The Insurance Division of the Vermont Department of Financial Regulation (DFR) issues licenses to insurance professionals in the Green Mountain State. You likely already understand the important role the Commissioner of the Division plays in your work if you're a Vermont-based insurance professional.
For instance, you may understand that the Commissioner has the power to take action against your professional license if you break Vermont's insurance laws or engage in various forms of misconduct. Depending on the severity of the alleged violation and the form of disciplinary action the Commissioner decides to take, the consequences of a violation could jeopardize a career you've worked hard for.
Taking steps to protect yourself if you're facing potential disciplinary action against your license is imperative. Luckily, you don't have to face this process alone.
At the Lento Law Firm Professional License Defense Team, serving clients throughout Vermont, we're prepared to offer representation when your license as an insurance agent, broker, or other such insurance professional is on the line. From major metropolitan centers and areas like Burlington, Montpelier, and Stowe, to smaller suburbs and communities across the state, we're available to serve your needs. Learn more about how we can help now by submitting your information via our online contact form or by calling our offices at 888-535-3686 today.
What Qualifies as Insurance Professional Misconduct in Vermont?
Vermont law prohibits insurance professionals from engaging in “unfair methods of competition” and “unfair or deceptive acts or practices in the business of insurance.” Insurance professionals may face disciplinary actions against their licenses if they engage in any of the following:
- Misrepresentation and/or false advertising of insurance policies
- General false advertising/false information
- Defamation
- Intimidating, coercion, and boycotts, when such methods result or may result in “unreasonable restraint of trade” in the insurance industry
- Making false financial statements/entries
- Providing stock and/or advisory board contracts (or other such contracts promising returns) “as an inducement to insure”
- Unfair discrimination and/or arbitrary overwriting action
- Illegal rebate practices
- Unfair claim settlement practices
- Failing to properly maintain records/procedures of complaints as required by law
- Misrepresentations on, or in connection with, insurance applications
- Failure to act as a fiduciary when one's role requires doing so
- Misrepresentations of services or products
- Failure to properly disclose fees and/or charges
- Improperly disclosing the terms of financing premiums (i.e., failure to disclose said terms)
- Offering or selling insurance policies that are unsuitable to their buyers or prospective buyers
- Failure to properly instruct or supervise representatives
- Doing business with anyone you know to be engaging in illegal or unfair acts in the insurance industry
- Failure to comply with rules, regulations, forms, or rates filed with the Commissioner
- Illegal practices related to HIV tests (such as requiring someone to disclose whether they have undergone an HIV test)
The above are essentially general categories of violations. The specifics of the law are more nuanced.
You might not thoroughly understand the nature of the allegations when you've been accused of violating a law or rule for insurance professionals in Vermont. Explaining the case against you and answering your questions about the allegations is just one way we can be of assistance now.
Other Issues Can Affect a Vermont Insurance Professional's License
The violations covered in the above section of this guide don't necessarily represent all the ways in which your license could be put in jeopardy. For example, Vermont law requires insurance professionals to meet certain mandatory continuing education (CE) requirements. Failure to meet these requirements can result in consequences like license suspension or nonrenewal of your license.
Such examples highlight the way in which various types of issues can potentially jeopardize your ability to continue working as an insurance professional in our state. The Lento Law Firm Professional License Defense Team is prepared to help you in these circumstances, as well as various others that may cause you to worry about the status of your professional license. Whether you work for a major insurance firm out of a metro area like Rutland or South Burlington, or you're an independent insurance professional serving one of the more rural areas of the Green Mountain State, we can help you navigate what may otherwise be a stressful situation.
Potential Consequences for Vermont Insurance Professional Misconduct
Vermont law authorizes the Commissioner to penalize insurance professionals in several potential ways when they engage in misconduct. Specifically, the Commissioner can:
- Impose an administrative penalty of up to $1,000 for each instance of misconduct
- Suspend an insurance professional's license
- Revoke an insurance professional's license
- Refuse to renew an existing license
You should also consider the potential indirect consequences of disciplinary action. For example, if potential clients or customers learn about the disciplinary action taken against your license, they might be less inclined to hire you.
The Complaint Process for Insurance Professionals in Vermont
DFR offers consumers the option of filing complaints against insurance professionals and companies when they allegedly commit violations. Those who choose to file complaints can do so in a variety of ways, including:
- Filing a complaint online
- Faxing a complaint to 802-828-1446
- Mailing a complaint to the Department of Financial Regulation, Insurance Consumer Services, 89 Main Street, Montpelier, VT 05620-3101
- Emailing [email protected] or calling 802-828-3302 to set up a meeting with a DFR representative
DFR indicates that parties filing complaints may provide documentation and evidence to support their allegations. Lack of sufficient evidence of wrongdoing is one factor we may cite when defending your professional license.
DFR's own documents indicate that the process for handling complaints may vary somewhat on a case-by-case basis. As DFR states, “in most cases,” DFR will send the insurance professional a copy of the complaint, along with a request for an explanation.
The agent who the complaint was made about has 15 days to respond to the complaint. DFR will review the response and get back in touch with the party who made the complaint within about 30 days of receiving the response. DFR's review of the information the agent provides will influence the next steps it takes, if any.
This vague description of the complaint and investigation process can be frustrating if you're an insurance professional who's been the target of a complaint. You want to know what to prepare for, but you can't be certain the process will follow an established set of predictable steps.
This is yet another reason to work with our Professional License Defense Team at the Lento Law Firm when a customer or other such party has filed a complaint against you. We understand how these types of cases play out, helping you feel more comfortable about the entire experience.
The Danger of Responding to a Complaint Yourself
Taking the matter seriously when you learn someone has filed a complaint against you (or DFR is investigating you for its own reasons) is vital. The consequences of ignoring a complaint could have significant ramifications for your career.
However, responding to a complaint on your own could be risky. You may end up sharing information or making statements that could actually harm your case.
That's not something you need to worry about when you coordinate with our Professional License Defense Team at the Lento Law Firm. We'll review the nature of the complaint and help you draft a response accordingly.
Potential Defenses When a Vermont Insurance Professional's License is in Jeopardy
The general ways the Lento Law Firm Professional License Defense Team helps clients like you include:
- Reviewing cases and answering basic questions
- Explaining the nature of the allegations a client may face
- Explaining the potential disciplinary action or other such penalties a client could face
- Handling all correspondence with DFR/the Commissioner
- Representing a client during meetings, hearings, interviews, and other such potential aspects of the investigation or complaint processes
- When possible, challenging the case against a client by showing there isn't enough evidence of a violation to justify disciplinary action
- Helping you understand the terms of any disciplinary order or action to ensure compliance
The specific strategies we may employ when defending a client like you will depend on the specific factors of their case. The following are merely examples of ways we might defend a Vermont insurance professional facing disciplinary charges:
- Showing evidence of compliance: We've already touched on how we may challenge the strength of the evidence against an insurance professional facing action against their license. In some cases, we might also gather evidence of our own to show that a client has actually complied with all relevant laws and regulations.
- Considering motives: The fact that someone files a complaint against an insurance professional doesn't mean that they actually have a strong case. In some instances, the party who filed the complaint may have other motives, such as retaliating against an insurance professional whom they feel has wronged them in some capacity. They might argue that a violation has occurred when they're actually trying to harm someone's career for unrelated reasons, such as personal or professional payback. In some cases, we can examine the motives of complainants to demonstrate why a case may not be valid.
- Negotiating a consent agreement: If you've actually engaged in wrongdoing, having a proper defense is still very helpful. The Commissioner may be willing to negotiate a “consent agreement” in which you agree that a violation occurred. In exchange for your cooperation, you may face less significant discipline than you would otherwise face. We can cite factors such as your otherwise clean disciplinary history to indicate why a consent agreement should be fair and reasonable.
Again, those are merely examples. The best way to understand how we may approach your defense is to review your case with a member of our team.
Why a Criminal Defense Lawyer Isn't Ideal in a Vermont Insurance Professional License Defense Case
Several of the violations for which an insurance professional may face disciplinary action or similar penalties may technically qualify as violations of the law. Thus, if you're facing action against your license because of an alleged violation, you might naturally assume that a criminal defense attorney is the right type of legal professional to serve your needs.
If you're facing criminal charges, a criminal defense lawyer may help with that side of your case. However, if the Commissioner is considering taking action against your professional license, you're better served by attorneys who understand the unique nuances of such matters.
Reasons a criminal defense lawyer may be unable to serve you in these circumstances include the following:
- Lack of familiarity with processes: The manner in which the Commissioner investigates and “prosecutes” a case like yours will differ from the process in a criminal case. A criminal defense attorney is unlikely to be familiar with the processes that our team members are well-versed in.
- Lack of relevant experience: You'll feel more comfortable with your choice of attorney when they can provide you with evidence showing they've handled cases similar to yours in the past. Because a criminal defense lawyer will naturally have more experience handling criminal matters, they won't be able to provide the peace of mind that comes from knowing your attorney has already successfully defended the licenses of other insurance professionals in Vermont.
- Lack of existing relationships: Our experience defending the licenses of Vermont insurance professionals means our team may be familiar with the parties that will be involved in your case. A criminal defense attorney likely won't offer this advantage.
You're wise to contact a criminal defense lawyer when you face criminal penalties. However, when your license is at stake, the right team for your case should be one that handles license defense cases. That's exactly what you'll find at our firm.
Contact the Lento Law Firm Today if Your Vermont Insurance Professional License is At Risk
You may understandably be experiencing significant stress if your license to operate as an insurance professional in Vermont is in jeopardy due to alleged wrongdoing. Thankfully, you don't have to fight for your career alone. Serving clients throughout Vermont, the Lento Law Firm Professional License Defense Team is here to help. Get started by calling us at 888-535-3686 or by submitting your information through our online form.
