The commissioner may deny approval to any prelicensing insurance education provider if:

(1) The prelicensing insurance education provider refuses or fails to comply with any requirement of chapter 284-17 WAC, including but not limited to the provider's employment and use of an unqualified program director or instructor; or

(2) Any owner, program director, or instructor, directly or indirectly, compromises or attempts to compromise the integrity or security of Washington state licensing examination questions, or has induced another to do so; or

(3) Any owner, program director, or instructor:

(a) Fails to comply with any of the requirements of any statute or rule pertaining to the transaction of insurance or to insurance education;

(b) Violates any statute, rule, or copyright related to an examination for any occupational or professional license; or

(c) Is convicted of a crime reasonably related to his or her honesty or integrity.