§ 58-33-46. Suspension, probation, revocation, or nonrenewal of licenses.
§ 58‑33‑46. Suspension, probation, revocation, or nonrenewal of licenses.
(a) The Commissionermay place on probation, suspend, revoke, or refuse to renew any license issuedunder this Article, in accordance with the provisions of Article 3A of Chapter150B of the General Statutes, for any one or more of the following causes:
(1) Providing materiallyincorrect, misleading, incomplete, or materially untrue information in thelicense application.
(2) Violating anyinsurance law of this or any other state, violating any administrative rule,subpoena, or order of the Commissioner or of another state's insuranceregulator, or violating any rule of the FINRA.
(3) Obtaining orattempting to obtain a license through misrepresentation or fraud.
(4) Improperly withholding,misappropriating, or converting any monies or properties received in the courseof doing insurance business.
(5) Intentionallymisrepresenting the terms of an actual or proposed insurance contract orapplication for insurance.
(6) Having been convictedof a felony or a misdemeanor involving dishonesty, a breach of trust, or moralturpitude.
(7) Having admitted orbeen found to have committed any insurance unfair trade practice or fraud.
(8) Using fraudulent,coercive, or dishonest practices, or demonstrating incompetence,untrustworthiness, or financial irresponsibility in the conduct of business inthis State or elsewhere.
(9) Having an insuranceproducer license, or its equivalent, denied, suspended, or revoked in any otherjurisdiction for reasons substantially similar to those listed in thissubsection.
(10) Forging another'sname to an application for insurance or to any document related to an insurancetransaction.
(11) Willfully failing toprovide the notification required by subsection (c) of this section.
(12) Knowingly acceptingbrokered insurance business from an individual who is not licensed to brokerthat kind of insurance.
(12a) Soliciting,negotiating, or selling insurance in this State for an unauthorized insurer,regardless of whether the licensee or applicant knew that the insurer wasunauthorized. As used in this section, the terms "soliciting","negotiating", and "selling" shall have the meaning of"solicit", "negotiate", and "sell", respectively,set forth in G.S. 58‑33‑10.
(13) Failing to complywith an administrative or court order imposing a child support obligation,after entry of a final judgment or order finding the violation to have beenwillful.
(14) Failing to pay Stateincome tax or comply with any administrative or court order directing paymentof State income tax, after entry of a final judgment or order finding theviolation to have been willful.
(15) Cheating on anexamination for an insurance license or for a prelicensing or continuingeducation course, including improperly using notes or any other referencematerial to complete an examination for an insurance license or for aprelicensing or continuing education course.
(16) Willfullyoverinsuring property.
(17) Any cause for whichissuance of the license could have been refused had it then existed and beenknown to the Commissioner at the time of issuance.
(b) G.S. 58‑2‑50applies to any investigation under this section. G.S. 58‑2‑70applies to any person subject to licensure under this Article.
(c) Any person licensedunder this Article shall notify the Commissioner of the commencement of anybankruptcy, insolvency, or receivership proceeding affecting the personlicensed, or upon making an assignment for the benefit of creditors of theperson licensed. Each owner, manager, or officer of a business entity that is alicensed person shall be responsible for providing this notification. Anyperson responsible for notifying the Commissioner shall provide the noticewithin three business days after the commencement of the proceeding or themaking of the assignment.
(d) If the Commissionerrefuses to grant a license, or suspends or revokes a license, any appointmentof the applicant or licensee shall likewise be revoked. No individual whoselicense is revoked shall be issued another license without first complying withall requirements of this Article.
(e) No person shall beissued a license or appointment to enter the employment of any other person,which other person is at that time found by the Commissioner to be in violationof any of the insurance laws of this State, or which other person has been inany manner disqualified under any state or federal law to engage in theinsurance business.
(f) The Commissionershall retain the authority to enforce the provisions of, and impose any penaltyor remedy authorized by, this Chapter against any person who is underinvestigation for or charged with a violation of this Chapter even if theperson's license or registration has been surrendered or has lapsed byoperation of law. (2001‑203,s. 16; 2004‑166, s. 2; 2007‑507, ss. 5, 6; 2009‑566, s. 10.)