1. (a) The Insurance Commissioner may suspend for not more than thirty-six (36) months pursuant to Arkansas Code § 23-64-216, or may revoke or refuse to continue any license issued under this part, after:

   1. (1) Written notice to the licensee;
   2. (2) A hearing is held under the provisions of Arkansas Code § 23-61-303 et seq., and/or § 23-64-216; and

   3. (3) The commissioner finds that any one (1) or more of the following causes exist:

      1. (A) Any cause for which issuance of the license could have been refused had it then existed and been known to the commissioner;
      2. (B) Violation of or noncompliance with any provision of the Arkansas Insurance Code or for willful violation of any rule or order of the commissioner;
      3. (C) Obtaining or attempting to obtain any such license through fraud or misrepresentation;
      4. (D) Misappropriation of or conversion to the licensee's own use or benefit any moneys received through the course of business that do not belong to the licensee;
      5. (E) Conviction of or pleading of guilty or nolo contendere to a felony or any felony involving dishonesty or a breach of trust;
      6. (F) If in the conduct of the licensee's affairs, the licensee has used:

2. (i) Fraudulent or dishonest practices; or

   1. (ii) Trade practices prohibited by the insurance code or statutes and rules of the state;

      1. (G) Failure to:

         1. (i) Provide a written response after receipt of a written inquiry from the commissioner or his or her representative as to transactions under the license within thirty (30) days after receipt thereof, unless waived in writing by the commissioner; or
         2. (ii) Notify the commissioner promptly of any change of address in writing; or
      2. (H) Having an insurance agent or broker license or HMO agent license or other insurance license or registration suspended or revoked in this state or any other state, province, district, or territory; or if the licensee no longer meets the qualifications for licensure as described in this part and applicable laws.

3. (b)

   1. (1) If the commissioner finds that any one (1) or more grounds exist for the suspension or revocation of any license, the commissioner may in his or her discretion, in lieu of or in addition to such suspension or revocation, impose an administrative penalty in the amount of one thousand dollars ($1,000) under Acts 1997, No. 1004, or if the commissioner has found willful misconduct or willful violation by the licensee, five thousand dollars ($5,000) under Acts 1997, No. 1004.
   2. (2) The commissioner may take judicial notice of prior sanction orders issued against the licensee in this or other licensed jurisdictions and enhance or increase the penalties ordered in any current misconduct proceeding as to the licensee, without an abuse of discretion.

   3. (3) The commissioner may in his or her discretion order the licensee to pay restitution of actual losses to affected persons as specified in Arkansas Code § 23-64-216, or in an order/consent order against the licensee, in addition to other sanctions imposed under this part.

      1. (c) The commissioner may not again issue any license under this part to any person whose license has been revoked until after expiration of three (3) years and upon the same conditions expressed in Arkansas Code § 23-64-217(b), as for insurance agents and brokers, subject to other applicable laws.

Codification Notes: “HMO” means health maintenance organization.