(1) The commissioner may suspend or revoke approval of any prelicensing insurance education provider based upon a finding that:

(a) Any owner, program director, or instructor failed to comply with any of the requirements of chapter 284-17 WAC, including but not limited to the failure to employ a qualified program director or instructor(s); or

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

(c) The provider failed to maintain an effective instructional program or misrepresented the quality of the instruction provided to the detriment of its students; or

(d) An owner, program director, or instructor is or has been convicted of a crime reasonably related to his or her honesty or integrity.

(2) The commissioner may suspend or revoke approval of any prelicensing insurance education provider based upon a provider's failure to:

(a) Reply promptly to an inquiry of the commissioner.

(b) Submit revised course outlines requested by the commissioner.

(c) Make timely disclosure to the commissioner and to enrolling students at the time of their enrollment about any offer or payment of any rebate, refund, fee, commission, or discount to persons other than the provider's full-time employees made by the provider based on referrals of students to the provider.