§431:9A-112  License denial, nonrenewal,suspension, or revocation.  (a)  The commissioner may deny, place onprobation, suspend, revoke, or refuse to issue or renew an insurance producer'slicense and may levy a civil penalty in accordance with articles 2 and 3, orany combination of these actions, for any of the following causes:

(1)  Providing incorrect, misleading, incomplete, ormaterially untrue information in the license application;

(2)  Violating any law, or violating any rule,subpoena, or order of the commissioner or of another state's commissioner;

(3)  Obtaining or attempting to obtain a licensethrough misrepresentation or fraud;

(4)  Improperly withholding, misappropriating, orconverting any moneys or properties received in the course of doing business;

(5)  Intentionally misrepresenting the terms of anactual or proposed insurance contract or application for insurance;

(6)  Having been convicted of a felony;

(7)  Having admitted to or been found to havecommitted any insurance unfair trade practice or fraud;

(8)  Using fraudulent, coercive, or dishonest practiceor demonstrating incompetence, untrustworthiness, or financial irresponsibilityin the conduct of business in this State or elsewhere;

(9)  Having an insurance producer license or itsequivalent denied, placed on probation, suspended, or revoked in any otherstate, province, district, or territory;

(10)  Forging another's name on an application or onany document related to a transaction;

(11)  Improperly using notes or any other referencematerial while taking an examination for an insurance license;

(12)  Accepting insurance business from a person who isnot licensed;

(13)  Failing to comply with an administrative or courtorder imposing a child support obligation;

(14)  Failing to pay federal or state income taxes orfailing to comply with any administrative or court order directing payment offederal or state income taxes; or

(15)  Receiving certification from anadministering entity pursuant to chapter 436C that the licensee or applicant isin default or breach of any obligation under any student loan, student loanrepayment contract, or scholarship contract that financed the licensee's orapplicant's education, or has failed to comply with a repayment plan.

(b)  If the commissioner takes action pursuantto subsection (a), the commissioner shall notify the applicant or licensee inwriting of the reason for that action.  The applicant or licensee may makewritten demand upon the commissioner within ten days of the date of receipt ofthe notice for a hearing before the commissioner to determine thereasonableness of the commissioner's action.  The hearing shall be held withinthirty days of receipt of the written demand and shall be held pursuant tochapter 91; provided that this subsection shall not apply to an action takenpursuant to subsection (a)(15), and following that action, unless otherwiseprovided by law, the commissioner shall without further review or hearingrenew, reinstate, or grant the license only upon receipt of an authorizationfrom the administering entity.

(c)  The commissioner shall not renew orreinstate any license and shall deny, suspend, or revoke any license orapplication if the commissioner has received certification from anadministering entity pursuant to chapter 436C that the licensee or applicant isin default or is in breach of any obligation under any student loan, studentloan repayment contract, or scholarship contract, or has failed to comply witha repayment plan.  Unless otherwise provided by law, if the commissioner hasreceived such certification, the commissioner shall renew, reinstate, or granta license only upon receipt of authorization from the administering entity.

(d)  The license of a business entity may besanctioned pursuant to subsection (a) if the commissioner finds, after hearing,that any other licensee of the business entity has engaged in misconduct undersubsection (a) that was known or should have been known by one or more of theentity's partners, officers, or managers acting on behalf of the entity and theviolation was neither reported to the commissioner by the entity nor correctiveaction taken by the entity.

(e)  In addition to or in lieu of anyapplicable sanction under subsection (a), a licensee may, after hearing, be subjectto a civil fine according to article 2.

(f)  The commissioner shall retain theauthority to enforce the provisions of and impose any penalty or remedyauthorized by this article, chapter 431, 432, or 432D, against any person whois under investigation for or charged with a violation of this article, chapter431, 432, or 432D, even if that person's license or registration has beensurrendered or has lapsed by operation of law. [L 2001, c 216, pt of §2; am L2003, c 133, §8 and c 212, §64; am L 2006, c 154, §30]