2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 522B - LICENSING OF INSURANCE PRODUCERS
522B.11 - LICENSE DENIAL, NONRENEWAL, OR REVOCATION.

        522B.11  LICENSE DENIAL, NONRENEWAL, OR REVOCATION.
         1.  The commissioner may place on probation, suspend, revoke, or
      refuse to issue or renew an insurance producer's license or may levy
      a civil penalty as provided in section 522B.17 for any one 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 a commissioner of
      another state.
         c.  Obtaining or attempting to obtain a license through
      misrepresentation or fraud.
         d.  Improperly withholding, misappropriating, or converting
      any moneys or properties received in the course of doing insurance
      business.
         e.  Intentionally misrepresenting the terms of an actual or
      proposed insurance contract or application for insurance.
         f.  Having been convicted of a felony.
         g.  Having admitted or been found to have committed any unfair
      insurance trade practice or fraud.
         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.
         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 comply with an administrative or court order
      related to repayment of loans to the college student aid commission.

         o.  Failing to pay state income tax or comply with any
      administrative or court order directing payment of state income tax.

         p.  Failing or refusing to cooperate in an investigation by
      the commissioner.
         q.  Is the subject of an order of the securities administrator
      of this state or any other state, province, district, or territory,
      denying, suspending, revoking, or otherwise taking action against a
      registration as a broker-dealer, agent, investment adviser, or
      investment adviser representative.
         r.  Using an insurance producer's license for the principal
      purpose of procuring, receiving, or forwarding applications for
      insurance of any kind, or placing, or effecting such insurance
      directly or indirectly upon or in connection with the property of the
      licensee or the property of a relative, employer, or employee of the
      licensee, or upon or in connection with property for which the
      licensee or a relative, employer, or employee of the licensee is an
      agent, custodian, vendor, bailee, trustee, or payee.
         2.  If the commissioner does not renew a license or denies an
      application for a license, the commissioner shall notify the
      applicant or licensee and advise, in writing, the licensee or
      applicant of the reason for the nonrenewal of the license or denial
      of the application for a license.  The licensee or applicant may
      request a hearing on the nonrenewal or denial.  A hearing shall be
      conducted according to section 507B.6.
         3.  The license of a business entity may be suspended, revoked, or
      refused if the commissioner finds, after hearing, that an individual
      licensee's violation was known or should have been known by a
      partner, officer, or manager acting on behalf of the business entity
      and the violation was not reported to the commissioner and corrective
      action was not taken.
         4.  In addition to, or in lieu of, any applicable denial,
      suspension, or revocation of a license, a person, after hearing, may
      be subject to a civil penalty as provided in section 522B.17.
         5.  The commissioner may conduct an investigation of any suspected
      violation of this chapter pursuant to section 507B.6 and may enforce
      the provisions and impose any penalty or remedy authorized by this
      chapter and chapter 507B against any person who is under
      investigation for, or charged with, a violation of either chapter
      even if the person's license has been surrendered or has lapsed by
      operation of law.
         6. a.  In order to assure a free flow of information for
      accomplishing the purposes of this section, all complaint files,
      investigation files, other investigation reports, and other
      investigative information in the possession of the commissioner or
      the commissioner's employees or agents that relates to licensee
      discipline are privileged and confidential, and are not subject to
      discovery, subpoena, or other means of legal compulsion for their
      release to a person other than the licensee, and are not admissible
      in evidence in a judicial or administrative proceeding other than the
      proceeding involving licensee discipline.  A final written decision
      of the commissioner in a disciplinary proceeding is a public record.

         b.  Investigative information in the possession of the
      commissioner or the commissioner's employees or agents that relates
      to licensee discipline may be disclosed, in the commissioner's
      discretion, to appropriate licensing authorities within this state,
      the appropriate licensing authority in another state, the District of
      Columbia, or a territory or country in which the licensee is licensed
      or has applied for a license.
         c.  If the investigative information in the possession of the
      commissioner or the commissioner's employees or agents indicates a
      crime has been committed, the information shall be reported to the
      proper law enforcement agency.
         d.  Pursuant to the provisions of section 17A.19, subsection
      6, upon an appeal by the licensee, the commissioner shall transmit
      the entire record of the contested case to the reviewing court.
         e.  Notwithstanding the provisions of section 17A.19,
      subsection 6, if a waiver of privilege has been involuntary and
      evidence has been received at a disciplinary hearing, the court shall
      issue an order to withhold the identity of the individual whose
      privilege was waived.  

         2001 Acts, ch 16, §25, 37; 2004 Acts, ch 1110, §60--62; 2008 Acts,
      ch 1123, §42
         Referred to in § 505.8, 522B.5, 522B.6, 522B.7, 522B.14, 522B.16A