Bill Text: MI HB4044 | 2019-2020 | 100th Legislature | Engrossed
Bill Title: Insurance: producers; license eligibility; modify. Amends secs. 1205 & 1239 of 1956 PA 218 (MCL 500.1205 & 500.1239).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2019-11-20 - Assigned Pa 124'19 With Immediate Effect [HB4044 Detail]
Download: Michigan-2019-HB4044-Engrossed.html
Substitute For
HOUSE BILL NO. 4044
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending sections 1205 and 1239 (MCL 500.1205 and 500.1239), section 1205 as amended by 2008 PA 422 and section 1239 as amended by 2008 PA 423.
The people of the state of michigan enact:
Sec. 1205. (1) A person applying for a resident insurance producer license shall file with the commissioner director the uniform application required by the commissioner director and shall declare under penalty of refusal, suspension, or revocation of the license that the statements made in the application are true, correct, and complete to the best of the individual's knowledge and belief. An The director shall not approve an application for a resident insurer producer license shall not be approved unless the commissioner director finds that the individual meets all of the following conditions:
(a) Is at least 18 years of age.
(b) Has not committed any act listed in section 1239(1).
(c) As required under section 1204(2), has completed a prelicensing course of study for the qualifications for which the person has applied.
(d) Has paid the fees applicable to the individual under section 240.
(e) Has successfully passed the examination required for each qualification for which the person has applied.
(2) A business entity acting as an insurance producer shall obtain an insurance producer license. A business entity applying for an insurance producer license shall file with the commissioner director the uniform business entity application required by the commissioner. An director. The director shall not approve an application for an insurance producer license under this subsection shall not be approved unless the commissioner director finds all of the following:
(a) The business entity has paid the fees under section 240(1)(d).
(b) The business entity has designated an individual licensed producer responsible for the business entity's compliance with this state's insurance laws, rules, and regulations.
(c) The business entity has not committed any act listed in section 1239(1).
(3) The commissioner director may require the production of any documents reasonably necessary to verify the information contained in an application.
(4) Each An insurer that sells, solicits, or negotiates any form of limited line credit insurance shall provide to each individual whose duties will include selling, soliciting, or negotiating limited line credit insurance a program of instruction that may be approved by the commissioner.director.
Sec. 1239. (1) In addition to any other powers under this act, the commissioner 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 commissioner director shall refuse to not 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) Violating any insurance laws or violating any regulation, subpoena, or order of the commissioner or of another state's insurance commissioner.
(a) (c) Obtaining or attempting to obtain a license through misrepresentation or fraud.
(b) (d) Improperly withholding, misappropriating, or converting any money or property received in the course of doing insurance business.
(c) (e) Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance.
(d) (f) 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) (g) Having admitted or been found to have committed any insurance unfair trade practice or fraud.
(g) (h) Using fraudulent, coercive, or dishonest practices or demonstrating incompetence, untrustworthiness, or financial irresponsibility in the conduct of business in this state or elsewhere.
(i) Having an insurance producer license or its equivalent denied, suspended, or revoked in any other state, province, district, or territory.
(h) (j) Forging another's name to an application for insurance or to any document related to an insurance transaction.
(k) Improperly using notes or any other reference material to complete an examination for an insurance license.
(l) Knowingly accepting insurance business from an individual who is not licensed.
(m) Failing to comply with an administrative or court order imposing a child support obligation.
(n) 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.
(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) (2) Before the commissioner director denies an application for a license under section 1205 or 1206a, the commissioner 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 upon on the commissioner director for a hearing before the commissioner director to determine the reasonableness of the commissioner's director's action. A hearing under this subsection shall must be held pursuant to under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(5) (3) The license of a business entity may be suspended, revoked, or refused if the commissioner 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 neither not reported to the commissioner nor director and corrective action was not taken.
(6) (4) In addition to or in lieu 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) (5) In addition to the penalties under this section, the commissioner director may enforce the provisions of and impose any penalty or remedy authorized by this act against any a person who 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.
Enacting section 1. This amendatory act takes effect 6 months after the date it is enacted into law.
