26.1-33.4-03. License suspension, revocation, or refusal to renew

26.1-33.4-03. License suspension, revocation, or refusal to renew

1. The commissioner may suspend, revoke, or refuse to renew the license of any

licensee if the commissioner finds that:

a. There was any material misrepresentation in the application for the license;

b. The licensee or any officer, partner, member, or director has been guilty of

fraudulent or dishonest practices, is subject to a final administrative action, or is

otherwise shown to be untrustworthy or incompetent to act as a licensee;

c. The provider demonstrates a pattern of unreasonably withholding payments to

policyowners;

d. The licensee no longer meets the requirements for initial licensure;

e. The licensee or any officer, partner, member, or director has been convicted of a

felony or of any misdemeanor of which criminal fraud is an element; or the

licensee has pleaded guilty or nolo contendere with respect to any felony or any

misdemeanor of which criminal fraud or moral turpitude is an element, regardless

whether a judgment of conviction has been entered by the court;

f. The provider has entered any life settlement contract that has not been approved

pursuant to this chapter;

g. The provider has failed to honor contractual obligations set out in a life settlement

contract;

h. The provider has assigned, transferred, or pledged a settled policy to a person

other than a provider licensed in this state, a purchaser, an accredited investor or

qualified institutional buyer as defined respectively in regulation D, rule 501 or

rule 144A of the federal Securities Act of 1933, as amended [15 U.S.C. 77a

et seq.], financing entity, special purpose entity, or related provider trust; or

i. The licensee or any officer, partner, member, or key management personnel has

violated any of the provisions of this chapter.

2. The commissioner may suspend, revoke, or refuse to renew the license of a broker if

the commissioner finds that the broker has violated this chapter or has otherwise

engaged in bad-faith conduct with one or more owners.

3. Before the commissioner denies a license application or suspends, revokes, or refuses

to renew the license of any licensee under this chapter, the commissioner shall

conduct a hearing.