How to Renew Your Insurance License with a Criminal Background: Part 3 – Massachusetts through New Jersey

Having a criminal charge or conviction in one’s background can make things more difficult for a licensed insurance producer. However, it doesn’t always have to mean the end of a career, as long as you follow your state’s procedures for reporting the new history. It’s best to start with your resident state, but don’t forget to notify all states where you hold a nonresident license as well. 

In a recent example of what not to do, a producer had his Michigan nonresident license permanently revoked when the state found out he didn’t report a felony conviction he’d received in Arizona. In this case, the insurance producer was serving time in Arizona State Prison, so he wasn’t selling insurance in his resident state, or anywhere else for that matter. Still, he might have avoided a permanent revocation in Michigan if he’d reported his conviction in a timely manner.  

To help you fulfill your reporting obligations, we’ve created this state-by-state guide to how each state handles an already-licensed producer who needs to report new criminal charges, convictions, military convictions, or adminstrative actions. For a bit more background on the laws surrounding certain types of felonies, and how the Producer Licensing Model Act (PLMA) tries to standardize procedures across states, see Part One of this five-part series, which also covers the first 10 states. 

Jump to a state

With 50 states plus the District of Columbia to cover, we’ve divided this topic into a series. This article covers Hawaii through Maryland, and you can click the state below to jump directly to it – including states not covered in this particular article. 

Alabama | Alaska | Arizona | Arkansas | California | Colorado | | Connecticut | Delaware |  Florida | Georgia | Hawaii | Idaho | Illinois |  Indiana | Iowa | Kansas | Kentucky | Louisiana | Maine | Maryland  | Massachusetts | Michigan | Minnestoa | Mississippi | Missouri | Montana | Nebraska | Nevada | New Hampshire | New Jersey | New Mexico | New York | North Carolina | North Dakota | Ohio | Oklahoma | Oregon | Pennsylvania | Rhode Island | South Carolina

A quick reminder about the Producer Licensing Model Act

Before we dive into how each state deals with producers reporting new criminal activity in their backgrounds, it’s also relevant to note the National Association of Insurance Commissioners (NAIC) deals with this in its Producer Licensing Model Act (PLMA). While this is model legislation, and not a law, many states use it – or at least base their own laws on the NAIC’s model. 

According to Section 17 of the PLMA, a producer must report any new criminal and administrative actions taken against them by any state, jurisdiction, or governmental agency within 30 days. While each state may interpret or implement this in its own way, many states base their criminal history reporting procedures on the model legislation. 

One thing that doesn’t change state to state is the requirement to report within 30 days. If you take nothing else away from this series of articles, know that you’re better off reporting any new charges, convictions, or administrative actions to your resident and nonresident license states as soon as possible. Each state allows the producer to provide context surrounding the charges or convictions for consideration. Few states have hard and fast rules that immediately disqualify a producer.

TL;DR: Report any new criminal charges, prosecutions, convictions, and administrative actions to your state department or division of insurance to avoid being penalized for not meeting the reporting of actions requirements.     

How to renew my Massachusetts insurance license after a criminal conviction

Massachusetts law, Chapter 175, Section 162V states that a licensed producer has 30 days to report to the insurance commissioner: 

• Any administrative action taken against the producer in another jurisdiction or by another governmental agency in the commonwealth (from the date of “final disposition of the matter”).
• Any criminal prosecution of the producer taken in any jurisdiction (within 30 days of the “initial pretrial hearing date”). 

Administrative action reports must include a copy of the order, consent to order, or other relevant legal documents; and criminal prosecution reports should include a copy of the initial complaint filed, the order resulting from the hearing, and any other relevant legal documents. 

Those additional documents may consist of:

• A written statement explaining the circumstances of each incident;
• A copy of the charging document;
• A copy of the official document, which demonstrates the resolution of the charges or any final judgment.

The Massachusetts Division of Insurance advises that “producers reporting a criminal conviction should strive to provide as much of this information as possible.”

To comply with these reporting requirements, producers licensed in the Commonwealth of Massachusetts should upload documents to the NIPR Attachments Warehouse – Reporting of Actions. 

What about misdemeanors in Massachusetts?

Massachusetts law makes no distinction between felony and misdemeanor charges and convictions, so any producer with a Massachusetts license should report any criminal charges and convictions. 

In Massachusetts, civil traffic violations aren’t “criminal” infractions, and thus don’t need to be reported. Civil traffic violations include those types of incidents in which there’s “no death or risk of bodily harm.” Don’t be confused, though: Massachusetts still has felony and misdemeanor traffic offenses, like driving with a suspended license, which do need to be reported. 

What about nonresident producers seeking to renew their Massachusetts license after a conviction?

All producers with Massachusetts licenses, both resident and nonresident, are subject to the state’s reporting requirements. The state will consider reported charges or convictions on a case-by-case basis, as long as nonresident producers follow the reporting requirements. 

For crimes that require a 1033 consent waiver, Massachusetts specifically doesn’t make an independent decision. The state accepts the producer’s home state’s decision on whether to grant a 1033 waiver or not. 

How to renew my Michigan insurance license after a criminal conviction

Sections 500.1247(1) and 1247(2) of the Michigan Insurance Code require licensed producers to report both administrative actions and criminal charges to the Michigan Department of Insurance and Financial Services (DIFS) within 30 days. The clock starts at the final disposition of an administrative action, or the date of the initial pretrial hearing for criminal charges. 

In both cases, the law states that producers who don’t comply with the reporting timelines will be subject to fines. 

Michigan instructs licensees to report in one of three ways: 

1. Using the NIPR Attachments Warehouse – Reporting of Actions, which the state reminds producers will alert all states in which the individual is licensed. 
2. By faxing documentation to the Insurance Licensing Section at 517-284-8836.
3. By mail to DIFS Insurance Licensing Section, PO Box 30220, Lansing, MI 48909-7720

After reporting any of the above in the correct way and within the correct timeframe, a producer may still need to complete and submit an application for written consent to engage in the business of insurance if the state determines the nature of the reported crime requires one. 

If it turns out that you need a 1033 waiver, the state of Michigan grants them for resident and nonresident producers alike, based on its own review of the application. Being granted a 1033 consent waiver in your resident state doesn’t mean Michigan will automatically grant you one, too. 

What about misdemeanors in Michigan?

Michigan requires licensed producers to report all charges, whether misdemeanor or felony, except for those classified as “misdemeanor traffic offenses,” which don’t need to be reported. 

What about nonresident producers seeking to renew their Michigan license after a conviction?

Michigan makes determinations about who can maintain their insurance license based on state law and the specifics of the reported offense. The procedures and reporting requirements are the same for resident and nonresident producers.

How to renew my Minnesota insurance license after a criminal conviction

According to Minnesota statutes section 60K.54:

Administrative actions. A producer shall report to the commissioner any administrative action taken against the producer in another jurisdiction or by another governmental agency in this state within 30 days of the final disposition of the matter. This report must include a copy of the order, consent to order, or other relevant legal documents.

Criminal prosecutions. Within 30 days of the date criminal prosecution begins, a producer shall report to the commissioner any criminal prosecution of the producer taken in any jurisdiction. The report must include a copy of the initial complaint filed, the order resulting from the hearing, and any other relevant legal documents. In addition, a producer shall report to the commissioner within ten days any conviction, guilty plea, or plea of nolo contendere to any felony or gross misdemeanor.
Criminal prosecutions. Within 30 days of the date criminal prosecution begins, a producer shall report to the commissioner any criminal prosecution of the producer taken in any jurisdiction. The report must include a copy of the initial complaint filed, the order resulting from the hearing, and any other relevant legal documents. In addition, a producer shall report to the commissioner within ten days any conviction, guilty plea, or plea of nolo contendere to any felony or gross misdemeanor.

For purposes of this subdivision, the date the criminal prosecution begins is the date the indictment is returned or the date the criminal complaint is filed.

Source: https://www.revisor.mn.gov/statutes/cite/60K.54

In the absence of any other specific information from the state, both resident and nonresident Minnesota producers should use the NIPR Attachments Warehouse – Reporting of Actions to submit the required documentation. 

Like many other states, Minnesota puts “having an insurance producer license, or its equivalent, denied, suspended, or revoked, or having been the subject of a fine or any other discipline in any other state, province, district, or territory” as one of the reasons the state can deny, revoke, or nonrenew a producer’s license. So, it’s important to make sure you’re in good standing with other states to keep your Minnesota license in place.  

What about misdemeanors in Minnesota?

Minnesota doesn’t have specific information about misdemeanors versus felonies. Since the law states that all criminal prosecutions have to be reported, we advise producers to apply this to both felony and misdemeanor prosecutions. There’s no specific list of offenses that Minnesota doesn’t require reporting for. 

What about nonresident producers seeking to renew their Minnesota license after a conviction?

Minnesota doesn’t differentiate between resident and nonresident producers when it comes to reporting requirements. Nonresident producers should follow the same instructions for reporting actions as resident producers, keeping in mind that Minnesota can use another state’s denial of a license as a reason to do so itself.

How to renew my Mississippi insurance license after a criminal conviction

Mississippi Code Title 83 section 83-17-81 dictates the following: 

• A producer shall report to the commissioner any administrative action taken against the producer in another jurisdiction or by another governmental agency in this state within thirty (30) days of the final disposition of the matter. This report shall include a copy of the order, consent to order or other relevant legal documents.
• Within thirty (30) days of the initial pretrial hearing date, a producer shall report to the commissioner any criminal prosecution of the producer taken in any jurisdiction. The report shall include a copy of the initial complaint filed, the order resulting from the hearing and any other relevant legal documents.

Source: https://law.justia.com/codes/mississippi/2020/title-83/chapter-17/article-2/section-83-17-81

To comply with the law, producers should upload these documents to the state using the NIPR Attachments Warehouse – Reporting of Actions.

What about misdemeanors in Mississippi?

Mississippi doesn’t have specific information about misdemeanors versus felonies. Since the law states that all criminal prosecutions have to be reported, we advise producers to apply this to both felony and misdemeanor prosecutions. There’s no specific list of offenses that Mississippi doesn’t require reporting for. 

What about nonresident producers seeking to renew their Mississippi license after a conviction?

Mississippi doesn’t differentiate between resident and nonresident producers when it comes to reporting requirements. Nonresident producers should follow the same instructions for reporting actions as resident producers. 

How to renew my Missouri insurance license after a criminal conviction

According to Missouri law, Section 375.141.1: 

• An insurance producer shall report to the director any administrative action taken against the producer in another jurisdiction or by another governmental agency in this state within thirty days of the final disposition of the matter. This report shall include a copy of the order, consent order, or other relevant legal documents.
• Within thirty days of the initial pretrial hearing date, a producer shall report to the director any criminal prosecution for a felony or a crime involving moral turpitude of the producer taken in any jurisdiction.  The report shall include a copy of the indictment or information filed, the order resulting from the hearing, and any other relevant legal documents.

The law also states that “having been convicted of a felony or crime involving moral turpitude” is a grounds for license revocation, suspension, or nonrenewal. If you’ve been charged with any crime, it’s important to follow the reporting procedures. When it comes to ones involving moral turpitude, Missouri grants 1033 consent waivers on a case-by-case basis, and doesn’t reciprocate another state’s waiver. 

What about misdemeanors in Missouri?

Missouri doesn’t have specific information about misdemeanors versus felonies. Since the law states that all criminal prosecutions have to be reported, we advise producers to apply this to both felony and misdemeanor prosecutions. There’s no specific list of offenses that Missouri doesn’t require reporting for. 

What about nonresident producers seeking to renew their Missouri license after a conviction?

There are no special rules for nonresident producers. Missouri states that the Director of the Missouri Department of Commerce & Insurance retains discretion and reviews applications on a case-by-case basis. 

One final note on insurance licensing and criminal convictions in Missouri

Missouri specifies that it’s not just the individual producer who can be in trouble for their criminal activity.

“The license of a business entity licensed as an insurance producer may be suspended, revoked, renewal refused or an application may be refused if the director finds that a violation by an individual insurance producer was known or should have been known by one or more of the partners, officers, or managers acting on behalf of the business entity and the violation was neither reported to the director nor corrective action taken.”

Source: ​​https://revisor.mo.gov/main/OneSection.aspx?section=375.141

How to renew my Montana insurance license after a criminal conviction

Montana Insurance Code 33-17-1001 says that an insurance producer can lose their license for being convicted of a felony, or if they’ve “had a similar license denied, suspended, or revoked in any other state” – among many other reasons.  

While we haven’t been able to locate Montana’s reporting of actions requirements online, email correspondence from the state’s insurance licensing supervisor provided us with the following information. As always, when in doubt, it’s best to contact the Montana Commissioner of Securities & Insurance to get instructions for your specific situation. 

To comply with these reporting requirements, producers should upload documents to the NIPR Attachments Warehouse – Reporting of Actions. Montana says the uploaded documents should include a written statement explaining the circumstances of each incident, a copy of the charging document, and a copy of the official document, which demonstrates the resolution or the charges or any final judgment. Like other states, Montana requires these to be submitted within 30 days.

What about misdemeanors in Montana?

Montana requires licensed producers to report all criminal charges, including felonies and misdemeanors. The only exceptions noted by the state’s insurance licensing supervisor are traffic violations and misdemeanor DUI charges, which don’t need to be reported.

What about nonresident producers seeking to renew their Montana license after a conviction?

Montana treats nonresident producers the same as resident producers, in terms of reporting requirements. 

For crimes that require a 1033 waiver, Montana reciprocates and follows the determination of the producer’s resident state. For crimes not related to dishonesty and moral turpitude, for which no 1033 is required, Montana states that it generally will reciprocate the determination of the resident state, however, reserves the right to make its own determination on a case-by-case basis.  

The bottom line is, report your criminal charges and convictions to Montana even if you’re not a resident licenseholder. 

How to renew my Nebraska insurance license after a criminal conviction

According to Nebraska Revised Statute 44-4059, “The director may suspend, revoke, or refuse to issue or renew an insurance producer’s license or may levy an administrative fine…” for a number of reasons, including being convicted of a felony or a Class I, II, or III misdemeanor.  

If you find yourself in this situation, Nebraska Revised Statute 44-4065 further explains:

For administrative actions: “An insurance producer shall report to the director any administrative action taken against the producer in another jurisdiction, by a professional self-regulatory organization such as the Financial Industry Regulatory Authority or a similar organization, or by another governmental agency within thirty days of the final disposition of the matter. This report shall include a copy of the order, consent to order, or other relevant legal documents.”

For criminal prosecutions: “Within thirty days of the date of arraignment or date of waiver of arraignment, if waived, an insurance producer shall report to the director any criminal prosecution of the producer taken in any jurisdiction. The report shall include a copy of the initial complaint filed, the order resulting from the hearing, and any other relevant legal documents.”

Source: https://nebraskalegislature.gov/laws/statutes.php?statute=44-4065

To fulfill these requirements, producers should upload documents to the NIPR Attachments Warehouse – Reporting of Actions. The upload should include:

• A written statement explaining the circumstances of each incident;
• A copy of the charging document;
• And a copy of the official document, which demonstrates the resolution or the charges or any final judgment.

What about misdemeanors in Nebraska?

In Nebraska, license holders and applicants may exclude reporting misdemeanor convictions or pending misdemeanor charges involving: traffic citations, driving under the influence (DUI), driving while intoxicated (DWI), driving without a license, reckless driving, or driving with a suspended or revoked license. They may also exclude juvenile adjudications.

All other misdemeanors need to be reported, the same as felonies. 

What about nonresident producers seeking to renew their Nebraska license after a conviction?

There aren’t any different procedures for nonresident Nebraska license holders compared to resident producers. Anyone with a Nebraska license needs to follow the same instructions outlined above, and in the law. 

For crimes that require a 1033 consent waiver, Nebraska makes its determination on whether to grant one on a case-by-case basis and not based on whether the producer’s resident state has already done so. 

One final note on insurance licensing and criminal convictions in Nebraska

Nebraska specifies that it’s not just the individual producer who can be in trouble for their criminal activity. 

“The license of a business entity may be suspended, revoked, or refused if the director finds, after notice and hearing, that an individual licensee’s violation was known or should have been known by one or more of the partners, officers, or managers acting on behalf of the business entity and the violation was neither reported to the director nor corrective action taken.”

Source: ​​https://nebraskalegislature.gov/laws/statutes.php?statute=44-4059

How to renew my Nevada insurance license after a criminal conviction

According to Nevada law NRS 683A.341:

A producer of insurance shall report to the Commissioner:

      1.  Any administrative action taken against the producer of insurance in another jurisdiction or by another governmental agency in this state, within 30 days after the final disposition of the matter. The report must include a copy of the complaint filed, the order issued, and any other relevant legal documents.

      2.  Any criminal prosecution against the producer of insurance in any jurisdiction, within 30 days after the initial pretrial hearing. The report must include a copy of the complaint filed, the order as a result of the pretrial hearing, and other relevant legal documents.

Source: https://www.leg.state.nv.us/nrs/NRS-683A.html#NRS683ASec341

Producers should fulfill these reporting requirements by uploading documents to the NIPR Attachments Warehouse – Reporting of Actions. 

The uploaded documents should include: 

• A written statement explaining the circumstances of each incident;
• A copy of the charging document; and
• A copy of the official document, which demonstrates the resolution of the charges or any final judgment. 

Although this article is generally referring to criminal charges and convictions that don’t require a 1033 waiver, Nevada has a pertinent point to mention on this topic. If a resident producer commits a 1033 crime during the licensing period, the Nevada Division of Insurance will defer to its enforcement and legal teams for further investigation and “most likely” not renew the license. The Division of Insurance does state, however, that this depends on the severity of the crime, but most likely a crime that needs a 1033 waiver would be considered too serious to allow the producer’s license to remain in place. 

What about misdemeanors in Nevada?

Nevada’s reporting requirements are the same whether you’re dealing with a felony or misdemeanor. There are a few exceptions that producers don’t need to report, and these include: 

• Traffic citations
• Driving under the influence (DUI)
• Driving while intoxicated (DWI)
• Driving without a license, 
• Reckless driving
• Driving with a suspended or revoked license

What about nonresident producers seeking to renew their Nevada license after a conviction?

Nevada makes no distinction between resident and nonresident producers when it comes to reporting requirements. According to email correspondence with the Nevada Division of Insurance, the state takes each nonresident producer’s situation on a case-by-case basis, although it typically offers reciprocity to nonresident producers who’ve already reported their criminal prosecutions to their resident state.  

In the case of crimes that require a 1033 waiver to continue selling insurance, Nevada doesn’t issue 1033 waivers to nonresident producers. It requires them to obtain a 1033 from their home state and typically grants reciprocity to the producer who does so. In the event that Nevada consumers were harmed by the crime, the Nevada Division of Insurance may conduct further investigations, resulting in a decision not to grant reciprocity and revoke or nonrenew the producer’s license. 

How to renew my New Hampshire insurance license after a criminal conviction

New Hampshire law, Title XXXVII Section 402-J:17, states that a licensed producer has 30 days to report to the insurance commissioner: 

• Any administrative action against the producer in another jurisdiction or by another governmental agency in this state (30 days starting the date of the final disposition of the matter). 
• Any criminal prosecution of the producer taken in any jurisdiction (within 30 days of the initial pretrial hearing date). 

Such reports must include (for administrative actions) a copy of the order, consent to order, or other relevant legal documents, and (for criminal prosecutions) a copy of the initial complaint filed, the order resulting from the hearing, and any other relevant legal documents.

To comply with these reporting requirements, producers licensed in New Hampshire should upload documents to the NIPR Attachments Warehouse – Reporting of Actions. 

What about misdemeanors in New Hampshire?

New Hampshire’s law makes no distinction between felonies and misdemeanors. Without further clarification from the state, we’d advise licensed producers to report all criminal prosecutions as stated in the law. Depending on the state, traffic violations may be classified as civil and not criminal, so licensees may not need to report them but should confirm this for themselves. 

What about nonresident producers seeking to renew their New Hampshire license after a conviction?

There’s no indication in New Hampshire’s law that nonresident producers should follow a different set of procedures than resident producers. Everyone should follow the above rules and use the NIPR Attachments Warehouse – Reporting of Actions to submit documentation.

How to renew my New Jersey insurance license after a criminal conviction

According to New Jersey Revised Statutes 17:22A-47: 

An insurance producer shall report to the commissioner any administrative action taken against the insurance producer in another jurisdiction or by another governmental agency in this state within 30 days of the final disposition of the matter. This report shall include a copy of the order, consent order, or other relevant legal documents.

Within 30 days of the initial pretrial hearing date, an insurance producer shall report to the commissioner any criminal prosecution of the producer taken in any jurisdiction. The report shall include a copy of the initial complaint filed, the order resulting from the hearing, and any other relevant legal documents.

An insurance producer shall report to the commissioner any disciplinary action taken against the insurance producer, or any formal disciplinary proceedings initiated against the producer, by the Financial Industry Regulatory Authority (FINRA), any successor organization, or other similar non-governmental regulatory authority with statutory authority to create and enforce industry standards of conduct, within 30 days of the final disposition of the matter. The report shall include a copy of the order, consent order, or other relevant legal documents.

Source: https://law.justia.com/codes/new-jersey/title-17/section-17-22a-47/

If you’ve been paying attention to our coverage of each state’s rules about licensed producers with new criminal charges, you’ll notice New Jersey’s law is the first to include the requirement to report disciplinary actions by FINRA and other “similar non-governmental regulatory authority…” This is particularly applicable to dually licensed broker-dealers who sell traditional insurance products along with securities and security-adjacent insurance products. 

To adhere to New Jersey’s reporting requirements, producers need to report all of the above via the NIPR Attachments Warehouse – Reporting of Actions. Or, if you prefer a less streamlined way of doing things, you can email the state at inslic@dobi.nj.gov or even use the postal service to send your paper documents to: 

State of New Jersey

Department of Banking and Insurance

PO Box 325

Trenton, NJ 08625

What about misdemeanors in New Jersey?

New Jersey’s law makes no distinction between felonies and misdemeanors. Without further clarification from the state, we’d advise licensed producers to report all criminal prosecutions as stated in the law. Depending on the state, traffic violations may be classified as civil and not criminal, so licensees may not need to report them but should confirm this for themselves. New Jersey provided this phone number for producers looking for more information: (609) 292-7272.

What about nonresident producers seeking to renew their New Jersey license after a conviction?

New Jersey requires resident and nonresident producers alike to report all criminal prosecutions. In the case of a crime involving dishonesty, breach of trust, or moral turpitude, the state says that a nonresident producer who’s already obtained a 1033 waiver and holds an active resident license in their resident state may still be eligible for their New Jersey nonresident license. The state doesn’t however, make it clear whether it’ll automatically reciprocate the granting of a 1033 waiver. 

What to do if you have new criminal charges or convictions

As we’ve made our way through the first 30 U.S. states, one thing’s become clear. Every state requires insurance producers to report new criminal activity to the insurance commissioner or department of insurance, and to do so within 30 days. Beyond that, the specifics vary. Whether there’re exceptions to the types of crimes that need to be reported, whether a producer needs to report charges or only convictions, and what the chances are that you can keep an active license after reporting any type of criminal conviction are among the variables that each state determines for itself. 

We hope this guide has been helpful, but the bottom line is that if you’re an insurance producer facing criminal charges or convictions, your best bet will be to consult with your attorney and your state’s DOI directly to make sure you fulfill any requirements. Doing nothing is guaranteed to land you in more trouble than following the state’s reporting requirements. 

To learn more about the nuances of state-by-state insurance compliance, check out our free Compliance Library where we’ve done the research for you. If you’re ready to make compliance streamlined and automatic at your insurance agency, carrier, MGA, or MGU, see how AgentSync can help.