Insurance is an important part of many people's lives. In some cases, it's even required to have, such as when driving a motor vehicle. But insurance is also confusing, with so many rules, caveats, and exceptions. Then add the fact that the purchase of insurance is a significant financial decision, and you can see why many of your customers in Cheyenne, Casper, Laramie, Cody, and Jackson rely on your knowledge and expertise when determining their insurance needs.
Most of your customers, clients, and members of the public are happy with your services and what you do. But what happens if something goes wrong with the insurance advice you provide or the products you help sell? Unfortunately, if any of these individuals decide to file a complaint against you, the Wyoming Department of Insurance might take disciplinary action, putting your Wyoming insurance license in jeopardy.
In these situations, immediate action is necessary. The last thing you need is someone tarnishing your reputation or putting your professional future at risk. The moment you find out the Wyoming Department of Insurance is investigating you or intends to impose sanctions on your insurance license, contact the Professional License Defense Team from the Lento Law Firm. The insurance disciplinary process can be a confusing and stressful time, and you shouldn't go at it alone. To learn more about how we can help, use our online contact form or call us at 888-535-3686.
The Wyoming Department of Insurance
The Wyoming Department of Insurance (DOI) is accredited by the National Association of Insurance Commissioners (NAIC) and has broad authority to regulate various aspects of the insurance business within its borders.
In addition to overseeing the insurance practice of various insurance-related businesses and service professionals, the DOI also approves insurance policy filings, processes license applications, verifies the financial health of insurance companies, collects insurance premiums, investigates consumer complaints, oversees the licensing process for insurance companies and professionals, and helps enforce applicable state insurance statutes and regulations.
The enforcement of relevant insurance code provisions and regulations sometimes requires the DOI to investigate insurance professionals and impose discipline if they find evidence of unlawful behavior or professional misconduct.
Insurance Professionals and Entities Regulated by the Wyoming DOI
The WY DOI regulates a wide variety of insurance professionals and organizations, including:
- Producers (this typically includes insurance agents and insurance brokers)
- Title Agents
- Insurance Adjusters
- Public Adjusters
- Emergency Adjusters
- Insurance Agencies
- Managing General Agents
- Insurance Consultants
- Reinsurance Intermediary Brokers
- Surplus Lines Brokers
- Bail Bonds Issuers (includes individuals and firms)
The Wyoming Department of Insurance also requires individuals and businesses that produce or sell limited lines insurance policies to obtain the appropriate licenses. These limited lines include:
- Travel and Baggage
- Car Rental
- Pre-Need Funeral
- Portable Electronics
- Crop
- Credit
Potential Scenarios for Disciplinary Action by the Wyoming DOI
There are many reasons the DOI of Wyoming might need to investigate or impose sanctions on you:
- Failing to meet continuing education requirements.
- Failing to meet all license application requirements.
- Falsifying license application information.
- Omitting relevant information on a license application.
- Being convicted of a felony that relates to the insurance industry or the ability to practice as an insurance professional.
- Falsely representing the terms or conditions of an insurance contract.
- Receiving discipline in another state relating to an insurance license.
- Committing identity theft or forgery.
- Failing to report a change in business or residential address to the DOI within the requisite amount of time (often 30 days of relocating).
- Violating any other Wyoming insurance law or regulation.
The Licensure Process for Wyoming Insurance Professionals
The exact steps needed to obtain an insurance license in Wyoming depend on who's applying for the license itself. That being said, the following list provides an overview of basic application requirements.
- Producers: Be at least 18 years old, reside in Wyoming, pass the applicable Wyoming Insurance Licensing Exam for the desired lines of authority, complete the application, pay the relevant license fees, and provide fingerprints for a background check.
- Title Agents: Be at least 18 years old, reside in Wyoming, pass the Wyoming Title Agent Licensing Exam, complete the application, pay the relevant license fee, provide fingerprints for a background check, and send an Appointment/Termination Form and a check for $15.00 to the WY DOI.
- Insurance Adjusters: Be at least 18 years old, reside in Wyoming, pass the Wyoming Insurance Adjuster Licensing Exam, complete the application, pay the relevant license fees, and provide fingerprints for a background check.
- Public Adjusters: Be at least 18 years old, reside in Wyoming, pass the Wyoming Property and Casualty Consultant Exam, pay the relevant license fees, and provide fingerprints for a background check.
- Emergency Adjusters: Individuals don't apply for a license. Instead, insurance companies will send the DOI an Emergency Adjuster Registration Form and a list of their emergency adjusters.
- Managing General Agents: Submit a Wyoming Managing General Agent Registration Form to the DOI, provide a copy of all management contracts between the managing general agent and the insurance companies they represent, and send a $100.00 check for the registration fee.
- Credit Line of Authority License: Pass the Wyoming Credit Insurance Exam, complete the online Limited Lines license application, pay the $100.00 application fee, and provide fingerprints for a background check.
- Crop Line of Authority License: Pass the Wyoming Crop Insurance Exam, complete the online Limited Lines license application, pay the $20.00 application fee, and provide fingerprints for a background check.
- Portable Electronics Line of Authority License: Complete the online Limited Lines license application, pay the $20.00 application fee, and provide fingerprints for a background check.
- Pre-need Funeral Line of Authority License: Pass the Wyoming Pre-Need Funeral Insurance Exam, complete the online Limited Lines license application, pay the $20.00 application fee, submit a letter of endorsement from a registered Wyoming funeral home, and provide fingerprints for a background check.
- Rental Car Line of Authority License: Complete the online Limited Lines license application, pay the $20.00 application fee, and provide fingerprints for a background check.
- Travel/Baggage Line of Authority License: Complete the online Limited Lines license application, pay the $20.00 application fee, and provide fingerprints for a background check.
The Continuing Education Requirements for Insurance Professionals in Wyoming
If you're a Wyoming producer, adjuster, public adjuster, title agent, consultant, or crop agent, you're required to complete at least 24 hours of continuing education for your licensing period (usually two years). At least three of those hours must be in ethics.
If you have more than 24 credits for a given licensing period, you may carry over the excess credits to your next license renewal term. However, there's a 12-credit maximum on the carryover, and the credits must have been completed within 120 days of your license expiration date. Finally, carry-over credits only apply to general education credits, not ethics credits.
The Disciplinary Process for Wyoming Insurance Professionals
In many cases, if you learn that the Wyoming DOI is investigating you for alleged misconduct or unlawful behavior, it's because someone filed a complaint against you, usually through the DOI's online complaint portal.
The Complaint
If you're facing disciplinary action from the DOI, they most likely received a complaint from a consumer with allegations that you:
- Improperly handled their insurance claim.
- Misrepresented one or more provisions in an insurance policy.
- Misappropriated insurance premiums.
- Acted unprofessionally or unethically.
The Investigation
After receiving a complaint, the DOI will conduct an investigation. Wyoming's Insurance Code gives the Commissioner of the DOI the authority to conduct any investigations they deem proper so they may confirm if a violation of Wyoming law has occurred. The Commissioner can only start an investigation if there's reasonable and probable cause that a violation has occurred.
The DOI has the authority to subpoena witnesses to testify during the investigation, as well as produce documents and other tangible evidence for review.
There are two potential goals for this investigation. First, it can be used to determine if you violated applicable Wyoming insurance regulations or laws. Second, it can be decided if a hearing should be held to decide if you acted unlawfully.
In most cases, before the DOI imposes any civil penalty against you, it will first schedule a hearing. One main exception to this is if the DOI issues a cease and desist order against you. They will often do this if they believe you have violated an insurance law or regulation (or are about to do so) and want to stop you from acting in your professional capacity, but don't want to (or can't) suspend or revoke your insurance license.
The Hearing
Before handing down a sanction against you, the DOI will normally schedule a hearing. This is part of due process and provides you the chance to tell your side of the story and present any arguments and evidence in your defense.
The DOI must provide you with at least 10 days' notice for the hearing. This notice must be in writing and provide the nature of the alleged violations and the time and place of the hearing.
If the DOI imposes a civil penalty that you disagree with, you may ask for judicial review by a state court of appropriate jurisdiction. This court may review the basis for this penalty, as well as the reasonableness of its amount.
Potential Discipline or Sanctions from the DOI of WY
If the DOI believes you violated Wyoming's insurance laws or regulations, there are several types of sanctions you could potentially face.
First, the DOI may suspend, place on probation, revoke, or refuse to renew your insurance license. They will only do this after allowing you to be heard at a hearing.
Second, the DOI may order you to pay one or more civil penalties, plus the costs of the investigation and disciplinary process (not to exceed $500.00). The amount of the civil penalties will vary depending on your insurance license, the nature of your violations, and the number of violations.
Individual insurance agents and adjusters may pay a maximum of $1,000.00 per violation with a maximum of $10,000.00 in total for any one-year period. All other insurance licensees could face steeper penalties, with a $5,000.00 per violation maximum and a $50,000.00 total maximum for any one-year period.
Cease and Desist Orders
These are unique forms of discipline, as the DOI may issue them even before a hearing. However, if you're ordered to cease and desist your professional practice, you can request a hearing to challenge the order's validity or scope.
If you wish to do this, you must request the hearing within 10 days from receiving the cease and desist order. This request must be in writing, list the grounds for your challenge of the order, and you must personally serve the DOI Commissioner in accordance with Rule 4 of the Wyoming Rules of Civil Procedure.
The DOI will only issue a cease and desist order if they have sworn evidence that you are engaging, or will engage, in prohibited conduct, and that conduct can reasonably be expected to cause immediate and significant harm or injury to the general public.
Additionally, before issuing a cease and desist order, the DOI must have first made a good-faith attempt to contact you to discuss your alleged behavior.
Get Help Protecting Your Wyoming Insurance License
No matter where in Wyoming you work, whether it's Gillette, Rock Springs, Sheridan, or Green River, if your insurance license is at risk, the Professional License Defense Team of the Lento Law Firm can help. The sooner you contact us, the more effectively we can assist you. This is especially true if you're still in the investigation stage. But we can still work to protect your livelihood even if you've already had a hearing and the DOI has already sanctioned you. To learn more about our insurance license defense services, schedule a consultation by calling 888-535-3686 or filling out our online contact form.
