40-5510. Suspension, revocation or nonrenewal of license; penalties.

40-5510

Chapter 40.--INSURANCE
Article 55.--PUBLIC ADJUSTERS LICENSING ACT

      40-5510.   Suspension, revocation or nonrenewal oflicense; penalties.(a) The commissioner may suspend, revoke or refuse to issueorrenew apublicadjuster's license for any of the following causes:

      (1)   Providing incorrect, misleading, incomplete or materially untrueinformation in thelicense application;

      (2)   violating:

      (A)   Any provision of chapter 40 of the Kansas Statutes Annotated, andamendmentsthereto, or any rule and regulation promulgated thereunder;

      (B)   any subpoena or order of the commissioner;

      (C)   any insurance law or regulation of another state; or

      (D)   any subpoena or order issued by the regulatory official for insurance inanother state;

      (3)   obtaining or attempting to obtain a license through misrepresentation orfraud;

      (4)   misappropriating, converting or improperly withholding any monies orpropertiesreceived in the course of doing insurance business;

      (5)   intentionally misrepresenting the terms of an actual or proposedinsurance contract orapplication for insurance;

      (6)   having been convicted of a misdemeanor or felony;

      (7)   having admitted or committed any insurance unfair trade practice orinsurance fraud;

      (8)   using fraudulent, coercive or dishonest practices or demonstratingincompetence,untrustworthiness or financial irresponsibility in the conduct of business inthis state orelsewhere;

      (9)   having an insurance license, or its equivalent, denied, suspended orrevoked in anyother state, province, district or territory;

      (10)   forging another's name to an application for insurance or to anydocument related toan insurance transaction;

      (11)   cheating, including improperly using notes or any other referencematerial, tocomplete an examination for an insurance license;

      (12)   knowingly accepting insurance business from an individual who is notlicensed butwho is required to be licensed by the commissioner;

      (13)   failing to comply with an administrative or court order imposing a childsupportobligation upon the applicant or license holder; or

      (14)   failing to pay state income tax or comply with any administrative orcourt orderdirecting payment of state income tax.

      (b)   In addition, the commissioner may deny, suspend, revoke or refuse renewalof apublic adjuster's license if the commissioner finds that the interests of thepublic are not properlyserved under such license. Any action taken under this section which affectsany license orimposes any administrative penalty shall be taken only after notice and anopportunity for ahearing conducted in accordance with the Kansas administrative procedure act.

      (c)   In lieu of any action under subsection (a), the commissioner may:

      (1)   Censure the individual; or

      (2)   issue an order imposing an administrative penalty up to a maximum of $500for eachviolation, but not to exceed $2,500 for the same violation occurring within anysix consecutivecalendar months from the date of the original violation, unless such personknew or should haveknown that the violative act could give rise to disciplinary action undersubsection (a). If suchperson knew or reasonably should have known the violative act could give riseto anydisciplinary proceeding authorized by subsection (a), the commissioner mayimpose a penalty upto a maximum of $1,000 for each violation, but not to exceed $5,000 for thesame violationoccurring within any six consecutive calendar months from the date of theoriginal violation.

      (d)   The commissioner shall remit all such fines collected under subsection(c) to the state treasurer in accordance with the provisions of K.S.A. 75-4215,and amendments thereto. Upon receipt of each such remittance, the statetreasurer shall deposit the entire amount in the state treasury to the creditof the state general fund.

      (e)   The commissioner shall retain the authority to enforce the provisions ofand imposeany penalty or remedy authorized by this act against any individual who isunder investigation foror charged with a violation of this act, even if the individual's license orregistration has beensurrendered or has lapsed by operation of law.

      History:   L. 2009, ch. 83, § 10; Apr. 23.