Claire-ification

Are you a member with a question? Contact IA&B VP-Advocacy Claire Pantaloni, CIC, CISR to find the answer at 717-918-9202 or ClaireP@IABforME.com.

QUESTION:

One of our staff had an altercation at a concert. Can this impact his license?

ANSWER:

Not necessarily, but to avoid making things worse, certain actions need to be taken quickly if the producer is charged as a result of the incident. If the producer is charged, the first thing to do is to report the charges to the insurance regulator promptly when it happens and again later at license renewal time.

HOW SOON TO REPORT AND WHY NOT WAIT TO SEE IF THERE IS A CONVICTION?

In our three states, the producer licensing statute requires producers to report charges of criminal conduct to the insurance department within 30 days of being charged. Please note that it does not say “convicted.” The producer will then follow up with additional documentation as it becomes available, including:

1. A copy of the criminal complaint, information, or indictment

2. A copy of the order resulting from a pretrial hearing, if any

3. A report of the final disposition of the charges

WHAT ABOUT THE LICENSE RENEWAL?

When the license comes up for renewal, the producer will need to answer “yes” to the background questions included in the application, even if he already reported the charges when they happened.

HOW OFTEN DOES THIS OCCUR?

Insurance regulators have told IA&B that they continue to see a fair amount of license renewal applications with the wrong answer. In Pennsylvania, the Department has partnered with J-Net, the Justice Network, so they will be notified of criminal conduct as soon as charges are filed. In other words, if you fail to report the charges, the Department will find out, but because you did not report them, you will be in violation of the producer licensing law.

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.