Section 26.1-26-42 - License suspension, revocation, or refusal - GroundsThe commissioner may suspend, revoke, place on probation, or refuse to continue or refuse to issue any license issued under this chapter if, after notice to the licensee and hearing, the commissioner finds as to the licensee any of the following conditions:
1. A materially untrue statement in the license application.2. An acquisition or attempt to acquire a license through misrepresentation or fraud.3. The applicant has been found to have been cheating on an examination for an insurance license.4. Any cause for which issuance of the license could have been refused had it then existed and been known to the commissioner at the time of issuance.5. The applicant or licensee has been convicted of a felony or convicted of an offense, as defined by section 12.1-01-04, determined by the commissioner to have a direct bearing upon a person's ability to serve the public as an insurance producer, insurance consultant, or surplus lines insurance producer, or the commissioner finds, after conviction of an offense, that the person is not sufficiently rehabilitated under section 12.1-33-02.1.6. In the conduct of affairs under the license, the licensee has used fraudulent, coercive, or dishonest practices, or has shown oneself to be incompetent, untrustworthy, or financially irresponsible.7. A misrepresentation of the terms of any actual or proposed insurance contract.8. The licensee has been found to have knowingly solicited, procured, or sold unnecessary or excessive insurance coverage to any person.9. The licensee has forged another's name to an application for insurance.10. An improper withholding of, misappropriating of, or converting to one's own use any moneys belonging to policyholders, insurers, beneficiaries, or others received in the course of one's insurance business.11. The licensee has been found guilty of any unfair trade practice defined in this title or fraud.12. A violation of or noncompliance with any insurance laws of this state or a violation of or noncompliance with any lawful rules or orders of the commissioner or of a commissioner of another state.13. The licensee's license has been suspended or revoked in any other state, province, district, or territory for any reason or purpose other than noncompliance with continuing education programs, or noncompliance with mandatory filing requirements imposed upon a licensee by the state, province, district, or territory provided the filing does not directly affect the public interest, safety, or welfare.14. The applicant or licensee has refused to respond within twenty days to a written request by the commissioner for information regarding any potential violation of this section.15. Without express prior written approval from the commissioner, the licensee communicates with a person who the licensee knows has contacted the department regarding an alleged violation committed by the licensee in an attempt to have the complainant dismiss the complaint.16. The licensee knowingly accepts insurance business from an individual who is not licensed.17. The applicant or licensee knowingly fails to comply with a court order imposing child support obligation.18. The applicant or licensee fails to file the required returns or pay the taxes due under chapter 57-38 or comply with a court order directing payment of any income tax or employer income tax withholding imposed by chapter 57-38.Amended by S.L. 2013, ch. 455 (HB 1098),§ 1, eff. 8/1/2013.