(1) The commission may deny any license application, including an application for license renewal, upon the commission’s determination of any of the following:
(a)  The applicant does not possess all of the qualifications required for the license sought;
(b)  The applicant employed fraud, deception, misrepresentation, misstatement or omission or any unlawful means in applying for a license or taking the exam;
(c)  Within the five (5) year period immediately preceding the application, the applicant committed any act for which a real estate license in Idaho may be revoked or suspended;
(d)  Payment of any licensing fee by check that is returned by the banking institution due to insufficient funds, unless the reason for not paying on the check is the fault of the banking institution, or by any other type of insufficient payment; or
(e)  There exist any other specific facts about the applicant that cause the commission to reasonably conclude that granting the applicant’s request for Idaho licensure is not in the best interests of the citizens of the state of Idaho.
(2)  Where any of the facts referenced above warranting denial of the application are not discovered or determined by the commission until after the license has been issued, such facts may be grounds for the inactivation, expiration, termination, suspension or revocation of the license.