Compliance with Regulation 54

DATE: February 17, 2004 RE: Compliance with Regulation 54 The Department has recently noticed a failure by companies and agents to comply with Alabama Departmental Regulation No. 54 (Reg. 54). Reg. 54 requires that the Commissioner of Insurance be notified within thirty (30) days regarding several events including but not limited to the filing of a civil lawsuit, the rendering of a verdict, or the finding of a court against a producer, where such a lawsuit, verdict, or finding of a court alleges or charges the producer with committing any of the following acts in the state of Alabama; intentional misrepresentation, fraud, dishonesty, misappropriation or conversion of funds, breach of fiduciary duty, or any other offense involving a breach of trust. It also requires that the Department be notified of the arrest, indictment or conviction of a licensee for the commission of either of the following; Any felony. Any misdemeanor involving dishonesty or breach of trust. This regulation has been in effect since October, 2000. This is to alert licensees which includes any insurance company, insurer, general agent, agent, broker, service representative, solicitor, adjuster, surplus lines broker, and any other company, corporation, partnership, limited liability company, association or person licensed to transact the business of insurance in this state; that we will not tolerate the disregard of this or any of our regulations. As a licensee it is your responsibility to be familiar and knowledgeable about Alabama insurance laws and regulations. Be advised that administrative action will be taken against parties who fail to comply.