Texas Insurance Code 1111A.004 – License Suspension, Revocation, or Refusal to Renew
(a) The commissioner may suspend, revoke, or refuse to renew the license of a license holder if the commissioner finds that:
(1) there was a material misrepresentation in the application for the license;
(2) the license holder or an officer, partner, member, or director of the license holder has been guilty of fraudulent or dishonest practices, is subject to a final administrative action, or is otherwise shown to be untrustworthy or incompetent to act as a license holder;
(3) the license holder is a provider and demonstrates a pattern of unreasonably withholding payments to policy owners;
(4) the license holder no longer meets the requirements for initial licensure;
(5) the license holder or any officer, partner, member, or director of the license holder has been convicted of a felony, or of any misdemeanor with respect to which criminal fraud is an element, or has pleaded guilty or nolo contendere with respect to a felony or a misdemeanor with respect to which criminal fraud or moral turpitude is an element, regardless of whether a judgment of conviction has been entered by the court;
(6) the license holder is a provider and has entered into a life settlement contract using a form that has not been approved under this chapter;
(7) the license holder is a provider and has failed to honor contractual obligations in a life settlement contract;
(8) the license holder is a provider and has assigned, transferred, or pledged a settled policy to a person other than a provider licensed in this state, a purchaser, an accredited investor or qualified institutional buyer as defined respectively in 17 C.F.R. § 230.144A, as amended, a financing entity, a special purpose entity, or a related provider trust; or
(9) the license holder or any officer, partner, member, or key management personnel of the license holder has violated this chapter.
(b) The commissioner may deny a license application or suspend, revoke, or refuse to renew the license of a license holder in accordance with Chapter 2001, Government Code.
Terms Used In Texas Insurance Code 1111A.004
- Contract: A legal written agreement that becomes binding when signed.
- Conviction: A judgement of guilt against a criminal defendant.
- Fraud: Intentional deception resulting in injury to another.
- Nolo contendere: No contest-has the same effect as a plea of guilty, as far as the criminal sentence is concerned, but may not be considered as an admission of guilt for any other purpose.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.