OR DFR Bulletin 2023-03: Producer contact information, communications, and application guidance

350 Winter St. NE, Rm 410, PO Box 14480, Salem, OR 97309 503-947-7694 dfr.oregon.gov 1 Oregon Department of Consumer and Business Services Division of Financial Regulation, Bulletin No. DFR 2023-3 To: All insurance producers and producer license applicants Date: September 29, 2023 RE: Producer contact information, communications, and application guidance Purpose The purpose of this bulletin is to clarify the Division of Financial Regulation (DFR) expectations for insurance producers and producer license applicants to provide: 1. Proper contact information and notification of changes in address or contact information. 2. Notification of regulatory action or criminal case. 3. Timely response to a director inquiry. 4. Accurate and complete information in applications and information sent to the division. 5. When applying for an insurance license to submit no more than one application at a time. Authority ORS 731.260, ORS 731.296, ORS 731.988, ORS 744.068, ORS 744.074, ORS 744.089, OAR 836-071-0118, and OAR 836-071-0323. Background Division staff have frequently received producer and producer license applicant filings that are incomplete or contain material deficiencies. Division staff also have become aware that licensed producers are not always providing prompt notice of disclosure events. Nondisclosure and filings that are incomplete, deficient, or fail to comply with insurance code requirements place an ongoing burden on limited division resources. This can lead to delays in processing a filing/application, denial of the application, and/or revocation of a producer’s license or other adverse action. Guidance This bulletin is intended to identify the most common notice and filing issues/deficiencies and to remind producers and applicants of their responsibility to timely furnish the division with complete, accurate, and truthful information in all filings. Failure to do so may result in the director taking an adverse action against a producer or applicant, including but not limited to refusal to issue a license, suspending or revoking an existing license, or assessing civil penalties.1 1 Pursuant to Oregon Revised Statue (ORS) 744.074(1) and (1)(a)-(c), the director “…may place a licensee on probation or suspend, revoke or refuse to issue or renew an insurance producer license and may take other actions authorized by the Insurance Code in lieu thereof or in addition thereto, for any one or more of the following causes: 2 9/29/2023 The following is a list of common notice and filing issues and deficiencies noted by division staff: a) Failure to provide a direct phone number that allows staff to contact the individual. For example, using a phone number that connects to a call center instead of a direct phone line. b) Using a generic or shared email address (e.g., licensingteam@xyzco.com) instead of the individual’s direct email address. c) Failing to notify the division within 30 days of changes in producer and applicant address or contact information. d) Failing to notify the division within 30 days if an individual receives a notification of a Regulatory Information Retrieval System (RIRS) violation or notice of a criminal case. e) Failing to provide a prompt and truthful response to an inquiry from the director of the Department of Consumer and Business Services in the time and manner specified. f) Applications that are incomplete, misleading, or contain information that is materially untrue. g) Applicants that submit more than one application with different responses, especially responses that misrepresent misdemeanor/felony convictions declared on a prior filing. The list of common issues and deficiencies noted here is not exhaustive and is provided with the goal of helping to improve the quality and accuracy of producer and applicant filings going forward. Insurance producers and applicants are obligated to follow all Oregon laws and rules governing the sale and marketing of insurance products to consumers. Producers and applicants are responsible for the accuracy of filings made to the division, even when a third party submits a filing on behalf of a producer or applicant. This bulletin is effective upon issuance. ________________________________ __________________ Andrew R. Stolfi Date Insurance Commissioner and Director Department of Consumer and Business Services (a) Providing incorrect, misleading, incomplete or materially untrue information in the license application. (b) Violating any insurance laws, or violating any rule, subpoena or order of the director […]. (c) Obtaining or attempting to obtain a license through misrepresentation or fraud.”