Producer Adverse Administrative Action Disclosure Letter

Summary

This Producer Adverse Administrative Action Disclosure Letter can be used to disclose adverse actions taken by applicable state (and federal, as applicable) regulators and self-regulatory organizations such as FINRA to other states' insurance regulators. Pursuant to the NAIC Producer Licensing Model Act, as adopted by most states, licensed insurance producers are obligated to report and "adverse action" taken by any regulator to the insurance departments of every state in which the producer is licensed. "Adverse action" can include even the most minor fines or even formal admonishment. To prevent a spiral of fines for failing to report adverse action (which are themselves reportable), producer and their employer must ensure diligent reporting to all applicable insurance departments. For a full listing of content covering the insurance regulatory landscape, see Insurance Regulatory Compliance Resource Kit. For more information, see Agent and Broker Administrative Actions and Sanctions: Reporting Requirements; Agent and Broker Annual Compliance Checklist; Surplus Lines Placement Compliance Flowchart; Agent and Broker Selection and Management; Market Conduct Examinations; Market Conduct Examination Risk Reduction Checklist.