Life Insurance

Part 2 – Hawaii through Maryland

This post is part of a series sponsored by AgentSync.

Having a criminal charge or conviction in one’s background can make things more difficult for a licensed insurance producer. However, it doesn’t always have to mean the end of a career, as long as you follow your state’s procedures for reporting the new history. It’s best to start with your resident state, but don’t forget to notify all states where you hold a nonresident license as well.

To help you fulfill your reporting obligations, we’ve created this state-by-state guide to how each state handles an already-licensed producer who needs to report new criminal charges, convictions, military convictions, or adminstrative actions. For a bit more background on the laws surrounding certain types of felonies, and how the Producer Licensing Model Act (PLMA) tries to standardize procedures across states, see Part One of this five-part series, which also covers the first 10 states (in alphabetical order).

Jump to a state

With 50 states plus the District of Columbia to cover, we’ve divided this topic into a series. This article covers Hawaii through Maryland, and you can click the state below to jump directly to it – including states not covered in this particular article.

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

How to renew my Hawaii insurance license after a criminal conviction

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

  • Any civil or administrative action taken against them in any jurisdiction or by any governmental agency in the United States (from the date of “final disposition of the matter.”)
  • Any criminal prosecution of the licensee being taken in any jurisdiction (from the “date of arraignment.”)

To do this, the law specifies the licensee must submit “a copy of the initial complaint or indictment and any and all other relevant legal documents.” Hawaii asks producers to make these written submissions via the NIPR Attachments Warehouse – Reporting of Actions.

Once the producer has reported as required, Hawaii Revised Statute § 431:9A-112, states “the [insurance] commissioner may deny, place on probation, suspend, revoke, or refuse to issue or renew an insurance producer’s license and may levy a civil penalty…” for any one (or multiple) of a long list of circumstances. Most applicable to the topic of criminal background information are:

(2) Violating any law, or violating any rule, subpoena, or order of the commissioner or of another state’s commissioner;

(6) Having been convicted of a felony;

(9) Having an insurance producer license or its equivalent denied, placed on probation, suspended, or revoked in any other state, province, district, or territory;

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

To simplify, Hawaii says you might lose your insurance license if you violate any law, are convicted of a felony, or have your license denied, revoked, etc. by another jurisdiction.

This last part could have a large impact on a producer who – for example – holds a resident license in Hawaii and a nonresident license in Georgia. If this producer’s convicted of something that’s a felony in Georgia but not Hawaii, and thus loses their Georgia license based on Georgia’s law, that fact alone could cause Hawaii to follow suit. However, it’s important to note that none of these consequences are automatic or happen without the ability for a producer to fight them.

What about misdemeanors in Hawaii?

[Pending answer from the state] Hawaii’s individual insurance producer application states that an applicant may exclude from their self-reported criminal history:

  • Misdemeanor convictions or pending misdemeanor charges
  • Traffic citations
  • Driving under the influence (DUI) or driving while intoxicated (DWI) citations
  • Driving without a license
  • Reckless driving, or driving with a suspended or revoked license.
  • Offenses where you were adjudicated as a delinquent in juvenile court

Since these don’t need to be reported upon the initial application, it’s logical that a current licenseholder in Hawaii would also not have to report these particular misdemeanors to the insurance commissioner. However, we’re still awaiting confirmation from the Hawaii insurance commissioner’s office.

What about nonresident producers seeking to renew their Hawaii license after a conviction?

Hawaii’s law states “a licensee” with no distinction between resident and nonresident licensees. Producers with nonresident Hawaii insurance licenses should follow the same procedures as outlined above.

One final note on insurance licensing and criminal convictions in Hawaii

Hawaii specifies that it’s not just the individual producer who can be in trouble for their criminal activity. Business entities can also have their insurance licenses revoked, suspended, etc. (just like individuals) if someone in charge knew or should have known that a licensed producer engaged in one of the (previously mentioned) long list of misconducts.

(c) The license of a business entity may be sanctioned pursuant to subsection (a) if the commissioner finds, after hearing, that any other licensee of the business entity has engaged in misconduct under subsection (a) that was known or should have been known by one or more of the entity’s partners, officers, or managers acting on behalf of the entity and the violation was neither reported to the commissioner by the entity nor corrective action taken by the entity.

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

How to renew my Idaho insurance license after a criminal conviction

According to Idaho Statute §41-1021, a producer must report either (or both): administrative action taken against the producer by another jurisdiction; and any criminal prosecution brought against the producer by any other jurisdiction. Like all other states, Idaho requires producers with an active license to report these new “actions” within 30 days, either from the final disposition (for administrative actions) or from the initial pretrial hearing date (criminal prosecutions). The report will need to include “a copy of the initial complaint filed, the order resulting from the hearing and any other relevant legal documents” and be uploaded to the NIPR Attachments Warehouse – Reporting of Actions.

If you’ve got more questions about getting or keeping an insurance license with a criminal record, the Idaho Department of Insurance website has a lot of space dedicated to comprehensive coverage of reporting of actions.

What about misdemeanors in Idaho?

Idaho is one of the handful of states that specifically lists a few misdemeanors that licensed insurance producers don’t need to report to the insurance commissioner. These include:

  • Misdemeanor traffic citations
  • Misdemeanor convictions involving driving under the influence (DUI) or driving while intoxicated (DWI)
  • Driving without a license
  • Reckless driving
  • Driving with a suspended or revoked license

While this list is related to first-time applicants, we interpret the exclusions to also apply to current licensed producers who find themselves cited with one of the above.

Outside of this list, Idaho does require a producer (or applicant) to disclose misdemeanors the same as felonies, within 30 days, and with the documentation noted.

What about nonresident producers seeking to renew their Idaho license after a conviction?

Idaho law doesn’t specify a difference between resident and nonresident producers. Nonresident producers with an Idaho license should follow the same reporting requirements as residents.

Specifically referring to granting a 1033 consent waiver, Idaho writes: “A 1033 consent and even licensure in a home state does not guarantee license issuance in other, non-resident states. All states reserve the right to make their own determination in review of the background information.” Idaho appears to take the same stance to convictions that don’t require a 1033 consent. Basically, go through the process even if you’re a nonresident, and Idaho will determine the outcome.

How to renew my Illinois insurance license after a criminal conviction

The Illinois insurance code states in Section 500-95 that any licensed producer convicted of a felony must report the conviction to the director of insurance within 30 days from the entry date of the judgment. The report should include a “copy of the judgment, the probation or commitment order, and any other relevant documents.”

These documents should be uploaded to the state using the NIPR Attachments Warehouse – Reporting of Actions. According to the Illinois insurance code, this article is scheduled to be repealed on Jan. 1, 2027. We haven’t been able to get a response from Illinois about what this means yet..

What about misdemeanors in Illinois?

We can’t find any reference to misdemeanors in the Illinois insurance code. We recommend checking with an Illinois attorney or contacting the department of insurance for clarification if you’re in the position of being convicted of a misdemeanor and questioning whether you need to report it.

What about nonresident producers seeking to renew their Illinois license after a conviction?

Illinois law makes no distinction between resident and nonresident producers. Nonresident licenseholders in Illinois should follow the same guidelines as resident producers.

How to renew my Indiana insurance license after a criminal conviction

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

  • Any administrative action taken against the producer in another jurisdiction or by another governmental agency in Indiana (from the date of “final disposition of the matter.”)
  • Any criminal prosecution of the producer initiated in any jurisdiction (from the “initial pretrial hearing date”).

To do this, the law specifies the licensee must submit “a copy of the order, consent to order, or other relevant legal documents” (for administrative actions) or “a copy of the initial complaint filed, the order resulting from the hearing, and any other relevant legal documents” (for criminal prosecutions). Indiana uses the NIPR Attachments Warehouse – Reporting of Actions to collect these documents.

According to IC 27-1-27-7.1, the Indiana insurance commissioner may suspend, revoke, or refuse to issue or renew a producer’s license if the producer has been convicted of a felony. In fact, Indiana law refers to a felony conviction as a “disqualifying offense,” giving us the impression that any felony conviction is grounds for license revocation.

Furthermore, Indiana imposes a 10-year disqualification period on licensed insurance producers who’ve received a felony conviction. Only after 10 years have passed “since the date of the applicant’s conviction or release from imprisonment, parole, or probation, whichever is later” can the producer apply for their license to be reinstated.

What about misdemeanors in Indiana?

Indiana law doesn’t appear to specify how to report a misdemeanor conviction, however, it clearly states that some misdemeanors are grounds for license revocation. According to IC 27-10-1-6, a misdemeanor is a disqualifying act “if an element of the offense involves dishonesty, violence, or a deadly weapon.” Aside from that, seems like a misdemeanor doesn’t disqualify someone from keeping their insurance license.

Just like felonies, Indiana law requires license revocation for someone convicted of a disqualifying misdemeanor. Such a person can apply for license reinstatement once five years have passed since “the date of the applicant’s conviction or release from imprisonment, parole, or probation, whichever is later.”

What about nonresident producers seeking to renew their Indiana license after a conviction?

Indiana law doesn’t mention resident or nonresident producers in this capacity. Nonresident producers should follow the same procedures as described.

How to renew my Iowa insurance license after a criminal conviction

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

  • Any administrative action taken against the producer in another jurisdiction or by another governmental agency in Iowa (from the date of “final disposition of the matter”).
  • Any criminal prosecution of the producer taken in any jurisdiction (from the “initial pretrial hearing date”).

To do this, the law specifies:

  • For administrative actions: The report “shall include a copy of the order, consent to the order, and other relevant legal documents.”
  • For criminal prosecution: The report “shall include a copy of the initial complain filed, the order resulting from the hearing, and any other relevant legal documents.”

Iowa uses the NIPR Attachments Warehouse – Reporting of Actions to collect these documents.

What about misdemeanors in Iowa?

Iowa law doesn’t specify different reporting requirements for felonies versus misdemeanors. It simply states that licensed producers must report new criminal prosecutions to the department of insurance within 30 days. Iowa law also doesn’t indicate any misdemeanors that would be exempt from its general reporting requirements.

What about nonresident producers seeking to renew their Iowa license after a conviction?

Iowa law doesn’t mention resident or nonresident producers in this capacity. Nonresident producers should follow the same procedures as described.

How to renew my Kansas insurance license after a criminal conviction

According the Kansas Insurance Department’s website, licensed producers (both resident and nonresident) are “required to notify the Department of, within 30 days of occurrence, any regulatory actions, terminations for cause, actions taken against a license in another state, and new convictions.”

To do this, the state says to email the Department at KID.licensing@ks.gov with the subject line “Report of Action.”

What about misdemeanors in Kansas?

Kansas doesn’t distinguish between misdemeanors and other types of crimes, so any licensed producer with a “new conviction” should follow the same procedures for Kansas described above.

What about nonresident producers seeking to renew their Kansas license after a conviction?

The Kansas Insurance Department has a web page dedicated to nonresident producers and lists the same procedures regardless of an agent’s resident state.

How to renew my Kentucky insurance license after a criminal conviction

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

  • Any administrative action taken against the licensee in another jurisdiction or by another governmental agency in Kentucky (from the date of “final disposition of the matter.”)

This report must include:

  • A written statement identifying the type of license and explaining the circumstances of each incident;
  • A copy of the notice of hearing or other document that states the charges and allegations; and
  • A copy of the official document which demonstrates the resolution of the charges or any final judgment.

Kentucky law also says that a producer has 30 days (from the date of service) to report:

  • Any criminal complaint, information, or indictment in any jurisdiction.

This report must include:

  • A written statement explaining the circumstances of each incident;
  • A copy of the charging document;
  • A copy of the official document which demonstrates the resolution of the charges or any final judgment.

Specifically, when it comes to reporting criminal complaints, information, or indictments, if the situation hasn’t been resolved within 30 days of a licensed producer receiving notice of these items, the licensee has 30 days “following the resolution of the charges” to submit a copy of the resolution and/or final judgment to the Kentucky insurance commissioner.

To meet these requirements, Kentucky says licensees must submit the required information to:

ATTN: Civil/Criminal Violation Reports

Agent Licensing Division

909 Leawood Drive

Frankfort, Kentucky 40601

What about misdemeanors in Kentucky?

We recommend doing your due diligence, however, Kentucky’s law is clear that when it comes to new insurance license applicants, applicants can omit disclosing “misdemeanor traffic offenses and juvenile offenses.” One may infer that a current licensee need not report newly occurring misdemeanor traffic offenses. Aside from this one very specific type of crime, Kentucky requires license applicants and current licensees to report “any criminal complaint, information, or indictment in any jurisdiction.”

What about nonresident producers seeking to renew their Kentucky license after a conviction?

Kentucky law makes no distinction between resident and nonresident producers. Nonresident licenseholders in Kentucky should follow the same guidelines as resident producers.

How to renew my Louisiana insurance license after a criminal conviction

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

  • Any administrative action taken against the producer in another jurisdiction or by another governmental agency in this state (from the date of the “final disposition of the matter”).
    • This report shall include a copy of the order, consent to order, or other relevant legal documents.
  • A conviction in district court of an offense under Revised Statute 22:1554(A)(7) (from the date of a conviction).

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

Furthermore, the law states, not reporting these as required, within the 30-day time frame, makes a producer guilty of violating Louisiana Revised Statute 22:1554(A)(14).

To do this, the law specifies the licensee must submit the required documents to the NIPR Attachments Warehouse – Reporting of Actions.

What about misdemeanors in Louisiana?

While misdemeanors that don’t involve moral turpitude or public corruption may not disqualify a producer from maintaining their license, Louisiana appears to require them to be reported nonetheless.

What about nonresident producers seeking to renew their Louisiana license after a conviction?

Louisiana law doesn’t distinguish between resident and nonresident licensees in terms of reporting requirements. Producers with nonresident Louisiana insurance licenses should follow the procedures outlined above.

One final note on insurance licensing and criminal convictions in Louisiana

Louisiana specifies that it’s not just the individual producer who can be in trouble for their criminal activity. Other individuals and business entities can also have their insurance licenses revoked, suspended, etc. if someone in charge knew or should have known that a licensed producer engaged in misconduct that required them to obtain a consent waiver (but didn’t get one). This appears to include a conviction of a felony, although it’s not clear whether the reference is to any felony or just those related to moral turpitude (requiring a 1033 consent waiver). Please consult the department of insurance if you find yourself needing firm answers.

  1. The commissioner may place on probation, suspend, revoke, or refuse to issue, renew, or reinstate an insurance producer license, or may levy a fine not to exceed five hundred dollars for each violation occurring, up to ten thousand dollars aggregate for all violations in a calendar year per applicant or licensee, or any combination of actions, for any one or more of the following causes:

…(18)(a)

“A producer, without the consent of or a waiver from the commissioner, has employed or has allowed to associate with his business, in any manner, any person engaged in the business of insurance who has been convicted of a felony under the laws of this state or any other state or territory, the District of Columbia, the United States, or any foreign country.”

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

How to renew my Maine insurance license after a criminal conviction

The Maine insurance code states in Section 1420-P that “a producer shall report to the superintendent any administrative action taken against the producer in another jurisdiction” or by another Maine governmental agency “within 30 days of the final disposition of the matter.” The report is required to include “a copy of the order, consent to order, or other relevant legal documents.”

Maine law also states that, for criminal actions, a producer has 30 days from the initial pretrial hearing date to “report to the superintendent any criminal prosecution of the producer taken in any jurisdiction.” This report must contain “a copy of the initial complaint filed, the order resulting from the hearing, and any other relevant legal documents.”

The Maine Bureau of Insurance wants producers to submit these documents either by uploading them to the NIPR Attachments Warehouse – Reporting of Actions, or by emailing the Bureau of Insurance directly at inisurance.pfr@maine.gov.

The state of Maine doesn’t say that reporting new administrative actions or criminal actions will necessarily result in losing an insurance license. However, the law says the superintendent “may place on probation, suspend, revoke or refuse to issue or renew an insurance producer’s license or may levy a civil penalty…” on a licensed producer who’s been convicted of crimes outlined in Maine’s law, Title 5, section 5301.

What about misdemeanors in Maine?

According to email correspondence with the Maine Bureau of Insurance, all criminal history and new criminal convictions and pending charges (including misdemeanors) must be reported, except for the following:

  • Traffic citations
  • Driving under the influence (DUI)
  • Driving while intoxicated (DWI)
  • Driving without a license
  • Driving with a suspended or revoked license
  • Juvenile adjudication

What about nonresident producers seeking to renew their Maine license after a conviction?

Maine law makes no specific distinction between resident and nonresident producers. Nonresident licenseholders in Maine should follow the same guidelines as resident producers.

One final note on insurance licensing and criminal convictions in Maine

Like other states, Maine doesn’t ignore an insurance business that allows a producer to continue working with a criminal past without following the proper procedures to ensure the producer’s still in good standing.

“Effect on business entity. The license of a business entity may be suspended, revoked or refused if the superintendent finds, after hearing, that an individual licensee’s violation was known or should have been known by one or more of the partners, officers or managers acting on behalf of the partnership or corporation 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

How to renew my Maryland insurance license after a criminal conviction

Maryland insurance code section 10-126 states that “The Commissioner may deny a license…or suspend, revoke, or refuse to renew or reinstate a license” if the licenseholder has (among a long list of other conditions):

  • Been convicted by final judgment in any state or federal court of a felony or crime involving moral turpitude;
  • Been denied a license or certificate in another state or has had a license or certificate suspended or revoked in another state;
  • Knowingly employed or knowingly continued to employ an individual acting in a fiduciary capacity who’s been convicted of a felony or crime of moral turpitude within the preceding 10 years

Furthermore, the suspension, revocation, nonrenewal, etc. can apply to a licensed business entity and not just an individual producer.

Like most states, Maryland law allows the state to follow suit if a producer loses their license in a different state, which is important for producers holding nonresident licenses in states with different criteria for revocation than Maryland.

While crimes outside of those involving dishonesty and breach of trust (i.e. moral turpitude) aren’t necessarily disqualifying for an insurance producer license, Maryland requires licenseholders to report any new criminal record to the state within 30 days.

For administrative actions: licenseholders must make a report to the insurance commissioner within 30 days after the final disposition of the matter. The report should include a copy of the order, consent order, and any other relevant legal documents.

For criminal prosecutions: the insurance producer must report the prosecution to the commissioner within 30 days after the producer’s initial appearance before a court, including appearances before the following:

  • A judicial officer of the district court due to an arrest;
  • The district court in response to a summons;
  • The circuit court due to execution of a warrant; or
  • The circuit court in person or by written notice of counsel in response to a summons.

In any case, the producer must include a copy of the charging document, any order issued by a court, and any other relevant legal documents.

To report either an administrative action or criminal prosecution, Maryland insurance producers should submit the documents either by using 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 Vehicle Law or the vehicle laws of other states.” Aside from those specific vehicle violations, Maryland requires producers to report if they’re being prosecuted for a misdemeanor the same as a felony.

What about nonresident producers seeking to renew their Maryland license after a conviction?

Maryland treats nonresident producers the same as resident producers. Insurance producers holding a nonresident Maryland license should follow the same instructions.

What to do if you have new criminal charges or convictions

As we’ve made our way through the next 10 states on our list, one thing’s become clear. Every state requires insurance producers to report new criminal activity to the insurance commissioner or department of insurance, and to do so within 30 days. Beyond that, the specifics vary.

Whether there’re exceptions to the types of crimes that need to be reported, whether a producer needs to report charges or only convictions, and what the chances are that you can keep an active license after reporting any type of criminal conviction are among the variables that each state determines for itself.

We hope this guide has been helpful, but the bottom line is that if you’re an insurance producer facing criminal charges or convictions, your best bet will be to consult with your attorney and your state’s DOI directly to make sure you fulfill any requirements. Doing nothing is guaranteed to land you in more trouble than following the state’s reporting requirements.

To learn more about the nuances of state-by-state insurance compliance, check out our free Compliance Library where we’ve done the research for you. If you’re ready to make compliance streamlined and automatic at your insurance agency, carrier, MGA, or MGU, see how AgentSync can help.

Topics
Fraud
Louisiana
Georgia
Illinois
Kansas
Maryland
Iowa
Hawaii
Kentucky
Maine

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *