A New York-licensed insurance broker was convicted of a Class E felony (grand larceny in the fourth degree) for misappropriating client premium. Under NY Insurance Law § 2110, what is the most likely DFS action regarding the broker's license?

Why this is the answer

NY Insurance Law § 2110 enumerates grounds for license action against producers, adjusters, and consultants. They include felony conviction, misdemeanors involving moral turpitude, fraudulent or dishonest practices, demonstrated untrustworthiness or incompetence, material misstatement on the application, violation of any insurance law or regulation, and violation of a Superintendent's order. Misappropriation of premium funds is doubly disqualifying — both as a felony and as an act of untrustworthiness. The Superintendent must provide notice and a hearing under § 304. A separate disclosure obligation (§ 2110(g)) requires producers to self-report felony convictions within 30 days.