Are you an insurance professional in Alabama facing allegations of misconduct, or is your insurance license under threat? It's natural if you're feeling overwhelmed or concerned right now. After all, your license is why you are trusted to handle insurance-related matters in the state. However, it's crucial that you stay calm and respond swiftly to the allegations against you. And it's even more vital that you present the most compelling possible defense against the charges. For the support you need and deserve at this time, trust the Lento Law Firm Professional License Defense Team to stand with you. Whether you're a broker, insurance agent, or other licensed professional, call us at 888.535.3686 or reach us online to secure the representation you require.
Alabama Department of Insurance
The Alabama Department of Insurance (ALDOI) is responsible for licensing and regulating all insurance professionals, from brokers to agents, in the state of Alabama. Its authority stems directly from the Alabama Civil Code, which exists to protect consumers, promote high ethical standards, and ensure that insurance agents in AL adhere to all applicable state and federal insurance laws.
As part of its jurisdiction, the ALDOI oversees the issuance, renewal, and revocation of professional licenses in AL. Should you face misconduct allegations or a consumer complaint, and should it be a matter over which the ALDOI has authority, it's ALDOI officials you will deal with.
What Constitutes Insurance Agent Misconduct in Alabama?
There are various acts that could constitute insurance professional misconduct in Alabama. The ALDOI does publish its disciplinary action reports, and examples of professional misconduct that could lead to investigations include:
- Making false or misleading statements
- Selling or offering insurance products without a valid license
- Tampering with or adjusting an insurance product application
- Denying insurance claims based on bad faith
- Denying insurance claims based on discrimination against protected characteristics
- Overcharging fees for settling insurance claims
- Engaging in practices or transactions that constitute a conflict of interest
- Failing to meet state or federal income tax obligations
Grounds for Disciplinary Action in Alabama
ALDOI officials cannot investigate every complaint made against an insurance broker, adjuster, or agent. Instead, the complaint must fall within the department's jurisdiction. So, for example, ALDOI officials can investigate misconduct relating to the following:
- Submitting false, misleading, or materially untrue information to obtain a license
- Committing fraud, embezzlement, or any other unlawful insurance practice
- Felony convictions
- Forging a name or otherwise tampering with an insurance transaction document
- Cheating to obtain an insurance license
- Misrepresenting contractual terms
Essentially, a common cause of licensing issues, then, is any conduct that brings into question an insurance professional's character or ability to perform their role to the expected standard could lead to disciplinary action.
Complaints Against Insurance Professionals
Any individual can make a complaint against an insurance agent, broker, or loss adjuster in Alabama through the ALDOI's dedicated complaints procedure. Complaints submitted through any other means may not be considered.
In most cases, it's a customer or client lodging the complaint against the insurance professional. However, it's sometimes another insurance professional or firm making the complaint. These cases can be more complex to defend because such complainants have a greater understanding of the law and how to word their accusations to ensure the ALDOI takes them seriously. However, ALDOI officials are, of course, aware of this, and the complainant's position may undermine their credibility unless they have a substantial complaint or allegation to make.
In some cases, the ALDOI may investigate a professional or an entire insurance firm due to the outcome of a recent court case or media report, e.g., a major fraud investigation. These cases are less common but among the most challenging to defend, so the Lento Law Firm Professional License Defense Team should be consulted without delay if you are facing ALDOI investigations following such an outcome.
Initial Complaint
The ALDOI first receives the complainant's submission online. They will perform a cursory overview to sift through allegations that are obviously unfounded or beyond the ALDOI's jurisdiction. For example, the ALDOI won't investigate a complaint just because a client is unhappy with the service provided. There must be sufficient grounds to suggest misconduct occurred, and the allegations must be clear and concise as per Alabama civil procedural rules.
Following receipt of this initial complaint, if the ALDOI decides there is possible merit to the case, it will inform the licensee, in writing, of possible impending investigations. The licensee is also entitled to know the allegations against them so they may respond fully.
Investigation
The ALDOI will investigate the complaint to determine if the incident may have occurred as described and, if so, whether it may constitute misconduct. The steps involved in the investigation will vary depending on the case, but typically, it will include interviewing the licensee, interviewing possible witnesses, reviewing documents such as transaction records, and considering any other relevant paper trails.
Once the preliminary investigation concludes, the ALDOI will determine if disciplinary action may be warranted. It may also decide that no further action is necessary, and the licensee will be notified that the case is closed.
Disciplinary Procedures
The ALDOI can opt to dispose of the matter informally by issuing the licensee a written reprimand or a letter explaining how they might avoid similar complaints or allegations in the future. Otherwise, they may decide to:
- Propose a contractual settlement agreement whereby the licensee agrees to admit the allegations in exchange for a mitigated penalty; or
- Proceed to a formal administrative hearing to explore the case in more detail. The ALDOI may refrain from offering a settlement agreement if they are considering license suspension or revocation.
It's also possible for the licensee to request an administrative hearing if they wish to deny the allegations or if they're unhappy with the settlement agreement terms proposed. Your Lento Law Firm attorney can explain which course of action may be best for your situation, depending on the unique facts of the case against you.
Hearing
Should the case proceed to a hearing, the ALDOI and the licensee can present their position in a more formal court setting. This is administrative rather than civil or criminal; however, given the outcome could be license suspension or revocation, it must be treated just as seriously.
The licensee will have the right to present their own evidence and cross-examine witnesses, including the complainant. They also have the right to an attorney's representation, which is why, if you're facing a disciplinary hearing, you should call the Lento Law Firm Professional License Defense Team for urgent support.
It's possible that the case will be dismissed at this stage if the case against the licensee is unsubstantiated, i.e., it's not proven based on the “preponderance of the evidence” that the misconduct is likely to have occurred as described. Otherwise, the ALDOI will have the option of choosing how to discipline the licensee.
It's worth noting, at this stage, that disciplinary matters––including the final decision and imposed penalty—are public records. Disciplinary action could seriously jeopardize your career, even if the penalty is on the less severe end of the spectrum. That's why, the moment you are notified of possible disciplinary action, you should seek legal support and advice.
Outcomes of Disciplinary Action in Insurance Professional Misconduct Cases
There are various options available to ALDOI officials when deciding how to dispose of a misconduct case. Such options include:
- Written warning
- Formal reprimand
- Probation or restricted practice
- Mandatory supervised practice
- Compulsory counseling or enrolment in a program e.g., a continued education program
- Suspension for a set period
- Permanent revocation of license
Under the Alabama Civil Code, you could also face fines of up to $1,000 per violation of the Code in addition to the penalties described above.
Appealing Insurance Professional License Suspension or Revocation in Alabama
If your license is suspended or revoked, you may have a right to appeal the decision if you can show that:
- Officials erred in how they applied the law;
- The officials did not give due consideration or weight to relevant facts or
- Officials made procedural errors, which call into question the fairness of the decision.
It's not possible to seek an appeal simply because the outcome seems unfair––there must be sufficient legal grounds to seek an appeal through the Alabama civil court system.
Should your appeal be successful, your license may be reinstated, or the penalties eased. If your appeal is unsuccessful, you may still have options.
- If your license is suspended and your appeal is unsuccessful, you may still seek license reinstatement once your suspension expires. Typically, this will involve demonstrating that you have met the conditions of your suspension, e.g., compliance with supervised practice or completion of mandatory further education.
- If your license is revoked and your appeal is unsuccessful, it may still be possible to seek reinstatement. However, you will not be able to apply for reinstatement immediately, and there's a risk that the odds are stacked against you—after all, a revocation is intended to be a permanent solution. Consultation with an experienced license defense attorney is imperative in these situations.
Why You Need an Experienced Professional License Defense Attorney
As an insurance professional, ALDOI investigations may cause you feelings of anxiety, embarrassment, or even shame. You may be tempted to simply handle the matter yourself––or to hope that the problem disappears quickly and without fuss. However, when the ALDOI decides to investigate an insurance professional, even a relatively simple matter can escalate quickly if your defense is not properly managed from the outset. That's why, when your license is under threat, you need an experienced attorney on your side.
Consider it this way. ALDOI officials have their own dedicated legal team. They are familiar with the nuances of complaint review procedures, and they will not hesitate to restrict, suspend, or even revoke your insurance license. If you do not have your own attorney representing your best interests, then you're at an immediate disadvantage. And when you're facing a threat to your professional reputation, career, and even your livelihood, you deserve every chance to defend yourself effectively. This is where the Lento Law Firm can assist. Our attorneys will vigorously defend your rights to due process and ensure that you have the access to justice you deserve. We will ensure that the ALDOI upholds its own rules and procedures consistently, and where necessary, we will defend you directly before ALDOI officials.
Representing Insurance Professionals Across Alabama
Our Professional License Defense Team is available no matter where you work across Alabama. We can support insurance professionals in Birmingham, Montgomery, Tuscaloosa, Mobile, Gulf Shores, Dauphin Island, Huntsville, and anywhere else in AL. No matter how complex the case presented by the ALDOI may seem or how serious the complaints are against you, our attorneys are merely a phone call away, waiting to help you defend your license and professional reputation.
Retain the Lento Law Firm Professional License Defense Team
If you're facing Alabama Department of Insurance investigations, there's a real risk your license is under threat. And given how hard you've worked to gain that license, you deserve every opportunity to protect it. That's why your first step should be contacting the experienced attorneys at the Lento Law Firm. Our Professional License Defense Team has helped numerous individuals, including agents, insurance brokers, and other insurance professionals, defend their license from board investigations. Whether it's helping you respond to charges or representing you before the ALDOI, we will do our utmost to help you secure the most favorable outcome possible. So don't feel like you're alone in dealing with these challenges that affect your professional integrity. Instead, call the Lento Law Firm Professional License Defense Team at 888.535.3686 or tell us about your case online, and let us shoulder the burden with you.
