The Mississippi Insurance Department has revoked the licenses of 59 insurance producers after the agents failed to appear at a July 20 administrative hearing to contest allegations that they obtained or maintained Mississippi resident producer licenses through material misrepresentation or false pretenses. Insurance Commissioner Mike Chaney said investigators determined the agents did not reside in Mississippi despite applying for resident licenses, with most reportedly living in Florida. The investigation began after information was received from the Centers for Medicare & Medicaid Services and a health insurance carrier concerning applications to sell health insurance through the Federal Health Insurance Marketplace.
According to the department, investigators also found that some producers failed to disclose criminal histories on their licensing applications. Commissioner Chaney said providing false information on licensing applications can result in license revocation as well as potential civil and criminal penalties. The Mississippi Attorney General’s Office is assisting with the revocations and additional pending cases.
For insurance professionals, the case illustrates how regulators are increasingly sharing information across agencies and with insurers to identify licensing fraud. The investigation demonstrates how marketplace enrollment data, licensing records, and residency verification can be combined to detect alleged misconduct. It also serves as a reminder that licensing applications are subject to ongoing scrutiny, not simply review at the time of issuance.
The administrative orders show each respondent was served with a notice of hearing, failed to appear, and was declared in default before the department concluded the licenses had been obtained through material misrepresentation. The orders cite Mississippi Code Section 83-17-71, which authorizes license revocation and civil penalties for providing materially untrue information or obtaining a license through fraud.
