Section 16 in The Life Insurance Corporation of India (Agents) Regulations, 2017
16. Termination or suspension of agent for certain lapses.
(1)The competent authority may, by order, in writing, terminate the appointment of an agent, after due notice and after giving him a reasonable opportunity of being heard in accordance with the procedure laid down in the Fifth Schedule, if he-(a)has violated the provisions of the Insurance Act, 1938 (4 of 1938), Insurance Regulatory and Development Authority of India Act, 1999 (41 of 1999) or rules or regulations, made thereunder as amended from time to time;(b)acts in a manner prejudicial to the interests of the Corporation or to the interests of its policyholders;(c)has failed to discharge his functions and failed to comply with the code of conduct as set out in regulation 8 and regulation 14, and directions issued by the Authority from time to time, to the satisfaction of the competent authority;(d)fails to furnish any information relating to his activities as an agent as required by the Corporation or the Authority;(e)furnishes wrong or false information or conceals or fails to disclose material facts in the application submitted for appointment of Agent or during the period of its validity;(f)does not cooperate with any inspection or enquiry conducted by the Authority;(g)fails to resolve the complaints of the policyholders or fails to give a satisfactory reply to the Corporation or the Authority;(h)if the competent authority is satisfied that either directly or indirectly the agent is involved in embezzlement of premiums or cash collected from policyholders or prospects or on behalf of Insurer, and he has been knowingly involved in or connived at any fraud, dishonesty, misrepresentation, misappropriation, cheating and forgery against the Corporation or its policyholders or any of its subsidiaries or against any person having official dealings with the Corporation or any of its subsidiaries;(i)violates the terms of appointment;(j)does not submit periodical returns as required by the Corporation or the Authority;(k)if evidence comes to its knowledge to show that he has been allowing or offering to allow rebate of the whole or any part of the commission payable to him;(l)if it is found that any averment contained in his agency application or in any report furnished by him as an agent in respect of any proposal is not true;(m)becomes physically or mentally incapacitated for carrying out his functions as an agent;(n)if he being an absorbed agent, on being called upon to do so, fails to undergo the required training or to pass the tests, within the time fixed by the Corporation;(o)if it is found that he is misusing any facility provided to him by the Corporation.(2)Where the competent authority proposes to take action under sub-regulation (1), it may direct the agent not to solicit or procure new insurance business until he is permitted by the Competent Authority to do so and the order of suspension so issued may be published as provided for in the Fifth Schedule.
