The Wrong Response to Consent Orders Can Be Costly
Insurance state regulators expect licensees to demonstrate the highest standards of professional and ethical conduct. When they fail to do so, the result is often a consent order, also known as an administrative action/order, stipulation, or sanction. In most cases, consent orders are issued when agents or agencies fail to address correspondence from a regulatory body. Insurance agents and agencies need to respond to these correspondences promptly and correctly to prevent a consent order.
Avoid These Common Mistakes
There are many situations that can lead agents and agencies to receive a consent order. For example, failing to report any of the following within the specified timeframe—typically 30 days:
- Individual or agency name change
- Address change
- Delinquent child support obligation
- An old criminal offence on a new license application or a new criminal offence
- Change of owner, director, or officer or corporate structure
- Denial of license application or suspension/revocation of license
- Failing to respond to a DOI communication when directed
- Conducting business without a license (unlicensed surplus lines activity can generate some of the largest penalties)
One of the biggest misconceptions about consent orders is that once they have been resolved in the issuing state, no further action is necessary. In fact, failing to report a consent order in all states where the agent or agency is licensed can cause a domino effect of additional consent orders. Fortunately, the National Insurance Producer Registry (NIPR) now makes it simpler for agents and agencies to handle such notifications.
Mitigate and Resolve Consent Orders with Ease
ReSource Pro makes dealing with consent orders simple. Our compliance specialists communicate directly with the departments of insurance on your behalf and respond to their inquiries and communications. In addition to ensuring the information on file for you in the NIPR is accurate and complete, we’ll upload letters of explanation, consent orders, legal documents, and proofs that a fine or penalty has been paid. In some cases, our experts can even negotiate with regulators to have penalties for lesser regulatory violations reduced or even withdrawn.
Learn more about how ReSource Pro and ILSA, a ReSource Pro company, can help you meet your compliance needs by visiting the ILSA website.