23-92-405. Controlling person.

23-92-405. Controlling person. (a) Each controlling person shall provide information and certifications necessary for the Insurance Commissioner to determine that the controlling person is of good moral character and: (1) Is at least eighteen (18) years of age; and (2) Has the education, managerial, or business experience to successfully act as the controlling person of a professional employer organization. (b)(1) As used in this subchapter, “good moral character” means a personal history of honesty, trustworthiness, fairness, a good reputation for fair dealings, and respect for the rights of others and for state and federal laws. (2) The commissioner may conduct a thorough background investigation of the individual's good moral character, as the commissioner may deem necessary. (c) The commissioner may prohibit a person found to qualify as a controlling person under subsection (a) of this section from exercising control over the professional employer organization if the commissioner subsequently finds that the person no longer qualifies under subsection (a) of this section. (d) A controlling person may be removed or suspended from control for a definite period if he or she: (1) Is indicted as the subject of a criminal investigation or is found guilty of, or pleads guilty or nolo contendere to: (A) Bribery, fraud, or willful misrepresentation in obtaining, attempting to obtain, or renewing a license; (B) A crime in any jurisdiction that relates to the operation of a professional employer organization business or the ability to engage in business as a professional employer organization; or (C) Fraud, deceit, or misconduct in the: (i) Classification of employees for purposes of determining workers' compensation rates; (ii) Establishment or maintenance of self-insurance, whether health insurance or workers' compensation insurance; or (iii) Operation of a professional employer organization; (2) Is confined in any county jail, post adjudication, or confined in any state or federal prison or mental institution; (3) Can no longer safely be entrusted to deal with the public or in a confidential capacity, due to mental disease or deterioration; (4) Has been previously suspended and is found guilty for a second time of any misconduct that warrants suspension; (5) Has been previously suspended and is found guilty of a course of conduct or practice that shows the licensee is so incompetent, negligent, dishonest, or untruthful that the money, property, transactions, and rights of investors or those with whom the licensee may sustain a confidential relationship may not safely be entrusted to the licensee; (6) Fails to inform the commissioner in writing within thirty (30) days after being found guilty of, or entering a plea of guilty or nolo contendere to, any felony; (7) Is determined liable for civil fraud by a court in any jurisdiction; or (8) By bribery, misrepresentation, or fraud, obtains or attempts to obtain a new license or renews or attempts to renew a license to provide professional employer organization services.