§ 27-10-12. License denial, nonrenewal, or revocation.
(a) The insurance commissioner may place on probation, suspend, revoke, or refuse to issue
or renew an adjuster's license or may levy a civil penalty in accordance with § 42-14-16 or any combination of actions for any one or more of the following causes:
(1) Providing incorrect, misleading, incomplete, or materially untrue information in the
license application;
(2) Violating any insurance laws, or violating any regulation, subpoena, or order of the
insurance commissioner or of another state's insurance commissioner;
(3) Obtaining or attempting to obtain a license through misrepresentation or fraud;
(4) Improperly withholding, misappropriating, or converting any monies 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 insurance fraud;
(8) Using fraudulent, coercive, or dishonest practices; or demonstrating incompetence,
untrustworthiness, or financial irresponsibility in the conduct of business in this
state or elsewhere;
(9) Having an insurance 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) Cheating, including 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 but
who is required to be licensed by the department;
(13) Failing to comply with an administrative or court order imposing a child support obligation;
or
(14) Failing to pay state income tax or comply with any administrative or court order directing
payment of state income tax.
(b) In the event that the action by the department is to deny an application for or not
renew a license, the department shall notify the applicant or licensee and advise,
in writing, the applicant or licensee of the reason for the nonrenewal or denial of
the applicant's or licensee's license. The applicant or licensee may make written
demand upon the department within ten (10) days for a hearing before the department
to determine the reasonableness of the insurance commissioner's action. The hearing
shall be held pursuant to the Administrative Procedures Act, chapter 35 of title 42.
(c) The license of a business entity may be suspended, revoked, or refused if the department
finds, after hearing, that an individual licensee's violation was known, or should
have been known, by one or more of the partners, officers, or managers acting on behalf
of the business entity and the violation was neither reported to the department nor
corrective action taken.
(d) In addition to, or in lieu of, any applicable denial, suspension, or revocation of
a license, a person may, after hearing, be subject to a civil fine according to § 42-14-16.
(e) The department shall retain the authority to enforce the provisions of and impose
any penalty or remedy authorized by this chapter and § 42-14-16 against any person who is under investigation for, or charged with, a violation of
this chapter or title even if the person's license has been surrendered or has lapsed
by operation of law.