Legality of Eliminating Office, Staff, Phones, and Files

[moonlightandmargaritas]

I have seen many agent's loose their licenses and be heavily fined by their State just for not keeping their records straight.

A very interesting assertion. Please quantify "many". 4? 216?

 

[TwiLight]

A very interesting assertion. Please quantify "many". 4? 216?

At least 6 or more in my home State MI, 4-5 in FL and the same number in IL. I Know of 2 agents personally In CA and know of at least 4 more in CA.

Those come to mind.... So That is many in my assertion in the past 7 years or so and occur more frequently in the P&C area than L/A&H.

Only one was of those (MI) was stripped of License and it had to do mostly with commingling of Funds for P&C and not having applications (paper) not in good order

 

[djs]

I'm confused on your assertions. Lets break this down.

Are you saying that the agents you are referencing above got in trouble with some authority only because they did not have paper copies of signatures? Or was it because they didn't have copies of the paperwork at all?

In other words, specifically, did they get in trouble because they had well organized electronic copies and this scanned copy was not acceptable to the auditor?

Missing documents is different. Comingling of funds is different. But I want to know if they got in trouble because they actually had a scanned copy of the paperwork and that was not acceptable to the licensing bureau. Heck, I don't even know to many carriers that object to this.

Can you cite a reference to keeping the actual paper copy of the documents, outside of an appointment contract?