(a) The department may deny a registration application or take any action authorized under Chapters 82, 83, and 84 if the department determines that the applicant or registered discount health care program operator, individually or through an officer, director, or shareholder:
(1) has wilfully violated a provision of this code or an order or rule of the commissioner;
(2) has intentionally made a material misstatement in the registration application;
(3) has obtained or attempted to obtain a registration by fraud or misrepresentation;
(4) has misappropriated, converted to the applicant’s or registration holder’s own use, or illegally withheld money belonging to a member of a discount health care program;
(5) has engaged in fraudulent or dishonest acts or practices; or
(6) has been convicted of a felony.
(b) Chapter 2001, Government Code, applies to an action taken under this section.