{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1857.7.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1857.7.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1857.7.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1857.7.html"}],"law_id":82459,"edition_id":1,"section_id":82459,"structure_id":13988,"section_number":"38.2-1857.7","catch_line":"Grounds for placing on probation, refusal to issue or renew, revocation, or suspension of license","history":"2001, c. 706; 2011, c. 498.","full_text":"The Commission may, in addition to or in lieu of a penalty imposed under \u00a7 38.2-218, place on probation, suspend, revoke or refuse to issue or renew any surplus lines broker’s license for any one or more of the following causes:\n\n1\n\nProviding materially incorrect, misleading, incomplete or untrue information in the license application or any other document filed with the Commission;2\n\nViolating any insurance laws, or violating any regulation, subpoena or order of the Commission or of another state’s insurance regulatory authority;3\n\nObtaining or attempting to obtain a license through misrepresentation or fraud;4\n\nImproperly withholding, misappropriating or converting any moneys or properties received in the course of doing business;5\n\nEngaging in the practice of rebating;6\n\nEngaging in twisting or any form thereof, where “twisting” means inducing an insured to terminate an existing policy and purchase a new policy through misrepresentation;7\n\nIntentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance;8\n\nHaving been convicted of a felony;9\n\nHaving admitted or been found to have committed any insurance unfair trade practice or fraud;10\n\nUsing fraudulent, coercive, or dishonest practices, or demonstrating incompetence, or untrustworthiness in the conduct of business in this Commonwealth or elsewhere, or demonstrating financial irresponsibility in the handling of applicant, policyholder, agency, or insurance company funds;11\n\nHaving an insurance producer, surplus lines broker, or consultant license, or its equivalent, denied, suspended or revoked in any other state, province, district or territory;12\n\nForging another’s name to an application for insurance or to any document related to an insurance transaction;13\n\nImproperly using notes or any other reference material to complete an examination for an insurance license;14\n\nKnowingly accepting insurance business from an individual who is not licensed;15\n\nFailing to comply with an administrative or court order imposing a child support obligation; or16\n\nFailing to pay state income or premium license tax or comply with any administrative or court order directing payment of state income tax.","order_by":null,"text":{"0":{"id":295424,"text":"The Commission may, in addition to or in lieu of a penalty imposed under \u00a7 38.2-218, place on probation, suspend, revoke or refuse to issue or renew any surplus lines broker’s license for any one or more of the following causes:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":295425,"text":"Providing materially incorrect, misleading, incomplete or untrue information in the license application or any other document filed with the Commission;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":295426,"text":"Violating any insurance laws, or violating any regulation, subpoena or order of the Commission or of another state’s insurance regulatory authority;","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":295427,"text":"Obtaining or attempting to obtain a license through misrepresentation or fraud;","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":295428,"text":"Improperly withholding, misappropriating or converting any moneys or properties received in the course of doing business;","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"5":{"id":295429,"text":"Engaging in the practice of rebating;","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4","next_prefix":"6"},"6":{"id":295430,"text":"Engaging in twisting or any form thereof, where “twisting” means inducing an insured to terminate an existing policy and purchase a new policy through misrepresentation;","type":"section","prefixes":["6"],"prefix":"6","entire_prefix":"6","prefix_anchor":"6","level":1,"prior_prefix":"5","next_prefix":"7"},"7":{"id":295431,"text":"Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance;","type":"section","prefixes":["7"],"prefix":"7","entire_prefix":"7","prefix_anchor":"7","level":1,"prior_prefix":"6","next_prefix":"8"},"8":{"id":295432,"text":"Having been convicted of a felony;","type":"section","prefixes":["8"],"prefix":"8","entire_prefix":"8","prefix_anchor":"8","level":1,"prior_prefix":"7","next_prefix":"9"},"9":{"id":295433,"text":"Having admitted or been found to have committed any insurance unfair trade practice or fraud;","type":"section","prefixes":["9"],"prefix":"9","entire_prefix":"9","prefix_anchor":"9","level":1,"prior_prefix":"8","next_prefix":"10"},"10":{"id":295434,"text":"Using fraudulent, coercive, or dishonest practices, or demonstrating incompetence, or untrustworthiness in the conduct of business in this Commonwealth or elsewhere, or demonstrating financial irresponsibility in the handling of applicant, policyholder, agency, or insurance company funds;","type":"section","prefixes":["10"],"prefix":"10","entire_prefix":"10","prefix_anchor":"10","level":1,"prior_prefix":"9","next_prefix":"11"},"11":{"id":295435,"text":"Having an insurance producer, surplus lines broker, or consultant license, or its equivalent, denied, suspended or revoked in any other state, province, district or territory;","type":"section","prefixes":["11"],"prefix":"11","entire_prefix":"11","prefix_anchor":"11","level":1,"prior_prefix":"10","next_prefix":"12"},"12":{"id":295436,"text":"Forging another’s name to an application for insurance or to any document related to an insurance transaction;","type":"section","prefixes":["12"],"prefix":"12","entire_prefix":"12","prefix_anchor":"12","level":1,"prior_prefix":"11","next_prefix":"13"},"13":{"id":295437,"text":"Improperly using notes or any other reference material to complete an examination for an insurance license;","type":"section","prefixes":["13"],"prefix":"13","entire_prefix":"13","prefix_anchor":"13","level":1,"prior_prefix":"12","next_prefix":"14"},"14":{"id":295438,"text":"Knowingly accepting insurance business from an individual who is not licensed;","type":"section","prefixes":["14"],"prefix":"14","entire_prefix":"14","prefix_anchor":"14","level":1,"prior_prefix":"13","next_prefix":"15"},"15":{"id":295439,"text":"Failing to comply with an administrative or court order imposing a child support obligation; or","type":"section","prefixes":["15"],"prefix":"15","entire_prefix":"15","prefix_anchor":"15","level":1,"prior_prefix":"14","next_prefix":"16"},"16":{"id":295440,"text":"Failing to pay state income or premium license tax or comply with any administrative or court order directing payment of state income tax.","type":"section","prefixes":["16"],"prefix":"16","entire_prefix":"16","prefix_anchor":"16","level":1,"prior_prefix":"15"}},"ancestry":[{"id":13988,"edition_id":1,"name":"Licensing of Surplus Lines Brokers","identifier":"5.1","label":"article","depth":3,"order_by":1,"parent_id":13203,"metadata":{},"date_created":"2026-06-26 03:46:31","date_modified":"2026-06-26 03:46:31","permalink":{"id":212741,"object_type":"structure","relational_id":13988,"identifier":"5.1","token":"38.2\/18\/5.1","url":"\/38.2\/18\/5.1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13203,"edition_id":1,"name":"Insurance Agents","identifier":"18","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:26","date_modified":"2026-06-26 03:44:26","permalink":{"id":212411,"object_type":"structure","relational_id":13203,"identifier":"18","token":"38.2\/18","url":"\/38.2\/18\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":63256,"structure_id":13988,"section_number":"38.2-1857.1","catch_line":"Property and casualty insurance agents may be licensed as surplus lines brokers for certain insurance from eligible nonadmitted insurers","url":"\/38.2-1857.1\/","token":"38.2\/18\/5.1\/38.2-1857.1","metadata":false},{"id":55063,"structure_id":13988,"section_number":"38.2-1857.2","catch_line":"Applications for surplus lines broker license; fee required; fingerprinting","url":"\/38.2-1857.2\/","token":"38.2\/18\/5.1\/38.2-1857.2","metadata":false},{"id":79613,"structure_id":13988,"section_number":"38.2-1857.3","catch_line":"Repealed","url":"\/38.2-1857.3\/","token":"38.2\/18\/5.1\/38.2-1857.3","metadata":false},{"id":55432,"structure_id":13988,"section_number":"38.2-1857.4:1","catch_line":"Renewal application and fee; reinstatement; waiver","url":"\/38.2-1857.4_1\/","token":"38.2\/18\/5.1\/38.2-1857.4_1","metadata":false},{"id":86940,"structure_id":13988,"section_number":"38.2-1857.5","catch_line":"Requirement to report to Commission","url":"\/38.2-1857.5\/","token":"38.2\/18\/5.1\/38.2-1857.5","metadata":false},{"id":60358,"structure_id":13988,"section_number":"38.2-1857.6","catch_line":"Accepting and placing surplus lines business","url":"\/38.2-1857.6\/","token":"38.2\/18\/5.1\/38.2-1857.6","metadata":false},{"id":82459,"structure_id":13988,"section_number":"38.2-1857.7","catch_line":"Grounds for placing on probation, refusal to issue or renew, revocation, or suspension of license","url":"\/38.2-1857.7\/","token":"38.2\/18\/5.1\/38.2-1857.7","metadata":false},{"id":58784,"structure_id":13988,"section_number":"38.2-1857.8","catch_line":"Refusal to issue and revocation of license; hearing; new application","url":"\/38.2-1857.8\/","token":"38.2\/18\/5.1\/38.2-1857.8","metadata":false},{"id":61893,"structure_id":13988,"section_number":"38.2-1857.9","catch_line":"Licensing nonresidents; clerk of the Commission to be appointed agent for service of process; reciprocal agreements with other states and Canadian provinces","url":"\/38.2-1857.9\/","token":"38.2\/18\/5.1\/38.2-1857.9","metadata":false}],"previous_section":{"id":60358,"structure_id":13988,"section_number":"38.2-1857.6","catch_line":"Accepting and placing surplus lines business","url":"\/38.2-1857.6\/","token":"38.2\/18\/5.1\/38.2-1857.6","metadata":false},"next_section":{"id":58784,"structure_id":13988,"section_number":"38.2-1857.8","catch_line":"Refusal to issue and revocation of license; hearing; new application","url":"\/38.2-1857.8\/","token":"38.2\/18\/5.1\/38.2-1857.8","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1857.7\/","history_text":"

This law was first created in 2001. The record of its establishment is cataloged in chapter 706<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2011, chapter 498<\/a>.<\/p>","references":false,"refers_to":[{"id":64490,"section_number":"38.2-218","catch_line":"Penalties and restitution payments","order_by":null,"url":"\/38.2-218\/"}],"permalink":{"id":212767,"object_type":"law","relational_id":82459,"identifier":"38.2-1857.7","token":"38.2\/18\/5.1\/38.2-1857.7","url":"\/38.2-1857.7\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1857.7\/","token":"38.2\/18\/5.1\/38.2-1857.7","dublin_core":{"Title":"Grounds for placing on probation, refusal to issue or renew, revocation, or suspension of license","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1857.7","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

The Commission<\/span> may, in addition to or in lieu of a penalty<\/span> imposed under \u00a7 38.2-218<\/a>, place on probation<\/span>, suspend, revoke or refuse to issue<\/span> or renew any surplus lines broker<\/span>’s license<\/span> for any one or more of the following causes:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Providing materially incorrect, misleading, incomplete or untrue information in the license<\/span> application or any other document filed<\/span> with the Commission<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Violating any insurance<\/span> laws<\/span>, or violating any regulation, subpoena<\/span> or order<\/span> of the Commission<\/span> or of another state<\/span>’s insurance<\/span> regulatory authority; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Obtaining or attempting to obtain a license<\/span> through misrepresentation or fraud<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Improperly withholding, misappropriating or converting any moneys or properties received in the course of doing business; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Engaging in the practice of rebating; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Engaging in twisting<\/span> or any form thereof, where “twisting<\/span>” means inducing an insured to terminate<\/span> an existing policy and purchase a new policy through misrepresentation; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Intentionally misrepresenting the terms of an actual or proposed insurance<\/span> contract<\/span> or application for insurance<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Having been convicted of a felony<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> Having admitted or been found to have committed any insurance<\/span> unfair trade practice or fraud<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> Using fraudulent, coercive, or dishonest practices, or demonstrating incompetence, or untrustworthiness in the conduct of business in this Commonwealth or elsewhere, or demonstrating financial irresponsibility in the handling of applicant, policyholder, agency, or insurance company<\/span> funds; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

11.<\/span> Having an insurance producer, surplus lines broker<\/span>, or consultant license<\/span>, or its equivalent, denied, suspended or revoked in any other state<\/span>, province, district or territory; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

12.<\/span> Forging another’s name to an application for insurance or to any document related to an insurance transaction; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

13.<\/span> Improperly using notes or any other reference material<\/span> to complete an examination for an insurance license<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

14.<\/span> Knowingly accepting insurance business from an individual who is not licensed; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

15.<\/span> Failing to comply with an administrative or court order<\/span> imposing a child support obligation; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

16.<\/span> Failing to pay state<\/span> income or premium license<\/span> tax or comply with any administrative or court order<\/span> directing payment of state<\/span> income tax. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nGROUNDS FOR PLACING ON PROBATION, REFUSAL TO ISSUE OR RENEW, REVOCATION, OR\nSUSPENSION OF LICENSE (\u00a7 38.2-1857.7)\n\nThe Commission may, in addition to or in lieu of a penalty imposed under \u00a7\n38.2-218, place on probation, suspend, revoke or refuse to issue or renew any\nsurplus lines broker’s license for any one or more of the following\ncauses:\n\n1. Providing materially incorrect, misleading, incomplete or untrue information\nin the license application or any other document filed with the Commission;\n\n2. Violating any insurance laws, or violating any regulation, subpoena or order\nof the Commission or of another state’s insurance regulatory authority;\n\n3. Obtaining or attempting to obtain a license through misrepresentation or\nfraud;\n\n4. Improperly withholding, misappropriating or converting any moneys or\nproperties received in the course of doing business;\n\n5. Engaging in the practice of rebating;\n\n6. Engaging in twisting or any form thereof, where “twisting” means\ninducing an insured to terminate an existing policy and purchase a new policy\nthrough misrepresentation;\n\n7. Intentionally misrepresenting the terms of an actual or proposed insurance\ncontract or application for insurance;\n\n8. Having been convicted of a felony;\n\n9. Having admitted or been found to have committed any insurance unfair trade\npractice or fraud;\n\n10. Using fraudulent, coercive, or dishonest practices, or demonstrating\nincompetence, or untrustworthiness in the conduct of business in this\nCommonwealth or elsewhere, or demonstrating financial irresponsibility in the\nhandling of applicant, policyholder, agency, or insurance company funds;\n\n11. Having an insurance producer, surplus lines broker, or consultant license,\nor its equivalent, denied, suspended or revoked in any other state, province,\ndistrict or territory;\n\n12. Forging another’s name to an application for insurance or to any\ndocument related to an insurance transaction;\n\n13. Improperly using notes or any other reference material to complete an\nexamination for an insurance license;\n\n14. Knowingly accepting insurance business from an individual who is not\nlicensed;\n\n15. Failing to comply with an administrative or court order imposing a child\nsupport obligation; or\n\n16. Failing to pay state income or premium license tax or comply with any\nadministrative or court order directing payment of state income tax.\n\nHISTORY: 2001, c. 706; 2011, c. 498.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}