Whether you're a broker, realtor, or an insurance agent, you cannot sell or negotiate insurance in South Dakota without a valid license. So if you're notified that your professional license is in jeopardy, it's vital that you respond to disciplinary action quickly and effectively. Your first step, if you face license suspension or revocation in South Dakota, should be calling the Lento Law Firm Professional License Defense Team at 888.535.3686 or contacting us online. Our experienced attorneys are committed to helping insurance professionals handle license issues and, where possible, allowing them to retain their right to practice in the state. If you're worried about disciplinary action, do not hesitate to reach out to secure the representation you deserve at this time. Give yourself the reassurance that you're doing everything possible to protect your career and professional reputation. But in the meantime, discover more about how professional license investigations work in South Dakota and how you might challenge complaints and accusations.
South Dakota Division of Insurance
The South Dakota Division of Insurance is the part of the state's Department of Labor and Investigation responsible for monitoring and licensing insurance professionals. This includes individuals or companies selling, negotiating, or otherwise providing insurance coverage in the state. Its authority stems from Title 58 of the Insurance Code, and its role is to regulate the insurance industry to protect the public, promote fair and competitive insurance practices, and hold insurance agents (“producers”) to high professional standards.
If you're accused of violating state insurance laws or Division of Insurance regulations, it's Division investigators who will handle the matter and decide whether there's evidence of misconduct and whether your license should be suspended or revoked.
Insurance Professional Misconduct in South Dakota
Professional misconduct takes many forms. Typically, however, examples of professional license issues most commonly handled by the Division are:
- Failing to meet tax obligations
- Bad faith denial of insurance claims
- Protected characteristic discrimination
- Lack of transparency when negotiating, advertising, or selling insurance products
- False or misleading statements about their insurance products
- Offering or selling insurance without a valid license
- Operating beyond the scope of a license
Put simply, if conduct falls below the standards expected of an insurance professional or corporate provider in the state, the Division can step in to investigate matters.
When can the SD Division of Insurance Investigate an Insurance Professional?
Division investigations are administrative, rather than civil or criminal, and so the Division can't handle every type of complaint. For example, although they may investigate matters such as insurance fraud allegations, they can't charge individuals with a criminal offense or impose criminal penalties. They can, however, refer concerns to the authorities for further investigations.
Examples of misconduct which the Division can handle directly include:
- Falsifying records
- Tampering with an insurance contract or document, e.g., forging a name
- Misrepresenting a contract
- Making false statements to compel a customer to purchase an insurance product
- Submitting untrue, exaggerated, or otherwise inaccurate information to obtain an insurance license
- Failing to comply with the terms of a previous Division disciplinary action
The Initial Complaints Process
Anyone, whether it's another insurance professional or a concerned member of the public, can initiate a complaint against an insurance producer or their employer in South Dakota. There's a simple online complaints procedure for individuals to follow. However, individuals are often expected to attempt to remedy matters informally with the insurance producer or their employer before contacting the Division with a complaint. This is to ensure the producer concerned has a fair opportunity to resolve matters at the “lowest” possible level, with the least formalities and fewest long-term consequences, while enabling consumers to seek a fair outcome for themselves.
The South Dakota Division of Insurance Disciplinary Process
Your attorney can explain the intricacies of the disciplinary process in more detail, as it can vary slightly depending on the nature of the accusations and the exact circumstances of your case. However, the typical steps involved are as follows.
Initial Complaint
First, an individual files a formal complaint with the Division through its complaints portal or by contacting the Division in writing. The complainant must provide sufficient information regarding what happened or what their concerns are for the Division to consider their complaint. Clearly exaggerated complaints or claims where no supporting evidence is submitted can easily be dismissed at this stage. However, more commonly, the Division will undertake at least a preliminary investigation to discern whether there are grounds to discipline the provider.
Preliminary Investigation
The Division notifies the provider of the complaint in writing. This notice should give the provider enough details regarding the complaint to enable them to respond effectively. The provider has 20 days from the receipt of this notice to respond. Should the Division investigators require further information, the provider has an additional 20 days from receipt of this request to comply. This could mean, for example, providing written evidence or records to support your position, or answering clarifying questions.
Once the Division has a fuller picture of the facts and sufficient evidence to make a determination, they will decide whether the provider violated any state laws or Division regulations. The Division will either dismiss the case after deeming no laws have been violated, or they'll move to disciplinary action.
Interim Disciplinary Procedures
The Division may offer the provider the chance to sign a consent order, or other contractual agreement whereby the provider acknowledges wrongdoing and agrees to “lesser” penalties to avoid a formal hearing. Should you be offered a consent order, you should not sign anything without consulting the Lento Law Firm attorney first. Otherwise, you risk damaging your position and jeopardizing your defense, and signing a consent order is an admission of guilt.
If you reject a consent order, or there's no informal settlement agreed, the matter proceeds to an administrative hearing.
Administrative Hearing
Administrative hearings are less formal than civil or criminal court procedures; however, they are still complex legal proceedings. You will have the chance to present evidence to support your case and to demonstrate why you should retain your license. This could mean, for example, relying on witness testimony or presenting written correspondence, photographs, or other similar types of evidence. You have the right to have counsel represent you at this hearing. Take advantage of this opportunity by contacting the Lento Law Firm Professional License Defense Team.
If the Division determines that you violated state laws or Division regulations, they will rule against you and proceed to disciplinary action. Otherwise, they will dismiss the case and agree that no further action is required. The complainant will be notified of the outcome of the case, and they may have the opportunity to appeal the decision; however, your attorney will explain how this works in more detail should it be relevant in your case.
Possible Outcomes of Disciplinary Action Against Insurance Professionals in South Dakota
Although every case is unique, the Division has the authority to dispose of your case in a few specific ways. Depending on the findings, the penalties for license issues in South Dakota include:
- Formal written reprimand
- Supervised practice
- Probation
- Mandatory education, counseling, or drug/alcohol rehabilitation
- License suspension
- License revocation
Should your license be suspended, it's possible to seek reinstatement after a specific length of time passes. The period should not exceed one year. You must, however, be prepared to demonstrate compliance with whatever conditions the Division director recommended at the time of your suspension, e.g., continuing education or completion of a rehab program.
License revocation is intended to be permanent. However, it may be possible to seek reinstatement within a few years in South Dakota. There is no guarantee that you'll regain your license, even if you are diligent and show commitment to expanding your knowledge and developing new skills. Your best option is to do everything possible to retain your license in the first place, which is where the Lento Law Firm Professional License Defense Team can help.
Can Insurance Professionals Appeal License Suspension or Revocation in South Dakota?
It's possible to appeal license suspension or revocation if you can show that the Division director made errors in fact or law when they decided your case. For example, this could mean showing that the director failed to give appropriate weight to evidence, failed to apply the law correctly, or failed to follow the Division's own procedures correctly.
Should your appeal succeed, your license may be reinstated. If, however, your appeal fails, the Division's judgment stands unless there are grounds to pursue a further appeal to a higher civil court in the state. Bear in mind, though, that if your license is suspended, you can always seek license reinstatement once the suspension period ends, regardless of whether you made a successful appeal.
Disciplinary hearing appeals are complex, and there's no guarantee you will succeed. Your attorney can explain if you have grounds to consider filing an appeal and, if so, how best to present your case.
Do I Need an Attorney if I'm Under Investigation by the Division?
As Division investigations are administrative, rather than civil or criminal in nature, you may believe there's no need to hire a lawyer to help you respond to questions or navigate the hearing process. However, you must remember that Division representatives routinely discipline insurance producers, and they're well versed in the complexities of administrative hearings. They also have their own legal teams advising them on how best to proceed through any given case. Should you choose to represent yourself, you're depriving yourself of the chance to present the most effective and robust defense.
You should also remember that license investigations are, by their nature, stressful, time-consuming, and emotionally draining. Your lawyer will handle the procedural and administrative steps on your behalf and help you comply with deadlines and other formal procedures, so you may focus on rebuilding your career and moving forward.
Even the smallest transgression can quickly escalate into a full-scale investigation that places your career in jeopardy. And without a lawyer representing you, there's always the risk you could miss out on due process and exercising legal rights you have. So, although it's understandable why you might wish to handle the matter alone, only with a committed lawyer from the Lento Law Firm on your side can you respond swiftly and confidently to disciplinary action.
Experienced Attorneys Representing Insurance Professionals Across South Dakota
As experienced professional license defense attorneys, the Lento Law Firm Team understands exactly how the disciplinary process works and how best to build a compelling defense against professional accusations. Wherever you're located in South Dakota, from Buffalo to Jackson County, we're ready and waiting to discuss your case, explain what you might expect from the process, and empower you to make an informed decision regarding how you move forward. Whether you're seeking a consent agreement or you wish to challenge the accusations at a hearing, we will ensure your legal rights are protected and that you fully understand your options. No matter how serious or insurmountable the accusations may seem, let our professional license defense lawyers in South Dakota assist.
Retain the Lento Law Firm Professional License Defense Team
In South Dakota, the Division of Insurance will not hesitate to suspend, revoke, or otherwise limit your license and your right to sell or negotiate insurance in the state. Should you receive notice of a Division investigation, it's imperative that you take the matter seriously and act immediately to protect your position. After all, as an insurance producer in South Dakota, your license is invaluable. There's simply too much at risk to leave any part of your defense to chance. Call the Lento Law Firm Professional License Defense Team at 888.535.3686 or tell us about your case via our online form. Let us stand by your side and guide you through this complex and confusing time.
