Part 2 – Hawaii through Maryland

This publish is a part of a collection sponsored by AgentSync.

Having a legal cost or conviction in a single’s background could make issues tougher for a licensed insurance coverage producer. Nonetheless, it doesn’t at all times need to imply the top of a profession, so long as you observe your state’s procedures for reporting the brand new historical past. It’s finest to begin together with your resident state, however don’t overlook to inform all states the place you maintain a nonresident license as effectively.

That can assist you fulfill your reporting obligations, we’ve created this state-by-state information to how every state handles an already-licensed producer who must report new legal prices, convictions, navy convictions, or adminstrative actions. For a bit extra background on the legal guidelines surrounding sure sorts of felonies, and the way the Producer Licensing Mannequin Act (PLMA) tries to standardize procedures throughout states, see Half Considered one of this five-part collection, which additionally covers the primary 10 states (in alphabetical order).

Bounce to a state

With 50 states plus the District of Columbia to cowl, we’ve divided this matter right into a collection. This text covers Hawaii by Maryland, and you may click on the state beneath to leap on to it – together with states not lined on this specific article.

Alabama | Alaska | Arkansas | Arizona | California | Colorado | | Connecticut | Delaware | Florida | Georgia | Hawaii | Idaho | Illinois | Indiana | Iowa | Kansas | Kentucky | Louisiana | Maine | Maryland

Find out how to renew my Hawaii insurance coverage license after a legal conviction

Hawaii Revised Statute §431:9-234.5 states {that a} licensed producer has 30 days to report:

• Any civil or administrative motion taken towards them in any jurisdiction or by any governmental company in the USA (from the date of “last disposition of the matter.”)
• Any legal prosecution of the licensee being taken in any jurisdiction (from the “date of arraignment.”)

To do that, the legislation specifies the licensee should submit “a duplicate of the preliminary grievance or indictment and any and all different related authorized paperwork.” Hawaii asks producers to make these written submissions by way of the NIPR Attachments Warehouse – Reporting of Actions.

As soon as the producer has reported as required, Hawaii Revised Statute § 431:9A-112, states “the [insurance] commissioner could deny, place on probation, droop, revoke, or refuse to concern or renew an insurance coverage producer’s license and should levy a civil penalty…” for anyone (or a number of) of an extended record of circumstances. Most relevant to the subject of legal background data are:

(2) Violating any legislation, or violating any rule, subpoena, or order of the commissioner or of one other state’s commissioner;

(6) Having been convicted of a felony;

(9) Having an insurance coverage producer license or its equal denied, positioned on probation, suspended, or revoked in every other state, province, district, or territory;

Supply: HI Revised Statute § 431:9A-112 (2022)

To simplify, Hawaii says you would possibly lose your insurance coverage license in case you violate any legislation, are convicted of a felony, or have your license denied, revoked, and so on. by one other jurisdiction.

This final half may have a big influence on a producer who – for instance – holds a resident license in Hawaii and a nonresident license in Georgia. If this producer’s convicted of one thing that’s a felony in Georgia however not Hawaii, and thus loses their Georgia license primarily based on Georgia’s legislation, that reality alone may trigger Hawaii to observe swimsuit. Nonetheless, it’s necessary to notice that none of those penalties are computerized or occur with out the flexibility for a producer to combat them.

What about misdemeanors in Hawaii?

[Pending answer from the state] Hawaii’s individual insurance producer application states that an applicant could exclude from their self-reported legal historical past:

• Misdemeanor convictions or pending misdemeanor prices
• Visitors citations
• Driving beneath the affect (DUI) or driving whereas intoxicated (DWI) citations
• Driving with no license
• Reckless driving, or driving with a suspended or revoked license.
• Offenses the place you have been adjudicated as a delinquent in juvenile court docket

Since these don’t should be reported upon the preliminary utility, it’s logical {that a} present licenseholder in Hawaii would additionally not need to report these specific misdemeanors to the insurance coverage commissioner. Nonetheless, we’re nonetheless awaiting affirmation from the Hawaii insurance coverage commissioner’s workplace.

What about nonresident producers looking for to resume their Hawaii license after a conviction?

Hawaii’s legislation states “a licensee” with no distinction between resident and nonresident licensees. Producers with nonresident Hawaii insurance coverage licenses ought to observe the identical procedures as outlined above.

One last be aware on insurance coverage licensing and legal convictions in Hawaii

Hawaii specifies that it’s not simply the person producer who might be in bother for his or her legal exercise. Enterprise entities may have their insurance coverage licenses revoked, suspended, and so on. (similar to people) if somebody in cost knew or ought to have recognized {that a} licensed producer engaged in one of many (beforehand talked about) lengthy record of misconducts.

(c) The license of a enterprise entity could also be sanctioned pursuant to subsection (a) if the commissioner finds, after listening to, that every other licensee of the enterprise entity has engaged in misconduct beneath subsection (a) that was recognized or ought to have been recognized by a number of of the entity’s companions, officers, or managers appearing on behalf of the entity and the violation was neither reported to the commissioner by the entity nor corrective motion taken by the entity.

https://law.justia.com/codes/hawaii/2022/title-24/chapter-431/section-431-9a-112/

Find out how to renew my Idaho insurance coverage license after a legal conviction

Based on Idaho Statute §41-1021, a producer should report both (or each): administrative motion taken towards the producer by one other jurisdiction; and any legal prosecution introduced towards the producer by every other jurisdiction. Like all different states, Idaho requires producers with an energetic license to report these new “actions” inside 30 days, both from the ultimate disposition (for administrative actions) or from the preliminary pretrial listening to date (legal prosecutions). The report might want to embrace “a duplicate of the preliminary grievance filed, the order ensuing from the listening to and every other related authorized paperwork” and be uploaded to the NIPR Attachments Warehouse – Reporting of Actions.

For those who’ve acquired extra questions on getting or conserving an insurance coverage license with a legal file, the Idaho Division of Insurance coverage web site has a whole lot of area dedicated to comprehensive coverage of reporting of actions.

What about misdemeanors in Idaho?

Idaho is among the handful of states that particularly lists a number of misdemeanors that licensed insurance coverage producers don’t have to report back to the insurance coverage commissioner. These embrace:

• Misdemeanor visitors citations
• Misdemeanor convictions involving driving beneath the affect (DUI) or driving whereas intoxicated (DWI)
• Driving with no license
• Reckless driving
• Driving with a suspended or revoked license

Whereas this record is said to first-time candidates, we interpret the exclusions to additionally apply to present licensed producers who discover themselves cited with one of many above.

Exterior of this record, Idaho does require a producer (or applicant) to reveal misdemeanors the identical as felonies, inside 30 days, and with the documentation famous.

What about nonresident producers looking for to resume their Idaho license after a conviction?

Idaho legislation doesn’t specify a distinction between resident and nonresident producers. Nonresident producers with an Idaho license ought to observe the identical reporting necessities as residents.

Particularly referring to granting a 1033 consent waiver, Idaho writes: “A 1033 consent and even licensure in a house state doesn’t assure license issuance in different, non-resident states. All states reserve the best to make their very own dedication in evaluate of the background data.” Idaho seems to take the identical stance to convictions that don’t require a 1033 consent. Principally, undergo the method even in case you’re a nonresident, and Idaho will decide the result.

Find out how to renew my Illinois insurance coverage license after a legal conviction

The Illinois insurance code states in Part 500-95 that any licensed producer convicted of a felony should report the conviction to the director of insurance coverage inside 30 days from the entry date of the judgment. The report ought to embrace a “copy of the judgment, the probation or dedication order, and every other related paperwork.”

These paperwork must be uploaded to the state utilizing the NIPR Attachments Warehouse – Reporting of Actions. Based on the Illinois insurance coverage code, this text is scheduled to be repealed on Jan. 1, 2027. We haven’t been capable of get a response from Illinois about what this implies but..

What about misdemeanors in Illinois?

We will’t discover any reference to misdemeanors within the Illinois insurance coverage code. We advocate checking with an Illinois lawyer or contacting the division of insurance coverage for clarification in case you’re within the place of being convicted of a misdemeanor and questioning whether or not you must report it.

What about nonresident producers looking for to resume their Illinois license after a conviction?

Illinois legislation makes no distinction between resident and nonresident producers. Nonresident licenseholders in Illinois ought to observe the identical tips as resident producers.

Find out how to renew my Indiana insurance coverage license after a legal conviction

Indiana’s insurance coverage code states in IC 27-1-15.6-17 {that a} licensed producer has 30 days to report:

• Any administrative motion taken towards the producer in one other jurisdiction or by one other governmental company in Indiana (from the date of “last disposition of the matter.”)
• Any legal prosecution of the producer initiated in any jurisdiction (from the “preliminary pretrial listening to date”).

To do that, the legislation specifies the licensee should submit “a duplicate of the order, consent to order, or different related authorized paperwork” (for administrative actions) or “a duplicate of the preliminary grievance filed, the order ensuing from the listening to, and every other related authorized paperwork” (for legal prosecutions). Indiana makes use of the NIPR Attachments Warehouse – Reporting of Actions to gather these paperwork.

Based on IC 27-1-27-7.1, the Indiana insurance coverage commissioner could droop, revoke, or refuse to concern or renew a producer’s license if the producer has been convicted of a felony. In reality, Indiana legislation refers to a felony conviction as a “disqualifying offense,” giving us the impression that any felony conviction is grounds for license revocation.

Moreover, Indiana imposes a 10-year disqualification interval on licensed insurance coverage producers who’ve acquired a felony conviction. Solely after 10 years have handed “because the date of the applicant’s conviction or launch from imprisonment, parole, or probation, whichever is later” can the producer apply for his or her license to be reinstated.

What about misdemeanors in Indiana?

Indiana legislation doesn’t seem to specify report a misdemeanor conviction, nevertheless, it clearly states that some misdemeanors are grounds for license revocation. Based on IC 27-10-1-6, a misdemeanor is a disqualifying act “if a component of the offense entails dishonesty, violence, or a lethal weapon.” Except for that, looks as if a misdemeanor doesn’t disqualify somebody from conserving their insurance coverage license.

Identical to felonies, Indiana legislation requires license revocation for somebody convicted of a disqualifying misdemeanor. Such an individual can apply for license reinstatement as soon as 5 years have handed since “the date of the applicant’s conviction or launch from imprisonment, parole, or probation, whichever is later.”

What about nonresident producers looking for to resume their Indiana license after a conviction?

Indiana legislation doesn’t point out resident or nonresident producers on this capability. Nonresident producers ought to observe the identical procedures as described.

Find out how to renew my Iowa insurance coverage license after a legal conviction

Iowa’s insurance coverage code states in Section 522B.16 {that a} licensed producer has 30 days to report:

• Any administrative motion taken towards the producer in one other jurisdiction or by one other governmental company in Iowa (from the date of “last disposition of the matter”).
• Any legal prosecution of the producer taken in any jurisdiction (from the “preliminary pretrial listening to date”).

To do that, the legislation specifies:

• For administrative actions: The report “shall embrace a duplicate of the order, consent to the order, and different related authorized paperwork.”
• For legal prosecution: The report “shall embrace a duplicate of the preliminary complain filed, the order ensuing from the listening to, and every other related authorized paperwork.”

Iowa makes use of the NIPR Attachments Warehouse – Reporting of Actions to gather these paperwork.

What about misdemeanors in Iowa?

Iowa legislation doesn’t specify totally different reporting necessities for felonies versus misdemeanors. It merely states that licensed producers should report new legal prosecutions to the division of insurance coverage inside 30 days. Iowa legislation additionally doesn’t point out any misdemeanors that might be exempt from its normal reporting necessities.

What about nonresident producers looking for to resume their Iowa license after a conviction?

Iowa legislation doesn’t point out resident or nonresident producers on this capability. Nonresident producers ought to observe the identical procedures as described.

Find out how to renew my Kansas insurance coverage license after a legal conviction

In accordance the Kansas Insurance Department’s website, licensed producers (each resident and nonresident) are “required to inform the Division of, inside 30 days of incidence, any regulatory actions, terminations for trigger, actions taken towards a license in one other state, and new convictions.”

To do that, the state says to electronic mail the Division at KID.licensing@ks.gov with the topic line “Report of Motion.”

What about misdemeanors in Kansas?

Kansas doesn’t distinguish between misdemeanors and different sorts of crimes, so any licensed producer with a “new conviction” ought to observe the identical procedures for Kansas described above.

What about nonresident producers looking for to resume their Kansas license after a conviction?

The Kansas Insurance coverage Division has an online web page devoted to nonresident producers and lists the identical procedures no matter an agent’s resident state.

Find out how to renew my Kentucky insurance coverage license after a legal conviction

Kentucky’s revised statutes, Section 304.9-467 states {that a} licensed producer has 30 days to report:

• Any administrative motion taken towards the licensee in one other jurisdiction or by one other governmental company in Kentucky (from the date of “last disposition of the matter.”)

This report should embrace:

• A written assertion figuring out the kind of license and explaining the circumstances of every incident;
• A duplicate of the discover of listening to or different doc that states the costs and allegations; and
• A duplicate of the official doc which demonstrates the decision of the costs or any last judgment.

Kentucky legislation additionally says {that a} producer has 30 days (from the date of service) to report:

• Any legal grievance, data, or indictment in any jurisdiction.

This report should embrace:

• A written assertion explaining the circumstances of every incident;
• A duplicate of the charging doc;
• A duplicate of the official doc which demonstrates the decision of the costs or any last judgment.

Particularly, in relation to reporting legal complaints, data, or indictments, if the state of affairs hasn’t been resolved inside 30 days of a licensed producer receiving discover of these things, the licensee has 30 days “following the decision of the costs” to submit a duplicate of the decision and/or last judgment to the Kentucky insurance coverage commissioner.

To meet these requirements, Kentucky says licensees should submit the required data to:

ATTN: Civil/Felony Violation Stories

Agent Licensing Division

909 Leawood Drive

Frankfort, Kentucky 40601

What about misdemeanors in Kentucky?

We advocate doing all of your due diligence, nevertheless, Kentucky’s legislation is obvious that in relation to new insurance coverage license candidates, candidates can omit disclosing “misdemeanor traffic offenses and juvenile offenses.” One could infer {that a} present licensee needn’t report newly occurring misdemeanor visitors offenses. Except for this one very particular kind of crime, Kentucky requires license candidates and present licensees to report “any legal grievance, data, or indictment in any jurisdiction.”

What about nonresident producers looking for to resume their Kentucky license after a conviction?

Kentucky legislation makes no distinction between resident and nonresident producers. Nonresident licenseholders in Kentucky ought to observe the identical tips as resident producers.

Find out how to renew my Louisiana insurance coverage license after a legal conviction

Based on Louisiana Revised Statutes Section 22:1563, a licensed insurance coverage producer has 30 days to report (to the commissioner of insurance coverage):

• Any administrative motion taken towards the producer in one other jurisdiction or by one other governmental company on this state (from the date of the “last disposition of the matter”).
  • This report shall embrace a duplicate of the order, consent to order, or different related authorized paperwork.
• A conviction in district court docket of an offense beneath Revised Statute 22:1554(A)(7) (from the date of a conviction).

Louisiana law also states that the insurance coverage commissioner has the flexibility to “place on probation, droop, revoke, or refuse to concern, renew, or reinstate an insurance coverage producer license” (or concern a superb) to a licensed insurance coverage producer who’s convicted of – or pleads nolo contendere to – “any felony…or conviction of any misdemeanor involving ethical turpitude or public corruption.”

Moreover, the legislation states, not reporting these as required, throughout the 30-day timeframe, makes a producer responsible of violating Louisiana Revised Statute 22:1554(A)(14).

To do that, the legislation specifies the licensee should submit the required paperwork to the NIPR Attachments Warehouse – Reporting of Actions.

What about misdemeanors in Louisiana?

Whereas misdemeanors that don’t contain ethical turpitude or public corruption could not disqualify a producer from sustaining their license, Louisiana seems to require them to be reported nonetheless.

What about nonresident producers looking for to resume their Louisiana license after a conviction?

Louisiana legislation doesn’t distinguish between resident and nonresident licensees by way of reporting necessities. Producers with nonresident Louisiana insurance coverage licenses ought to observe the procedures outlined above.

One last be aware on insurance coverage licensing and legal convictions in Louisiana

Louisiana specifies that it’s not simply the person producer who might be in bother for his or her legal exercise. Different people and enterprise entities may have their insurance coverage licenses revoked, suspended, and so on. if somebody in cost knew or ought to have recognized {that a} licensed producer engaged in misconduct that required them to acquire a consent waiver (however didn’t get one). This seems to incorporate a conviction of a felony, though it’s not clear whether or not the reference is to any felony or simply these associated to ethical turpitude (requiring a 1033 consent waiver). Please seek the advice of the division of insurance coverage if you end up needing agency solutions.

1. The commissioner could place on probation, droop, revoke, or refuse to concern, renew, or reinstate an insurance coverage producer license, or could levy a superb to not exceed 5 hundred {dollars} for every violation occurring, as much as ten thousand {dollars} combination for all violations in a calendar 12 months per applicant or licensee, or any mixture of actions, for any a number of of the next causes:

…(18)(a)

“A producer, with out the consent of or a waiver from the commissioner, has employed or has allowed to affiliate along with his enterprise, in any method, any individual engaged within the enterprise of insurance coverage who has been convicted of a felony beneath the legal guidelines of this state or every other state or territory, the District of Columbia, the USA, or any overseas nation.”

Louisiana Revised Statute Section 22:1554. License denial, nonrenewal, or revocation

Find out how to renew my Maine insurance coverage license after a legal conviction

The Maine insurance code states in Section 1420-P that “a producer shall report back to the superintendent any administrative motion taken towards the producer in one other jurisdiction” or by one other Maine governmental company “inside 30 days of the ultimate disposition of the matter.” The report is required to incorporate “a duplicate of the order, consent to order, or different related authorized paperwork.”

Maine legislation additionally states that, for legal actions, a producer has 30 days from the preliminary pretrial listening to date to “report back to the superintendent any legal prosecution of the producer taken in any jurisdiction.” This report should include “a duplicate of the preliminary grievance filed, the order ensuing from the listening to, and every other related authorized paperwork.”

The Maine Bureau of Insurance coverage needs producers to submit these paperwork both by importing them to the NIPR Attachments Warehouse – Reporting of Actions, or by emailing the Bureau of Insurance coverage immediately at inisurance.pfr@maine.gov.

The state of Maine doesn’t say that reporting new administrative actions or legal actions will essentially end in dropping an insurance coverage license. Nonetheless, the law says the superintendent “could place on probation, droop, revoke or refuse to concern or renew an insurance coverage producer’s license or could levy a civil penalty…” on a licensed producer who’s been convicted of crimes outlined in Maine’s legislation, Title 5, section 5301.

What about misdemeanors in Maine?

Based on electronic mail correspondence with the Maine Bureau of Insurance coverage, all legal historical past and new legal convictions and pending prices (together with misdemeanors) have to be reported, apart from the next:

• Visitors citations
• Driving beneath the affect (DUI)
• Driving whereas intoxicated (DWI)
• Driving with no license
• Driving with a suspended or revoked license
• Juvenile adjudication

What about nonresident producers looking for to resume their Maine license after a conviction?

Maine legislation makes no particular distinction between resident and nonresident producers. Nonresident licenseholders in Maine ought to observe the identical tips as resident producers.

One last be aware on insurance coverage licensing and legal convictions in Maine

Like different states, Maine doesn’t ignore an insurance coverage enterprise that enables a producer to proceed working with a legal previous with out following the correct procedures to make sure the producer’s nonetheless in good standing.

“Impact on enterprise entity. The license of a enterprise entity could also be suspended, revoked or refused if the superintendent finds, after listening to, that a person licensee’s violation was recognized or ought to have been recognized by a number of of the companions, officers or managers appearing on behalf of the partnership or company and the violation was neither reported to the superintendent nor corrected.”

MAINE INSURANCE CODE Chapter 16: PRODUCERS, ADJUSTERS AND CONSULTANTS

Subchapter 2-A: MAINE PRODUCER LICENSING ACT

Find out how to renew my Maryland insurance coverage license after a legal conviction

Maryland insurance code section 10-126 states that “The Commissioner could deny a license…or droop, revoke, or refuse to resume or reinstate a license” if the licenseholder has (amongst an extended record of different circumstances):

• Been convicted by last judgment in any state or federal court docket of a felony or crime involving ethical turpitude;
• Been denied a license or certificates in one other state or has had a license or certificates suspended or revoked in one other state;
• Knowingly employed or knowingly continued to make use of a person appearing in a fiduciary capability who’s been convicted of a felony or crime of ethical turpitude throughout the previous 10 years

Moreover, the suspension, revocation, nonrenewal, and so on. can apply to a licensed enterprise entity and never simply a person producer.

Like most states, Maryland legislation permits the state to observe swimsuit if a producer loses their license in a special state, which is necessary for producers holding nonresident licenses in states with totally different standards for revocation than Maryland.

Whereas crimes outdoors of these involving dishonesty and breach of belief (i.e. ethical turpitude) aren’t essentially disqualifying for an insurance coverage producer license, Maryland requires licenseholders to report any new legal file to the state inside 30 days.

For administrative actions: licenseholders should make a report back to the insurance coverage commissioner inside 30 days after the ultimate disposition of the matter. The report ought to embrace a duplicate of the order, consent order, and every other related authorized paperwork.

For legal prosecutions: the insurance coverage producer should report the prosecution to the commissioner inside 30 days after the producer’s preliminary look earlier than a court docket, together with appearances earlier than the next:

• A judicial officer of the district court docket attributable to an arrest;
• The district court docket in response to a summons;
• The circuit court docket attributable to execution of a warrant; or
• The circuit court docket in individual or by written discover of counsel in response to a summons.

In any case, the producer should embrace a duplicate of the charging doc, any order issued by a court docket, and every other related authorized paperwork.

To report both an administrative motion or legal prosecution, Maryland insurance coverage producers ought to submit the paperwork both through the use of the NIPR Attachments Warehouse – Reporting of Actions, or by emailing licensingenforcement.mia@maryland.gov.

What about misdemeanors in Maryland?

Maryland doesn’t require producers to report “misdemeanor violations of the Maryland Car Legislation or the automobile legal guidelines of different states.” Except for these particular automobile violations, Maryland requires producers to report in the event that they’re being prosecuted for a misdemeanor the identical as a felony.

What about nonresident producers looking for to resume their Maryland license after a conviction?

Maryland treats nonresident producers the identical as resident producers. Insurance coverage producers holding a nonresident Maryland license ought to observe the identical directions.

What to do when you have new legal prices or convictions

As we’ve made our means by the subsequent 10 states on our record, one factor’s change into clear. Each state requires insurance coverage producers to report new legal exercise to the insurance coverage commissioner or division of insurance coverage, and to take action inside 30 days. Past that, the specifics fluctuate.

Whether or not there’re exceptions to the sorts of crimes that should be reported, whether or not a producer must report prices or solely convictions, and what the probabilities are which you can hold an energetic license after reporting any kind of legal conviction are among the many variables that every state determines for itself.

We hope this information has been useful, however the backside line is that in case you’re an insurance coverage producer going through legal prices or convictions, your finest wager will likely be to seek the advice of together with your lawyer and your state’s DOI on to be sure to fulfill any necessities. Doing nothing is assured to land you in additional bother than following the state’s reporting necessities.

To be taught extra in regards to the nuances of state-by-state insurance coverage compliance, try our free Compliance Library the place we’ve executed the analysis for you. For those who’re able to make compliance streamlined and computerized at your insurance coverage company, provider, MGA, or MGU, see how AgentSync can help.

Subjects
Fraud
Louisiana
Georgia
Illinois
Kansas
Maryland
Iowa
Hawaii
Kentucky
Maine