1. (a) A license may be denied, or a license duly issued may be suspended or revoked or the renewal thereof refused by the commissioner if, after notice and hearing as hereafter provided, he or she finds that the agent or applicant:

   1. (1) has willfully violated any provision of the insurance laws of this state;
   2. (2) has intentionally made a material misstatement in the application for such license;
   3. (3) has obtained, or attempted to obtain, such license by fraud or misrepresentation;
   4. (4) has misappropriated or converted to his or her own use or illegally withheld money belonging to an insurer or an insured or beneficiary;
   5. (5) has otherwise demonstrated lack of trustworthiness or competence to act as a variable contract agent;
   6. (6) has been guilty of fraudulent or dishonest practices;
   7. (7) has materially misrepresented the terms and conditions of any insurance policy or annuity contract;
   8. (8) has unreasonably failed and neglected to pay to the company, or its agent entitled therefor, any premium or part thereof collected by him or her on a variable life insurance or annuity policy or contract or application therefor;
   9. (9) has made or issued, or caused to be made or issued, any statement misrepresenting or making incomplete comparisons regarding the terms or conditions of any insurance or annuity contract legally issued by any insurer, for the purpose of inducing or attempting to induce the owner of such contract to forfeit or surrender such contract or allow it to lapse for the purpose of replacing such contract with another;
   10. (10) has obtained, or attempted to obtain such license, not for the purpose of holding himself or herself out to the general public as an agent, but primarily for the purpose of soliciting, negotiating, or procuring variable life insurance or variable annuity contracts covering himself or herself or members of his or her family or his or her business associates;
   11. (11) is not of good character or reputation;
   12. (12) is convicted of a felony (this provision is subject to the provisions of §1.501 and §1.502 of this title (relating to Effect of Criminal Conduct on Licenses));
   13. (13) does not presently have the qualifications required for issuance of the license.
2. (b) Before any license shall be denied (except for failure to pass a required written examination), or suspended or revoked, or the renewal thereof refused hereunder, the commissioner shall give notice of his or her intention to do so by registered mail, to the applicant for, or holder of such license, and shall set a date not less than 20 days from the date of mailing such notice when the applicant or licensee may appear to be heard and produce evidence.
3. (c) No applicant or licensee whose license has been denied, refused, or revoked hereunder (except for failure to pass a required written examination) shall be entitled to file another application for a license as a variable contract agent within one year from the effective date of such denial, refusal, or revocation, or, if judicial review of such denial, refusal, or revocation is sought, within one year from the date of final court order or decree affirming such action. Such application, when filed after one year, may be refused by the commissioner unless the applicant shows good cause why the denial, refusal, or revocation of his or her license shall not be deemed a bar to the issuance of a new license.

Source Note:The provisions of this §19.709 adopted to be effective October 26, 1984, 9 TexReg 5385.