Current through Register Vol. 42, No. 5, February 29, 2024
(1) The willful violation of any material
provision of this chapter may subject a licensee to an administrative
proceeding.
(2) By means of a
settlement agreement and consent order, or by order issued after other
appropriate administrative proceedings, an applicant may be issued a license on
a probationary basis, or an existing licensee may be placed on probation for a
specified period of time or until certain specified conditions are met. A
licensee on probation is allowed to become or remain licensed and to renew an
existing license, as applicable, if the licensee has complied or is complying
with the conditions specified in the settlement agreement, consent order, or
other order imposing the probation during the stated term of the probation.
During the term of the probation, the licensee remains subject to all
applicable requirements of the Insurance Code, including, but not limited to,
requirements concerning continuing education and license renewal. If so stated
in the settlement agreement and consent order or in the order imposing the
probation, failure to comply with the conditions set forth in the probation
order may result in the immediate suspension or revocation of the license
without further administrative proceedings.
(3) By means of a settlement agreement and
consent order, or by order issued after other appropriate administrative
proceedings, the license of a licensee may be suspended for either a specified
period of time or until certain specified conditions are complied with subject
to the following:
(a) During the term of the
suspension, the licensee may not engage in any actions or activity for which
the license is required but remains subject to all applicable requirements of
the Insurance Code, including, but not limited to, requirements concerning
continuing education.
(b) A
suspended license may not be renewed if the renewal date occurs during the
suspension term.
(c) A suspension
is lifted upon expiration of its term or, if based on compliance with specified
conditions, by an order issued upon the licensee's showing that the conditions
have been met or complied with, or by an order issued after consideration of an
application to lift the suspension has been submitted by the licensee. Upon
lifting of the suspension, the license is deemed reinstated unless the license
has expired or has otherwise terminated during the suspension term.
(d) If the license has expired or otherwise
terminated during the suspension term less than twelve (12) months before the
date on which the suspension is lifted, the licensee may immediately apply for
a license without complying with any applicable examination requirements. If
over twelve (12) months have elapsed between the expiration or other
termination of the license and lifting of the suspension, the licensee must
comply with any applicable examination requirements prior to applying for the
license.
(4) By means of
a settlement agreement and consent order, or by order issued after other
appropriate administrative proceedings, the license of a licensee may be
revoked subject to the following:
(a) The
Commissioner's acceptance of a "voluntary surrender" of a license in lieu of
administrative proceedings to revoke the license is deemed a revocation for
purposes of this section irrespective of whether the settlement agreement and
consent order or other order, or information provided by the Department to the
NAIC, characterizes the action as a "revocation."
(b) From and after the date of revocation,
the licensee may not engage in any actions or activity for which the license is
required.
(c) A person whose
license has been revoked must apply to the Commissioner for permission to apply
for any form of license issued through the Department. Such application cannot
be made before expiration of the later to occur of two (2) years after the
revocation date or such longer period as may be specified in the revocation
order. The application may be in the form of a letter addressed to the
Commissioner with such attachments as the applicant may deem appropriate.
Whether to grant such permission is at the sole discretion of the Commissioner
and is dependent upon the receipt of satisfactory proof that the applicant has
complied with such conditions for seeking a license, if any, specified in the
revocation order, the conditions which led to the revocation have been
corrected, and the possibility of recurrence of the conditions has been
substantially mitigated or eliminated and should no longer be used to prevent
the reapplication for license.
(d)
If satisfied that reasons for the revocation are no longer present and should
not be used to prevent the applicant from again becoming licensed, the
Commissioner shall issue an order authorizing the applicant to again apply for
a license. The applicant must comply with any applicable examination
requirements as if the applicant is initially applying for a license prior to
applying for the license.
Author: Commissioner of Insurance
Statutory Authority:
Code of Ala.
1975, §§
27-2-17,
27-9A-18.
