An amendment was signed into law on January 17, 2010 which requires insurance producers to notify the Commissioner of the New Jersey Department of Banking and Insurance of disciplinary actions taken against them by the Financial Industry Regulatory Authority (FINRA) or other similar non-governmental regulatory authorities that have statutory authority to create and enforce industry standards of conduct. Specifically, producers must notify the Commissioner within 30 days of any disciplinary action taken, or of the final disposition of any formal disciplinary proceeding initiated.

Failure to comply with the new notification requirements authorizes the Commissioner to temporarily suspend a producer’s license. After notice and the opportunity for a hearing, the Commissioner may also impose a penalty of up to $10,000 for a producer’s first violation of the notification requirements, and up to $100,000 for a producer’s third violation.

To view the amendment, click here. To view the Senate Commerce Committee’s statement regarding the amendment, click here.