From Oklahoma City to Tulsa, Broken Arrow to Norman, Oklahoma is home to a thriving insurance industry. The Sooner State is home to professionals who have carved out their careers around helping others with auto, home, life, and health insurance as licensed agents. But having a license doesn't guarantee you continued success in your business endeavors. In fact, complaints could lead to ensuing investigations by the Oklahoma Insurance Department. License suspensions or revocations could derail your insurance business and curb any professional activities.
Should you face disciplinary actions or an investigation that puts your license and career in jeopardy, retail the Lento Law Firm's own Professional License Defense Team to defend and protect your agent's license and business. We're available immediately for hire throughout the state of Oklahoma and wherever you conduct business. When your career and license are on the line, call 888.535.3686 or complete this contact form to speak with our experienced license defense attorneys.
Oklahoma Insurance Department and License Authority
In Oklahoma, insurance agents and third-party insurance providers are regulated by the Oklahoma Insurance Department (OID.) OID serves as the primary regulatory and governing body for the insurance industry and is headed up by the Oklahoma Insurance Commissioner.
Types of Oklahoma Insurance Agent Misconduct
Claims of agent misconduct can come from anyone, anywhere. In some instances, complainants can even remain anonymous. This means that clients, coworkers, and other agents can come forth with claims. Usually, the types of insurance-related misconduct reports include the following scenarios:
Misappropriation of funds: Imagine a licensed agent in Oklahoma City collecting premium payments from clients but never forwarding the money to the insurance company. Instead, they use the funds for personal expenses, leaving policyholders unknowingly uninsured. Misappropriation of client funds is a serious offense that can lead to license revocation and criminal charges.
Fraud or misrepresentation: In Tulsa, assume an agent convinces a small business owner to purchase a commercial insurance policy by falsely stating it includes flood coverage, even though it does not. Another common example includes agents submitting falsified application details to secure lower premiums for clients, which can result in denials or policy cancellations. Fraud and misrepresentation put both consumers and the insurance industry at risk.
Unethical or dishonest practices: A Norman-based agent gets accused of pressuring an elderly client into buying an expensive life insurance policy they do not need, using scare tactics about future medical costs. Similarly, some agents mislead customers by exaggerating benefits or hiding exclusions. High-pressure sales tactics are considered unethical and can lead to disciplinary action, including license suspension.
Unauthorized policy sales: An agent in Broken Arrow begins selling homeowners insurance but doesn't realize their required property and casualty license is expired, misleading clients into thinking their policies are valid. In another case, an Oklahoma-licensed agent illegally sells policies to clients in Texas, where they are not authorized to operate. Selling insurance without proper licensing is a violation that can turn into fines and legal consequences.
Violation of OK state insurance laws: Agents operating in Edmond who fail to provide required disclosures, improperly deny claims, or engage in predatory sales practices violate Oklahoma's strict insurance laws. For example, an agent may ignore mandatory continuing education requirements but continue selling policies. Regulatory violations can lead to penalties ranging from fines to permanent license revocation.
Forgery: In Lawton, imagine an agent forges a client's signature on a policy renewal document to continue collecting commissions. Another example might involve altering application details to make a client appear healthier, securing a lower premium. Forgery is a serious offense that not only jeopardizes the agent's career but can also result in criminal charges.
Improper claims handling: In another scenario, a claims adjuster in Enid intentionally delays processing a legitimate auto accident claim, causing financial hardship for the policyholder. Another scenario involves an agent failing to submit claims to the insurer, leading to unnecessary denials. Mishandling claims violate consumer protection laws and can result in disciplinary action by the Oklahoma Insurance Department.
These are just a few of the more common examples of insurance-related complaints that can result in an OID investigation and potential license suspension.
Disciplinary Grounds for the Oklahoma Insurance Department
Under the 2024 Oklahoma Statutes, the Insurance Commissioner has the authority to discipline insurance agents by placing them on probation, issuing a censure, suspending, revoking, or officially refusing to issue or renew their license. Additionally, civil penalties may be imposed for violations of state insurance laws. Below are the key violations that can result in disciplinary action, along with a brief example for clarity.
- Providing false or misleading information on a license application
- Violating insurance laws, regulations, subpoenas, or official orders
- Obtaining or attempting to obtain a license through fraud or misrepresentation
- Misappropriating or improperly handling client funds
- Intentionally misrepresenting an insurance policy's terms
- Having a felony conviction
- Engaging in fraudulent or deceptive insurance practices
- Using dishonest, coercive, or fraudulent business practices
- Having a license revoked or suspended in another state
- Forging a signature on an insurance document
- Cheating on an insurance licensing exam
- Knowingly accepting business from an unlicensed individual
- Failure to comply with child support obligations
- Failing to pay state income tax
- Ignoring inquiries from the Oklahoma Insurance Department
- Violations that would have prevented initial licensing
These rules, as outlined by the OK statutes, are designed to uphold the integrity and transparency of the insurance industry. The OID enforces these regulations to protect insurance consumers from unethical business practices and takes all complaints and allegations seriously. If they find there are grounds for an investigation, you will be notified with an official notice. It's upon receipt of this OID correspondence that you want to contact our Professional License Defense Team.
Oklahoma Insurance Department Investigations
The OID and Insurance Commissioner will follow a series of structured procedures to facilitate an investigation. Any complaints against licensed insurance agents will be processed accordingly. If a client, associate, or colleague files a complaint against you or your insurance practice, here's what happens next:
- Complaint submission: A written complaint submitted to the OID's official Consumer Assistance/Claims Division will be logged, dated, and documented.
- Initial review: The Consumer Assistance/Claims Division will evaluate the complaint to verify if it falls within the OID's jurisdiction and/or warrants additional investigation.
- Initiate an investigation: Valid complaints will prompt an OID investigation, which typically involves contacting the insurance agent mentioned, along with other parties relevant to the incident or allegation.
- Information gathering: During this phase of the investigation, the OID may conduct additional interviews, assess compliance, and issue subpoenas in accordance with Oklahoma law.
- Evaluation of findings: The collected information and evidence will then be analyzed to determine whether or not the agent in question violated Oklahoma laws, statutes, or regulations.
- Enforcement actions: If violations are found, the OID may pursue enforcement actions, which could include license suspension or revocation. Officials may additionally refer the case to the Attorney General's Insurance Fraud Unit for further legal investigation and proceedings.
- Notification: The insurance agent is formally notified of the outcome of the investigation and any enforcement actions to be taken.
- Appeals process: The agent has the right to appeal the OID's decision through administrative hearings or legal channels as provided by Oklahoma law.
Some investigations lead to court hearings. Hearings are expected to be heard within what the Oklahoma Administrative Procedures Act deems as a “reasonable time period.”
Respond to an Oklahoma Insurance Department Investigation
Should you receive a notice from the Oklahoma Insurance Department that an investigation is underway, know that you're fully expected to cooperate. Even if you feel the complaint is invalid and the investigation unfounded, now's not the time to lose your cool. While you might be inclined to resist cooperation, don't. But because you're not accustomed to the investigation process, it's also best not to engage on your own. In these early stages of investigation, you need adequate legal representation and someone in your corner who can cooperate with the OID on your behalf. Trust our Professional License Defense Team to represent you during this cooperative response next steps.
Oklahoma Insurance Department Disciplinary Actions
When you face disciplinary action from the Oklahoma Insurance Department, you're in jeopardy of license suspension or revocation. According to the Oklahoma Insurance Code, you might also be subject to imposed fines, ranging from $100 to $1,000, for any alleged violations. The Commissioner will make these determinations in your case based on the severity, nature, and scope of the violations identified.
It's also important to note that the OID will publish disciplinary orders issued, providing final orders and related notices to the public. The OID also keeps historical records of these published orders, making them available for public awareness and transparency.
Consequences of Disciplinary Action
Whether you're unable to work because of an insurance license suspension or a complete license revocation, your livelihood is impacted. The consequences of these disciplinary actions can be far more damaging in the eye of public opinion, with trust among your existing insurance clients and to your insurance vendors and partners. Even if you're able to defend your position and ultimately reinstate your license, which could take months, you risk losing your valuable business relationships and reputation.
Other collateral consequences of such a case might include:
- Inability to secure a license in any other state
- Temporary or permanent loss of income
- Temporary or permanent loss of employment benefits
- Termination (if you work for another agency)
- Civil liability risks could lead to costly litigation
This only compounds the need for experienced and speedy legal representation. Our Professional License Defense Team can help mitigate these risks and expedite your Oklahoma license defense case through negotiations, appeals, and hearings.
Defenses to Oklahoma Insurance License Charges
If you're facing disciplinary charges from the Oklahoma Insurance Department, it's important to remember that a charge does not automatically mean you're guilty of wrongdoing. These charges are merely allegations and may lack sufficient evidence. In some cases, those claimants who make accusations may be misinformed, acting out of misunderstanding, or even retaliating for unrelated reasons.
There are multiple defense strategies that prove to be helpful in challenging disciplinary actions.
- We may be able to demonstrate that no violation actually took place, or if a violation did occur, that another party was responsible.
- Additionally, we may be able to show that you acted without any intent to deceive, simply following the guidance of a supervisor, legal counsel, or another trusted professional in a situation that was not clearly defined under Oklahoma insurance laws.
- In some cases, we're able to prove unfounded or retaliatory malice in filing the complaint, further solidifying your innocence in the matter.
- Even if you did make a mistake, we might be able to prove that your actions did not result in financial loss, consumer harm, or damage to public trust in the insurance industry.
These are just a few of the many possible defenses available. If you are facing disciplinary charges, don't assume the worst. Let us help you build a strong defense and protect your professional reputation.
Our Role in Your Oklahoma Insurance License Defense
When you work with our license defense team, we'll step in as your legal representative on day one. We can appear and respond on your behalf, effectively notifying the investigators that we officially represent you. This helps us build the necessary trust and relationships with those involved, which may help resolve your case more favorably.
With the Lento Law Firm's Professional License Defense Team in your corner, we'll also expedite the gathering and organizing of evidence. We'll be your formal and informal partner in evaluating and presenting your exonerating evidence. Additionally, we can arrange negotiations for early, informal resolution conferences.
Should your case go to a hearing, we'll be there to make your best defense. Even if you've already experienced an adverse action, our team can navigate necessary appeals and escalations to higher agencies, as Oklahoma procedures allow.
Premier Insurance License Defense Attorneys in Oklahoma
When you're up against disciplinary actions and allegations regarding your insurance license, retain the most experienced legal representation with the Lento Law Firm's Professional License Defense Team. Our highly skilled attorneys have helped countless (hundreds) of professionals in Oklahoma and across the country in successful licensing defense cases. When your career and insurance livelihood are on the line, trust the team that can best represent you. Call 888.535.3686 to connect with our team, or complete our contact form now.
