[§431E-4]  License suspension, revocation,
or refusal to renew.  (a)  The commissioner may suspend, revoke, or refuse
to renew the license of any licensee if the commissioner finds that:



(1)  There was any material misrepresentation in the
application for the license;



(2)  The licensee or any officer, partner, member, or
director has been guilty of fraudulent or dishonest practices, is subject to a
final administrative action, or is otherwise shown to be untrustworthy or
incompetent to act as a licensee;



(3)  The provider demonstrates a pattern of
unreasonably withholding payments to policy owners;



(4)  The licensee no longer meets the requirements for
initial licensure;



(5)  The licensee or any officer, partner, member, or
director has been convicted of a felony, or of any misdemeanor of which
criminal fraud is an element; or the licensee has pleaded guilty or nolo
contendere with respect to any felony or any misdemeanor of which criminal
fraud or moral turpitude is an element, regardless of whether a judgment of
conviction has been entered by the court;



(6)  The provider has entered into any life settlement
contract that has not been approved pursuant to this chapter;



(7)  The provider has failed to honor contractual
obligations set out in a life settlement contract;



(8)  The provider has assigned, transferred, or
pledged a settled policy to a person other than a provider licensed in this State,
a purchaser, an accredited investor or qualified institutional buyer as defined
respectively in Rule 501 of Regulation D or Rule 144A of the federal Securities
Act of 1933, as amended, a financing entity, a special purpose entity, or a
related provider trust; or



(9)  The licensee or any officer, partner, member, or
key management personnel has violated this chapter.



(b)  Before the commissioner may deny a license
application or suspends, revokes, or refuses to renew the license of any
licensee under this chapter, the commissioner shall conduct a hearing in
accordance with chapter 91. [L 2008, c 177, pt of §1]