§ 37.46. Standards for denial of certificate/license.

 The Department may deny an application for a certificate or license upon finding after a hearing or upon failure of the applicant to appear at the hearing that one or more of the following has occurred:

   (1)  The applicant has not reached the age of 18 years.

   (2)  The applicant for a certificate or license is a lending institution, public utility, bank holding company, saving and loan holding company, or a subsidiary or affiliate of the foregoing, or officer or employe thereof, as provided in section 641(b) of the act (40 P. S. §  281(b)).

   (3)  The applicant for a partnership or corporate certificate or license is a qualifying active partner or qualifying active officer of the partnership or corporation who is not eligible for an individual certificate or license.

   (4)  The applicant has provided incorrect, misleading or incomplete answers to interrogatories on forms incident to the application for a certificate or license.

   (5)  The applicant has been denied a certificate or license or has had an existing certificate or license revoked, suspended or not renewed when requested in another state, territory or possession of the United States, or in the District of Columbia, or the Canadian provinces.

   (6)  The applicant has violated any section of the Commonwealth insurance laws for which violation the Commissioner has the authority to revoke, suspend or refuse to renew a certificate or license in force.

   (7)  The applicant does not possess the professional competence and general fitness required to engage in the business of insurance. Determination will be made after thorough examination of the pertinent information and documents available to the Department which pertain to the honesty, reliability, efficiency, educational training and business experience and reputation of the applicant. The Department will also consider the applicant’s participation in initial or ongoing training programs offered by the entities represented.

     (i)   A showing that, within 5 years prior to applying for a certificate or license, an applicant has pleaded guilty, entered a plea of nolo contendere or has been found guilty of a felony in a court of competent jurisdiction, or has pleaded guilty, entered a plea of nolo contendere, or been found guilty of criminal conduct which relates to the applicant’s suitability to engage in the business of insurance, shall be evidence of lack of fitness for a certificate or license.

       (A)   Examples of criminal violations which the Department may consider related to the applicant’s suitability to engage in the business of insurance are unlawful advertising of insurance business, unlawful coercion in contracting insurance, furnishing free insurance as an inducement for purchases, unlawful collection practices, embezzlement, obtaining money under false pretenses, conspiracy to defraud, bribery or corrupt influence, perjury or false swearing, unlicensed activity or a criminal offense involving moral turpitude or harm to another.

       (B)   Examples of violations or incidents which the Department will not consider related to the applicant’s suitability to engage in the business of insurance are all summary offenses, records of arrest if there is no conviction of a crime based on the arrest, convictions which have been annulled or expunged or convictions for which the applicant has received a pardon from the Governor.

     (ii)   An applicant’s probation, parole or incarceration in a penal institution may be considered by the Department when determining whether the applicant is worthy of a certificate or license. Applications from those who have been incarcerated in a penal institution for more than 1 year in a sentenced status may be denied by the Department until 1 year following release from the institution has expired, and applicants placed on probation or parole may be denied by the Department until the probation or parole has been terminated.

   (8)  The applicant’s certificate or license was terminated for failure to comply with continuing education requirements under Chapter 39 (relating to continuing education for insurance agents and brokers).

   (9)  The applicant has unpaid and overdue amounts owing to the Department or its delegates for services provided or documents issued by the Department.

Cross References

   This section cited in 31 Pa. Code §  37.47 (relating to revocation, suspension, nonrenewal of certificates and licenses); 31 Pa. Code §  37.48 (relating to reporting requirements); 31 Pa. Code §  37.62 (relating to certification of appointments by entities); and 31 Pa. Code §  39.9 (relating to instructors).



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