3 minute read
Eye On The Law
I’ll Take OCI License Suspension or Revocation for $500.
At the PIAW Insurance Hotline, we receive many telephone calls from agents facing investigations or enforcement actions by the Office of the Commissioner of Insurance (OCI). As anyone that has been subject to an OCI investigation or enforcement action knows, OCI takes its role in protecting consumers and enforcing the insurance laws of Wisconsin very seriously. “No harm, no foul” is not a phrase used by OCI. Too often, we receive the telephone call too late—only after the licensee has already put themselves in jeopardy.
After the fact, what the agent should have done to avoid a suspension, revocation, or forfeiture seems so obvious. Nonetheless, we see the same enforcement actions over and over. Answering these calls is like playing the game Jeopardy®!
Clue: My license was just revoked for failure to make this type of payment.
Answer: What are delinquent Wisconsin taxes? Clue: My license was just suspended because I failed to report this to OCI.
Answer: What is an administrative action in another state?
Most license suspensions and revocations are not related to illegal marketing practices or selling unsuitable annuities, or similar infractions. Instead, they are for failing to comply with simple obligations under the insurance laws. The theme that runs through most enforcement actions is that the agent could have avoided the enforcement action by just addressing it head on. For example, the Wisconsin Department of Revenue will enter into payment plans if you are unable to pay your taxes. Ongoing payment plans with DOR are not generally referred to OCI.
In another example, reporting an administrative action from another state will not necessarily cause OCI to take action against an agent’s license. Not reporting it will almost always lead to an enforcement action. A review of the 2022 OCI enforcement actions illustrates the most common ways that agents end up with a suspension, revocation, or forfeiture: • Owing delinquent Wisconsin taxes. • Failing to fully disclose administrative actions on a licensing application or failing to timely report them while licensed. • Providing false information on a licensing application. • Failing to pay child support. • Failing to timely respond to inquiries from OCI. • Failing to timely pay an ordered forfeiture. • Failing to report a criminal conviction. • Failing to report a lawsuit or arbitration containing allegations of fraud, misrepresentation, misappropriation, or breach of fiduciary duty. • Providing unfair inducements in the sale of insurance.
Each month when we review OCI’s actions, it is obvious that many of the actions could have been avoided if the applicant or licensee had just addressed them immediately. Anytime you are facing a situation that may involve OCI it is very stressful. Human nature makes it tempting to bury your head in the sand and avoid the issue causing the stress. You may want to avoid disclosing a conviction because you don’t know whether the conviction will lead to an enforcement action. You may not want to respond to OCI’s inquiry because you do not have a good answer. These types of responses put your license and your ability to earn a living in jeopardy.
You will receive the best results when you face any issues with OCI head on. Moreover, you do not have to face it alone. You can get the information you need to best address the issue you are facing.
Clue: This trade group provides its members with the assistance they need to address issues with OCI.
Answer: What is PIAW? Clue: This is the best time to call the PIAW with questions.
Answer: What is as soon as possible?
