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. ยง1033(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.
