Section 33-59-4. Suspension, revocation, or refusal to renew licenses; grounds; hearing required

   (a) The Commissioner may suspend, revoke, or refuse to renew the license of any licensee if the Commissioner finds that:

   (1) There was any material misrepresentation in the application for the license;

   (2) The licensee or any officer, partner, member, or director has been guilty of fraudulent or dishonest practices, is subject to a final administrative action, or is otherwise shown to be untrustworthy or incompetent to act as a licensee;

   (3) The provider demonstrates a pattern of unreasonably withholding payments to policy owners;

   (4) The licensee no longer meets the requirements for initial licensure;

   (5) The licensee or any officer, partner, member, or director has been convicted of a felony or any misdemeanor of which criminal fraud is an element; or the licensee has pleaded guilty or nolo contendere to any felony or any misdemeanor of which criminal fraud or moral turpitude is an element regardless of whether a judgment of conviction has been entered by the court;

   (6) The provider has entered into any life settlement contract using a form that has not been approved pursuant to this chapter;

   (7) The provider has failed to honor contractual obligations set out in a life settlement contract;

   (8) The provider has assigned, transferred, or pledged a settled policy to a person other than a provider licensed in this state, purchaser, accredited investor or qualified institutional buyer as defined, respectively, in Regulation D, Rule 501, or Rule 144A of the federal Securities Act of 1933, as amended, financing entity, special purpose entity, or related provider trust;

   (9) The licensee or any officer, partner, member, or key management personnel has violated any of the provisions of this chapter; or

   (10) The provider has failed to maintain an adequate net worth.

(b) Before the Commissioner denies a license application or suspends, revokes, or refuses to renew the license of any licensee under this chapter, the Commissioner shall conduct a hearing in accordance with Chapter 2 of this title.

Code 1981, § 33-59-4, enacted by Ga. L. 2005, p. 998, § 1/SB 217; Ga. L. 2009, p. 370, § 1/SB 61.