The department shall not grant or renew approval as to any plan if the department determines:
(1) Any trustee is incompetent or untrustworthy;
(2) That any trustee has been found guilty of, or has pled guilty or no contest to a felony, a crime involving moral turpitude, or a crime punishable by imprisonment of one year or more under the law of any state, territory, or country, whether or not a judgment of conviction has been entered;
(3) That any trustee has had any type of insurance license revoked, suspended, or disciplined in this or any other state; or
(4) That the business operations of the plan are or have been marked, to the detriment of the employers participating in the plan, of persons receiving benefits from the plan, or of creditors or the public, by the improper manipulation of assets, accounts, or specific or aggregate excess incurrence or by bad faith or if the number of covered employees in * any calendar quarter is found to be less than two hundred fifty.