“How To” User’s Guide - geninfo.com

1 Dated: 8/6/2018 State Requirements on background Checks in the Insurance Industry Copyright 2016 General Information Services. Copying by GIS customers and prospects permitted. All other copy prohibited. All rights reserved. How To User s Guide We do not provide legal advice. Nothing in this document or that we provide should be relied upon as legal advice. The information provided in the document changes regularly. We do not claim that the information is accurate, complete, or up-to-date. The document should be used as a starting point or a check point in research efforts, not as an end point. Legal counsel should be consulted for legal advice concerning legal responsibilities, and to ensure that policies and procedures are in compliance with local, state, and federal laws and regulations.

2 The information analyzed in this document is intended to be comprehensive and is provided in two formats a chart at the beginning and a textual summary at the end. The chart provides a quick but detailed analysis of state requirements for background checks in the Insurance Industry. The information in the chart breaks down the types of checks that based on our internal survey of extensive insurance-industry customers applicants undergo during the background check , fingerprint requirements, regulations, and link to the background check application forms. Violent Crime Control and Law Enforcement Act of 1994 On September 13, 1994, President Bill Clinton signed the federal Violent Crime Control and Law Enforcement Act of 1994 ( Act ) that made it illegal for an individual convicted of a crime involving dishonesty, breach of trust, or a violation of the Act to work or continue to work in the business of insurance affecting commerce without receiving written consent from an insurance regulatory official authorized to regulate the insurer.

3 Section 1033(e)(1)(A) makes it a felony crime for a person to engage or participate in the business of insurance if that person has ever been convicted of a state or federal felony crime involving dishonesty or a breach of trust (or of a crime under 18 1033). In effect, the law prohibits certain felons from ever working in the business of insurance unless they secure written consent. Section 1033(e)(1)(B) makes it a felony crime for a company or person, who is engaged in the business of insurance to willfully permit the participation of a person who is prohibited under 1033(e)(1)(A). The law also makes it a crime for any of these employers or their subcontractors to continue to employ an individual if the employer or subcontractor subsequently learns of a conviction and does not immediately terminate the individual s employment.

4 Dated: 8/6/2018 State Requirements on background Checks in the Insurance Industry Copyright 2016 General Information Services. Copying by GIS customers and prospects permitted. All other copy prohibited. All rights reserved. License Denial by the Commissioner When applying for a license, the commissioner must find the applicant trustworthy and be of good character and reputation as to morals, integrity, and financial responsibility. In most states, the commissioner can refuse to issue an insurance producer s license or any other type of insurance license if the applicant committed the following acts: a) Providing incorrect, misleading, incomplete, or materially untrue information in the license application; b) Violating any insurance laws, or violating any regulation, subpoena or order of the director or of another insurance commissioner in any other state; c) Obtaining or attempting to obtain a license through misrepresentation or fraud; d) Improperly withholding, misappropriating or converting any moneys or properties received in the course of doing insurance business; e) Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance.

5 F) Having been convicted of a felony; g) Using any fraudulent, coercive, or dishonest practice, or demonstrated any incompetence, untrustworthiness or financial irresponsibility in the conduct of business in this state or elsewhere; h) Having an insurance producer license, or its equivalent, denied, suspended or revoked in any other state, district or territory; i) Forging another s name to an application for insurance or to any document related to an insurance transactions; j) Knowingly accepting insurance business from an individual who is not licensed; k) Having admitted or been found to have committed any insurance unfair trade practice or fraud; l) Improperly using notes or any other reference material to complete an examination for an insurance license; or m) Failing to pay state income tax or to comply with any administrative or court order directing payment of state income tax.

6 The list immediately above is the key for the column on the following pages entitled Cause of License Denial, Suspension, or Revocation. Dated: 8/6/2018 State Requirements on background Checks in the Insurance Industry Copyright 2016 General Information Services. Copying by GIS customers and prospects permitted. All other copy prohibited. All rights reserved. STATE Employment Credit County Crime Federal Crime State Crime State Board Fingerprints Renewal State Statute or Insurance Website background Form Cause of License Denial, Suspension, or Revocation. Alabama 5 years X X X X X All renewals are handled electronically. You have to submit proof of citizenship through this link .You have to meet your Continuing Education requirements prior to the time that you complete the online renewal process.

7 Insurance Website a, c, d, f, g, h, I, j, k, l Alabama Code 27-7-19 Alaska 5 years X X X X The Division sends renewal notification 60 days before expiration. Renewals can be done electronically. Paper renewal requires an additional $50 processing fee. Continuing education only applies to residents licensed for more than 24 months. Residents subject to CE are required to complete a minimum of 24 credit hours, of which at least three credits must be in ethics. Credits for all Alaska-approved courses completed after January 1, 2014 will be electronically reported by the CE provider Insurance Website c, d, e, f, g, h, I, j, k Alaska Statute Arizona 5 years X X X If you don t renew your license before the expiration date, you ll be required to pay $100 late renewal fee.

8 You have to complete the Continuing Education course. The license fee is $ You will have to go to to update license information and renew your license; or download and complete form L-191 with your fee payment. Statute Website a, b, c, d, e, f, g, h, i, k Arizona Revised Statutes 20-295 Arkansas 5 years X X X X X X Go to to renew your license online. Click this link to get a price of the license renewal fees. CE is required for the following license classes before a renewal will be allowed: Adjuster and producers who hold a major line of authority of accident health & sickness, casualty, life, personal lines, property, and title agent. The renewal is due on the expiration date of the license. Statute Website a, b, c, d, e, f, g, h, i, j, k, l, m Arkansas State Statute 23-64-512 Dated: 8/6/2018 State Requirements on background Checks in the Insurance Industry Copyright 2016 General Information Services.

9 Copying by GIS customers and prospects permitted. All other copy prohibited. All rights reserved. STATE Employment Credit County Crime Federal Crime State Crime State Board Fingerprints Renewal State Statute or Insurance Website background Form Cause of License Denial, Suspension, or Revocation. California 5 years X X X X X Continuing education must be completed before the expiration date of your license. CDI suggest that you complete your continuing education at least 60 days prior to the expiration date. CDI's Online Renewal Service is also available to insurance agents, brokers, and adjusters who want to renew their licenses after the license expiration date has passed. Insurance Website f, k California Code of Regulation Title 10 Article 2183 Colorado 5 years X X X Go to Applicant cannot late renew an inactive license.

10 Applicant must reinstate or reapply through the NIPR's Resident License (RL) Application. Statute Website a, b, c, d, e, f, g, h, i, j, l Colorado Revised Statutes 10-2-801 Connecticut 5 years X X X Renewal schedule is January 31st every even year (business entity $160 fee) and birthdate every other year for individual producers. If you hold Property/Casualty, Personal Lines, Life, or Health authority, you must complete 24 continuing education credits to renew. Non-residents and business entities are not required to complete Continuing education. Go to Statute Website a, b, c, d, e, f, g, h, i, j, k, l, m Connecticut General Statutes 38a-702k Delaware 3 years X X X X Renewal period December 1st of odd years February 28th or 29th in leap year fee is $ for residents.