§ 559 — Grounds for revocation of license; procedure

§ 559. Grounds for revocation of license; procedure. 1. The\nsuperintendent may forthwith revoke or suspend any license issued\nhereunder if he shall find that:\n (a) The licensee has failed to pay the annual license fee or any sum\nof money lawfully demanded, or to comply with any demand, ruling, or\nrequirement of the superintendent lawfully made pursuant to and within\nthe authority of this article;\n (b) The licensee has violated any provision of this article, the act\nof congress entitled "Truth in Lending Act" and the regulations\nthereunder, as such act and regulations may from time to time be amended\nor any rule or regulation lawfully made by the superintendent under and\nwithin the authority of this article;\n (c) Any fact or condition exists which, if it had existed at the time\nof the original application for such license, clearly would have\nwarranted the superintendent in refusing originally to issue such\nlicense.\n 2. The superintendent may revoke or suspend only the particular\nlicense with respect to which grounds for revocation or suspension may\noccur or exist, or, if he shall find that such grounds for revocation or\nsuspension are of general application to all offices, or to more than\none office, operated by such licensee, he shall revoke or suspend all of\nthe licenses issued to such licensee or such number of licenses as such\ngrounds apply to, as the case may be.\n 3. Any licensee may surrender any license by delivering to the\nsuperintendent written notice that he thereby surrenders such license,\nbut such surrender shall not affect such licensee's civil or criminal\nliability for acts committed prior to such surrender.\n 4. No revocation or suspension or surrender of any license shall\nimpair or affect the obligation of an insured under any lawful premium\nfinance agreement previously acquired or held by the licensee.\n 5. Every license issued hereunder shall remain in force and effect\nuntil the same shall have been surrendered, revoked, or suspended in\naccordance with the provisions of this article, but the superintendent\nshall have authority to reinstate suspended licenses or to issue new\nlicenses to a licensee whose license or licenses shall have been revoked\nif no fact or condition then exists which clearly would have warranted\nthe superintendent in refusing originally to issue such license under\nthis article.\n 6. Whenever the superintendent shall revoke or suspend a license\nissued pursuant to this article, he shall forthwith execute in\ntriplicate a written order to that effect. The superintendent shall file\none copy of such order in the office of the department, file another in\nthe office of the clerk of the county in which is located the place\ndesignated in such license and forthwith serve the third copy upon the\nlicensee, which order may be reviewed in the manner provided by article\nseventy-eight of the civil practice law and rules. Such special\nproceeding for review as authorized by this section must be commenced\nwithin thirty days from the date of such order of suspension or\nrevocation.\n 7. The superintendent may, on good cause shown, or where there is a\nsubstantial risk of public harm, suspend any license issued pursuant to\nthis article for a period not exceeding thirty days, pending\ninvestigation. "Good cause", as used in this subdivision, shall exist\nonly when the licensee has defaulted or is likely to default in\nperforming its financial engagements or engages in dishonest or\ninequitable practices which may cause substantial harm to the persons\nafforded the protection of this article.\n