Garden State insurance agents and brokers now must report any disciplinary actions taken by non-governmental regulatory authorities to the New Jersey Department of Banking and Insurance.
The new law affects disciplinary actions taken by organizations such as the Financial Industry Regulatory Authority.
The law also requires producers to tell the New Jersey department about disciplinary proceedings initiated by insurance departments in other states.
Producers who fail to report disciplinary actions within 30 days may lose their licenses.
The law already has taken effect.
The New Jersey chapter of the National Association of Insurance and Financial Advisors, Falls Church, Va., says NAIFA asked New Jersey Assemblymember Jack Conners to sponsor the bill that tightened New Jersey's disciplinary action reporting rules.
NAIFA New Jersey lobbied for the change because of reports that some producers who had been punished by FINRA for actions such as forgery were still doing business in New Jersey as insurance producers, NAIFA says.
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