Insurance agents will be required to notify the state if they have been disciplined by any non-governmental regulatory agency under a new law signed yesterday.
The new law requires insurance producers licensed in New Jersey to report to the commissioner any disciplinary action taken against the producer, or the initiation of disciplinary proceedings against the producer by the Financial Industry Regulatory Authority (FINRA) or any other non-governmental regulatory authority within 30 days of the final disposition of the matter.
If an agent fails to do so, the commissioner may suspend his insurance license. Producers can face fines of up to $10,000 for a first violation, up to $25,000 for a second violation and up to $100,000 for a third or subsequent violation.
The state already requires agents to report disciplinary actions taken by other state regulators.
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