANCE CODE OF 1956 (EXCERPT)
Act 218 of 1956
500.1239 Probation, suspension, or revocation of insurance producer's license; refusal to reissue; causes; civil fine; notice of license denial; hearing; license of business entity; penalties and remedies.
Sec. 1239.
(1) In addition to any other powers under this act, the commissioner may place on probation, suspend, or revoke an insurance producer's license or may levy a civil fine under section 1244 or any combination of actions, and the commissioner shall refuse to issue a license under section 1205 or 1206a, for any 1 or more of the following causes:
(a) Providing incorrect, misleading, incomplete, or materially untrue information in the license application.
(b) Violating any insurance laws or violating any regulation, subpoena, or order of the commissioner or of another state's insurance commissioner.
(c) Obtaining or attempting to obtain a license through misrepresentation or fraud.
(d) Improperly withholding, misappropriating, or converting any money or property received in the course of doing insurance business.
(e) Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance.
(f) Having been convicted of a felony.
(g) Having admitted or been found to have committed any insurance unfair trade practice or fraud.
(h) Using fraudulent, coercive, or dishonest practices or demonstrating incompetence, untrustworthiness, or financial irresponsibility in the conduct of business in this state or elsewhere.
(i) Having an insurance producer license or its equivalent denied, suspended, or revoked in any other state, province, district, or territory.
(j) Forging another's name to an application for insurance or to any document related to an insurance transaction.
(k) Improperly using notes or any other reference material to complete an examination for an insurance license.
(l) Knowingly accepting insurance business from an individual who is not licensed.
(m) Failing to comply with an administrative or court order imposing a child support obligation.
(n) Failing to pay the single business tax or the Michigan business tax or comply with any administrative or court order directing payment of the single business tax or the Michigan business tax.
(2) Before the commissioner denies an application for a license under section 1205 or 1206a, the commissioner shall notify in writing the applicant or licensee of the denial and of the reason for the denial. Not later than 30 days after this written denial, the applicant or licensee may make written demand upon the commissioner for a hearing before the commissioner to determine the reasonableness of the commissioner's action. A hearing under this subsection shall be held pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(3) The license of a business entity may be suspended, revoked, or refused if the commissioner finds, after hearing, that an individual licensee's violation was known or should have been known by 1 or more of the partners, officers, or managers acting on behalf of the partnership or corporation and the violation was neither reported to the commissioner nor corrective action taken.
(4) In addition to or in lieu of any applicable denial, suspension, or revocation of a license, a person may, after hearing, be subject to a civil fine under section 1244.
(5) In addition to the penalties under this section, the commissioner may enforce the provisions of and impose any penalty or remedy authorized by this act against any person who is under investigation for or charged with a violation of this act even if the person's license or registration has been surrendered or has lapsed by operation of law.
History: Add. 2001, Act 228, Eff. Mar. 1, 2002 ;-- Am. 2007, Act 187, Imd. Eff. Dec. 21, 2007 ;-- Am. 2008, Act 423, Imd. Eff. Jan. 6, 2009
Popular Name: Act 218