Professional Licensing Investigations and Enforcement Actions

Professional licensing investigations can be unsettling, especially for insurance professionals whose ability to work depends on maintaining an active license in good standing. In many cases, an investigation begins quietly, without much warning, and before a license holder realizes what is happening, the matter has escalated into a finding that the insurance professional has violated Maryland insurance laws. Unfortunately, even professionals who believe they have done nothing wrong can find themselves facing investigations and enforcement actions that threaten their livelihood and reputation. Brown & Bullock has extensive experience representing insurance professionals facing licensing investigations and enforcement actions. Contact our Maryland insurance lawyers for assistance dealing with professional licensing investigations and enforcement actions today.

Maryland Agencies That Regulate Insurance Professionals

Insurance professionals are subject to oversight from multiple state agencies, each with its own authority. In many cases, these agencies work together, which means an issue that begins with one regulator can quickly draw attention from others.

The main regulatory authority for insurance professionals is the Maryland Insurance Administration. The MIA is responsible for licensing insurance producers, adjusters, and other insurance professionals, as well as enforcing insurance laws. The agency investigates complaints, conducts audits and examinations, and has the authority to impose administrative penalties or take disciplinary action against license holders.

The Maryland Department of Labor also plays a role in professional licensing oversight. Its focus is broader, but the Department of Labor may become involved when investigations raise concerns related to occupational licensing requirements, business practices, or employment-related conduct that intersects with insurance regulation. In addition, Maryland regulators may coordinate with other entities, including the following:

• Consumer protection agencies when policyholders file complaints
• Federal regulators if conduct potentially violates federal law
• Insurance departments in other states for professionals licensed in multiple states
• Law enforcement or prosecutorial agencies where criminal conduct is alleged

What Triggers a Professional Licensing Investigation?

Many insurance professionals assume that licensing investigations only occur after serious misconduct. This isn’t always true. In reality, investigations often begin for far more routine reasons and then grow from there. Some of the most common triggers include:

• Consumer complaints alleging misrepresentation or improper conduct
• Routine audits or compliance reviews conducted by regulators
• Mandatory self-reporting of certain events, such as criminal charges or adverse administrative actions
• Failure to self-report criminal charges or adverse administrative actions
• Referrals from other agencies or regulators

Types of Allegations in Licensing Investigations

Licensing investigations often focus on whether an insurance professional has complied with statutory duties, ethical standards, and regulatory requirements. The specific allegations depend on the license type and the circumstances involved. Some of the most common allegations include:

• Misrepresentation or false statements during policy sales or applications
• Failure to disclose material policy terms or limitations
• Improper handling or misappropriation of premiums or client funds
• Acting without proper licensure
• Employment of unlicensed individuals where a license is required
• Inadequate recordkeeping or documentation failures
• Failure to cooperate with a regulatory investigation

The Professional Licensing Investigation Process in Maryland

Every licensing investigation is different.  That being said, most professional licensing investigations follow a similar path. Typically, a licensing investigation includes:

• An initial inquiry or notice requesting documents or information
• Review of records, communications, and transaction histories
• Interviews with the license holder and potentially other witnesses
• Additional requests for information and explanations

At the conclusion of the investigation, the regulatory agency will typically either close the investigation or issue an order finding a violation of Maryland law.  The findings in an order can range in scope and severity, often imposing fines, and in many cases, actions against the professional’s license, including suspension or revocation.  While not every investigation leads to an order finding wrongdoing, all investigations should be treated seriously.  If you’re facing a professional licensing investigation, it’s important to have a team of seasoned Maryland insurance lawyers in your corner to advise you of your options and protect your interests.

Contact Us for Assistance With Professional Licensing Investigations & Enforcement Actions

Our legal team understands just how disruptive these investigations can be. If you have additional questions or need an attorney who can effectively represent your interests, please don’t hesitate to contact Brown & Bullock, LLC.