§ 38.2-1356. Penalties and liabilities; grounds for placing on probation,refusal to issue or renew, revocation, or suspension of license.
A. If the Commission finds, after providing an opportunity to be heard, thatany person has violated any provisions of this article, the Commission may,in addition to any other remedies authorized by this title, order thereinsurance intermediary to make restitution to the insurer, reinsurer,rehabilitator or liquidator or receiver of the insurer or reinsurer for thenet losses incurred by the insurer or reinsurer attributable to suchviolation.
B. The Commission may, in addition to or in lieu of a penalty under §38.2-218, place on probation, suspend, revoke, or refuse to issue or renew areinsurance intermediary's license for any one or more of the followingcauses:
1. Providing materially incorrect, misleading, incomplete, or untrueinformation in the license application or any other document filed with theCommission;
2. Violating any insurance or reinsurance laws or violating any regulation,subpoena or order of the Commission or of another state's insuranceregulatory authority;
3. Obtaining or attempting to obtain a license through misrepresentation orfraud;
4. Improperly withholding, misappropriating or converting any moneys orproperties received in the course of doing business;
5. Intentionally misrepresenting the terms of an actual or proposed insuranceor reinsurance contract;
6. Having been convicted of a felony;
7. Having admitted or been found to have committed any insurance unfair tradepractice or fraud;
8. Using fraudulent, coercive, or dishonest practices, or demonstratingincompetence, or untrustworthiness in the conduct of business in thisCommonwealth or elsewhere, or demonstrating financial irresponsibility in thehandling of applicant, policyholder, agency, or insurance company funds;
9. Having an insurance producer license, or its equivalent, denied, suspendedor revoked in any other state, province, or territory;
10. Forging another's name to an application for insurance or reinsurance, orto any document related to an insurance or reinsurance transaction;
11. Knowingly accepting insurance business from an individual who is notlicensed;
12. Failing to comply with an administrative or court order imposing a childsupport obligation;
13. Failing to pay state income tax or comply with any administrative orcourt order directing payment of state income tax; or
14. If the reinsurance intermediary is a business entity, having itscorporate existence terminated, its certificate of organization, trust,limited liability company, or limited partnership canceled, or itscertificate of authority or registration to transact business in theCommonwealth revoked or canceled, as the case may be.
C. If the Commission believes that any applicant for licensing pursuant tothis article is not of good character or does not have a good reputation forhonesty, it may refuse to issue the license, subject to the right of theapplicant to demand a hearing on the application. The Commission shall notrevoke or suspend an existing license until the licensee is given anopportunity to be heard before the Commission. If the Commission refuses toissue a new license or proposes to revoke or suspend an existing license, itshall give the applicant or licensee at least 10 calendar days' notice inwriting of the time and place of the hearing, if a hearing is requested. Thenotice shall contain a statement of the objections to the issuance of thelicense, or the reason for its proposed revocation or suspension as the casemay be. The notice may be given to the applicant or licensee by registered orcertified mail, sent to the last known address of record pursuant to §38.2-1357, or the last known business address if the address of record isincorrect, or in any other lawful manner the Commission prescribes. TheCommission may summon witnesses to testify with respect to the applicant orlicensee, and the applicant or licensee may introduce evidence in his or itsbehalf. No applicant to whom a license is refused after a hearing, nor anylicensee whose license is revoked, shall again apply for a license until theexpiration of a period of five years from the date of the Commission's order,or such other period of time as the Commission prescribes in its order.
D. Nothing contained in this article is intended to or shall in any mannerlimit or restrict the rights of policyholders, claimants, creditors or otherthird parties or confer any rights to such persons.
E. If an order of rehabilitation or liquidation of the insurer has beenentered pursuant to Chapter 15 (§ 38.2-1500 et seq.) of this title or therehabilitation and liquidation statutes of a reciprocal state, and thereceiver appointed under that order determines that the reinsuranceintermediary or any other person has not materially complied with theprovisions of this article, or any rule, regulation or order promulgatedthereunder, and the insurer suffered any loss or damage therefrom, thereceiver may maintain a civil action for recovery of damages or otherappropriate sanctions for the benefit of the insurer.
§ 38.2-1356. Penalties and liabilities; grounds for placing on probation,refusal to issue or renew, revocation, or suspension of license.
A. If the Commission finds, after providing an opportunity to be heard, thatany person has violated any provisions of this article, the Commission may,in addition to any other remedies authorized by this title, order thereinsurance intermediary to make restitution to the insurer, reinsurer,rehabilitator or liquidator or receiver of the insurer or reinsurer for thenet losses incurred by the insurer or reinsurer attributable to suchviolation.
B. The Commission may, in addition to or in lieu of a penalty under §38.2-218, place on probation, suspend, revoke, or refuse to issue or renew areinsurance intermediary's license for any one or more of the followingcauses:
1. Providing materially incorrect, misleading, incomplete, or untrueinformation in the license application or any other document filed with theCommission;
2. Violating any insurance or reinsurance laws or violating any regulation,subpoena or order of the Commission or of another state's insuranceregulatory authority;
3. Obtaining or attempting to obtain a license through misrepresentation orfraud;
4. Improperly withholding, misappropriating or converting any moneys orproperties received in the course of doing business;
5. Intentionally misrepresenting the terms of an actual or proposed insuranceor reinsurance contract;
6. Having been convicted of a felony;
7. Having admitted or been found to have committed any insurance unfair tradepractice or fraud;
8. Using fraudulent, coercive, or dishonest practices, or demonstratingincompetence, or untrustworthiness in the conduct of business in thisCommonwealth or elsewhere, or demonstrating financial irresponsibility in thehandling of applicant, policyholder, agency, or insurance company funds;
9. Having an insurance producer license, or its equivalent, denied, suspendedor revoked in any other state, province, or territory;
10. Forging another's name to an application for insurance or reinsurance, orto any document related to an insurance or reinsurance transaction;
11. Knowingly accepting insurance business from an individual who is notlicensed;
12. Failing to comply with an administrative or court order imposing a childsupport obligation;
13. Failing to pay state income tax or comply with any administrative orcourt order directing payment of state income tax; or
14. If the reinsurance intermediary is a business entity, having itscorporate existence terminated, its certificate of organization, trust,limited liability company, or limited partnership canceled, or itscertificate of authority or registration to transact business in theCommonwealth revoked or canceled, as the case may be.
C. If the Commission believes that any applicant for licensing pursuant tothis article is not of good character or does not have a good reputation forhonesty, it may refuse to issue the license, subject to the right of theapplicant to demand a hearing on the application. The Commission shall notrevoke or suspend an existing license until the licensee is given anopportunity to be heard before the Commission. If the Commission refuses toissue a new license or proposes to revoke or suspend an existing license, itshall give the applicant or licensee at least 10 calendar days' notice inwriting of the time and place of the hearing, if a hearing is requested. Thenotice shall contain a statement of the objections to the issuance of thelicense, or the reason for its proposed revocation or suspension as the casemay be. The notice may be given to the applicant or licensee by registered orcertified mail, sent to the last known address of record pursuant to §38.2-1357, or the last known business address if the address of record isincorrect, or in any other lawful manner the Commission prescribes. TheCommission may summon witnesses to testify with respect to the applicant orlicensee, and the applicant or licensee may introduce evidence in his or itsbehalf. No applicant to whom a license is refused after a hearing, nor anylicensee whose license is revoked, shall again apply for a license until theexpiration of a period of five years from the date of the Commission's order,or such other period of time as the Commission prescribes in its order.
D. Nothing contained in this article is intended to or shall in any mannerlimit or restrict the rights of policyholders, claimants, creditors or otherthird parties or confer any rights to such persons.
E. If an order of rehabilitation or liquidation of the insurer has beenentered pursuant to Chapter 15 (§ 38.2-1500 et seq.) of this title or therehabilitation and liquidation statutes of a reciprocal state, and thereceiver appointed under that order determines that the reinsuranceintermediary or any other person has not materially complied with theprovisions of this article, or any rule, regulation or order promulgatedthereunder, and the insurer suffered any loss or damage therefrom, thereceiver may maintain a civil action for recovery of damages or otherappropriate sanctions for the benefit of the insurer.
§ 38.2-1356. Penalties and liabilities; grounds for placing on probation,refusal to issue or renew, revocation, or suspension of license.
A. If the Commission finds, after providing an opportunity to be heard, thatany person has violated any provisions of this article, the Commission may,in addition to any other remedies authorized by this title, order thereinsurance intermediary to make restitution to the insurer, reinsurer,rehabilitator or liquidator or receiver of the insurer or reinsurer for thenet losses incurred by the insurer or reinsurer attributable to suchviolation.
B. The Commission may, in addition to or in lieu of a penalty under §38.2-218, place on probation, suspend, revoke, or refuse to issue or renew areinsurance intermediary's license for any one or more of the followingcauses:
1. Providing materially incorrect, misleading, incomplete, or untrueinformation in the license application or any other document filed with theCommission;
2. Violating any insurance or reinsurance laws or violating any regulation,subpoena or order of the Commission or of another state's insuranceregulatory authority;
3. Obtaining or attempting to obtain a license through misrepresentation orfraud;
4. Improperly withholding, misappropriating or converting any moneys orproperties received in the course of doing business;
5. Intentionally misrepresenting the terms of an actual or proposed insuranceor reinsurance contract;
6. Having been convicted of a felony;
7. Having admitted or been found to have committed any insurance unfair tradepractice or fraud;
8. Using fraudulent, coercive, or dishonest practices, or demonstratingincompetence, or untrustworthiness in the conduct of business in thisCommonwealth or elsewhere, or demonstrating financial irresponsibility in thehandling of applicant, policyholder, agency, or insurance company funds;
9. Having an insurance producer license, or its equivalent, denied, suspendedor revoked in any other state, province, or territory;
10. Forging another's name to an application for insurance or reinsurance, orto any document related to an insurance or reinsurance transaction;
11. Knowingly accepting insurance business from an individual who is notlicensed;
12. Failing to comply with an administrative or court order imposing a childsupport obligation;
13. Failing to pay state income tax or comply with any administrative orcourt order directing payment of state income tax; or
14. If the reinsurance intermediary is a business entity, having itscorporate existence terminated, its certificate of organization, trust,limited liability company, or limited partnership canceled, or itscertificate of authority or registration to transact business in theCommonwealth revoked or canceled, as the case may be.
C. If the Commission believes that any applicant for licensing pursuant tothis article is not of good character or does not have a good reputation forhonesty, it may refuse to issue the license, subject to the right of theapplicant to demand a hearing on the application. The Commission shall notrevoke or suspend an existing license until the licensee is given anopportunity to be heard before the Commission. If the Commission refuses toissue a new license or proposes to revoke or suspend an existing license, itshall give the applicant or licensee at least 10 calendar days' notice inwriting of the time and place of the hearing, if a hearing is requested. Thenotice shall contain a statement of the objections to the issuance of thelicense, or the reason for its proposed revocation or suspension as the casemay be. The notice may be given to the applicant or licensee by registered orcertified mail, sent to the last known address of record pursuant to §38.2-1357, or the last known business address if the address of record isincorrect, or in any other lawful manner the Commission prescribes. TheCommission may summon witnesses to testify with respect to the applicant orlicensee, and the applicant or licensee may introduce evidence in his or itsbehalf. No applicant to whom a license is refused after a hearing, nor anylicensee whose license is revoked, shall again apply for a license until theexpiration of a period of five years from the date of the Commission's order,or such other period of time as the Commission prescribes in its order.
D. Nothing contained in this article is intended to or shall in any mannerlimit or restrict the rights of policyholders, claimants, creditors or otherthird parties or confer any rights to such persons.
E. If an order of rehabilitation or liquidation of the insurer has beenentered pursuant to Chapter 15 (§ 38.2-1500 et seq.) of this title or therehabilitation and liquidation statutes of a reciprocal state, and thereceiver appointed under that order determines that the reinsuranceintermediary or any other person has not materially complied with theprovisions of this article, or any rule, regulation or order promulgatedthereunder, and the insurer suffered any loss or damage therefrom, thereceiver may maintain a civil action for recovery of damages or otherappropriate sanctions for the benefit of the insurer.
