The First Quarter includes enforcement actions during the months of January, February, and March 2019.
Each quarter, the Division of Insurance publishes a list of the enforcement actions it has taken against licensed Resident and Non-Resident Producers operating in Massachusetts.
Fines imposed during this Quarter totaled $9,750
Q1-2019 saw a rise in the amount of fines imposed by the Division of Insurance as compared to the last quarter reviewed here. In 2018, the Division imposed fines surpassing $100,000.
The largest fine this Quarter was also one involving a DOI Decision…
There were three fines resulting from hearing decisions for this Quarter, with a total of six actions occurring during this quarter overall. The largest fine involved the decision issue in the case of Mark Bresard-Howard, which resulted in a license revocation and $4,000 fine.
As outlined in a March 5, 2019 Agency Checklists’ article, on February 27, 2019, a Division of Insurance hearing officer entered an order against Mark Bresard-Howard of Atlanta, Georgia, revoking his nonresident insurance producer license, ordering him to cease transacting any insurance business in Massachusetts. The Hearing Officer also ordered pursuant to Massachusetts General Laws Chapter (“G.L. c.”) 175, § 166B, to dispose of any interests in Massachusetts as a proprietor, partner, stockholder, officer, or employee of any licensed insurance producer and fined him $4,000.
The license revocation and orders against Mr. Mark Bresard-Howard resulted, in part, from his failure to report administrative actions taken against him in other states as required by G.L. c. 175, § 162V(a). For those interested in reading about this case, please continue on to the article entitled, “License Revoked and Fined For Failure To Report Actions on Insurance Producer Application.”
Another hearing decision leading to a $2,000 fine
In addition to the case involving Mr. Bresard-Howard, the DOI issued another hearing decision in March resulting in the revocation of a Non-Resident Insurance Producer’s license.
On March 29, 2019, the Division of Insurance hearing officer, Kristina A. Gasson, entered an order against Kotera Heard (“Ms. Heard”) of Chicago, Illinois. The order revoked Ms. Heard’s nonresident insurance producer license, and further ordered her to cease transacting any insurance business in Massachusetts, and, under Massachusetts General Laws Chapter (“M.G.L. c.”) 175, § 166B, to dispose of any interests in Massachusetts as a proprietor, partner, stockholder, officer, or employee of any licensed insurance producer. Finally, the order imposed a fine against her of $2,000 for four violations of the Massachusetts insurance laws.
The license revocation and orders against Ms. Heard resulted, in part, from her failure to report administrative actions taken against her in other states as required by G.L. c. 175, § 162V(a). To read an analysis of the case and the Division’s decision, please continue on to “Mass. Hearing Officer Revokes Producer’s License and Fines Her $2,000.”
A look at all of the enforcement actions published this Quarter
In addition to the cases discussed above, the following are the other two hearing decisions which resulted in the total of amount of fines imposed during Q3-2018.
- Mass License No: 1887194
- SIU Case NO: 9603
- DOCKET NO: E2018-14
- Date: 2/1/2019
- Allegations: Licensed Revoked by Another State
- Disposition: Consent Agreement
- Fine: none
- Licensing Action: Revocation
- Mass License No: Mark Bresard-Howard
- SIU Case NO: 9362
- DOCKET NO: E2018-04
- Date: 2/27/2019
- Allegations: Providing incorrect, misleading, incomplete or materially untrue information on license application, Violation of Insurance Laws, Revoked in Another State, Failure to Report Administrative Action.
- Disposition: Hearing Officer Decision
- Fine: $4,000
- Licensing Action: Revocation; Cease & Desist
- Mass License No: 2073809
- SIU Case NO: 9685
- DOCKET NO: n/a
- Date: 2/28/2019
Allegations: Unlicensed Activity
Disposition: Settlement Agreement
Fine: $500
Licensing Action: Cease & Desist
- Mass License No: 2044946
- SIU Case NO: 9631
- DOCKET NO: n/a
- Date: 3/7/2019
- Allegations: Unlicensed Activity
- Disposition: Settlement Agreement
- Fine: Licensing Action: $750.00
- Mass License No: Kotera Heard
- SIU Case NO: 9242
- DOCKET NO: E2018-03
- Date: 3/29/2019
- Allegations: Trustworthiness, License Revoked by Another State, Failure to Report Administrative Action
- Disposition: Hearing Officer Decision
- Fine: $2,000
- Licensing Action: Revocation, Cease & Desist
More about the Division of Insurance and its SIU unit…
While the primary mission of the Division of Insurance is “…to monitor the solvency of its licensees in order to promote a healthy, responsive and willing marketplace for consumers who purchase insurance products” a major part of that mission involves insurance enforcement. The DOI engages in a variety of administrative actions throughout the year in order to ensure that the insurance industry and its representatives maintain a just and healthy marketplace.
In the ordinary course of the Division of Insurance regulating the Massachusetts insurance industry, the Division’s Special Investigation Unit will pursue allegations of misconduct against any persons licensed by the DOI including:
- insurance producers;
- insurance advisers; public adjusters;
- reinsurance intermediaries;
- viatical loan brokers and providers;
- viatical settlement brokers and providers;
- insurance companies; health maintenance organizations; and,
- self-insurance groups.
As part of its investigation, the Division’s Special Investigation Unit may interview witnesses, question licensees, demand and review documentary evidence supporting allegations of unfair methods of competition or unfair trade practices or any other violation of the insurance law.
If a specific investigation warrants further action, egregious cases may result in a referral to the Attorney General’s office. In less serious cases the Division independently may negotiate settlements or request the Commissioner or his deputies to initiate an administrative proceeding before a hearing officer, issue a cease and desist order or compel written compliance programs. In more egregious cases, a licensee’s conduct may warrant sanctions including license revocations or suspensions along with restitution and possible fines.
To learn more about avoiding enforcement issues, you may be interested in Agency Checklists’ May 2, 2011 article “One Way to Avoid Large Fines for You & Your Agency.”
