state license

Question 1

Power of Commissioner, after notice and hearing

Answer 1

place an insurance producer on probation;
suspend, revoke, or refuse to issue or renew a producer license;
order restitution to be paid by a producer; or
assess a civil penalty.

Question 2

Cease and Desist Order,

after hearing person charged unfair method of competition

Answer 2

• payment of a fine of up to $3,000 for each act or violation, but not to exceed an aggregate penalty of $30,000;
• payment of a fine of up to $30,000 for each act or violation committed by an insurer, but not to exceed an aggregate penalty of $750,000 annually, if the insurer knew, or should have known, that it was committing an unfair method of competition or an unfair or deceptive act;
• suspension or revocation of the person’s license if the person knew, or should have known, that he or she was committing an unfair method of competition or an unfair or deceptive act; or
• payment of a contractual claim to an insured or beneficiary if the act caused the failure to pay the claim.

Question 3

Violation of Cease and Desist Orders

Answer 3

Any person who violates a cease and desist order may be subject to one of the following:

a fine of not more than $10,000 for each act or violation by an insurer
a fine of not more than $500 for each act or violation by an individual

Question 4

Surrender License

Answer 4

15 days to surrender
suspension, revocation, or termination of the license;
discontinuation or nonrenewal of the license by the licensee;
cessation of residency in the state or, in the case of a nonresident licensee, cessation of residency in the licensee’s resident state; or
suspension, termination, or revocation of a nonresident licensee’s license in the state of residence.

Question 5

Emergency Cease and Desist

Answer 5

Any person adversely affected by the Commissioner’s decision may appeal by filing an action for judicial review in the court of appeals.

The Commissioner is responsible for determining whether an emergency cease and desist order has been violated and may conduct a hearing to make this determination. Notice of the hearing will be mailed to the alleged violator’s last known address. A hearing must be held at least 21 days after the date the notice is sent.

Question 6

Violation of Emergency Cease and Desist

Answer 6

impose a fine of $25,000 for each violation;
direct the person to make complete restitution; or
both impose the fine and direct restitution.

Question 7

Records

Answer 7

Companies, agents, and brokers must maintain their books, records, documents, and other business records for the current calendar year plus two prior calendar years.

a response to the Commissioner must be provided within 20 calendar days from the date of inquiry. Failing to provide a complete response or request for an extension may result in a fine of $500

Question 8

Unauthorized Companies

Answer 8

exceptions to unauthorized
reinsurance by an authorized insurer
nonadmitted insurance (excess lines)
pre-need funeral contracts

A violation of this provision is a Class 1 misdemeanor punishable by a minimum of 6 months’ imprisonment, a $500 fine, or both; or a maximum of 18 months’ imprisonment, a $5,000 fine, or both.