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

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

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

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

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

(5)  The licensee or any officer, partner, member, ordirector has been convicted of a felony, or of any misdemeanor of whichcriminal fraud is an element; or the licensee has pleaded guilty or nolocontendere with respect to any felony or any misdemeanor of which criminalfraud or moral turpitude is an element, regardless of whether a judgment ofconviction has been entered by the court;

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

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

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

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

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