| (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.
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