DON'S DISCUSSION
DON'S DISCUSSION IA&B Legal & Corporate Affairs Director Don Bankus
Are you a member with a question? Contact Don to find the answer at 800-998-9644, ext. 603 or DonB@IABforME.com.
QUESTION: I’d like to hire a particular candidate and get her licensed as a producer, but she was convicted of a misdemeanor DUI in her late teens. Will this prohibit her from obtaining a producer license?
ANSWER: Great question. As you know, the Violent Crimes Control and Law Enforcement Act (VCCLEA) is a federal law which prohibits anyone who’s been convicted of a felony for dishonesty or breach of trust from working in insurance without first having secured prior written consent from the state’s insurance department. This is probably the law which gave you pause when the prospect informed you of her driving under the influence (DUI) conviction. The VCCLEA also prohibits you, as an employer, from willfully employing someone who’s been convicted of a felony for dishonesty or breach of trust, without ensuring such insurance department consent was obtained. In addition to the VCCLEA, each state’s producer licensing statute addresses issues pertaining to eligibility and suitability of applicants and lists prohibited acts which may preclude licensure. While your prospect’s DUI was classified as a misdemeanor offense, a DUI can be classified as a felony if the drunk driver: ▲ Causes serious injury or death to someone, ▲ Is arrested with a high blood alcohol content, or ▲ Has multiple convictions. Fortunately for you and your prospect, neither the
VCCLEA nor the state’s producer licensing statutes contain provisions or criteria that appear to exclude eligibility for licensing simply because she has a misdemeanor DUI on her record.
IMPORTANT NOTE A prospective licensee should never intentionally misrepresent or conceal a material fact in the application for a license. In addition to the fact you’d like to have an honest employee, upon receipt of an application, the department of insurance will run background checks. Failing to disclose applicable or required information could demonstrate dishonesty and untrustworthiness. And that, in and of itself, could be viewed by a respective insurance department as an attempt to obtain a license through misrepresentation or fraud, which is a prohibited act under the producer licensing statute, and could preclude licensure. Bottom line – always tell the truth. If you or your prospective employee has any questions regarding this issue, contact the licensing bureau of your respective state’s insurance department. Pennsylvania: 717-787-3840 or ra-in-producer@pa.gov Maryland: 410-468-2411 or producerlicensing.mia@maryland.gov Delaware: 302-674-7390 or licensing@delaware.gov
This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Insurance Agents & Brokers nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.
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