§ 10-2-804 — Investigation by commissioner

(1) The commissioner may
examine and investigate the business affairs and conduct of every person applying
for or holding an insurance producer license under this article to determine whether
such person has been or is engaged in any violation of the insurance laws or rules of
this state or has engaged in unfair or deceptive acts or practices in any state.

(2) On receipt of any information regarding the possible violation of the
insurance laws or rules of this or any other state, or the possible use of unfair or
deceptive practices by a person applying for or holding an insurance producer
license under this article, the commissioner may require such person to appear and
show cause why the commissioner should not discontinue, revoke, suspend, or
refuse to issue or renew the person's license and may, upon the failure of such
person to show cause, revoke, suspend, or refuse to issue or renew the license.

(3) The license of an insurance agency or business entity may be suspended
or revoked or the renewal or continuation refused if the commissioner finds, after
hearing, that an individual licensee's violation was known or should have been
known to one or more of the partners, officers, or managers acting on behalf of the
insurance agency or business entity, including any foreign or domestic entity as
defined in section 7-90-102, C.R.S., and that such violation was not reported to the
division of insurance nor corrective action taken in relation thereto.

(4) In addition to or in lieu of any applicable denial, suspension, or revocation
of an insurance producer license, any person who violates any provision of this
article may, after hearing, be subject to any remedy or civil penalty of not more than
three thousand dollars for each such violation.

(5) The commissioner shall retain the authority to enforce the provisions of
and impose any penalty or remedy authorized by this article against any person who
is under investigation for or charged with a violation of this article even if the
person's license has been surrendered or has lapsed by operation of law.

Legislative History

Source: L. 93: Entire article R&RE, p. 1373, � 1, effective January 1, 1995. L. 2001: (2), (3), and (4) amended and (5) added, p. 1212, � 36, effective January 1, 2002. L. 2008: (4) amended, p. 2171, � 2, effective August 5.