The department may deny an application for a certificate of authority or discipline the holder of a certificate of authority under this subchapter if the department determines that the applicant or holder, individually, or through an officer, director, or shareholder:

1. (1) has wilfully violated an insurance law of this state;
2. (2) has intentionally made a material misstatement in the application for a certificate of authority;
3. (3) has obtained or attempted to obtain a certificate of authority by fraud or misrepresentation;

4. (4) has misappropriated, converted to the applicant's or holder's own use, or illegally withheld money belonging to:

   1. (A) an insurance carrier, as that term is defined by Section 401.011, Labor Code;
   2. (B) an insurer, as that term is defined by Section 4001.003;
   3. (C) a health maintenance organization; or
   4. (D) an insured, enrollee, injured employee, or beneficiary;
5. (5) has engaged in fraudulent or dishonest acts or practices;
6. (6) has materially misrepresented the terms and conditions of an insurance policy, certificate, evidence of coverage, or contract;
7. (7) has been convicted of a felony;
8. (8) is in a financial condition, or is operating or conducting business in a manner, that would render further transaction of business in this state hazardous or injurious to insured persons or the public;
9. (9) has failed to comply with any judgment rendered against the applicant or holder before the 60th day after the date on which the judgment becomes final;
10. (10) has wilfully violated a commissioner rule;
11. (11) has refused to be examined or to produce accounts, records, and files for examination as required by this chapter or commissioner rule;
12. (12) at any time fails to meet a qualification for which issuance of the certificate of authority could have been denied had the failure then existed and been known to the commissioner;
13. (13) has had a certificate of authority, license, or other authority issued by this state, another state, or the United States suspended or revoked; or
14. (14) has failed to timely file the annual report required by Section 4151.205.

Added by Acts 2007, 80th Leg., R.S., Ch. 1176 (H.B. 472), Sec. 1.21, eff. September 1, 2007.