N.Y. Insurance Law § 2110: Revocation or suspension of license of insurance producer, insurance consultant, adjuster or life settlement broker

§ 2110. Revocation or suspension of license of insurance producer,

insurance consultant, adjuster or life settlement broker. (a) The

superintendent may refuse to renew, revoke, or may suspend for a period

the superintendent determines the license of any insurance producer,

insurance consultant, adjuster or life settlement broker, if, after

notice and hearing, the superintendent determines that the licensee or

any sub-licensee has:

(1) violated any insurance laws, or violated any regulation, subpoena

or order of the superintendent or of another state's insurance

commissioner, or has violated any law in the course of his or her

dealings in such capacity;

(2) provided materially incorrect, materially misleading, materially

incomplete or materially untrue information in the license application;

(3) obtained or attempted to obtain a license through

misrepresentation or fraud;

(4)(A) used fraudulent, coercive or dishonest practices;

(B) demonstrated incompetence;

(C) demonstrated untrustworthiness; or

(D) demonstrated financial irresponsibility in the conduct of business

in this state or elsewhere;

(5) improperly withheld, misappropriated or converted any monies or

properties received in the course of business in this state or

elsewhere;

(6) intentionally misrepresented the terms of an actual or proposed

insurance contract, life settlement contract or application for

insurance;

(7) has been convicted of a felony;

(8) admitted or been found to have committed any insurance unfair

trade practice or fraud;

(9) had an insurance producer license, a life settlement broker

license, or its equivalent, denied, suspended or revoked in any other

state, province, district or territory;

(10) forged another's name to an application for insurance or life

settlement contract or to any document related to an insurance or life

settlement transaction;

(11) improperly used notes or any other reference material to complete

an examination for an insurance license or life settlement broker

license;

(12) knowingly accepted insurance business from an individual who is

not licensed;

(13) failed to comply with an administrative or court order imposing a

child support obligation;

(14) failed to pay state income tax or comply with any administrative

or court order directing payment of state income tax;

(15) while acting as a public adjuster, the licensee has failed to act

on behalf and in the best interests of the insured when negotiating for

or effecting the settlement of an insurance claim for such insured or

otherwise acting as a public adjuster, or has failed to make the

disclosures required by paragraph two of subsection (s) of section two

thousand one hundred eight of this article;

(16) while acting as a life settlement broker, failed to protect the

privacy of the insured or owner or other person for whom the life

settlement broker was required to provide protection pursuant to article

seventy-eight of this chapter; or

(17) ceased to meet the requirements for licensure under this chapter.

(b) Before revoking or suspending the license of any insurance

producer, life settlement broker or other licensee pursuant to the

provisions of this article, the superintendent shall, except when

proceeding pursuant to subsection (f) of this section, give notice to

the licensee and to every sub-licensee and shall hold, or cause to be

held, a hearing not less than ten days after the giving of such notice.

(c) If an insurance producer's license or other licensee's license

pursuant to the provisions of this article is revoked or suspended by

the superintendent, he shall forthwith give notice to the licensee.

(d) The revocation or suspension of any insurance producer's license

or other licensee's license pursuant to the provisions of this article

shall terminate forthwith such producer's license or other licensee's

license and the authority conferred thereby upon all sub-licensees.

(e) (1) No individual, corporation, firm or association whose license

as an insurance producer or other licensee subject to subsection (a) of

this section has been revoked, and no firm or association of which such

individual is a member, and no corporation of which such individual is

an officer or director, shall be entitled to obtain any license under

the provisions of this chapter for a period of one year after such

revocation, or, if such revocation be judicially reviewed, for one year

after the final determination thereof affirming the action of the

superintendent in revoking such license.

(2) If any such license held by a firm, association or corporation be

revoked, no member of such firm or association and no officer or

director of such corporation shall be entitled to obtain any license, or

to be named as a sub-licensee in any such license, for the same period

of time, unless the superintendent determines, after notice and hearing,

that such member, officer or director was not personally at fault in the

matter on account of which such license was revoked.

(f) (1) As used in this subsection, "non-resident insurance producer's

license or sub-license" means a license or sub-license in such capacity

issued pursuant to paragraph five of subsection (g) of section two

thousand one hundred three or subsection (e) of section two thousand one

hundred four of this article.

(2) A non-resident insurance producer's license or sub-license may be

summarily revoked in the event that the licensee's license as an agent,

broker, adjuster or in any other capacity under the insurance law of the

licensee's home state of domicile or such license of the firm or

association of which the licensee is a member, employee or sub-licensee,

or such license of the corporation of which the licensee is an officer,

director, employee or sub-licensee has been suspended or revoked or

renewal thereof denied in the licensee's home state of domicile by a

procedure affording to the licensee or it a statutory right to a

hearing, for action or conduct which, if it had been established upon a

hearing before the superintendent, would have constituted grounds for

revocation of a license under subsection (a) of this section.

(3) Before revoking the license of any non-resident insurance producer

in accordance with this section, the superintendent shall give ten days'

notice in writing to such producer of the action proposed to be taken,

which notice shall be given in accordance with the applicable provisions

of subsections (a) and (d) of section three hundred four of the

financial services law.

(4) Upon submission to the superintendent of satisfactory proof that a

suspension or revocation of a license issued by a home state to act as

an insurance agent, insurance broker, adjuster or in another licensed

capacity under the insurance law of such other state or a denial of

renewal thereof has been duly withdrawn, set aside, reversed or voided,

the superintendent shall thereupon reinstate and restore any and all

licenses revoked in accordance with the provisions of this subsection.

(g) If any licensed insurance producer or any person aggrieved shall

file with the superintendent a verified complaint setting forth facts

tending to show sufficient ground for the revocation or suspension of

any insurance producer's license, or if any licensed adjuster or any

person aggrieved files with the superintendent a verified complaint

setting forth facts showing sufficient grounds for the suspension or

revocation of any adjuster's license, the superintendent shall, after

notice and a hearing, determine whether such license shall be suspended

or revoked.

(h) The superintendent shall retain the authority to enforce the

provisions of and impose any penalty or remedy authorized by this

chapter against any person or entity who is under investigation for or

charged with a violation of this chapter, even if the person's or

entity's license or registration has been surrendered, or has expired or

has lapsed by operation of law.

(i) A licensee subject to this article shall report to the

superintendent any administrative action taken against the licensee in

another jurisdiction or by another governmental agency in this state

within thirty days of the final disposition of the matter. This report

shall include a copy of the order, consent to order or other relevant

legal documents.

(j) Within thirty days of the initial pretrial hearing date, a

licensee subject to this article shall report to the superintendent any

criminal prosecution of the licensee taken in any jurisdiction. The

report shall include a copy of the initial complaint filed, the order

resulting from the hearing and any other relevant legal documents.