The Insurance Commissioner's role is to enforce insurance laws and to protect the public from unfair trade practices. If the Commissioner suspects that an insurer, its agents, or any licensed person has committed a violation or is engaged in an unfair trade practice, the Commissioner may issue a statement of charges and hold a hearing for any purpose deemed necessary (within the scope of the Insurance Code).
If, after a hearing, the Commissioner determines that the person charged has engaged in an unfair method of competition or an unfair or deceptive act or practice, the Commissioner will issue a cease and desist order requiring the person to stop engaging in such method of competition, act, practice, or violation. At a formal hearing, the aggrieved party has the option of being represented by an attorney and attempt to prove that a cease and desist order shouldn't be issued. If criminal violations are uncovered during the investigation, the Commissioner must turn the investigation over to the Attorney General for prosecution immediately.
-Providing incorrect, misleading, incomplete, or materially untrue information in the license application;
-Violating any insurance laws or violating any regulation, subpoena, or order of the Commissioner or of another state's insurance Commissioner;
-Obtaining or attempting to obtain a license through misrepresentation or fraud;
-Improperly withholding, misappropriating, or converting any money or property received in the course of doing insurance business;
-Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance;
-Having been convicted of a felony;
-Having admitted or been found to have committed any insurance unfair trade practice or fraud;
-Using fraudulent, coercive, or dishonest practices or demonstrating incompetence, untrustworthiness, or financial irresponsibility in the conduct of business in this state or elsewhere;
-Having an insurance producer license or its equivalent denied, suspended, or revoked in any other state, province, district, or territory;
-Forging another's name to an application for insurance or to any document related to an insurance transaction;
-Improperly using notes or any other reference material to complete an examination for an insurance license;
-Knowingly accepting insurance business from an individual who is not licensed;
-Failing to comply with an administrative or court order imposing a child support obligation;
-Failing to pay single business tax or comply with any administrative or court order directing payment of single business tax.
-a felony punishable by imprisonment for up to 4 years;
-or a fine up to $50,000, or both, and will be ordered to pay restitution.
A person who enters into an agreement or conspiracy to commit a fraudulent insurance act is guilty of
-a felony, punishable by imprisonment for not more than 10 years
-or by a fine of not more than $50,000, or both, and will be ordered to pay restitution.
Any agents, insured, or other persons who make false, dishonest or fraudulent certificates or reports of death, sickness or disability of any kind in attempt to collect a claim payment from an insurer will be deemed guilty of a misdemeanor, and upon conviction,
-the violator may be fined up to $1,000,
-or imprisoned for up to 3 months, at the discretion of the court.