The California Department of Insurance has recently issued a notice relating to the reporting requirements of any changes in background information to the Department within 30 days of learning of the change. Although this notice if from California, it is important because nearly every state has the same requirement. If details changed from your initial application(s), related to individual licensees, officers, directors, owners, etc. they must be updated.
Examples of Background Changes Subject to the Reporting Requirement:
- Any felony and/or misdemeanor conviction, including convictions for driving under the influence (DUI), reckless driving, or driving on a suspended/revoked license.
- A filing of felony criminal charges in state or federal court.
- Administrative actions regarding any professional or occupational license, including but not limited to, actions against an insurance and/or real estate license.
- A licensee’s discharge, or attempt to discharge, in a bankruptcy proceeding, an obligation regarding any insurance premiums or fiduciary funds owed to any company, including a premium finance company or managing general agent.
- Any admission, or judicial finding or determination, of fraud, misappropriation or conversion of funds, misrepresentation, or breach of fiduciary duty.
- Etc.
Failing to report a change within 30 days is grounds for discipline and may result in fines in addition to the revocation, suspension, or restriction of a license. Please note that most states require updates in a similar manner as outlined by California.
For any questions related to the above referenced notice in California, please contact Westmont Associates!