The Calianos Insurance Agency has also filed a complaint with the Commissioner of Insurance
The Division of Insurance issued an order on the Calianos Insurance Agency’s Request to Stay a Decision of CAR. The Calianos Insurance Agency has been a family-owned agency in Roxbury for over 50 years and is currently run by Jason Calianos, who also serves as the current head of the Massachusetts Urban Agents Association.
As reported in an earlier article, on September 11, 2012, the Governing Committee Review Panel denied Mr. Calianos’ request for relief, upholding the termination of Mr. Calianos’ appointment as Exclusive Representative Producer of the Safety Insurance Company for commercial business. The decision also effectively decertified him as an Assigned Risk Producer (“ARP”) denying him and his agency the authorization to place private passenger motor vehicle insurance with the Massachusetts Automobile Insurance Plan (“MAIP”).
On October 5, 2012, the Calianos Insurance Agency filed a Notice of Appeal from that decision with the Commissioner of Insurance. In a separate action, the agency also filed a complaint with the Commission of Insurance pursuant to its right under M.G.L. c. 175 §113H. The complaint alleges that both Safety Insurance and the Pilgrim Insurance Company “…engaged in unfair or improper practices” and seeks “…relief in the form of orders requiring them to take certain corrective action.” The Division of Insurance’s order, however, only addresses the request for a stay of CAR’s decision.
On October 12, 2012, the Division of Insurance held a hearing on the Calianos appeal in which both the Calianos Agency and its legal representatives and a legal representative from CAR presented arguments and documents. As a result, the following is a verbatim reproduction of the orders issued by Presiding Officer Jean F. Farrington after the hearing:
- CAR”s Decision upholding the termination of the appointment of Jason Calianos and/or the Calianos Agency to Safety Insurance Company as an ERP for commercial business, set out in its letter to Jason Calianos dated September 13, 2012 (the “September 13, 2012 letter”) is hereby stayed pending a final decision by the Commissioner on the Calianos Agency’s appeal pursuant to Rule 20 of the CAR Rules of Operation.
- CAR”s Decision decertifying Jason Calianos and/or the Calianos Agency as an ARP authorized to place motor vehicle insurance with the MAIP and to serve policies written through the MAIP, set out in the September 13, 2012 letter is hereby stayed pending a final decision by the Commissioner on the Calianos Agency’s appeal pursuant to Rule 40 of the MAIP Rules of Operation.
- The appointment of Jason Calianos and/or the Calianos Agency to the Safety Insurance Company as an ERP for commercial business shall remain in effect throughout the stay.
- The certification of Jason Calianos and/or the Calianos Agency as an ARP authorized to place insurance business in the MAIP shall remain in effect throughout the stay.
- CAR is to return to Jason Calianos and.or the Calianos Agency all stamps and other materials that are required to place business through the MAIP no later than 12:00 noon on Monday, October 15, 2012.
- CAR is to send a copy of this Order to each person or company to which it sent a copy of its letter to Jason Calianos dated September 13, 2012, utilizing the same distribution methodology (FAX and EMAIL), no later than 12:00 noon on Monday, October 15, 2012.
- The hearing on the merits of the appeals under CAR Rules 20 and 40 will be conducted on an expedited basis.
The Division of Insurance will be issuing a further scheduling order on this issue either today or tomorrow.
This whole issue stems from The Safety Insurance Company’s actions in issuing a notice of termination to the Calianos Agency citing violations of CAR Rule 13.B.2.a., “failure to remit payments to a Servicing Carrier on a timely basis,” Rule 13.B.2.f., “failure to comply with reasonable procedures of the Servicing Carrier for remitting premium,” and Rule 15, “the producer shall remit premium payments in accordance with the contract signed with the Servicing Carrier.” The Calianos Agency responded by admitting that it had had agency problems in 2010 and early 2011 but that the issues had been rectified by implementing several operational changes to the agency as of April 1, 2011.
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