SECTION 19.1910. Denial Or Refusal Of Specialty License Application; Suspension Or Revocation Of Specialty Licenses; Discipline Of Specialty License Holders

(a) In addition to any other remedy available under Chapter 82 of the Insurance Code, the department may refuse to issue an original license, revoke, suspend, or refuse to renew a license, place on probation a person whose license has been suspended, assess an administrative penalty, or reprimand a specialty license holder for a violation of the Insurance Code, another insurance law of this state, or a rule of the department. If a license suspension is probated, the commissioner may require the license holder to:

(1) report regularly to the department on matters that are the basis of the probation;

(2) limit the person's practice to the areas prescribed by the department; or

(3) continue or review professional education until the person attains a degree of skill satisfactory to the commissioner in those areas that are the basis of the probation.

(b) If the department proposes to refuse to issue an original specialty license, or to suspend, revoke, or refuse to renew a specialty license, the person affected is entitled to a hearing conducted by the State Office of Administrative Hearings in accordance with Chapter 40 of the Insurance Code. Notice of the hearing shall be provided to the person and to any insurance company appearing on the application as desiring that the license be issued.

(c) The department may discipline a specialty license holder or deny a license application under this subchapter if the department determines that the applicant or specialty license holder, individually or through any officer, director, controlling shareholder or employee:

(1) has willfully violated any provision of the insurance laws of this state or any other state;

(2) has intentionally made a material misstatement in a license application;

(3) has obtained, or attempted to obtain, a license by fraud or misrepresentation;

(4) has misappropriated, converted to the applicant's or specialty license holder's own use, or illegally withheld money belonging to:

(A) an insurance company;

(B) a specialty license holder; or

(C) an insured, enrollee, or beneficiary;

(5) has engaged in fraudulent or dishonest acts or practices;

(6) has materially misrepresented the terms or conditions of an insurance policy or contract;

(7) is convicted of a felony;

(8) has offered or given a rebate of an insurance premium or commission to an insured or enrollee; or

(9) is not actively engaged in a finance or retail business at a location where insurance sales are conducted.

(d) If a specialty license holder does not maintain the qualifications necessary for issuance of the license, the department shall deny, revoke, or suspend the person's license as provided in this section.

(e) A person whose license application is denied or whose insurance license has been revoked under the laws of this or any other state may not apply for a license as a specialty insurance agent before the first anniversary of:

(1) the effective date of the denial or revocation; or

(2) if the applicant or specialty license holder seeks judicial review of the department's action, the date of the final court order or decree affirming that action.

(f) The department may deny a timely application filed under subsection (e) of this section if the applicant does not show good cause why the denial or revocation of the previous license application or license should not be considered a bar to the issuance of a specialty license. This subsection does not apply to an applicant whose license application was denied for failure to submit a properly completed license application.

Source Note: The provisions of this §19.1910 adopted to be effective February 20, 2001, 26 TexReg 1545