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37-25A-18Denial, revocation, or suspension of registration--Grounds.

The director of the Division of Insurance may issue an order denying, suspending or revoking the effectiveness of any registration if the director finds that the order is in the public interest and that:

(1)    The registration as of its effective date or as of any earlier date in the case of an order denying effectiveness, or any amendment as of its effective date, or any report is incomplete in any material respect or contains any statement which was, in the light of the circumstances under which it was made, false or misleading with respect to any material fact;

(2)    Any provision of this chapter or any rule, order or condition lawfully imposed under this chapter has been willfully violated, in connection with the business opportunity by the person filing the registration; or by the seller, any partner, officer or director of the seller, any person occupying a similar status or performing similar functions, or any person directly or indirectly controlling or controlled by the seller, but only if the person filing the registration is directly or indirectly controlled by or acting for the seller;

(3)    The business opportunity registered or sought to be registered is the subject of an administrative order denying, suspending or revoking a registration or a permanent or temporary injunction of any court of competent jurisdiction; but the director:

(a)    May not institute a proceeding against an effective registration under this subdivision more than one year from the date of the order or injunction relied on; and

(b)    May not enter an order under this subdivision on the basis of an order or injunction entered under any other state act unless that order or injunction was based on facts which would currently constitute a ground for an order under this section;

(4)    The seller's enterprise or method of business, or that of the business opportunity, includes or would include activities which are illegal where performed;

(5)    The business opportunity or the offering of a business opportunity has worked a fraud upon purchasers or would so operate;

(6)    There has been a failure to file any documents or information required by § 37-25A-8;

(7)    The seller has failed to pay the proper registration fee but the director may enter only a denial order under this subdivision and the director shall vacate any such order if the deficiency is corrected;

(8)    The seller's literature or advertising is misleading, incorrect, incomplete or deceptive.

Source: SL 1985, ch 305, § 18; SL 2017, ch 231 (Ex. Ord. 17-2), § 19, eff. Apr. 13, 2017.

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