1.09.220 License Suspension, Revocation, or Refusal; Grounds

The commissioner may suspend, revoke, place on probation, or refuse to continue or issue any license issued under this chapter if, after notice to the licensee and hearing, the commissioner finds as to the licensee any of the following conditions:

(a) A materially untrue statement in the license application.

(b) An acquisition or attempt to acquire a license through misrepresentation or fraud.

(c) The applicant has been found to have been cheating on an examination for an insurance license.

(d) Any cause for which issuance of the license could have been refused had it then existed and been known to the commissioner at the time of issuance.

(e) The applicant or licensee has been convicted of a felony, or convicted of an offense, as defined by Section 1.09.130 (subsection 19), determined by the commissioner to have a direct bearing upon a person's ability to serve the public as an insurance producer, insurance consultant or surplus lines insurance producer, or the commissioner finds, after conviction of an offense, that the person is not sufficiently rehabilitated.

(f) In the conduct of affairs under the license, the licensee has used fraudulent, coercive or dishonest practices, or has shown oneself to be incompetent, untrustworthy, or financially irresponsible.

(g) A misrepresentation of the terms of any actual or proposed insurance contract.

(h) The licensee has been found to have knowingly solicited, procured, or sold unnecessary or excessive insurance coverage to any person.

(i) The licensee has forged another's name to an application for insurance.

(j) An improper withholding of, misappropriating of, or converting to one's own use any moneys belonging to policyholders, insurers, beneficiaries, or others received in the course of one's insurance business.

(k) The licensee has been found guilty of any unfair trade practice defined in this title or fraud.

(l) A violation of or noncompliance with any insurance laws of this state, or a violation of or noncompliance with any lawful rules or orders of the commissioner or of a commissioner of another state.

(m) The licensee's license has been suspended or revoked in any other state, province, district, or territory for any reason or purpose other than noncompliance with continuing education programs, or noncompliance with mandatory filing requirements imposed upon a licensee by the state, province, district, or territory provided the filing does not directly affect the public interest, safety, or welfare.

(n) The applicant or licensee has refused to respond within twenty (20) days to a written request by the commissioner for information regarding any potential violation of this section.

(o) Without express prior written approval from the commissioner, the licensee communicates with a person who the licensee knows has contacted the department regarding an alleged violation committed by the licensee in an attempt to have the complainant dismiss the complaint.

(p) The licensee knowingly accepts insurance business from an individual who is not licensed.

(q) The applicant or licensee knowingly fails to comply with a court order imposing child support obligation.

(r) The applicant or licensee knowingly fails to pay state income tax or comply with a court order directing payment of state income tax.

(s) Under the federal definition Crimes and Criminal Procedure 18 USC Section 1153: A person convicted of a felony involving heinous crimes cannot be a bail bondsman. Heinous crimes involve crimes that "shock the conscience of the court" pursuant to 18 USC § 1153 Offenses committed within Indian Country which reads as follows:

(1) Any Indian who commits against the person or property of another Indian or other person any of the following offenses: namely, murder, manslaughter, kidnapping, maiming, a felony under Chapter 109A, incest, assault with intent to commit murder, assault with a dangerous weapon, assault resulting in serious bodily injury (as defined in section 1365 of this title), an assault against an individual who has not attained the age of sixteen (16) years, arson, burglary, robbery, and a felony under Section 661 of this title within the Indian country, shall be subject to the same law and penalties as all other persons committing any of the above offenses, within the exclusive jurisdiction of the United States.

(2) Any offense referred to in subsection (s)(1) of this section that is not defined and punished by Federal law in force within the exclusive jurisdiction of the United States shall be defined and punished in accordance with the laws of the State (Indian Tribe) in which such offense was committed as are in force at the time of such offense.

(t) The applicant knowingly fails to provide adequate insurance in an amount sufficient to cover any losses that may occur under this title.