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



(1)  Providing incorrect, misleading, incomplete, or
materially 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 license
through misrepresentation or fraud;



(4)  Improperly withholding, misappropriating, or
converting any moneys or properties received in the course of doing 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 to or been found to have
committed any insurance unfair trade practice or fraud;



(8)  Using fraudulent, coercive, or dishonest practice
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, placed on probation, suspended, or revoked in any other
state, province, district, or territory;



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



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



(12)  Accepting insurance business from a person who is
not licensed;



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



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



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



(b)  If the commissioner takes action pursuant
to subsection (a), the commissioner shall notify the applicant or licensee in
writing of the reason for that action.  The applicant or licensee may make
written demand upon the commissioner within ten days of the date of receipt of
the notice for a hearing before the commissioner to determine the
reasonableness of the commissioner's action.  The hearing shall be held within
thirty days of receipt of the written demand and shall be held pursuant to
chapter 91; provided that this subsection shall not apply to an action taken
pursuant to subsection (a)(15), and following that action, unless otherwise
provided by law, the commissioner shall without further review or hearing
renew, reinstate, or grant the license only upon receipt of an authorization
from the administering entity.



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



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



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



(f)  The commissioner shall retain the
authority to enforce the provisions of and impose any penalty or remedy
authorized by this article, chapter 431, 432, or 432D, against any person who
is under investigation for or charged with a violation of this article, chapter
431, 432, or 432D, even if that person's license or registration has been
surrendered or has lapsed by operation of law. [L 2001, c 216, pt of §2; am L
2003, c 133, §8 and c 212, §64; am L 2006, c 154, §30]