sabrina allison sysid 0251664 case 16-14544 - michiganjun 16, 2015 · the respondent, sabrina...

STA TE OF MICHIGAN DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES

Before the Director of the Department of Insurance and Financial Services

In the matter of

Sabrina Allison Enforcement Case No 16-14544 System ID No 0251664 (Unlicensed)

Respondent

Issued and entered on Jlw~9 2016

by Teri L Morante Chief Deputy Director

ORDER TO CEASE AND DESIST AND ADMINISTRATIVE COMPLAINT

The Staffof the Michigan Department oflnsurance and Financial Services (DIFS) by and through the DIFS Office of General Counsel both allege and find that Respondent has violated the Michigan Insurance Code (Code) 1956 PA 218 as amended MCL 500100 et seq

Moreover the Director of DIFS finds that immediate action is necessary and appropriate in the public interest for the protection of the public health safety and welfare and consistent with the purposes fairly intended by public policy and provisions of the Code

APPLICABLE LAWS AND PENALTIES

Pursuant to Executive Order 20 13-1 all authority powers duties functions and responsibilities of the Commissioner of the Office of Financial and Insurance Regulation (Commissioner) have been transferred to the Director of the Department of Insurance and Financial Services (Director)

The Staff believe that violations of the Code may have occurred and the following provisions of law are applicable

Section 227l(b) of the Code MCL 5002271(b) prohibits any person from preparing or issuing a certificate of insurance that contains any false or misleading information concerning an insurance policy referenced in the certificate of insurance

Section 4503(a) of the Code MCL 5004503(a) provides

A fraudulent insurance act includes but is not limited to acts or omissions committed by any person who knowingly and with an intent to injme defraud or deceive

Order to Cease and Desist Enforcement Case No 16-14544 Page 2of4

(a) Presents causes to be presented or prepares with knowledge or belief that it will be presented to or by an insurer or any agent of an insurer or any agent of an insurer reinsurer or broker any oral or written statement knowing that the statement contains any false information concerning any fact material to an application for the issuance of an insurance policy

Section 1201a(l) of the Code MCL 5001201a(l) states that it is a violation for a person to sell solicit or negotiate insurance in this state for any line of insurance without first obtaining a license or qualification for that line

a Negotiate means the act ofconferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits terms or conditions of the contract provided that the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers MCL 5001201(k)

b Sell means to exchange a contract of insurance by any means for money or its equivalent on behalf of an insurance company MCL 5001201 (1)

c Solicit means attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular company MCL 5001201(m)

The following penalties may apply for violations of the above sections

Section 2277 of the Code MCL 5002277 provides as follows

If the director finds that a person has violated this chapter after an opportunity for a hearing under the administrative procedures act of 1969 1969 PA 306 MCL 24201 to 24328 the director shall reduce the findings and decision to writing and shall issue and cause to be served upon the person charged with the violation a copy of the findings and an order requiring the person to cease and desist from the violation In addition the director may order any ofthe following

(a) Payment of a civil fine of not more than $50000 for each violation However if the person knew or reasonably should have known that he or she was in violation of this chapter the director may order the payment of a civil fine of not more than $250000 for each violation An order of the director under this section shall not require the payment of civil fines exceeding $2500000 A fine collected under this subdivision shall be turned over to the state treasurer and credited to the general fund of this state

(b) The director may apply to the circuit court ofIngham county for an order ofthe court enjoining a violation ofthis chapter

CD Order (Insurance) Last Modified 61612015

Order to Cease and Desist Enforcement Case No 16- I 4544 Page 3of4

Section 251 of the Code MCL 500251 provides that the Director may issue a cease and desist order if he finds that a person is acting as an insurance agent without a required license

IT IS THEREFORE ORDERED THAT

CEASE AND DESIST

1 The Respondent Sabrina Allison (hereinafter Respondent) shall immediately CEASE AND DESIST from all activities in violation of Section 120la(l) of the Code MCL 5001201a(l) as described in the attached Statement of Findings

2 Respondent will have 30 calendar days after the service of this Order to contest the Cease and Desist provision set forth in paragraph one above by requesting a hearing Within 10 calendar days after receiving the request the hearing process shall commence This Order shall remain in effect until further order of the Director Any request for a hearing should be addressed to the Department of Insurance and Financial Services Attention Tracy A Janousek Hearings Coordinator PO Box 30220 Lansing MI 48909-7720 or faxed to 517-284-8843

3 Any such hearing held shall address the following issues

a The facts set forth in the Statement of Findings

b The continuation of the Order to Cease and Desist

c Restitution to be paid by the Respondent

4 If a hearing is requested an administrative law judge from the Michigan Administrative Hearing System shall preside over any such hearing

5 Pursuant to Section 251(6) of the Code MCL 500251(6) a person who violates or otherwise fails to comply with an Order to Cease and Desist is subject to one or more of the following

a Payment of a civil fine of not more than $1000 for each violation not to exceed an aggregate civil fine of $30000 However if the person knew or reasonably should have known the conduct was in violation ofthe cease and desist order the person shall be subject to a civil fine of not more than $25000 for each violation not to exceed an aggregate civil fine of$250000

b Suspension or revocation of the persons license or certificate of authority

c Complete restitution in the form amount and within the period determined by the Director to all persons in Michigan damaged by the violation or failure to comply


Order to Cease and Desist Enforcement Case No 16-1 4544 Page 4 of4

ADMINISTRATIVE COMPLAINT

6 With respect to the findings in the attached Statement of Findings that Respondent has

violated Section 2271 of the Code MCL 5002271 Respondent wi ll be given an

opportunity for a hearing before any penalties are imposed The attached Notice of

Hearing provides the date for that hearing and includes an explanation of rights and

procedures However as explained in the attached Order for Hearing the hearing will

be canceled and the Director will be asked to impose appropriate penalties under Section

2277 of the Code MCL 5002277 unless the Respondent does one of three things within

21 days of the date on the attached Certificate of Service

a Reaches a settlement agreement with DIFS or

b Sends a response to the factua l allegations regarding violations of Section 227 1 of the Code MCL 500227 1 AND notifies DIFS that Respondent plans to attend the hearing or

c Fi les a wTitten request giving good reason to have the hearing postponed

7 The Director retains j uriscliction of the matters contained herein and the authority to issue such further Orders as shall be deemed just necessary and appropriate

8 A copy of this Order shall be immediately served upon Respondent

~middotCz4Y111~ Teri L Morante Chief Deputy Director

Dated~ 9 dJfb


STATE OF MICHIGAN DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES


In the matter of


Respondent

STATEMENT OF FINDINGS

1 Pursuant to Executive Order 2013-1 the Director has assumed the statutory authority and responsibility granted to the Commissioner by the Code to exercise general supervision and control over persons transacting the business of insurance in Michigan

2 At all relevant times Respondent SABRINA ALLISON) (hereinafter Respondent) was employed by Charles Walker amp Associates (the Agency) System ID 0083588 an active licensed resident insurance producer agency

3 While employed at the Agency Respondent engaged in unlicensed activity by preparing fraudulent insurance certificates as follows

a On or about July 26 2013 Respondent issued a Certificate of Liability Insurance (COLI) indicating that MM had been added as an additional insured on a policy issued to the Agencys customer RA The COLI falsely represented that RA had valid workers compensation coverage for the term of 42813 to 42814

b On or about February 3 2013 Respondent issued a COLI indicating that IC amp KTMG had been added as an additional insured on a policy issued to the Agencys customer RA The COLI falsely represented that RA had valid workers compensation coverage for the term of 42813 to 42814 Respondent faxed this fraudulent COLI on the Agencys letterhead to IC amp KTMG on February 3 2014

c On or about June 3 2014 Respondent again issued a COLI indicating that MM had been added as an additional insured on a policy issued to the Agencys customer RA The COLI falsely represented that RA had valid workers compensation coverage for the term of42814 to 42815 Respondent faxed this fraudulent COLI on the Agencys letterhead to MM on June 3 2014

d On or about April 9 2015 Respondent issued a COLI indicating that NPA had been added as an additional insured on a policy issued to the Agencys customer RA The COLI falsely represented that RA had valid workers compensation coverage for the term of 42814 to 42815 Respondent faxed this fraudulent COLI on the Agencys letterhead to NP A on April 13 2015

Statement of Findings Enforcement Case No 16-14544 Page 2of4

e On or about August 27 2015 Respondent issued a COLI indicating that SM Inc had been added as an additional insured on a policy issued to the Agencys customer FCFC The COLI falsely represented that FCFC had valid workers compensation coverage for the term of 81415 to 811416

f On or about September 21 2015 Respondent issued a COLI indicating that KBS had been added as an additional insured on a policy issued to the Agencys customer FCFC The COLI falsely represented that FCFC had valid workers compensation coverage for the term of 91915 to 91916

4 Respondent knew or should have known that Section 2271 (b) of the Code MCL 500227l(b) prohibits any person from preparing or issuing a certificate of insurance that contains any false or misleading information concerning an insurance policy referenced in the certificate of insurance

5 Respondent violated Section 227l(b) of the Code MCL 5002271(b) by preparing certificates of insurance that contained false or misleading information as set forth in paragraph three (3) above

6 Respondent has provided justification for sanctions pursuant to Section 2277 of the Code MCL 5002277 by preparing certificates of insurance that contain false or misleading information in violation of Section 2271(b) of the Code MCL 5002271(b) as set forth in paragraph three (3) above

7 Based upon the actions listed above Respondent has committed acts that provide justification for the Director to order the Respondent to cease and desist from her violation of Section 2271(b) of the Code MCL 500227l(b) and to pay a civil fine of $300000 for her violations or if Respondent knew or reasonably should have known that her actions were in violation of the Code a civil fine of $15000

8 DIFS staff also found that Respondent engaged in the following additional unlicensed activity

a On or about May 31 2013 Respondent initiated a premium finance contract for RA

b On or about August 27 2015 and September 21 2015 Respondent processed COLis for insured FCFC

c On or about May 12 2015 a cancellation request from FCFC was processed by Respondent

d On or about October 20 2014 and October 27 2015 Respondent initiated premium finance contracts for PB

e On or about July 1 2015 Respondent processed a cancellation request for WI


Statement ofFindings Enforcement Case No 16-14544 Page 3of4

f On or about September 24 2015 Respondent initiated a premium finance contract for CC

g On or about December 10 2014 and October 6 2015 Respondent initiated premium finance contracts for CT

h On or about October 1 2015 Respondent responded to a quote from SR regarding CTs liquor liability coverage by writing at the bottom of the quote please bind effective 106115 C Walker

1 On or about September 30 2015 Respondent completed a liquor liability application for AA

J On or about November 9 2015 Respondent processed a cancellation request for CT

k On or about March 10 2016 Respondent received a renewal quote from CIBA regarding PLA Respondent wrote at the top of the quote please bind effective 3130116 C Walker

1 On or about May 31 2013 Respondent signed insured RAs name to a premium finance agreement

m On or about May 12 2015 Respondent signed insured FCFCs name to a cancellation request

n On or about October 20 2014 and October 27 2015 Respondent signed insured PB s name to premium finance contracts

o On or about March 27 2015 Respondent signed insured LLLs name to a premium finance agreement

p On or about August 26 2015 Respondent signed insured LLLs name to a letter purporting to be from LLL to NPI The letter certified that there had been no prior losses or claims from 8 18 15 to the present

q On or about September 24 2015 Respondent signed insured CCs name to a premium financing contract

r On or about December 10 2014 and October 6 2015 Respondent signed insured CTs name to premium financing contracts

s On or about October 2 2015 Respondent signed insured CTs name to a liquor liability application

9 By her commission of fraudulent insurance acts in contravention of Section 4503(a) of the Code MCL 5004503(a) and otherwise engaging in the unlicensed practice of insurance


Statement of Findings Enforcement Case No 16-14544 Page4 of4

described above Respondent violated Section 5001201a(l) of the Code MCL 5001201a(l)

10 Based on the aforementioned findings Respondent is acting as an insurance producer without a license as required by the Code



Before the Director of the Department of Insurance and F inancial Services

In the matter of


Respondent

Issued and entered on ~elt(~ 9 2016


ORDER FOR HEARING

The enclosed Administrative Complaint alleges that Respondent has violated Section 227 l (b) of the Michigan Insurance Code MCL 500227l(b) Respondent is entitled to an opportunity for a hearing before imposition of penalties under Section 2277 of the Code MCL 5002277

Therefore it is ORDERED that

1 A hearing shall be scheduled in conformity with the attached Notice of Hearing

2 A copy of thjs Order the Administrative Complaint and the Notice of Hearing shall be sent to the Respondent

3 Within 21 calendar days of the date on the Certificate of Service the Respondent shall either

a Agree to and sign a settlement with DIFS or

b File a response to the allegations in the Administrative Complaint AND file a statement that Respondent plans to attend the hearing as scheduled or

c File a request to postpone the hearing giving good reasons why a postponement is necessary

4 All filings must be submitted to

Order for Hearing Enforcement Case No 16- 14544 Page 2of2

Tracy A Janousek Hearings Clerk Michigan Department of Insurance and Financial Services Office of General Counsel PO Box 30220 Lansing MI 48909-7720 Email janousekt michiganrnv Phone (5 17)284-8729 Fax number (5 17) 284-8843

5 Failure to do one of the tlumiddotee thjngs outlined in paragraph 3 above shall constitute the default of the Respondent and the hearing will be cancelled The Hearings Coordinator shall report the defau lt to the Petitioners attorney

6 The Petitioners attorney shall then file a motion asking the Director to issue a Final Decision finding the allegations in the Administrative Complaint to be true and seeking appropriate remedies against the Respondent which shall include a cease and desist order and may also include a fi ne

Dated - 9 - (p

~t~Teri L Morante Chief Deputy D irector

CD Order ( Insurance) Last Modified 611 6120 15



In the matter of


Respondent

NOTICE OF HEARING

LOCATION At the Department oflnsurance and Financial Services 530 Stevens T Mason State Office Building 530 W Allegan St 8th Floor Lansing Michigan

You are hereby notified that an administrative hearing has been set for the date and time listed above to address the allegations contained in the attached Administrative Complaint

NOTE Ifyou fail to do one of the three things identified in the attached Order for Hearing it will result in cancellation of the hearing and a decision by default against you in which the allegations in the Administrative Complaint are taken as true The Director may revoke your license and impose fines or other remedies as authorized

The hearing wi ll be conducted in accordance with the procedures that apply to the hearing of contested cases under the Michigan Administrative Procedures Act (AP A) 1969 PA 306 as amended MCL 24201 et seq Department oflnsurance and Financial Services Hearing Procedures 2015 Michigan Administrative Code R 79210101 et seq and other procedural provisions of Michigan law that are appropriate

RIGHTS AND PROCEDURES

COUNSEL A party has the right to be represented by an attorney at the partys own expense A corporate entity must be represented by an attorney The address provided by Counsel will be the official address for service of documents regarding this matter If a party is represented by an attorney that attorney is directed to file an appearance promptly with the Hearings Coordinator If a party chooses to proceed without an attorney he or she will be held to the same standards as an attorney including a reasonable knowledge of the rules of evidence as applied in non-jury circuit court civil cases and knowledge of other relevant laws and procedures

Order to Cease and Desist Enforcement Case No 16-14544 of4

(a) Presents causes to be presented or prepares with knowledge or belief that it will be presented to or by an insurer or any agent of an insurer or any agent of an insurer reinsurer or broker any oral or written statement knowing that the statement contains any false information concerning any fact material to an application for the issuance of an insurance policy

Section 1201a(l) of the Code MCL 5001201a(l) states that it is a violation for a person to sell solicit or negotiate insurance in this state for any line of insurance without first obtaining a license or qualification for that line

a Negotiate means the act ofconferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits terms or conditions of the contract provided that the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers MCL 5001201(k)

b Sell means to exchange a contract of insurance by any means for money or its equivalent on behalf of an insurance company MCL 5001201 (1)

c Solicit means attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular company MCL 5001201(m)

The following penalties may apply for violations of the above sections

Section 2277 of the Code MCL 5002277 provides as follows

If the director finds that a person has violated this chapter after an opportunity for a hearing under the administrative procedures act of 1969 1969 PA 306 MCL 24201 to 24328 the director shall reduce the findings and decision to writing and shall issue and cause to be served upon the person charged with the violation a copy of the findings and an order requiring the person to cease and desist from the violation In addition the director may order any ofthe following

(a) Payment of a civil fine of not more than $50000 for each violation However if the person knew or reasonably should have known that he or she was in violation of this chapter the director may order the payment of a civil fine of not more than $250000 for each violation An order of the director under this section shall not require the payment of civil fines exceeding $2500000 A fine collected under this subdivision shall be turned over to the state treasurer and credited to the general fund of this state

(b) The director may apply to the circuit court ofIngham county for an order ofthe court enjoining a violation ofthis chapter


Order to Cease and Desist Enforcement Case No 16- I 4544 Page 3of4



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sabrina allison sysid 0251664 case 16-14544 - michiganjun 16, 2015 · the respondent, sabrina...

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