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
HB-4044, As Passed House, June 20, 2019
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.
