Agent and Broker Administrative Actions and Sanctions: Reporting Requirements

Summary

This practice note addresses the obligation of licensed insurance producers to report adverse action against them to insurance department licensing authorities and how to comply with such reporting obligations. It will also review agent/broker reporting compliance procedures and the requirements for annual compliance certifications. Perhaps no area of the law governing insurance agents and brokers results in more costly and multiplicative regulatory enforcement action than the obligation of agents and brokers to report adverse actions taken against them to all insurance regulators that license them. Diligent compliance efforts can avoid a series of small regulatory enforcement actions against individual agents and brokers and their corporate employers that can quickly become a serious problem.