NHID Investigation? Get the Legal Defense Your Insurance Career Deserves

As an insurance professional, you know your license is your livelihood.

And earning a license to work in New Hampshire is no small feat. It involves time spent away from your family, paying for and attending classes for weeks or maybe months, studying hard, and taking (and passing) the state-wide exam.

Whether you're an agent, broker, underwriter, or adjuster, your license is the foundation of your career. It allows you to sell policies, manage claims, and provide expert guidance to individuals and businesses across the state. That's why any allegation of misconduct or violation, no matter how minor it may seem, can threaten everything you've worked for. A single complaint from a client or colleague can lead to a formal investigation, disciplinary action, or even the suspension or revocation of your license.

You've dedicated your career to helping others prepare for the unexpected. Now, if your professional reputation is on the line, it's time to protect yourself. Whether you're facing accusations of fraud, misrepresentation, unethical sales practices, or other professional violations, the stakes are too high to navigate the licensing process alone.

The Lento Law Firm's Professional License Defense Team understands the complexities of New Hampshire's insurance regulations and disciplinary procedures. We have helped licensed professionals across the state, from Manchester to Nashua to Portsmouth and beyond, defend their licenses, safeguard their careers, and resolve investigations with minimal disruption.

If your license is under review or you're dealing with an administrative complaint, don't delay. Contact the Lento Law Firm today. Call us at 888-535-3686 or contact us online so we can get started defending your license right away.

Who Regulates the Insurance Industry in New Hampshire?

In New Hampshire, the authority responsible for licensing and regulating insurance professionals is the New Hampshire Insurance Department(NHID). Established in 1851, the NHID is one of the oldest state insurance departments in the country. It oversees a broad range of insurance-related professionals and entities, from agents and brokers, to adjusters, consultants, insurers and all the insurance companies operating in the state.

The NHID derives its authority from New Hampshire's Title XXXVII of the Revised Statutes Annotated (RSA), which outlines insurance-related laws. The Department not only enforces compliance, they also handle licensing applications and complaints, oversee disciplinary actions, and conduct investigations into alleged professional misconduct.

It's NHID's job to ensure that insurance professionals adhere to the highest standards of integrity, competence, and fair dealings in the state. Anything under the sun that may affect New Hampshire insurance consumers is sure to be regulated by the NHID.

Top Reasons Why Your License Might Be in Jeopardy

Whether you're based in Manchester, Concord, Dover, or Keene, license suspension or revocation can happen to any insurance professional who is found in violation of the law or industry regulations.

Let's look at some of the most common infractions that can lead to disciplinary action by the NHID:

• Misrepresentation or Fraud: Knowingly misrepresenting facts about a policy, submitting false applications, or engaging in deceptive advertising can result in severe penalties.
• Unethical Sales Practices: Inducing a client to cancel a policy to replace it with one that is not in their best interest, a practice known as “twisting,” is strictly prohibited.
• Churning to Generate Commission: “Churning” is the practice of persuading a policyholder to cancel an existing policy and replace it with a new one, from the same insurance company, to generate additional commission for the agent. It's highly unethical and can lead to not only loss of reputation, but legal consequences.
• Failure to Disclose Criminal History: If you've been convicted of a felony or a financial-related misdemeanor you are required to report it to the NHID, failure to do so can result in your license being revoked.
• Commingling Funds: “Commingling” or mixing client funds with your personal or business accounts is considered a serious fiduciary breach.
• Failure to Report Disciplinary Actions from Other States: If you hold multi-state licenses and are sanctioned elsewhere, the NHID must be notified promptly, failure to do so could lead to a suspension of your license and other disciplinary actions.
• License Application Fraud: Providing false information on your license application or renewal form can void your license entirely.
• Violating Continuing Education Requirements: Not completing mandatory credits on time can lead to a lapse in licensure or disciplinary consequences.
• Involvement in Insurance Fraud or Theft: This includes embezzlement of premiums, creating fake policies, or colluding with clients to submit false claims.

Even seemingly minor administrative oversights, like failing to renew your license on time, can raise red flags and lead to a formal review.

Know the Basics: The Disciplinary Process for Insurance Professionals in New Hampshire

If a complaint is made against you, whether by a client, employer, colleague, or through internal auditing, it typically initiates a formal review process managed by the NHID.

Here's what that process looks like:

1. Complaint Submission
   The disciplinary process starts when a complaint is filed with the NHID. Anyone can file a complaint. Once a complaint is submitted, it is reviewed by the Consumer Services Division or the Fraud Investigation Unit, depending on the nature of the allegation.
2. Initial Review
   After a complaint has been filed, the NHID must determine whether the complaint falls under its jurisdiction and whether there is sufficient basis to proceed. If so, they open an investigation.
3. Notice of Investigation
   You will then receive a written notice of the complaint and the opening of a formal investigation. You may be asked to respond in writing or provide documentation. It's critical at this point to seek legal counsel before responding.
4. Investigation
   Investigators may review client files, interview witnesses, subpoena documents, or even conduct a formal hearing. Depending on the severity of the alleged misconduct, the investigation can take several months.
5. Findings and Recommendations
   Once the investigation is complete, the NHID will either:
• Dismiss the complaint;
• Issue a letter of warning or concern;
• Impose administrative penalties such as fines or continuing education requirements;
• Initiate formal disciplinary proceedings, including license suspension or revocation.
6. Formal Hearing
   If the NHID moves forward with disciplinary action, you are entitled to a formal hearing before the New Hampshire Insurance Department's Administrative Appeals Unit. This is similar to a courtroom setting, where both sides can present evidence and call witnesses. You can (and should) be represented by legal counsel.
7. Decision and Sanctions
   After the hearing, the Commissioner or hearing officer issues a decision. Possible outcomes include:
1. No disciplinary action
2. Fines or restitution
3. Mandated remedial education probation
4. License suspension or revocation
8. Appeal
   If you disagree with the decision, you can appeal to the New Hampshire Superior Court, which has jurisdiction in each county, including Hillsborough, Merrimack, Rockingham, and others.

Consequences of Losing Your New Hampshire Insurance License

Losing your license can end your insurance career, not just in New Hampshire, but potentially nationwide. Because of the National Association of Insurance Commissioners (NAIC) and the national database of producer records, sanctions are often reported across state lines.

Consequences may include:

• Termination of employment
• Loss of commissions or bonus income
• Ineligibility for future licensure
• Damage to professional reputation
• Civil liability or criminal charges in cases involving fraud or theft

In cases of revocation, reapplication for licensure may be barred for years, or permanently, depending on the nature of the offense.

How to Maintain Compliance and Protect Your Insurance License

Of course, the best way to avoid disciplinary action and protect your license is by maintaining compliance and best practices to begin with.

Not every investigation is triggered by intentional wrongdoing, sometimes an accident or oversight can lead to a complaint that sets in motion an investigation and serious disciplinary consequences, including loss of license.

Here are several proactive steps to help you stay in good standing:

1. Stay Current on Continuing Education Requirements
   Missing deadlines for required credits is one of the easiest ways to jeopardize your license. Don't let this simple mistake ruin your hard-earned career! Make a habit of tracking your credit hours and due dates. Set calendar reminders or enroll in an automated tracking service to avoid last-minute scrambles.
2. Be Honest on Applications and Renewals
   Whether applying for a new license or renewing an existing one, always provide accurate, up-to-date information. Misstatements, whether intentional or not, can be grounds for denial, suspension, or revocation.
3. Disclose Criminal or Disciplinary History Promptly
   If you're arrested or face disciplinary action in another state, notify the NHID right away. Failing to report incidents can make a bad situation worse.
4. Keep Client Communications Clear and Documented
   Good documentation can protect you if a dispute arises. Always confirm key details in writing, keep organized records of client interactions, and maintain a paper trail of communications and policy changes.
5. Separate Client Funds from Business or Personal Accounts
   Combining personal funds with client money is a major fiduciary violation. Use dedicated accounts for clients, and maintain clean, auditable records.
6. Avoid Aggressive or Deceptive Sales Tactics
   Practices like “twisting” or “churning” may seem like gray areas, but they're strictly prohibited. Make sure your recommendations are always in the best interest of the client, not your commission.

By taking these precautions, you'll reduce your risk of facing disciplinary action and demonstrate your commitment to professionalism and ethical conduct.

How We Can Help

Sometimes life gets messy, and the insurance industry is no exception. If you are facing legal trouble with your license, we can help.

At the Lento Law Firm, we know how devastating it can be to have your professional license under threat. Our Professional License Defense Team has deep experience with New Hampshire's administrative laws, NHID procedures, and insurance regulations. Whether you're in Manchester, Nashua, Portsmouth, or Derry, we are prepared to guide you through every phase of the process.

Here's how we can help:

• Pre-Investigation Counseling: If you suspect a complaint may be filed or if you've been alerted to a potential issue, we'll help you prepare and respond proactively.
• Responding to NHID Notices: Crafting strong, accurate, and legally sound responses to NHID inquiries is critical to avoiding escalation.
• Representation During Investigation: We'll represent you during interviews, document reviews, and any requests for information.
• Defense at Formal Hearings: If a disciplinary hearing becomes necessary, we'll build a strategic defense, present mitigating factors, and advocate for the best possible outcome.
• License Restoration and Appeals: If your license has been suspended or revoked, we can assist in the appeals process or help you explore reinstatement.

We understand the nuances of both insurance law and administrative procedure. More importantly, we understand what's at stake: your reputation, your career, and your future.

Don't Wait. Protect Your License Today.

Facing allegations from the New Hampshire Insurance Department is serious. If your license is under review or you're the subject of an investigation, don't try to navigate the system alone. The earlier you get legal help, the better your chances of a favorable resolution.

Contact the Lento Law Firm now. Our experienced team is ready to fight for your license and your livelihood.

Call us at 888-535-3686 or use our online contact form to schedule a confidential consultation.