                                 CODE OF VIRGINIA

GROUNDS FOR PLACING ON PROBATION, REFUSAL TO ISSUE OR RENEW, REVOCATION, OR
SUSPENSION OF LICENSE (§ 38.2-1857.7)

The Commission may, in addition to or in lieu of a penalty imposed under §
38.2-218, place on probation, suspend, revoke or refuse to issue or renew any
surplus lines broker&#8217;s license for any one or more of the following
causes:

1. Providing materially incorrect, misleading, incomplete or untrue information
in the license application or any other document filed with the Commission;

2. Violating any insurance laws, or violating any regulation, subpoena or order
of the Commission or of another state&#8217;s insurance regulatory authority;

3. Obtaining or attempting to obtain a license through misrepresentation or
fraud;

4. Improperly withholding, misappropriating or converting any moneys or
properties received in the course of doing business;

5. Engaging in the practice of rebating;

6. Engaging in twisting or any form thereof, where &#8220;twisting&#8221; means
inducing an insured to terminate an existing policy and purchase a new policy
through misrepresentation;

7. Intentionally misrepresenting the terms of an actual or proposed insurance
contract or application for insurance;

8. Having been convicted of a felony;

9. Having admitted or been found to have committed any insurance unfair trade
practice or fraud;

10. 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;

11. 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;

12. Forging another&#8217;s name to an application for insurance or to any
document related to an insurance transaction;

13. Improperly using notes or any other reference material to complete an
examination for an insurance license;

14. Knowingly accepting insurance business from an individual who is not
licensed;

15. Failing to comply with an administrative or court order imposing a child
support obligation; or

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

HISTORY: 2001, c. 706; 2011, c. 498.