If you're brokering policies for ranchers in rural communities like Ennis and Dillon or managing large health plans in urban centers like Billings, Missoula, Great Falls, and Bozeman, your insurance producer license is the keystone to your career. A single allegation, however, can jeopardize your career. Just one accusation of misconduct or breaching the code of ethics can trigger investigations that threaten your livelihood.
The Lento Law Firm's Professional License Defense Team works to end investigations before your professional standing is harmed. Our team of attorneys has experience defending producers, administrators, adjusters, consultants, and other insurance professionals in Montana and nationwide. You can take the first step in defending your license by calling our team at 888.535.3686 or messaging us on our online form.
Montana's Insurance Authorities
The Office of the Commissioner of Securities and Insurance (CSI), not to be confused with crime scene investigation, is responsible for the licensing and regulation of insurance professionals in Montana. Per Montana law, the CSI's primary goal is to “ensure that the interests of insurance consumers are protected.” Unfortunately, this often means that insurance professionals under investigation have the burden of proving that their actions do not harm Montana consumers.
The Commissioner and his staff have significant amounts of leeway in how they go about their jobs. This means that the decision to revoke or suspend a license can often come down to the discretion of a few CSI employees. Additionally, the CSI collaborates with national regulators through the National Insurance Producer Registry (NIPR). Thus, discipline in Montana can follow you to other states and vice versa.
Common Allegations Against Montana Insurance Producers
While the CSI has broad discretion when it comes to investigating insurance professionals, investigations are rarely launched arbitrarily. Instead, most investigations focus on common accusations faced by those in the industry. Montana's insurance statutes outline some specific grounds for discipline.
Some allegations that often result in CSI investigations include:
- Misrepresentation or Fraud. Common examples include submitting false information on policy applications, exaggerating the benefits of a policy, or falsifying claims to secure payouts.
- Failure to Remit Premiums. This often involves misusing client funds by failing to forward premiums to insurers or diverting funds for personal use.
- Unlicensed Activity. Not only does unlicensed activity include working without a license, but it also includes exceeding the scope of your current license. Montana legally recognizes several distinct professions in the insurance industry that each require their own license.
- Utilizing Unfair Trade Practices. Unfair trade practices can be broadly interpreted. It often includes behavior such as fudging the details of a policy to make a sale or using high-pressure sales tactics, but the CSI can stretch this to include almost anything that they deem “unfair” to consumers.
- Continuing Education Noncompliance. Montana requires adjusters, consultants, and certain producers to complete 24 credit hours biennially. A minimum of three hours must be on insurer ethics, while another hour must be on legislative changes to Montana's insurance statutes. Additional requirements may apply to non-resident insurance professionals. If you do not complete continuing education in time, your license will automatically lapse.
- Felony Convictions. Any felony conviction, even for non-violent or non-business-related crimes, will likely result in your license being suspended.
- Out-of-State Discipline. Montana recognizes discipline imposed by other states. However, the CSI is not bound by out-of-state decisions. For example, the CSI might revoke your Montana license for actions that only resulted in a suspension in Idaho or Wyoming.
The Investigatory & Disciplinary Process in Montana
While the CSI has broad discretion on when to launch and end an investigation, the CSI typically sticks to the same process over and over once the investigation formally begins. Some of these steps include:
Complaint and Investigation
Disciplinary action almost always starts with a complaint. The complaint can originate from customers, competitors, co-workers, supervisors, insurers, or even other regulatory bodies. The CSI's Insurance Department reviews the complaint and initiates an investigation.
The first step of the investigation typically involves the accused professional being asked for their side of the story. At this stage, it's important to retain the Lento Law Firm Professional License Defense Team because it is far too easy for an overzealous investigator to twist an innocent professional's words to justify continuing the investigation. A properly worded response that addresses the investigator's concerns can end the investigation right here.
Request for Corrective Action
If the investigator believes that misconduct has occurred, they might give the professional the chance to “make things right.” However, it is possible that by attempting to contact the complainant to “make things right”, your actions are misinterpreted as harassment or retaliation. By retaining the Lento Law Firm Team, you increase the chances that the investigation can be nipped in the bud without worrying about misunderstood intentions.
Informal Resolution
If the investigator believes that corrective action is not enough, you might face fines, probation, or additional training via an informal resolution. On the one hand, these agreements end investigations quickly. On the other hand, the CSI reports “informal” discipline to the National Association of Insurance Commissioners' insurance professional database and etches the discipline into the public record. The Lento Law Firm's Professional License Defense Team has successfully negotiated with regulators to minimize penalties or secure non-public resolutions.
Administrative Hearings
If an informal resolution cannot be reached, the case will likely result in an administrative hearing. Instead of a judge, the hearing will usually be led by the Commissioner, a hearing examiner appointed by the CSI, or a hearing examiner from the Attorney General's office. While these hearings are typically less formal than ones in court, they still have formal rules of procedure and discovery that require a lawyer to thoroughly understand. Insurance professionals who argue their case without legal representation are rarely successful.
After a hearing, the Commissioner will issue an order. This order may affirm, modify, or dismiss the allegations. The order may also inflict penalties ranging from fines to license revocation. The Lento Law Firm's Professional License Defense Team excels in these high-stakes hearings. Our team leverages our extensive experience to advocate for Montana's insurance professionals.
Judicial Review
If the Commissioner issues an unfavorable order, you can appeal to the Montana district courts. On appeal, the court will examine the proceedings to see if the proposed discipline is excessive or arbitrary. Additionally, the court will look to see if there were any legal errors committed by the CSI in the hearing.
The court may uphold, modify, or reverse the CSI's decision. The court may also vacate the Commissioner's order and call for a new hearing. But because Montana gives the CSI so much discretion and latitude in imposing discipline, courts typically will uphold the Commissioner's initial order unless you can make a strong and convincing legal argument stating otherwise.
Consequences of Disciplinary Action in Montana
If the Commissioner decides to impose penalties, they have a wide range of penalties from which they can choose. Here are some penalties commonly imposed:
- Fines. The Commissioner can impose a fine of up to $5,000 for each violation of the Montana Insurance Code or any of CSI's regulations. However, for cases of fraud or embezzlement, the Attorney General may launch an investigation of their own that may result in more significant financial penalties through asset forfeiture or restitution. Failure to punctually pay a fine results in automatic prohibition from conducting insurance business in Montana.
- Probation and Conditional Licensing. Instead of taking your license away, the CSI may place your license on probation. While on probation, the CSI usually requires regular reporting, additional training, and/or audits of your business practices. Additionally, you may be restricted from issuing certain insurance policies and might have to complete more continuing education courses.
- License Suspension. License suspensions tend to last less than a year. During this time, your ability to practice in the insurance industry is either highly limited or outright prohibited. However, it is generally understood that an application for reinstatement will be accepted once the suspension is over.
- License Revocation. License revocation results in your license being formally taken away. However, you can typically apply for reinstatement after one year. In more severe cases, you may have to wait up to five years to reapply. However, there is no presumption that your reapplication will be accepted. Instead, the burden is on you to demonstrate that you have been fully rehabilitated and no longer pose a danger to Montana's consumers. If your license is reinstated and then revoked a second time, the revocation is permanent.
- Attorney General Referral. The CSI has a legal duty to refer cases involving criminal misconduct to the Montana Attorney General. Convictions can lead to imprisonment, additional fines, or civil lawsuits.
These consequences do not stop at Montana's border. Through the NIPR and NAIC's online databases, other states may impose reciprocal discipline. For producers handling federally regulated products, the Treasury Department's Federal Insurance Office may impose their own sanctions.
The Lento Law Firm Employs Proactive Defense Strategies for Montana Insurance Professionals
If you are facing a CSI investigation, a skilled legal team can be the difference between a quick resolution and a multi-year process hanging over your head. The Lento Law Firm's Professional License Defense Team employs legal strategies tailored to the CSI's tactics.
- Early Intervention. Answering the CSIs' initial inquiries with carefully crafted statements can prevent escalation. We analyze complaints and engage directly with investigators to clarify misunderstandings before formal charges arise.
- Document Management. The CSI often requests extensive records. Failure to comply, even by accident, is grounds for discipline in and of itself. Our team ensures compliance with document requests while protecting your legal rights. This helps investigations end quicker while also preventing “fishing expeditions.”
- Negotiation. During informal resolution phases, our team of attorneys negotiates with the CSI to secure settlements that minimize penalties and avoid public disclosure. We have experience resolving cases discreetly, preserving the reputations of our clients.
- Hearing Representation. In administrative hearings, we present compelling defenses, challenge CSI evidence, and advocate for leniency. Our experience in Montana administrative hearings results in your case being robustly defended.
- Appellate Advocacy. Appeals are not new trials; they're a chance to look for legal errors. Appeals also have strict filing deadlines. Our team is familiar with the highly technical nature of appeals. By hiring our Professional License Defense Team, you give yourself the best shot at having an unfavorable decision vacated or struck down.
Our Professional License Defense Team Helps Professionals Beyond the Courtroom
The Lento Law Firm Team offers comprehensive support to address the informal challenges that come with being accused of professional misconduct. We employ several strategies, including:
- Reputation Management. We negotiate with the CSI to secure non-public discipline, such as private censures. If public disclosure cannot be avoided, we craft strategies to rebuild client trust and ensure future compliance with Montana's insurance statutes.
- Compliance Support. Post-discipline, we assist with meeting CSI requirements, such as completing continuing education or implementing business practice audits. This reduces the risk of future investigations.
- Multi-State Coordination. For those licensed in multiple states, our multi-state team allows us to address reciprocal discipline by engaging with other jurisdictions to limit sanctions. Additionally, we can also guide you through the process of applying for new licenses and strategically handling required disclosures.
- Financial Planning. We work to negotiate reduced fines or staggered payment plans with the CSI, removing the fear of immediate financial strain.
Hire the Lento Law Firm and Safeguard Your Career
Montana has one of the most diverse insurance landscapes in the country. It is not easy to build successful practices here. You've put in years of long hours to get where you are. Sadly, just a single allegation can trigger a CSI investigation that threatens your license, reputation, and financial stability.
When you hire the Lento Law Firm's Professional License Defense Team, you gain a team of experienced lawyers that works tirelessly to get you the best outcome from beginning to end. From responding to initial complaints to advocating in hearings and appeals, we fight to protect your career. Don't let a disciplinary action derail your future. Call us at 888.535.3686 or reach out to the team using our online form.
