§ 23-64-512 — License denial, nonrenewal, or revocation

(a) The Insurance Commissioner may place on probation, suspend, revoke, or refuse to issue or renew an insurance producer's license or may levy a civil penalty in accordance with § 23-64-216 or any combination of actions for any one (1) or more of the following causes: (1) Providing incorrect, misleading, incomplete, or materially untrue information in the license application; (2) Violating any of the following that calls into question the insurance producer's fitness to hold a license: (A) A law; or (B) A regulation, subpoena, or order of: (i) The commissioner; (ii) Another state's insurance commissioner; or (iii) A court of competent jurisdiction. (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 insurance 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 or been found to have committed any insurance unfair trade practice or fraud; (8) Using fraudulent, coercive, or dishonest practices or demonstrating incompetence, untrustworthiness, lack of good personal or business reputation, or financial irresponsibility; (9) Having an insurance producer license or its equivalent denied, suspended, or revoked in any other state, province, district, or territory; (10) Forging another's name to an application for insurance or to any document related to an insurance transaction; (11) Improperly using notes or any other reference material to complete an examination for an insurance license; (12) Knowingly accepting insurance business from an individual who is not licensed; (13) Failing to provide a written response after receipt of a written inquiry from the commissioner or his or her representative as to transactions under the license within thirty (30) days after receipt thereof unless the timely written response is knowingly waived in writing by the commissioner; (14) Failing to comply with an administrative or court order imposing a child support obligation; (15) Failing to pay state income tax or comply with any administrative or court order directing payment of state income tax; (16) Refusing to be examined or to produce any accounts, records, or files for examination; or (17) Failing to cooperate with the commissioner in an investigation when required by the commissioner. (b) In the event that the action by the commissioner is to nonrenew or to deny an application for a license, the commissioner shall notify the applicant or licensee and advise in writing by mail or electronic mail the applicant or licensee of the reason for the denial or nonrenewal of the applicant's or licensee's license. The applicant or licensee may make written demand by mail or electronic mail upon the commissioner within thirty (30) days for a hearing before the commissioner to determine the reasonableness of the commissioner's action. The hearing shall be held within thirty (30) days and shall be held pursuant to § 23-64-217 and the Arkansas Administrative Procedure Act, § 25-15-201 et seq. (c) The license of a business entity may be suspended, revoked, or refused if the commissioner finds, after hearing, that an individual licensee's violation was known or should have been known by one (1) or more of the partners, officers, or managers acting on behalf of the partnership or corporation and the violation was neither reported to the commissioner nor corrective action taken. (d) In addition to or in lieu of any applicable denial, suspension, or revocation of a license, after a hearing a person may: (1) Be ordered to pay restitution under § 23-61-110 ; and (2) Be subject to a civil fine under § 23-64-216 . (e) The commissioner shall retain the authority to enforce the provisions of and impose any penalty or remedy authorized by this subchapter and the Arkansas Insurance Code against any person who is under investigation for or charged with a violation of this subchapter or the Arkansas Insurance Code, even if the person's license or registration has been revoked, surrendered, or has lapsed by operation of law.

Legislative History

Acts 2001, No. 580, § 1; 2003, No. 1203, § 11; 2005, No. 506, § 31; 2005, No. 1697, § 8; 2011, No. 760, § 9.