20-295

20-295. License denial, suspension or
revocation; civil penalty

A. The director may deny, suspend for not more than twelve months, revoke or refuse
to renew an insurance producer's license or may impose a civil penalty in accordance with
subsection F of this section or any combination of actions for any one or more of the
following causes:

1. Providing incorrect, misleading, incomplete or materially untrue information in
the license application.

2. Violating any provision of this title or any rule, subpoena or order of the
director.

3. Obtaining or attempting to obtain a license through misrepresentation or fraud.

4. Improperly withholding, misappropriating or converting any monies or properties
received in the course of doing insurance business.

5. Intentionally misrepresenting the terms of an actual or proposed insurance
contract or application for insurance.

6. Having been convicted of a felony.

7. Having admitted or been 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
in this state or elsewhere.

9. Having an insurance producer license, or its equivalent, denied, suspended or
revoked in any state, province, district or territory.

10. Forging another's name to any document related to an insurance transaction.

11. Aiding or assisting any person in the unauthorized transaction of insurance
business.

12. Violating section 41-624, subsection B or C.

13. Violating section 6-1410, 6-1412 or 6-1413.

14. Using the insurance producer's license principally to procure insurance that
covers the life, property or insurable interests, other than to insure an interest in
property that is being sold under a contract or that is securing a loan, of any of the
following:

(a) The licensee.

(b) The licensee's family or relatives to the second degree.

(c) The licensee's employer.

(d) The licensee's employees.

(e) A firm or corporation, or its employees, in which the licensee owns a
substantial interest.

B. The director may deny, suspend for not more than twelve months, revoke or refuse
to renew the license of a business entity:

1. For any of the causes prescribed in subsection A of this section if the cause
relates to the designated producer or any member, officer, director or manager of the
business entity.

2. If the director finds that an individual insurance producer's violation was
known or should have been known by the designated producer or one or more of the members,
officers, directors or managers acting on behalf of the business entity and the violation
was not seasonably reported to the director and no reasonable corrective action was
taken.

C. If the director denies an application for a license, the director shall notify
the applicant in accordance with title 41, chapter 6, article 10.

D. The director may revoke, suspend or refuse to renew a license after notice and
an opportunity for a hearing in accordance with title 41, chapter 6, article 10.

E. Any hearing required by this section shall be conducted as prescribed in chapter
1, article 2 of this title and title 41, chapter 6, article 10.

F. In addition to or instead of any suspension, revocation or refusal to renew a
license pursuant to this section, after a hearing the director may:

1. Impose a civil penalty of not more than two hundred fifty dollars for each
unintentional failure or violation, up to an aggregate civil penalty of two thousand five
hundred dollars.

2. Impose a civil penalty of not more than two thousand five hundred dollars for
each intentional failure or violation, up to an aggregate civil penalty of fifteen
thousand dollars.

3. Order the licensee to provide restitution to any party injured by the licensee's
action.

G. The licensee shall pay any civil penalty to the director who shall deposit it,
pursuant to sections 35-146 and 35-147, in the state general fund. The civil penalty is
in addition to any other applicable penalty or restraint either in this article or in any
other law and may be recovered in a civil action brought by the director. For the
purposes of subsection F of this section, a single publication, exhibition or utterance
of any matter in violation of this title is deemed one violation or failure, including an
edition of a newspaper, book or magazine, a single representation to an audience, a
single broadcast over radio or television or a single exhibition of a motion picture.

H. The director shall retain the authority to enforce this title and impose any
penalty or remedy authorized by this title against any person who is under investigation
for or charged with a violation of this title even if the person's license has been
surrendered or has lapsed by operation of law.