Each quarter the Division of Insurance publishes a list enforcement actions taken against licensees
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 accomplishing 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.
That said, during the course of 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 into a case, the Enforcement Division may interview witness, 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, an investigation may result in a referral to the Attorney General’s office in egregious cases or in less serious[pullquote]The Division’s Special Investigation Unit is in charge of investigating allegations involving licensed insurance producers[/pullquote] cases the Division independently may negotiate settlements or request the commissioner or his deputies to initiate an administrative proceeding before a hearing officer, agree to assist in cease and desist order and a written compliance programs. In cases where licensees conduct warranted the license sanctioned could include revocation or suspension along with restitution. See Agency Checklists’ article “One Way to Avoid Large Fines for You & Your Agency”.
The DOI releases the results of its enforcement actions for First Quarter 2014
The Division of Insurance publishes a list of the enforcement actions it has taken on a quarterly basis. The total fines assess vary widely depending upon the quarters they report. In the most recent report for the quarter ending the Enforcement Division assessed fines totaling $8,850. This was a relatively low amount since over the course of the last two years total fines have, in a given quarter, totaled almost $150,000.00.
What the DOI fined Mass. agents for during this quarter
The following is a summary of the Division of Insurance enforcement actions against licensed producers thus far in 2014:
- There were a total of 10 enforcement actions against licensed insurance producers for the First Quarter of 2014;
- The total amounts of fines assessed this quarter was $5,500 against producers;
- The largest fines assessed were two $1,500 fines for placing or renewing policies while unlicensed;
- Overall, five of the ten enforcement actions involved producers who placed or renewed policies while unlicensed;
- Two of the remaining five enforcement actions involved misrepresentations on a license application which resulted with one producer being fined $500 while the other entered into a settlement agreement along with a cease and desist from violation;
- The remaining three actions involved a Failure to Remit Premium Violation, A Failure to Report a Criminal Prosecution and most interestingly, A Failure To Complete A Continuing Education Requirement;
- The Failure to Report Criminal Prosecution Violation resulted in a settlement agreement along with a permanent license revocation as well as a disposition of all insurance business interests.
- The Failure to Remit Premium Violation resulted in a $500 fine along with a cease and desist from violation; and lastly
- The Failure To Complete A Continuing Education Requirement resulted in a settlement agreement along with a cease and desist from further violations.
The enforcement actions overall were assessed equalling against both non-resident and resident producers with each group of producer having five enforcement actions.
