Few business sectors impact the lives of North Dakota citizens more directly than the insurance industry. Insurance professionals are key to the industry's proper functioning, and North Dakota has instituted a licensing process to regulate their conduct. You need a license to do everything from selling policies to adjusting claims, which means the loss of your license directly threatens your livelihood if you work in the field.
Are you a North Dakota insurance professional being investigated by the North Dakota Insurance Department for a license violation? Take this situation seriously because your career and reputation are at stake. The Insurance Department is not your friend in this situation. They may not even be neutral arbiters. Quality legal representation is your best defense against the worst-case scenario. Call the Lento Law Firm Professional License Defense Team at 888.535.3686 or contact us online.
North Dakota Insurance Department
The North Dakota Insurance Department is the regulatory agency responsible for overseeing the state's insurance professionals. Anyone who wishes to work in the field as a claims adjuster, consultant, or insurance agent must have a license from the department. The department's licensing authority is derived from the North Dakota Century Code. The code also empowers the department to investigate complaints against licensees and, if necessary, punish them for code violations.
The Century Code also created the title of “Commissioner,” and it's the commissioner's responsibility to enforce the code. The commissioner has the power to:
- Refuse or reject a license application
- Suspend licenses for code violations
- Revoke licenses for severe code violations
- Place licenses on probationary status
- Levy fines up to $10,000
The commissioner also sets the criteria that licensees placed on probation must satisfy to return their license to full status. The commissioner also determines the extent of the probationary restrictions. Some common examples of these restrictions include:
- Prohibiting licensees from writing policies
- Prohibiting licensees from selling or marketing activities
- Prohibiting licensees from handling claims
- The length of the probation period
Potential Violations of The Century Code
Consumers who buy insurance must trust that they will be treated fairly by their agent and the company from which they purchase insurance. Accordingly, many of the potential century code violations that could result in sanctions deal with abuse of trust, dishonesty, or the appearance of impropriety. Some of the most common causes of complaints and violations are listed below:
- Licensed insurance professionals accepting loans from clients
- Forging client signatures on any insurance document or policy
- Fraud, willful misrepresentation, or dishonesty
- Misappropriating client funds
- Gross incompetence
- Intentionally selling clients more insurance than they reasonably need
- Non-compliance with orders or directives from the North Dakota Insurance Commissioner or the commissioner of another state's insurance department
- Being convicted of a felony (in any state, not just North Dakota)
- Failure to report criminal convictions within 30 days
- Failure to report adverse action against an insurance or professional license you hold in another state
The commissioner can also sanction your license for failing to pay court-ordered child support or for not filing your North Dakota state taxes. This is only a partial list, but the Lento Law Firm Criminal Defense Team can defend you against any of these charges or any charges not listed here. If you have specific questions about whether we can handle your case, please contact us immediately for a consultation.
Although complaints regarding fraud or financial impropriety are the most serious, it's important to realize there is no such thing as a minor violation. Licensed insurance professionals in North Dakota are required to be in full compliance with the Century Code. More importantly, the disciplinary sanctions generally become harsher with each additional offense. That means you will always be better off dealing with the insurance department if you don't have a previous disciplinary history.
License Sanctions Can Negatively Impact You In Several Ways
License suspensions, monetary fines, and license revocations are the most severe punishments the commissioner can hand down. The effect of these sanctions is obvious. Having your license suspended or revoked means you can't work in the field for the duration of the suspension. That would severely hinder your ability to make a living and feed your family.
However, the negative impact of license discipline extends far beyond the initial punishment. The Insurance Department makes license discipline a matter of public record by posting any disciplinary actions on its website. Any prospective client or employer can look up your license to discover whether you've been sanctioned and what you've been sanctioned for.
At best, the knowledge of these sanctions will force you to have an uncomfortable conversation and continually explain a part of your career you would prefer to forget. At worst, the prospective client or employer may decide not to work with you because of the sanctions. In either case, sanctions will complicate your effort to build trust, which is a must for a licensed insurance professional.
Sanctions Can Jeopardize Other Professional Licenses
The damage to your professional reputation is not the only potential complication of license sanctions. Professional licenses in other fields that you hold in South Dakota or any other state could also be at risk. Most state licensing agencies require licensees to self-report any sanctions or disciplinary action against other professional licenses they hold.
The regulatory agency for your other license may also initiate additional disciplinary actions depending on the circumstances. Failing to self-report when required would also expose you to additional sanctions. That's why it's so important to defend yourself against any investigation or sanctions. The Insurance Department is not likely to view your belief that this is a misunderstanding as a sufficient defense against a complaint.
It's not just your insurance career in South Dakota that's on the line in an investigation. It's your entire career and reputation. The Lento Law Firm Professional License Defense Team understands this, and that's why we are so dedicated to our clients. You owe it to yourself to fight for your professional reputation and career against any investigation or complaint. We have a proven track record of helping licensed professionals win that fight.
Who Can Initiate Investigations
Investigations can be initiated in several ways. The Insurance Department has an online portal where anyone who believes you have violated the Century Code or acted improperly under the law. Everyone, from former clients to your current employer or current clients, can file a complaint. However, the department can also independently initiate investigations if it believes you have committed a violation.
For example, if a routine audit uncovers an oversight or unintentional omission on your license application, the department could investigate you for submitting a fraudulent application. Your license could be suspended if the department investigator decides that your omission was intentional.
How Does the Insurance Department Conduct Investigations?
The department is legally bound to assess every complaint against licensees. If this initial complaint assessment reveals the possibility that a violation may have taken place, the department will conduct a formal investigation. The department will notify you of this investigation in writing at the address of record on your original application or most recent license renewal application.
The notification will include the following information:
- Date, place, and time of the alleged violation(s)
- An explanation of which rule(s) you allegedly violated
- The name of the complaining party
This will also be your first opportunity to respond to the allegations, but you only have a limited time to do it. The Century Code gives you twenty days to respond to requests from the commissioner for information regarding a complaint. Failing to respond within twenty days is a separate violation that can lead to further disciplinary sanctions.
Although time is of the essence, we strongly suggest you contact the Lento Law Firm Professional License Defense Team immediately after receiving the complaint notice and before you respond. Anything you say to the department can be held against you, but you don't have the right to remain silent. They can compel your response and charge you with additional violations based on the information you give them.
Responding effectively to a department investigation takes skill and experience. Our Professional License Defense Team has both. We will help you create a response that answers the complaint without exposing you to further sanctions. With that said, we need time to do our work. That's why we recommend contacting us immediately after receiving the complaint notice. The more time we have to work with you, the stronger that response will be.
That's important because in some cases, a strong, concise response may be enough to persuade the department to close the investigation without taking further action. It doesn't happen in every case, but your initial response is your first opportunity to make an impression on the department. Let us help you make the best impression possible.
Advantages of Professional License Defense
Experience matters in life, and if you think back to your early days as a licensed insurance professional, you will likely admit you've come a long way since then. Professional license defense is no different. Putting the Lento Law Firm Professional License Defense Team on the case allows you to put your decades of experience to work for you.
We have successfully defended professional licenses from almost every conceivable charge or complaint. That experience gives us a thorough understanding of what licensing boards are looking for during an investigation. The department's mission is twofold. First, it wants to determine whether you have committed a violation. Second, they want to determine whether you can be trusted with your license.
So, we're doing more than defending you against the allegations in the complaint that led to your case. We are looking to remove any doubt in the minds of department investigators or the Insurance Commissioner about whether you are a risk to the North Dakota insurance industry or consumers in the state. This comprehensive approach helps us maximize your chances of emerging from the investigation without sanctions.
That is not the only potential advantage of working with our Professional License Defense Team. Putting us on the case will allow you to continue focusing on your career instead of dividing your attention between insurance work and defending your insurance license. We will keep track of the paperwork and important dates in your case. Our team will manage the entire process for you.
Show the Insurance Department You Take the Investigation Seriously
The insurance department also wants to know that you take the investigation seriously and that you value your career. Hiring our Professional License Defense Team is a clear signal that you do. Having us on your team will also make it more difficult for an overzealous department investigator to infringe on your rights throughout the investigation process.
That includes hearings. You are entitled to a hearing before the department suspends or revokes your license. This will be your best opportunity to attack the department's case against you and introduce evidence in your favor. It functions like a trial, but the jury consists of Insurance Department appointees instead of your peers. We have helped thousands of licensees successfully navigate the hearing process, and we can do the same thing for you.
You Worked Hard for Your License—We Want to Help You Keep It
As licensed attorneys, we know how much work goes into obtaining professional licenses. You spent years of your life working and studying toward this goal, and it's scary to think about how it could all be undone by one department investigation. The good news is that an investigation doesn't have to lead to license sanctions, but you must be prepared to fight for your license. We are here to help you win that fight.
The first step in winning that fight is recognizing that your career is on the line in any investigation. Your best defense is a legal team that will fight as hard to defend your insurance license as you worked to get it in the first place. Insurance is your life's work. Defending professional licenses is ours. Call the Lento Law Firm Professional License Defense Team at 888-535-3686 or contact us online. We are here for you.
