Insurance Producer Prohibitions and Sanctions; Mortgages
Allows the insurance commissioner to impose license sanctions on producers who, when participating in mortgage transactions, fail to comply with mortgage broker and solicitor act or conduct prohibitions or written agreement requirements.
HOUSE OF REPRESENTATIVES
TWENTY-SECOND LEGISLATURE, 2004
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO INSURANCE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 431:9A-112, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The commissioner may deny, place on probation, suspend, revoke, or refuse to issue or renew an insurance producer's license and may levy a civil penalty in accordance with articles 2 and 3, or any combination of these actions, for any of the following causes:
(1) Providing incorrect, misleading, incomplete, or materially untrue information in the license application;
(2) Violating any law, or violating any rule, subpoena, or order of the commissioner or of another state's commissioner;
(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) Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance;
(6) Having been convicted of a felony;
(7) Having admitted to or been found to have committed any insurance unfair trade practice or fraud;
(8) Using fraudulent, coercive, or dishonest practice or demonstrating incompetence, untrustworthiness, or financial irresponsibility in the conduct of business in this State or elsewhere;
(9) Having an insurance producer license or its equivalent denied, placed on probation, suspended, or revoked in any other state, province, district, or territory;
(10) Forging another's name on an application or on any document related to a transaction;
(11) Improperly using notes or any other reference material while taking an examination for an insurance license;
(12) Accepting insurance business from a person who is not licensed;
(13) Failing to comply with an administrative or court order imposing a child support obligation;
(14) Failing to pay federal or state income taxes or failing to comply with any administrative or court order directing payment of federal or state income taxes; [
(15) Receiving certification from an administering entity pursuant to chapter 436C that the licensee or applicant is in default or breach of any obligation under any student loan, student loan repayment contract, or scholarship contract that financed the licensee's or applicant's education, or has failed to comply with a repayment plan[
(16) As an exclusive agent under section 454-2, negotiating, acquiring, or offering to make, negotiate, or acquire a mortgage loan on behalf of a borrower seeking a mortgage loan and:
(A) Not complying with the requirements of section 454-3.1; or
(B) Committing any act or conduct listed in section 454-4(a)."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval.