Insurance Agent/Brokers And Agents License Defense California

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If your reputation as an insurance agent or an insurance broker is in question, an experienced California insurance license defense attorney will quickly become your new best friend. Because insurance companies have become such a hot topic of debate in today’s society, governmental agencies are taking ethics more seriously than ever before. Something that might have been ignored 20 years ago can quickly become a big deal, leading to the necessity of you retaining a criminal defense attorney.

A good insurance license defense attorney can tell your side of the story in a way that makes sense to the people investigating you. People are more prone to listen to lawyers rather than the individual being accused. Plus, a lawyer can leave emotion out of the situation. Insurance companies and investigative agencies are more interested in facts than emotions. And if you did do something wrong, your professional license defense attorney can work to convince the people investigating you that it was a one-time error in judgment that will never happen again. Even if you’re burned out with your job and don’t want to keep selling insurance, it’s still worth it to fight to keep your license. Having a professional license revoked will make it hard for you to get another job.

Insurance License Defense Attorneys Understand Department of Insurance Cases Are Unique

An insurance broker must hold a valid license and carrier appointments to conduct insurance transactions legally. However, if a carrier is suspicious of a broker and believes they have engaged in unbecoming behavior, they can terminate for cause. 

Once the termination has been ordered, the carrier reports it to California’s Department of Insurance (CDI). From there, the insurance carrier could work alongside the CDI to conduct disciplinary action. When launching an investigation, the CDI has a vast network of resources, including a well-funded fraud investigation division. 

The CDI is authorized to enforce administrative and criminal violations of any insurance laws within California. Due to their seemingly endless resources, this is not a situation you will want to tackle alone. Fortunately, an experienced insurance license defense attorney will know the policies and procedures you must follow.

What Can an Insurance License Defense Attorney Help With?

In a broad sense, an insurance license defense attorney can help with all of the following scenarios:

  • Accusations
  • Appeals
  • Applications for 1033 consent
  • Cases pertaining to Insurance Code 1748.5 suspension protocols
  • License denials
  • Reinstatements

If your situation is closely related to any of these matters, an insurance license defense attorney might be able to help.

An Insurance License Defense Attorney Can Help with Specific Disciplinary Situations

Being subject to an investigation by the CDI is a serious matter that requires a robust defense and the utmost professionalism. In this scenario, you want to be represented by someone who understands the procedures and protocols and can appropriately represent your interests and actions to the board.

The right attorney can help with a range of issues, including everything from simple errors to complex scenarios. Here is a list of some specific scenarios they can help with:

  • Being convicted of a felony can affect all types of professional licensing in California, and this is especially true for insurance agents.
  • When insurance brokers place false information on professional paperwork — whether intentionally or accidentally — they risk losing their license to practice. This applies whether the paperwork is related to getting a license, renewing a license, or working with an insurance customer’s policy.
  • When an insurance license or other type of professional license is revoked in one state, that person will likely lose their California license.
  • Mishandling money or other property obtained through issuing insurance policies to customers.
  • Engaging in dishonest practices to sell or retain insurance policies.
  • Not paying court-ordered child support can lead to a California insurance license being revoked.
  • Failure to pay state income tax is another situation that can cause someone to lose their ability to be an insurance agent or an insurance broker.
  • Cheating on an insurance licensure exam can range from improperly using notes to sending another person to take the exam to copy someone’s answers; any questionable activities during the testing process can lead to the cancellation of any license obtained. 

After learning you are the subject of an investigation that could lead to the suspension or revocation of your insurance license, you should first contact your insurance license defense attorney.

Failure to Adhere to Self-Reporting Requirements

Insurance agents and brokers operating in California are required to comply with strict self-reporting requirements. Failure to do so will result in disciplinary action that could lead to the revocation of your license. Here are some of the most common self-reporting requirements:

  • Misdemeanor and felony convictions
  • Judicial findings and admissions of fraud and similar conduct
  • Filing felony or criminal charges
  • Bankruptcy proceedings involving the discharge of insurance premiums owed

California’s self-reporting requirements are extensive. Fortunately, an insurance license defense attorney can help you navigate the statutes to ensure you remain in compliance.

The Importance of Self-Reporting

According to California Insurance Code section 1729.2, licensees who have had administrative or criminal actions levied against them must report those actions to the CDI within 30 days of a resolution. If you fail to do so, you could be subjected to additional disciplinary measures.

It is important to keep in mind that the CDI has plenty of resources to investigate any claims of alleged impropriety. Their various branches are staffed with seasoned professionals who understand the nuances of this kind of work. Many of these employees have likely helped secure convictions in the past.

How CDI Enforcement Works

The CDI has a vast enforcement department with a specialized fraud division containing just under 300 officers who have been authorized to conduct specialized investigations in any of the following insurance fields:

  • Healthcare and disability insurance fraud
  • Workers’ compensation fraud
  • Property and life insurance fraud
  • Automotive insurance fraud

This division is tasked with investigating all claims of violations of the California Insurance Code, Section 550 of the state’s penal code, and any claims pertaining to allegations of conspiracy or theft.

CDI Investigation Branch

In addition to the enforcement department, the CDI has a robust investigation department with the authority to investigate and prosecute any of the following complaints:

  • Rebates and kickbacks from title companies
  • Elder abuse and fraud
  • Abuse perpetrated by auto insurance agents
  • Violations of health insurance protocol
  • Unauthorized insurance transactions
  • Deceptive sales practices
  • Misleading marketing practices
  • Various health insurance violations

In some instances, depending on the severity of the issue, the CDI’s investigation branch might consult and collaborate with ulterior law enforcement agencies, including all of the following:

  • Local law enforcement
  • U.S. Postal Service Inspection Board
  • Franchise Tax Board
  • FBI
  • Other state and federal agencies

If you are an insurance broker or agent facing an investigation involving any of the agencies listed above, a qualified insurance license defense attorney can advise you on how to move forward. Their advice will be helpful during the investigation and discipline process should the issue progress to those stages.

The Civil and Criminal Aspects of Investigations and Discipline

If the investigation phase yields substantial evidence of broker or agent misconduct, the CDI has the authority to restrict, suspend, or outrightly revoke your insurance license. In addition, the agency has the ability to order payments pertaining to restitution, penalties, and various fines. 

The possible actions the CDI can take differ depending on whether the case is criminal or civil. 

Civil Penalties

If the CDI decides to levy civil penalties against you, it could result in them seizing your business, ordering you to pay restitution, and issuing other penalties and fines depending on the nature of the offense and who the actions harmed.

Criminal Penalties

Potential criminal penalties include any of the following:

  • Restitution
  • Incarceration
  • Various fines and penalties
  • Probation
  • Community service

If your situation is such that you are facing criminal penalties, you must contact a seasoned insurance license defense attorney.

Frequently Asked Questions

Are You Under Investigation?

If you are currently under investigation by the CDI or a related agency, you must realize that time is of the essence. Before you respond to the initial inquiry from the CDI or one of their investigators, get in contact with an insurance license defense attorney as soon as possible.

Another realization that some people neglect in these situations is that you have constitutional rights that must be protected. More specifically, you have the right to defend yourself against any accusations made against you. An attorney will help you defend yourself with caution.

For example, if you opt to answer questions, whether verbally or in writing, without the assistance or advice of an attorney, you could be placing yourself at risk. Remember that these agents are seasoned professionals who are likely searching for anything they can find that would secure a conviction.

An attorney will understand your rights as a professional licensee and work to defend them from being violated and abused. By helping protect your rights, they will help you defend your reputation and business.

What if You Already Have a Criminal History?

An insurance license defense attorney can also be beneficial if you already have a criminal history. 

In these instances, an attorney can advise you on how to self-report to remain in good standing with the associated regulatory agencies. This self-reporting will increase your chances of keeping your license and enable you to conduct yourself with dignity and professionalism.

Applying for a License with a Criminal History

If you are just applying for an insurance license but have a criminal history, an attorney can help sculpt your application in a manner that addresses all of the facts but demonstrates your best qualities and improves the chances of approval.

Need Help? Contact S J Harris Law Today

If you face an investigation or suspect one might be on the horizon, S J Harris Law can help. They have a robust understanding of California’s insurance laws and plenty of experience dealing with the state’s regulatory boards and related agencies. 

Further, they have a lengthy track record of success in helping individuals deal with complex issues related to their insurance defense.

Contact us today for a 30-minute free consultation, and let us know how we can help.

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When dealing with these complex issues, you need legal representation that has a long track record of success in these types of cases. Scott Harris and the rest of our team at S J Harris Law will be ready to help you pursue any option available that allows you to keep your license and continue working, no matter what industry you are in.

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