June 19, 2008, Introduced by Senators SANBORN, RICHARDVILLE, GILBERT, THOMAS, JACOBS, ALLEN and HUNTER and referred to the Committee on Economic Development and Regulatory Reform.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 1239 (MCL 500.1239), as amended by 2007 PA 187.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1239. (1) In addition to any other powers under this act,
the
commissioner may place on probation, suspend, or revoke ,
or
refuse
to issue an insurance producer's
license or may levy a civil
fine under section 1244 or any combination of actions for any 1 or
more of the following causes:
(a) Providing incorrect, misleading, incomplete, or materially
untrue information in the license application.
(b) Violating any insurance laws or violating any regulation,
subpoena, or order of the commissioner or of another state's
insurance commissioner.
(c) Obtaining or attempting to obtain a license through
misrepresentation or fraud.
(d) Improperly withholding, misappropriating, or converting
any money or property received in the course of doing insurance
business.
(e) Intentionally misrepresenting the terms of an actual or
proposed insurance contract or application for insurance.
(f) Having been convicted of a felony.
(g) Having admitted or been found to have committed any
insurance unfair trade practice or fraud.
(h) Using fraudulent, coercive, or dishonest practices or
demonstrating incompetence, untrustworthiness, or financial
irresponsibility in the conduct of business in this state or
elsewhere.
(i) Having an insurance producer license or its equivalent
denied, suspended, or revoked in any other state, province,
district, or territory.
(j) Forging another's name to an application for insurance or
to any document related to an insurance transaction.
(k) Improperly using notes or any other reference material to
complete an examination for an insurance license.
(l) Knowingly accepting insurance business from an individual
who is not licensed.
(m) Failing to comply with an administrative or court order
imposing a child support obligation.
(n) Failing to pay the single business tax or the Michigan
business tax or comply with any administrative or court order
directing payment of the single business tax or the Michigan
business tax.
(2) Before the commissioner denies an application for a
license under section 1205, the commissioner shall notify in
writing the applicant or licensee of the denial and of the reason
for the denial. Not later than 30 days after this written denial,
the applicant or licensee may make written demand upon the
commissioner for a hearing before the commissioner to determine the
reasonableness of the commissioner's action. A hearing under this
subsection shall be held pursuant to the administrative procedures
act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(3) The license of a business entity may be suspended,
revoked, or refused if the commissioner finds, after hearing, that
an individual licensee's violation was known or should have been
known by 1 or more of the partners, officers, or managers acting on
behalf of the partnership or corporation and the violation was
neither reported to the commissioner nor corrective action taken.
(4) In addition to or in lieu of any applicable denial,
suspension, or revocation of a license, a person may, after
hearing, be subject to a civil fine under section 1244.
(5) In addition to the penalties under this section, the
commissioner may enforce the provisions of and impose any penalty
or remedy authorized by this act against any person who is under
investigation for or charged with a violation of this act even if
the person's license or registration has been surrendered or has
lapsed by operation of law.