§ 27-2.4-14 - Licenses – Denial – Nonrenewal – Suspension or revocation.
SECTION 27-2.4-14
§ 27-2.4-14 Licenses – Denial –Nonrenewal – Suspension or revocation. – (a) The insurance commissioner may place on probation, suspend, revoke orrefuse to issue or renew an insurance producer's license or may levy anadministrative penalty in accordance with § 42-14-16 or any combination ofactions, for any one or more of the following causes:
(1) Providing incorrect, misleading, incomplete or materiallyuntrue information in the license application;
(2) Violating any insurance laws, or violating anyregulation, subpoena or order of the insurance commissioner or of anotherstate's insurance commissioner;
(3) Obtaining or attempting to obtain a license throughmisrepresentation or fraud;
(4) Improperly withholding, misappropriating or convertingany monies or properties received in the course of doing insurance business;
(5) Intentionally misrepresenting the terms of an actual orproposed insurance contract or application for insurance;
(6) Having been convicted of a felony;
(7) Having admitted or been found to have committed anyinsurance unfair trade practice or fraud;
(8) Using fraudulent, coercive, or dishonest practices ordemonstrating incompetence, untrustworthiness or financial irresponsibility inthis state or in another place;
(9) Having an insurance producer license, or its equivalent,denied, suspended or revoked in any other state, province, district orterritory or administrative action under this section;
(10) Forging another's name to an application for insuranceor to any document related to an insurance transaction;
(11) Cheating on an examination for an insurance license;
(12) Knowingly accepting insurance business from anindividual who is not licensed;
(13) Failing to comply with an administrative or court orderimposing a child support obligation; or
(14) Failing to pay state income tax or comply with anyadministrative or court order directing payment of state income tax.
(b) In the event that the action by the insurancecommissioner is to non-renew or to deny an application for a license, theinsurance commissioner shall notify the applicant or insurance producer andadvise, in writing, the applicant or insurance producer of the reason for thedenial or non-renewal of the applicant's or insurance producer's license. Theapplicant or insurance producer may make written demand upon the insurancecommissioner within thirty (30) days for a hearing before the insurancecommissioner to determine the reasonableness of the insurance commissioner'saction. The hearing shall be conducted pursuant to the AdministrativeProcedures Act, chapter 35 of title 42.
(c) In addition to or in lieu of any applicable denial,suspension or revocation of a license, a person may, after hearing, be subjectto an administrative fine in accordance with § 42-14-16.
(d) The insurance commissioner shall retain the authority toenforce the provisions of and impose any penalty or remedy authorized by thischapter and this title against any person who is under investigation for orcharged with a violation of this chapter or this title even if the person'slicense or registration has been surrendered or has lapsed by operation of thelaw.