A. In addition to a reason provided under other provisions of the Insurance Code as to particular licenses, the superintendent may place on probation, suspend, revoke or refuse to issue or renew a license issued under Chapter 59A, Article 11 NMSA 1978 for any of the following reasons:
(1) providing incorrect, misleading, incomplete or materially untrue information in the license application;
(2) violating any insurance law or violating any regulation, subpoena or order of the superintendent or of another state's superintendent or commissioner of insurance;
(3) obtaining or attempting to obtain a license through misrepresentation or fraud;
(4) improperly withholding, misappropriating or converting any money or properties received in the course of doing insurance 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 or been found to have committed any insurance unfair trade practice or fraud;
(8) using fraudulent, coercive or dishonest practices, 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, suspended or revoked in any other state, province, district or territory;
(10) forging another's name to an application for insurance or to any document related to an insurance transaction;
(11) improperly using notes or any other reference material to complete an examination for an insurance license;
(12) knowingly accepting insurance business from an individual who is not licensed;
(13) failing to comply with an administrative or court order imposing a child support obligation;
(14) failing to pay state income tax or comply with any administrative or court order directing payment of state income tax;
(15) any cause for which issuance of the license could have been refused had it then existed and been known to the superintendent;
(16) failure to pass an examination required by the superintendent, subsequent to issue of license, under Subsection D of Section 59A-11-10 NMSA 1978;
(17) aiding, abetting or assisting another person to violate a provision of the Insurance Code; or
(18) the interests of the insureds or the public are not being properly served under the license.
B. The superintendent may require a criminal history background investigation of an applicant or a current license holder by means of fingerprint checks by the department of public safety and the federal bureau of investigation, at the expense of the applicant or license holder, using the applicant's or license holder's fingerprints or other identifying information. The information shall be used by the superintendent solely in determining whether to suspend, revoke or refuse to continue a license.
History: Laws 1984, ch. 127, § 193; 2001, ch. 297, § 2; 2016, ch. 89, § 19.
ANNOTATIONSThe 2016 amendment, effective July 1, 2017, expanded the list of reasons for suspending, revoking, or refusing to issue or continue an insurance license; in Subsection A, in the introductory sentence, after "In addition to", deleted "a", after "reason", deleted "therefor", after "the superintendent may", added "place on probation", after "revoke or refuse to", deleted "continue any" and added "issue or renew a", after "the following reasons", deleted "applicable as to licensee", added new Paragraphs (1) through (14) of Subsection A and redesignated former Paragraph (1) as Paragraph (15), in Paragraph (15), deleted "for", deleted former Paragraphs (2) through (4) of Subsection A and redesignated former Paragraph (5) as Paragraph (16) of Subsection A, in Paragraph (16), after "failure to pass", deleted "any" and added "an", deleted former Paragraphs (6) through (9) and redesignated former Paragraph (10) as Paragraph (17), in Paragraph (17), after "violate", deleted "any" and added "a", deleted the language in former Paragraph (11) up to "or that" and designated the remaining language from former Paragraph (11) as Paragraph (18); deleted former Subsection B and redesignated former Subsection C as Subsection B; and in Subsection B, after "investigation of", added "an applicant", after "at the expense of the", added "applicant or", and after "using the", added "applicant's or".
Severability. — Laws 2016, ch. 89, § 71 provided that if any part or application of Laws 2016, ch. 89 is held invalid, the remainder or its application to other situations or persons shall not be affected.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 43 Am. Jur. 2d Insurance § 68.
Constitutionality, construction and application of statute respecting cancellation or suspension or renewal of license of insurance agent, 154 A.L.R. 1146.
Revocation or suspension of insurance agent's license for withholding or misappropriation of premiums, 17 A.L.R.4th 1106.
44 C.J.S. Insurance § 85 et seq.