Half 2 – Hawaii by way of Maryland

Contents

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 harder for a licensed insurance coverage producer. Nonetheless, it doesn’t all the time need to imply the tip of a profession, so long as you comply with your state’s procedures for reporting the brand new historical past. It’s finest to begin together with your resident state, however don’t neglect to inform all states the place you maintain a nonresident license as effectively.

That will help 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 fees, convictions, army convictions, or adminstrative actions. For a bit extra background on the legal guidelines surrounding sure forms of felonies, and the way the Producer Licensing Mannequin Act (PLMA) tries to standardize procedures throughout states, see Half One in every of this five-part collection, which additionally covers the primary 10 states (in alphabetical order).

Leap to a state

With 50 states plus the District of Columbia to cowl, we’ve divided this subject right into a collection. This text covers Hawaii by way of Maryland, and you’ll click on the state under to leap on to it – together with states not coated on this explicit article.

The way 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 in opposition to them in any jurisdiction or by any governmental company in the US (from the date of “remaining disposition of the matter.”)
Any legal prosecution of the licensee being taken in any jurisdiction (from the “date of arraignment.”)

To do that, the regulation 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 might deny, place on probation, droop, revoke, or refuse to subject or renew an insurance coverage producer’s license and should levy a civil penalty…” for anyone (or a number of) of an extended checklist of circumstances. Most relevant to the subject of legal background data are:

(2) Violating any regulation, 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 may lose your insurance coverage license if you happen to violate any regulation, are convicted of a felony, or have your license denied, revoked, and many others. by one other jurisdiction.

This final half might 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 regulation, that truth alone might trigger Hawaii to comply with go well with. Nonetheless, it’s vital to notice that none of those penalties are automated or occur with out the power for a producer to battle them.

What about misdemeanors in Hawaii?

[Pending answer from the state] Hawaii’s particular person insurance coverage producer software states that an applicant might exclude from their self-reported legal historical past:

Misdemeanor convictions or pending misdemeanor fees
Site visitors citations
Driving below the affect (DUI) or driving whereas intoxicated (DWI) citations
Driving and not using a license
Reckless driving, or driving with a suspended or revoked license.
Offenses the place you had been adjudicated as a delinquent in juvenile courtroom

Since these don’t have to be reported upon the preliminary software, it’s logical {that a} present licenseholder in Hawaii would additionally not need to report these explicit 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 regulation states “a licensee” with no distinction between resident and nonresident licensees. Producers with nonresident Hawaii insurance coverage licenses ought to comply with the identical procedures as outlined above.

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

Hawaii specifies that it’s not simply the person producer who will be in bother for his or her legal exercise. Enterprise entities also can have their insurance coverage licenses revoked, suspended, and many others. (identical to people) if somebody in cost knew or ought to have identified {that a} licensed producer engaged in one of many (beforehand talked about) lengthy checklist 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 below subsection (a) that was identified or ought to have been identified 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://regulation.justia.com/codes/hawaii/2022/title-24/chapter-431/section-431-9a-112/

The way 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 in opposition to the producer by one other jurisdiction; and any legal prosecution introduced in opposition to the producer by every other jurisdiction. Like all different states, Idaho requires producers with an lively 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 embody “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.

Should you’ve received extra questions on getting or preserving an insurance coverage license with a legal file, the Idaho Division of Insurance coverage web site has plenty of area devoted to complete protection of reporting of actions.

What about misdemeanors in Idaho?

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

Misdemeanor visitors citations
Misdemeanor convictions involving driving below the affect (DUI) or driving whereas intoxicated (DWI)
Driving and not using a license
Reckless driving
Driving with a suspended or revoked license

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

Outdoors of this checklist, 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 regulation doesn’t specify a distinction between resident and nonresident producers. Nonresident producers with an Idaho license ought to comply with 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 correct to make their very own willpower 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 if you happen to’re a nonresident, and Idaho will decide the end result.

The way to renew my Illinois insurance coverage license after a legal conviction

The Illinois insurance coverage 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 embody 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 in a position to 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 suggest checking with an Illinois legal professional or contacting the division of insurance coverage for clarification if you happen to’re within the place of being convicted of a misdemeanor and questioning whether or not it’s worthwhile to report it.

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

Illinois regulation makes no distinction between resident and nonresident producers. Nonresident licenseholders in Illinois ought to comply with the identical pointers as resident producers.

The way 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 in opposition to the producer in one other jurisdiction or by one other governmental company in Indiana (from the date of “remaining 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 regulation 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 might droop, revoke, or refuse to subject or renew a producer’s license if the producer has been convicted of a felony. In reality, Indiana regulation 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 “for the reason that 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 regulation doesn’t seem to specify tips on how to report a misdemeanor conviction, nonetheless, 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 includes dishonesty, violence, or a lethal weapon.” Apart from that, looks as if a misdemeanor doesn’t disqualify somebody from preserving their insurance coverage license.

Identical to felonies, Indiana regulation 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 regulation doesn’t point out resident or nonresident producers on this capability. Nonresident producers ought to comply with the identical procedures as described.

The way to renew my Iowa insurance coverage license after a legal conviction

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

Any administrative motion taken in opposition to the producer in one other jurisdiction or by one other governmental company in Iowa (from the date of “remaining 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 regulation specifies:

For administrative actions: The report “shall embody a duplicate of the order, consent to the order, and different related authorized paperwork.”
For legal prosecution: The report “shall embody 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 regulation doesn’t specify completely 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 regulation additionally doesn’t point out any misdemeanors that will be exempt from its normal reporting necessities.

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

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

The way to renew my Kansas insurance coverage license after a legal conviction

In accordance the Kansas Insurance coverage Division’s web site, licensed producers (each resident and nonresident) are “required to inform the Division of, inside 30 days of prevalence, any regulatory actions, terminations for trigger, actions taken in opposition to 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 forms of crimes, so any licensed producer with a “new conviction” ought to comply with 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 internet web page devoted to nonresident producers and lists the identical procedures no matter an agent’s resident state.

The way to renew my Kentucky insurance coverage license after a legal conviction

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

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

This report should embody:

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 fees and allegations; and
A duplicate of the official doc which demonstrates the decision of the fees or any remaining judgment.

Kentucky regulation 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 embody:

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 fees or any remaining judgment.

Particularly, with regards to reporting legal complaints, data, or indictments, if the scenario 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 fees” to submit a duplicate of the decision and/or remaining judgment to the Kentucky insurance coverage commissioner.

To satisfy these necessities, 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 suggest doing all of your due diligence, nonetheless, Kentucky’s regulation is evident that with regards to new insurance coverage license candidates, candidates can omit disclosing “misdemeanor visitors offenses and juvenile offenses.” One might infer {that a} present licensee needn’t report newly occurring misdemeanor visitors offenses. Apart from this one very particular sort 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 regulation makes no distinction between resident and nonresident producers. Nonresident licenseholders in Kentucky ought to comply with the identical pointers as resident producers.

The way to renew my Louisiana insurance coverage license after a legal conviction

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

Any administrative motion taken in opposition to the producer in one other jurisdiction or by one other governmental company on this state (from the date of the “remaining disposition of the matter”).
- This report shall embody a duplicate of the order, consent to order, or different related authorized paperwork.
A conviction in district courtroom of an offense below Revised Statute 22:1554(A)(7) (from the date of a conviction).

Louisiana regulation additionally states that the insurance coverage commissioner has the power to “place on probation, droop, revoke, or refuse to subject, renew, or reinstate an insurance coverage producer license” (or subject a positive) 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 regulation states, not reporting these as required, throughout the 30-day time-frame, makes a producer responsible of violating Louisiana Revised Statute 22:1554(A)(14).

To do that, the regulation 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 might 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 regulation doesn’t distinguish between resident and nonresident licensees when it comes to reporting necessities. Producers with nonresident Louisiana insurance coverage licenses ought to comply with the procedures outlined above.

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

Louisiana specifies that it’s not simply the person producer who will be in bother for his or her legal exercise. Different people and enterprise entities also can have their insurance coverage licenses revoked, suspended, and many others. if somebody in cost knew or ought to have identified {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.

The commissioner might place on probation, droop, revoke, or refuse to subject, renew, or reinstate an insurance coverage producer license, or might levy a positive to not exceed 5 hundred {dollars} for every violation occurring, as much as ten thousand {dollars} mixture for all violations in a calendar yr 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 below the legal guidelines of this state or every other state or territory, the District of Columbia, the US, or any overseas nation.”

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

The way to renew my Maine insurance coverage license after a legal conviction

The Maine insurance coverage code states in Part 1420-P that “a producer shall report back to the superintendent any administrative motion taken in opposition to 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 regulation 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 comprise “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 straight 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 regulation says the superintendent “might place on probation, droop, revoke or refuse to subject or renew an insurance coverage producer’s license or might levy a civil penalty…” on a licensed producer who’s been convicted of crimes outlined in Maine’s regulation, Title 5, part 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 fees (together with misdemeanors) have to be reported, apart from the next:

Site visitors citations
Driving below the affect (DUI)
Driving whereas intoxicated (DWI)
Driving and not using a 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 regulation makes no particular distinction between resident and nonresident producers. Nonresident licenseholders in Maine ought to comply with the identical pointers as resident producers.

One remaining 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 identified or ought to have been identified 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

The way to renew my Maryland insurance coverage license after a legal conviction

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

Been convicted by remaining judgment in any state or federal courtroom 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 many others. can apply to a licensed enterprise entity and never simply a person producer.

Like most states, Maryland regulation permits the state to comply with go well with if a producer loses their license in a unique state, which is vital for producers holding nonresident licenses in states with completely different standards for revocation than Maryland.

Whereas crimes exterior 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 embody 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 courtroom, together with appearances earlier than the next:

A judicial officer of the district courtroom as a consequence of an arrest;
The district courtroom in response to a summons;
The circuit courtroom as a consequence of execution of a warrant; or
The circuit courtroom in individual or by written discover of counsel in response to a summons.

In any case, the producer should embody a duplicate of the charging doc, any order issued by a courtroom, 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.” Apart from 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 comply with the identical directions.

What to do when you have new legal fees or convictions

As we’ve made our method by way of the subsequent 10 states on our checklist, one factor’s grow to be 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 differ.

Whether or not there’re exceptions to the forms of crimes that have to be reported, whether or not a producer must report fees or solely convictions, and what the possibilities are that you may maintain an lively license after reporting any sort 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 if you happen to’re an insurance coverage producer going through legal fees or convictions, your finest guess can be to seek the advice of together with your legal professional 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 accomplished the analysis for you. Should you’re able to make compliance streamlined and automated at your insurance coverage company, provider, MGA, or MGU, see how AgentSync may also help.

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