Producer Sanction Reports (7/09)
Customer Consultants often hear about the need to find disciplinary information on insurance agents and the companies who hire them. It is frustrating to visit individual state insurance Web sites to find this information, especially if data is needed from multiple states. We recommend using the Producer Sanction Report. In this source you can use nexis.com® segments across multiple jurisdictions, in one quick and comprehensive search. Your results will consist of insurance producer sanctions, as well as applicable NASD broker actions.
The Producer Sanction Report is a tool to aid companies performing background checks on producers of insurance products. The 1994 Federal Crime Bill (Violent Crime Control and Law Enforcement Act, 18 U.S.C.A. §1033(e)), clearly states that an individual who has been convicted of "any criminal felony involving dishonesty or a breach of trust" may not engage in the "business of insurance" as defined in this Act. A company may be liable if it appoints or retains a producer convicted of this type of felony, especially if the company doesn't have procedures in place to identify these producers. Non-compliance by company officials is punishable by fine and/or imprisonment.
CLEAR Market Practices updates the Producer Sanction Report each month with states publicly reported, recent disciplinary actions against producers and NASD actions against brokers. CLEAR Market Practices reports more than 5,000 sanctions each year.
