Current through Register Vol. 54, No. 52, December 28, 2024
Section 37a.16 - [Effective 2/12/2025] Standards for denial of license and enforcement actions(a) The commissioner may deny an application for an insurance producer license upon finding any of the following: (1) The applicant has not met the license prerequisites under section 604-A of the act (40 P.S. § 310.4).(2) The application does not meet the requirements under section 605-A of the act (40 P.S. § 310.5).(3) The applicant has committed an act prohibited under section 611-A of the act (40 P.S. § 310.11) including considerations of whether the applicant is worthy of licensure as set forth in the examples in subsection (b).(b) For purposes of determining whether an applicant or licensee is worthy of licensure under section 611-A(20) of the act, the commissioner may consider any of the following actions: (1) Dishonest or fraudulent conduct.(2) The making of knowingly false statements.(3) Conduct demonstrating that the applicant or licensee does not possess the competence necessary to accurately and successfully ensure that an insurance transaction is properly executed.(4) Whether the applicant or licensee has abused a relationship of trust in an insurance, financial or other context.(5) Whether the applicant or licensee has engaged in violent conduct that could potentially jeopardize the safety of a consumer or co-worker.(6) Criminal convictions other than those enumerated by section 611-A(14) or (15) of the act where the crime involves any of the actions in paragraphs (1)-(5) or the facts and circumstances surrounding the underlying criminal activity indicate a lack of general fitness, honesty, trustworthiness, competence or reliability.(7) Administrative actions taken by a self-regulating non-governmental organization such as the Financial Industry Regulatory Authority or other licensing authority, board or governmental agency.(8) Failure to comply with the requirements of sections 1601-1626 of The Insurance Company Law of 1921 (40 P.S. §§ 991.1601-991.1626), pertaining to surplus lines.(9) Whether the applicant or licensee has violated probation or parole.(10) Whether the applicant or licensee has not yet successfully completed their sentence or the entire term of their probation or parole for an underlying conviction that can be considered subject to paragraph (6) or section 611-A(14) or (15) of the act.(c) The examples enumerated in subsection (b) are not exhaustive of the types of conduct relevant to a determination of whether an applicant is worthy of licensure and are not per se determinative of worthiness. The department will continue to evaluate worthiness on a case-by-case basis and will consider the facts and circumstances of each situation.Adopted by Pennsylvania Bulletin, Vol 54, No. 50. December 14, 2024, effective 2/12/2025