N.Y. ISC Law § 2110 — New York Code / Act ISC / Article 21 / Section 2110
Revocation or suspension of license of insurance producer, insurance consultant, adjuster or life settlement broker
Status: in_force

§ 2110. Revocation or suspension of license of insurance producer,\ninsurance consultant, adjuster or life settlement broker. (a) The\nsuperintendent may refuse to renew, revoke, or may suspend for a period\nthe superintendent determines the license of any insurance producer,\ninsurance consultant, adjuster or life settlement broker, if, after\nnotice and hearing, the superintendent determines that the licensee or\nany sub-licensee has:\n  (1) violated any insurance laws, or violated any regulation, subpoena\nor order of the superintendent or of another state's insurance\ncommissioner, or has violated any law in the course of his or her\ndealings in such capacity;\n  (2) provided materially incorrect, materially misleading, materially\nincomplete or materially untrue information in the license application;\n  (3) obtained or attempted to obtain a license through\nmisrepresentation or fraud;\n  (4)(A) used fraudulent, coercive or dishonest practices;\n  (B) demonstrated incompetence;\n  (C) demonstrated untrustworthiness; or\n  (D) demonstrated financial irresponsibility in the conduct of business\nin this state or elsewhere;\n  (5) improperly withheld, misappropriated or converted any monies or\nproperties received in the course of business in this state or\nelsewhere;\n  (6) intentionally misrepresented the terms of an actual or proposed\ninsurance contract, life settlement contract or application for\ninsurance;\n  (7) has been convicted of a felony;\n  (8) admitted or been found to have committed any insurance unfair\ntrade practice or fraud;\n  (9) had an insurance producer license, a life settlement broker\nlicense, or its equivalent, denied, suspended or revoked in any other\nstate, province, district or territory;\n  (10) forged another's name to an application for insurance or life\nsettlement contract or to any document related to an insurance or life\nsettlement transaction;\n  (11) improperly used notes or any other reference material to complete\nan examination for an insurance license or life settlement broker\nlicense;\n  (12) knowingly accepted insurance business from an individual who is\nnot licensed;\n  (13) failed to comply with an administrative or court order imposing a\nchild support obligation;\n  (14) failed to pay state income tax or comply with any administrative\nor court order directing payment of state income tax;\n  (15) while acting as a public adjuster, the licensee has failed to act\non behalf and in the best interests of the insured when negotiating for\nor effecting the settlement of an insurance claim for such insured or\notherwise acting as a public adjuster, or has failed to make the\ndisclosures required by paragraph two of subsection (s) of section two\nthousand one hundred eight of this article;\n  (16) while acting as a life settlement broker, failed to protect the\nprivacy of the insured or owner or other person for whom the life\nsettlement broker was required to provide protection pursuant to article\nseventy-eight of this chapter; or\n  (17) ceased to meet the requirements for licensure under this chapter.\n  (b) Before revoking or suspending the license of any insurance\nproducer, life settlement broker or other licensee pursuant to the\nprovisions of this article, the superintendent shall, except when\nproceeding pursuant to subsection (f) of this section, give notice to\nthe licensee and to every sub-licensee and shall hold, or cause to be\nheld, a hearing not less than ten days after the giving of such notice.\n  (c) If an insurance producer's license or other licensee's license\npursuant to the provisions of this article is revoked or suspended by\nthe superintendent, he shall forthwith give notice to the licensee.\n  (d) The revocation or suspension of any insurance producer's license\nor other licensee's license pursuant to the provisions of this article\nshall terminate forthwith such producer's license or other licensee's\nlicense and the authority conferred thereby upon all sub-licensees.\n  (e) (1) No individual, corporation, firm or association whose license\nas an insurance producer or other licensee subject to subsection (a) of\nthis section has been revoked, and no firm or association of which such\nindividual is a member, and no corporation of which such individual is\nan officer or director, shall be entitled to obtain any license under\nthe provisions of this chapter for a period of one year after such\nrevocation, or, if such revocation be judicially reviewed, for one year\nafter the final determination thereof affirming the action of the\nsuperintendent in revoking such license.\n  (2) If any such license held by a firm, association or corporation be\nrevoked, no member of such firm or association and no officer or\ndirector of such corporation shall be entitled to obtain any license, or\nto be named as a sub-licensee in any such license, for the same period\nof time, unless the superintendent determines, after notice and hearing,\nthat such member, officer or director was not personally at fault in the\nmatter on account of which such license was revoked.\n  (f) (1) As used in this subsection, "non-resident insurance producer's\nlicense or sub-license" means a license or sub-license in such capacity\nissued pursuant to paragraph five of subsection (g) of section two\nthousand one hundred three or subsection (e) of section two thousand one\nhundred four of this article.\n  (2) A non-resident insurance producer's license or sub-license may be\nsummarily revoked in the event that the licensee's license as an agent,\nbroker, adjuster or in any other capacity under the insurance law of the\nlicensee's home state of domicile or such license of the firm or\nassociation of which the licensee is a member, employee or sub-licensee,\nor such license of the corporation of which the licensee is an officer,\ndirector, employee or sub-licensee has been suspended or revoked or\nrenewal thereof denied in the licensee's home state of domicile by a\nprocedure affording to the licensee or it a statutory right to a\nhearing, for action or conduct which, if it had been established upon a\nhearing before the superintendent, would have constituted grounds for\nrevocation of a license under subsection (a) of this section.\n  (3) Before revoking the license of any non-resident insurance producer\nin accordance with this section, the superintendent shall give ten days'\nnotice in writing to such producer of the action proposed to be taken,\nwhich notice shall be given in accordance with the applicable provisions\nof subsections (a) and (d) of section three hundred four of the\nfinancial services law.\n  (4) Upon submission to the superintendent of satisfactory proof that a\nsuspension or revocation of a license issued by a home state to act as\nan insurance agent, insurance broker, adjuster or in another licensed\ncapacity under the insurance law of such other state or a denial of\nrenewal thereof has been duly withdrawn, set aside, reversed or voided,\nthe superintendent shall thereupon reinstate and restore any and all\nlicenses revoked in accordance with the provisions of this subsection.\n  (g) If any licensed insurance producer or any person aggrieved shall\nfile with the superintendent a verified complaint setting forth facts\ntending to show sufficient ground for the revocation or suspension of\nany insurance producer's license, or if any licensed adjuster or any\nperson aggrieved files with the superintendent a verified complaint\nsetting forth facts showing sufficient grounds for the suspension or\nrevocation of any adjuster's license, the superintendent shall, after\nnotice and a hearing, determine whether such license shall be suspended\nor revoked.\n  (h) The superintendent shall retain the authority to enforce the\nprovisions of and impose any penalty or remedy authorized by this\nchapter against any person or entity who is under investigation for or\ncharged with a violation of this chapter, even if the person's or\nentity's license or registration has been surrendered, or has expired or\nhas lapsed by operation of law.\n  (i) A licensee subject to this article shall report to the\nsuperintendent any administrative action taken against the licensee in\nanother jurisdiction or by another governmental agency in this state\nwithin thirty days of the final disposition of the matter. This report\nshall include a copy of the order, consent to order or other relevant\nlegal documents.\n  (j) Within thirty days of the initial pretrial hearing date, a\nlicensee subject to this article shall report to the superintendent any\ncriminal prosecution of the licensee taken in any jurisdiction. The\nreport shall include a copy of the initial complaint filed, the order\nresulting from the hearing and any other relevant legal documents.\n