What is Section 1729.2 of the California Insurance Code?

Holders of any professional license should take special care when facing criminal charges because your freedom is not the only thing at stake - so too is your license and right to earn a living. Professional organizations, such as the California Medical Board, the California Department of Insurance, and the California Department of Real Estate, have specific rules with regards to all criminal charges, and reserve the right to take disciplinary action against licensees who violate those rules. Penalties can include public reprimand, license suspension, license revocation, denial of licensure or denial of renewal.

California Insurance Licenses

If you’re an insurance agent facing criminal charges, beware: in addition to your physical freedom, your professional license is also at risk. An applicant or licensed California insurance agent has a duty, under Insurance Code Section 1729.2, to notify the commissioner when his or her “background information” changes. This includes not only misdemeanor and felony convictions, but also the filing of criminal charges, which triggers the notification requirement under section 1729.2(c)(2). 

California Insurance Code Section 1748.5 gives the commissioner the power to bring your business as an agent or producer to a screeching halt for engaging in “misconduct,” but you still have rights. You have the right to notice and a hearing in most instances and in others your insurance privileges will be immediately yanked. In certain cases, you must request a hearing from the commissioner within a limited period of time, or you may have the option of transferring jurisdiction to the Superior Court. Alternatively, the commissioner may allow you to pay a monetary fine in lieu of license suspension and/or you may be asked to reprove your industry qualifications. 

Needless to say, an insurance agent or producer with criminal charges pending has a tangled web to navigate which, if not done properly, may lead to revocation of your license, fines up to $50,000, and loss of professional reputation. At Spiga & Associates, we recognize how important your insurance license is and we are here to fight for your rights both in court and in front of the insurance commissioner.

CALL FOR A CONSULTATION 818-501-8600

California Medical Licenses

If you’re a licensed medical professional facing criminal charges, your freedom, finances and license to practice are all at serious risk. The Medical Board of California has the right to investigate and take disciplinary action against any licensed doctor who engages in “unprofessional conduct,” and may deny new applicants for the same reason.

Here at Spiga & Associates, we focus in Medical License Defense cases. Visit our website for more information on how to protect your Medical License today!

The laws governing conduct as a licensee are contained in the California Business and Professions Code, Section 2234 of which defines “unprofessional conduct” as including, but not limited to the following:

• Violating or attempting to violate, directly or indirectly, assisting in or abetting the violation of, or conspiring to violate any provision of this chapter.
• Gross negligence.
• Repeated negligent acts.
• Incompetence.
• Any act involving dishonesty or corruption which is substantially related to the qualifications, functions, or duties of a physician and surgeon.
• Any action or conduct which would have warranted the denial of a certificate.
• The unlicensed practice of medicine.

The Code also requires prosecutors to directly notify the Division of Medical Quality as soon as felony or misdemeanor charges are filed against a licensee. A conviction, guilty plea, or no contest plea may all be used against you in disciplinary proceedings, and a felony conviction results in automatic suspension of your medical license. Contact a medical license defense attorney at Spiga & Associates so we can help defend your freedom and protect your right to practice medicine.

CALL FOR A CONSULTATION 818-501-8600

California Real Estate Licenses

Like many other licensed professionals, real estate agents are subject to the rules and regulations of the state licensing board, and may be facing disciplinary action if convicted of a crime.

For example, anyone working for a corporate real estate brokerage, including officers, directors, and anyone owning more than 10% of the firm, has a duty to report any changes in “background information” to their corporate representative, who must then report it to the Department of Real Estate.

1. The fraudulent taking, obtaining, appropriating or retaining of funds or property belonging to another person.
   
2. Counterfeiting, forging or altering on of an instrument or the uttering of a false statement.
   
3. Willfully attempting to derive a personal financial benefit through the nonpayment or underpayment of taxes, assessments or levies duly imposed upon the licensee or applicant by federal, state or local government.
   
4. The employment of bribery, fraud, deceit, falsehood or misrepresentation to achieve an end.
   
5. Sexually related conduct affecting a person who is an observer or non-consenting participant in the conduct or convictions which require registration pursuant to the provisions of Section 290 of the Penal Code.
   
6. Willfully violating or failing to comply with a provision of Division 4 of the Business and Professions Code of the State of California.
   
7. Willfully violating or failing to comply with a statutory requirement that a license, permit or other entitlement be obtained from a duly constituted public authority before engaging in a business or course of conduct.
   
8. Doing of any unlawful act with the intent of conferring a financial or economic benefit upon the perpetrator or with the intent or threat of doing substantial injury to the person or property of another.
   
9. Contempt of court or willful failure to comply with a court order.
   
10. Conduct which demonstrates a pattern of repeated and willful disregard of law.
    
11. Two or more convictions involving the consumption or use of alcohol or drugs when at least one of the convictions involve driving and the use or consumption of alcohol or drugs.

The Code goes on to say that even convictions for attempted or solicited crimes can be used against a licensee as the basis for discipline or license revocation. Once your license has been restricted, suspended, or revoked due to criminal conviction, you must wait at least two years to even reapply for your license; if your history demonstrates a pattern of criminal behavior or if the conviction is deemed particularly related to the profession, you may have to wait even longer than that. In addition, the criteria for “rehabilitation” following a conviction include everything from payment of fines and restitution, to changes in attitude and social circles, stability of family life, and community or church involvement.

The State of California and the California Department of Real Estate has a strong interest in maintaining high standards for licensed professionals, and a criminal conviction or even allegation can have devastating consequences without proper preparation and representation. As soon as you have been arrested or charged in a criminal case, it is of the utmost importance that you contact qualified legal counsel to take the immediate steps required to protect your most valuable assets. At Spiga & Associates, we recognize the value of your license to practice real estate, and we are here to help build you a fortress of defense to guard both your freedom and your right to make a living.

CALL FOR A CONSULTATION 818-501-8600

Other Professional Licenses

Other professionals whose license may be at risk due to criminal charges include, but are not limited to:

-Accountants: may be facing 120-day suspension, 3+ years of probation, or even license revocation for one felony conviction or multiple misdemeanor convictions;

-Dentists: suspension or revocation for conviction of any crime “substantially related to the qualifications, functions or duties” of the profession;

-Aestheticians /Cosmetologists: a criminal conviction can lead to denial of license and suspension or revocation of license if rehabilitation requirements not met;

-Social workers: denial or revocation for conviction of crime related to profession, including those involving dishonesty, fraud, deceit, or inappropriate or sexual relations with a client.

Even if you do not practice the profession itself, but are involved in an establishment that provides any of the aforementioned professional services, you too may be subject to certain rules and regulations upon criminal conviction. If you need a medical license defense lawyer, or other professional license defense, contact Spiga & Associates for more about the impact of criminal charges on your professional license.

CALL FOR A CONSULTATION 818-501-8600