Section 162R. (a) The 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 section 7 of chapter 176D or any other applicable sections of the General Laws or any combination of actions, for any 1 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 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 fraud;
(8) using fraudulent, coercive or dishonest practices, or demonstrating incompetence, untrustworthiness or financial irresponsibility in the conduct of business in the commonwealth or elsewhere;
(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 comply with an administrative or court order imposing a child support obligation, in a manner consistent with section 47A of chapter 62C or section 16 of chapter 119A; 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 commissioner is to nonrenew or to deny an application for a license, the commissioner shall notify the applicant or licensee and advise, in writing, 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 upon the commissioner within 30 days for a hearing before the commissioner to determine the reasonableness of the commissioner’s action. The hearing shall be held pursuant to chapter 30A.
(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 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, a person may, after hearing, be subject to a civil fine according to section 7 of chapter 176D.
(e) The commissioner shall retain the authority to enforce the provisions of and impose any penalty or remedy authorized by sections 162H to 162X, inclusive, and chapter 176D against any person who is under investigation for or charged with a violation of sections 162H to 162X, inclusive, or chapter 176D even if the person’s license or registration has been surrendered or has lapsed by operation of law.
Section: Previous 162K 162L 162M 162N 162O 162P 162Q 162R 162S 162T 162U 162V 162W 162X 162Y NextLast modified: September 11, 2015