February 20, 2018, Introduced by Senator HUNE and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 1239 (MCL 500.1239), as amended by 2008 PA 423.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1239. (1) In addition to any other powers under this act,
the
commissioner director may place on probation, suspend, or
revoke an insurance producer's license or may levy a civil fine
under section 1244 or any combination of actions, and the
commissioner
director shall refuse to not issue
a license under
section 1205 or 1206a, for any 1 or more of the following causes:
(a) Providing incorrect, misleading, incomplete, or materially
untrue information in the license application. However, if the
insured signs a disclosure that accurately summarizes the
transaction with the insurance producer for any insurance or
noninsurance product, there is a rebuttable presumption that the
insurance producer did not engage in the cause described in this
subdivision.
(b) Violating any insurance laws or violating any regulation,
subpoena,
or order of the commissioner director
or of another
state's insurance commissioner. However, if the insured signs a
disclosure that accurately summarizes the transaction with the
insurance producer for any insurance or noninsurance product, there
is a rebuttable presumption that the insurance producer did not
engage in the cause described in this subdivision.
(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. However, if the insured signs a disclosure that
accurately summarizes the transaction with the insurance producer
for any insurance or noninsurance product, there is a rebuttable
presumption that the insurance producer did not engage in the cause
described in this subdivision.
(e) Intentionally misrepresenting the terms of an actual or
proposed insurance contract or application for insurance. However,
if the insured signs a disclosure that accurately summarizes the
transaction with the insurance producer for any insurance or
noninsurance product, there is a rebuttable presumption that the
insurance producer did not engage in the cause described in this
subdivision.
(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. However, if the insured signs a disclosure that
accurately summarizes the transaction with the insurance producer
for any insurance or noninsurance product, there is a rebuttable
presumption that the insurance producer did not engage in the cause
described in this subdivision.
(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 director
denies an application for
a
license under section 1205 or 1206a, the commissioner director
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
on the commissioner director for
a hearing before the
commissioner
director to determine the reasonableness of the
commissioner's
director's action. A hearing under this subsection
shall
must be held pursuant to under the
administrative procedures
act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(3) The director may suspend, revoke, or refuse to issue the
license
of a business entity may be suspended, revoked, or refused
if
the commissioner director 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
not reported to the commissioner nor director and
corrective action was not taken.
(4)
In addition to or in lieu instead
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
director may enforce the provisions of and impose any
penalty
or remedy authorized by this act against any a person
who
that 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.