(a) The department may deny an application for a license or discipline an escrow officer under Sections 4005.102, 4005.103, and 4005.104 if the department determines that the applicant or license holder has:
(1) wilfully violated this title;
(2) intentionally made a material misstatement in the license application;
(3) obtained or attempted to obtain the license by fraud or misrepresentation;
(4) misappropriated or converted to the escrow officer's own use or illegally withheld money belonging to a title insurance agent, direct operation, or another person;
(5) been guilty of fraudulent or dishonest practices;
(6) materially misrepresented the terms and conditions of a title insurance policy or contract; or
(7) failed to complete all educational requirements.
(b) The department may not deny an application for a license or discipline an escrow officer under Section 4005.102, 4005.103, or 4005.104 solely because the individual resides in an adjacent state and acts as an escrow officer in this state as a bona fide employee of a title insurance agent or direct operation in this state.