§ 58-89A-155. Grounds for disciplinary action. - North Carolina Statutes

Part 4. Penalties and Sanctions.

§ 58‑89A‑155. Grounds for disciplinary action.

(a)        The Commissionermay take disciplinary action against a licensee or any person subject tolicensure requirements under this Article on any of the following grounds:

(1)        Being convicted orhaving an officer or controlling person of the licensee convicted of:

a.         Bribery, fraud, orintentional or material misrepresentation in obtaining or attempting to obtaina license;

b.         A crime that relatesto the operation of a professional employer organization or the ability of thelicensee or any officer or controlling person of the licensee to operate aprofessional employer organization;

c.         A crime that relatesto the classification, misclassification, or underreporting of employees requiredby State law;

d.         A crime that relatesto the establishment or maintenance of a self‑insurance program, whetherhealth insurance, workers' compensation insurance, or other insurance;

e.         A crime that relatesto fraud, deceit, or misconduct in the operation of a professional employerservice; or

f.          A crime thatinvolves dishonesty or breach of trust.

(2)        Engaging inprofessional employer services or offering to engage in the provision ofprofessional employer services without a license.

(3)        Failure to providenotice in writing of the discontinuance and replacement, if any, of anyinsurance coverage, to the Commissioner and client company within 10 businessdays of the discontinuance of any insurance coverage pursuant to G.S. 58‑89A‑115.

(4)        Failure to providethe notice required by G.S. 58‑50‑40.

(5)        Failure to satisfyany of the requirements for licensure in this Article.

(b)        For purposes ofthis section, a conviction includes an adjudication of guilt, a plea of guilty,and a plea of nolo contendere. (2004‑162, s. 1.)