Michigan Laws 500.1239 – Probation, suspension, or revocation of insurance producer’s license; refusal to issue or reissue; causes; civil fine; notice of license denial; hearing; license of business entity; penalties and
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Terms Used In Michigan Laws 500.1239
- Business entity: means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity. See Michigan Laws 500.1201
- Commissioner: means the director. See Michigan Laws 500.102
- Contract: A legal written agreement that becomes binding when signed.
- Conviction: A judgement of guilt against a criminal defendant.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Director: means , unless the context clearly implies a different meaning, the director of the department. See Michigan Laws 500.102
- Embezzlement: In most states, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those assets. Embezzlement typically occurs in the employment and corporate settings. Source: OCC
- Fiduciary: A trustee, executor, or administrator.
- Fraud: Intentional deception resulting in injury to another.
- good moral character: means good moral character as defined and determined under Act No. See Michigan Laws 500.1200
- in writing: shall be construed to include printing, engraving, and lithographing; except that if the written signature of a person is required by law, the signature shall be the proper handwriting of the person or, if the person is unable to write, the person's proper mark, which may be, unless otherwise expressly prohibited by law, a clear and classifiable fingerprint of the person made with ink or another substance. See Michigan Laws 8.3q
- Insurance: means any of the lines of authority in chapter 6. See Michigan Laws 500.1201
- Insurance producer: means a person required to be licensed under the laws of this state to sell, solicit, or negotiate insurance. See Michigan Laws 500.1201
- Interrogatories: Written questions asked by one party of an opposing party, who must answer them in writing under oath; a discovery device in a lawsuit.
- License: means a document issued by the director authorizing a person to act as an insurance producer for the qualifications specified in the document. See Michigan Laws 500.1201
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- person: may extend and be applied to bodies politic and corporate, as well as to individuals. See Michigan Laws 8.3l
- Probation: A sentencing alternative to imprisonment in which the court releases convicted defendants under supervision as long as certain conditions are observed.
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
- Subpoena: A command to a witness to appear and give testimony.
(1) In addition to any other powers under this act, the 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 director shall not issue a license under section 1205 or 1206a, for any 1 or more of the following causes:
(a) Obtaining or attempting to obtain a license through misrepresentation or fraud.
(b) Improperly withholding, misappropriating, or converting any money or property received in the course of doing insurance business.
(c) Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance.
(d) Having been convicted of a felony within 10 years before the uniform application was filed.
(e) Regardless of the date of conviction, having been convicted of a felony involving any of the following:
(i) Violence or threat of violence against an individual, including, but not limited to, domestic violence.
(ii) Criminal sexual conduct.
(iii) A felony of a fiduciary nature or financial nature such as fraud, embezzlement, bribery, or extortion.
(f) Having admitted or been found to have committed any insurance unfair trade practice or fraud.
(g) Using fraudulent, coercive, or dishonest practices or demonstrating incompetence, untrustworthiness, or financial irresponsibility in the conduct of business in this state or elsewhere.
(h) Forging another’s name to an application for insurance or to any document related to an insurance transaction.
(i) Knowingly accepting insurance business from an individual who is not licensed.
(2) In addition to any other powers under this act, the 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 director may refuse to 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.
(b) Having been convicted of a felony other than a felony described in subsection (1)(e).
(c) Having an insurance producer license or its equivalent denied, suspended, or revoked in any other state, province, district, or territory.
(d) Improperly using notes or any other reference material to complete an examination for an insurance license.
(e) Violating any insurance laws or violating any regulation, subpoena, or order of the director or of another state’s insurance commissioner.
(f) Failing to comply with an administrative or court order imposing a child support obligation.
(g) 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.
(3) Subject to subsection (2), after examination, investigation, and interrogatories, the director shall issue a license under section 1205 or 1206a to an applicant if the director determines the applicant possesses good moral character to act as an insurance producer.
(4) Before the director denies an application for a license under section 1205 or 1206a, the 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 on the director for a hearing before the director to determine the reasonableness of the director’s action. A hearing under this subsection must be held under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(5) The license of a business entity may be suspended, revoked, or refused if the 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 not reported to the director and corrective action was not taken.
(6) In addition to or 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.
(7) In addition to the penalties under this section, the director may enforce the provisions of and impose any penalty or remedy authorized by this act against a person 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.