40-4909.Same; suspension, denial of, revocation orrefusal to renew license; grounds; hearing; powers of commissioner.(a) The commissioner may deny, suspend, revoke or refuse renewal of anylicense issued under this act if the commissioner finds that the applicant orlicense holder has:
(1) Provided incorrect, misleading, incomplete or untrue information in thelicense application.
(2) Violated:
(A) Any provision of chapter 40 of the Kansas Statutes Annotated, andamendments thereto, or any rule and regulation promulgated thereunder;
(B) any subpoena or order of the commissioner;
(C) any insurance law or regulation of another state; or
(D) any subpoena or order issued by the regulatory official for insurance inanother state.
(3) Obtained or attempted to obtain a license under this act throughmisrepresentation or fraud.
(4) Improperly withheld, misappropriated or converted any moneys orproperties received in the course of doing insurance business.
(5) Intentionally misrepresented the provisions, terms and conditions of anactual or proposed insurance contract or application for insurance.
(6) Been convicted of a misdemeanor or felony.
(7) Admitted to or been found to have committed any insurance unfair tradepractice or fraud in violation of K.S.A. 40-2404 and amendments thereto.
(8) Used any fraudulent, coercive, or dishonest practice, or demonstrated anyincompetence, untrustworthiness or financial irresponsibility in the conduct ofbusiness in this state or elsewhere.
(9) Had an insurance agent license, or its equivalent, denied, suspendedor revoked in any other state, district or territory.
(10) Forged another person's name to an application for insurance or to anydocument related to an insurance transaction.
(11) Improperly used notes or any other reference material to complete anexamination for an insurance license issued under this act.
(12) Knowingly accepted insurance business from an individual who is notlicensed.
(13) Failed to comply with any administrative or court order imposing a childsupport obligation upon the applicant or license holder.
(14) Failed to pay any state income tax or comply with any administrative orcourt order directing payment of state income tax.
(15) Rebated the whole or any part of any insurance premium or offered inconnection with the presentation of any contract of insurance any otherinducement not contained in the contract of insurance.
(16) Made any misleading representation or incomplete comparison of policiesto any person for the purposes of inducing or tending to induce such person tolapse, forfeit or surrender such person's insurance then in force.
(b) In addition, the commissioner may suspend, revoke or refuse renewal ofany license issued under this act if the commissioner finds that the interestsof the insurer or the insurable interests of the public are not properly servedunder such license.
(c) Any action taken under this section which affects any license or imposesany administrative penalty shall be taken only after notice and an opportunityfor a hearing conducted in accordance with the provisions of the Kansasadministrative procedures act.
(d) The license of any business entity may be suspended, revoked or refusedrenewal if the insurance commissioner finds that any violation committed by anindividual licensee employed by or acting on behalf of such business entity wasknown by or should have been known by one or more of the partners, officers ormanagers acting on behalf of the business entity and:
(1) Such violation was not reported to the insurance commissioner by suchbusiness entity; or
(2) such business entity failed to take any corrective action.
(e) None of the following actions shall deprive the commissioner of anyjurisdiction or right to institute or proceed with any disciplinary proceedingagainst such license, to render a decision suspending, revoking or refusing torenew such license, or to establish and make a record of the facts of anyviolation of law for any lawful purpose:
(1) The imposition of an administrative penalty under this section;
(2) the lapse or suspension of any license issued under this act by operationof law;
(3) the licensee's failure to renew any license issued under this act; or
(4) the licensee's voluntary surrender of any license issued under this act.No such disciplinary proceeding shall be instituted against any licensee afterthe expiration of two years from the termination of the license.
(f) Whenever the commissioner imposes any administrative penalty or denies,suspends, revokes or refuses renewal of any license pursuant to subsection (a),any costs incurred as a result of conducting an administrative hearingauthorized under the provisions of this section shall be assessed against theperson who is the subject of the hearing or any business entity represented bysuch person who is the party to the matters giving rise to the hearing. As usedin this subsection, "costs" shall include witness fees, mileage allowances, anycosts associated with the reproduction of documents which become a part of thehearing record and the expense of making a record of the hearing.
(g) No person whose license as an agent or broker had been suspended orrevoked shall be employed by any insurance company doing business in this stateeither directly, indirectly, as an independent contractor or otherwise tonegotiate or effect contracts of insurance, suretyship or indemnity or performany act toward the solicitation of or transaction of any business of insuranceduring the period of such suspension or revocation.
(h) In lieu of taking any action under subsection (a), the commissioner may:
(1) Censure the person; or
(2) issue an order imposing an administrative penalty up to a maximum of $500for each violation but not to exceed $2,500 for the same violation occurringwithin any six consecutive calendar months from the date of the originalviolation unless such person knew or should have known that the violative actcould give rise to disciplinary action under subsection (a). If such personknew or reasonably should have known the violative act could give rise to anydisciplinary proceeding authorized by subsection (a), the commissioner mayimpose a penalty up to a maximum of $1,000 for each violation but not to exceed$5,000 for the same violation occurring within any six consecutive calendarmonths from the date of the imposition of the original administrativepenalty.
History: L. 2001, ch. 91, § 9;L. 2002, ch. 158, § 21; May 23.
40-4909.Same; suspension, denial of, revocation orrefusal to renew license; grounds; hearing; powers of commissioner.(a) The commissioner may deny, suspend, revoke or refuse renewal of anylicense issued under this act if the commissioner finds that the applicant orlicense holder has:
(1) Provided incorrect, misleading, incomplete or untrue information in thelicense application.
(2) Violated:
(A) Any provision of chapter 40 of the Kansas Statutes Annotated, andamendments thereto, or any rule and regulation promulgated thereunder;
(B) any subpoena or order of the commissioner;
(C) any insurance law or regulation of another state; or
(D) any subpoena or order issued by the regulatory official for insurance inanother state.
(3) Obtained or attempted to obtain a license under this act throughmisrepresentation or fraud.
(4) Improperly withheld, misappropriated or converted any moneys orproperties received in the course of doing insurance business.
(5) Intentionally misrepresented the provisions, terms and conditions of anactual or proposed insurance contract or application for insurance.
(6) Been convicted of a misdemeanor or felony.
(7) Admitted to or been found to have committed any insurance unfair tradepractice or fraud in violation of K.S.A. 40-2404 and amendments thereto.
(8) Used any fraudulent, coercive, or dishonest practice, or demonstrated anyincompetence, untrustworthiness or financial irresponsibility in the conduct ofbusiness in this state or elsewhere.
(9) Had an insurance agent license, or its equivalent, denied, suspendedor revoked in any other state, district or territory.
(10) Forged another person's name to an application for insurance or to anydocument related to an insurance transaction.
(11) Improperly used notes or any other reference material to complete anexamination for an insurance license issued under this act.
(12) Knowingly accepted insurance business from an individual who is notlicensed.
(13) Failed to comply with any administrative or court order imposing a childsupport obligation upon the applicant or license holder.
(14) Failed to pay any state income tax or comply with any administrative orcourt order directing payment of state income tax.
(15) Rebated the whole or any part of any insurance premium or offered inconnection with the presentation of any contract of insurance any otherinducement not contained in the contract of insurance.
(16) Made any misleading representation or incomplete comparison of policiesto any person for the purposes of inducing or tending to induce such person tolapse, forfeit or surrender such person's insurance then in force.
(b) In addition, the commissioner may suspend, revoke or refuse renewal ofany license issued under this act if the commissioner finds that the interestsof the insurer or the insurable interests of the public are not properly servedunder such license.
(c) Any action taken under this section which affects any license or imposesany administrative penalty shall be taken only after notice and an opportunityfor a hearing conducted in accordance with the provisions of the Kansasadministrative procedures act.
(d) The license of any business entity may be suspended, revoked or refusedrenewal if the insurance commissioner finds that any violation committed by anindividual licensee employed by or acting on behalf of such business entity wasknown by or should have been known by one or more of the partners, officers ormanagers acting on behalf of the business entity and:
(1) Such violation was not reported to the insurance commissioner by suchbusiness entity; or
(2) such business entity failed to take any corrective action.
(e) None of the following actions shall deprive the commissioner of anyjurisdiction or right to institute or proceed with any disciplinary proceedingagainst such license, to render a decision suspending, revoking or refusing torenew such license, or to establish and make a record of the facts of anyviolation of law for any lawful purpose:
(1) The imposition of an administrative penalty under this section;
(2) the lapse or suspension of any license issued under this act by operationof law;
(3) the licensee's failure to renew any license issued under this act; or
(4) the licensee's voluntary surrender of any license issued under this act.No such disciplinary proceeding shall be instituted against any licensee afterthe expiration of two years from the termination of the license.
(f) Whenever the commissioner imposes any administrative penalty or denies,suspends, revokes or refuses renewal of any license pursuant to subsection (a),any costs incurred as a result of conducting an administrative hearingauthorized under the provisions of this section shall be assessed against theperson who is the subject of the hearing or any business entity represented bysuch person who is the party to the matters giving rise to the hearing. As usedin this subsection, "costs" shall include witness fees, mileage allowances, anycosts associated with the reproduction of documents which become a part of thehearing record and the expense of making a record of the hearing.
(g) No person whose license as an agent or broker had been suspended orrevoked shall be employed by any insurance company doing business in this stateeither directly, indirectly, as an independent contractor or otherwise tonegotiate or effect contracts of insurance, suretyship or indemnity or performany act toward the solicitation of or transaction of any business of insuranceduring the period of such suspension or revocation.
(h) In lieu of taking any action under subsection (a), the commissioner may:
(1) Censure the person; or
(2) issue an order imposing an administrative penalty up to a maximum of $500for each violation but not to exceed $2,500 for the same violation occurringwithin any six consecutive calendar months from the date of the originalviolation unless such person knew or should have known that the violative actcould give rise to disciplinary action under subsection (a). If such personknew or reasonably should have known the violative act could give rise to anydisciplinary proceeding authorized by subsection (a), the commissioner mayimpose a penalty up to a maximum of $1,000 for each violation but not to exceed$5,000 for the same violation occurring within any six consecutive calendarmonths from the date of the imposition of the original administrativepenalty.
History: L. 2001, ch. 91, § 9;L. 2002, ch. 158, § 21; May 23.
40-4909.Same; suspension, denial of, revocation orrefusal to renew license; grounds; hearing; powers of commissioner.(a) The commissioner may deny, suspend, revoke or refuse renewal of anylicense issued under this act if the commissioner finds that the applicant orlicense holder has:
(1) Provided incorrect, misleading, incomplete or untrue information in thelicense application.
(2) Violated:
(A) Any provision of chapter 40 of the Kansas Statutes Annotated, andamendments thereto, or any rule and regulation promulgated thereunder;
(B) any subpoena or order of the commissioner;
(C) any insurance law or regulation of another state; or
(D) any subpoena or order issued by the regulatory official for insurance inanother state.
(3) Obtained or attempted to obtain a license under this act throughmisrepresentation or fraud.
(4) Improperly withheld, misappropriated or converted any moneys orproperties received in the course of doing insurance business.
(5) Intentionally misrepresented the provisions, terms and conditions of anactual or proposed insurance contract or application for insurance.
(6) Been convicted of a misdemeanor or felony.
(7) Admitted to or been found to have committed any insurance unfair tradepractice or fraud in violation of K.S.A. 40-2404 and amendments thereto.
(8) Used any fraudulent, coercive, or dishonest practice, or demonstrated anyincompetence, untrustworthiness or financial irresponsibility in the conduct ofbusiness in this state or elsewhere.
(9) Had an insurance agent license, or its equivalent, denied, suspendedor revoked in any other state, district or territory.
(10) Forged another person's name to an application for insurance or to anydocument related to an insurance transaction.
(11) Improperly used notes or any other reference material to complete anexamination for an insurance license issued under this act.
(12) Knowingly accepted insurance business from an individual who is notlicensed.
(13) Failed to comply with any administrative or court order imposing a childsupport obligation upon the applicant or license holder.
(14) Failed to pay any state income tax or comply with any administrative orcourt order directing payment of state income tax.
(15) Rebated the whole or any part of any insurance premium or offered inconnection with the presentation of any contract of insurance any otherinducement not contained in the contract of insurance.
(16) Made any misleading representation or incomplete comparison of policiesto any person for the purposes of inducing or tending to induce such person tolapse, forfeit or surrender such person's insurance then in force.
(b) In addition, the commissioner may suspend, revoke or refuse renewal ofany license issued under this act if the commissioner finds that the interestsof the insurer or the insurable interests of the public are not properly servedunder such license.
(c) Any action taken under this section which affects any license or imposesany administrative penalty shall be taken only after notice and an opportunityfor a hearing conducted in accordance with the provisions of the Kansasadministrative procedures act.
(d) The license of any business entity may be suspended, revoked or refusedrenewal if the insurance commissioner finds that any violation committed by anindividual licensee employed by or acting on behalf of such business entity wasknown by or should have been known by one or more of the partners, officers ormanagers acting on behalf of the business entity and:
(1) Such violation was not reported to the insurance commissioner by suchbusiness entity; or
(2) such business entity failed to take any corrective action.
(e) None of the following actions shall deprive the commissioner of anyjurisdiction or right to institute or proceed with any disciplinary proceedingagainst such license, to render a decision suspending, revoking or refusing torenew such license, or to establish and make a record of the facts of anyviolation of law for any lawful purpose:
(1) The imposition of an administrative penalty under this section;
(2) the lapse or suspension of any license issued under this act by operationof law;
(3) the licensee's failure to renew any license issued under this act; or
(4) the licensee's voluntary surrender of any license issued under this act.No such disciplinary proceeding shall be instituted against any licensee afterthe expiration of two years from the termination of the license.
(f) Whenever the commissioner imposes any administrative penalty or denies,suspends, revokes or refuses renewal of any license pursuant to subsection (a),any costs incurred as a result of conducting an administrative hearingauthorized under the provisions of this section shall be assessed against theperson who is the subject of the hearing or any business entity represented bysuch person who is the party to the matters giving rise to the hearing. As usedin this subsection, "costs" shall include witness fees, mileage allowances, anycosts associated with the reproduction of documents which become a part of thehearing record and the expense of making a record of the hearing.
(g) No person whose license as an agent or broker had been suspended orrevoked shall be employed by any insurance company doing business in this stateeither directly, indirectly, as an independent contractor or otherwise tonegotiate or effect contracts of insurance, suretyship or indemnity or performany act toward the solicitation of or transaction of any business of insuranceduring the period of such suspension or revocation.
(h) In lieu of taking any action under subsection (a), the commissioner may:
(1) Censure the person; or
(2) issue an order imposing an administrative penalty up to a maximum of $500for each violation but not to exceed $2,500 for the same violation occurringwithin any six consecutive calendar months from the date of the originalviolation unless such person knew or should have known that the violative actcould give rise to disciplinary action under subsection (a). If such personknew or reasonably should have known the violative act could give rise to anydisciplinary proceeding authorized by subsection (a), the commissioner mayimpose a penalty up to a maximum of $1,000 for each violation but not to exceed$5,000 for the same violation occurring within any six consecutive calendarmonths from the date of the imposition of the original administrativepenalty.
History: L. 2001, ch. 91, § 9;L. 2002, ch. 158, § 21; May 23.
