SC Administrative Law Court Decisions

In the above captioned matter, Respondent Dewey K. Donley requested a contested case hearing before the South Carolina Administrative Law Court pursuant to a licensing letter issued to Respondent by Petitioner South Carolina Department of Insurance. The parties have now agreed to settle this contested case under the terms as set forth in the attached document entitled “Consent Order Imposing Administrative Penalty $2,500.00 and One (1) Month Suspension,” SCDOI Docket # 07-1071. The Consent Order is incorporated herein by reference.

IT IS THEREFORE ORDERED that this contested case action is dismissed with prejudice.

AND IT IS SO ORDERED.

__________________________________ JOHN D. GEATHERS

Administrative Law Judge

1205 Pendleton Street, Suite 224

Columbia, South Carolina 29201-3731

April 21, 2008

Columbia, South Carolina

SETTLEMENT AGREEMENT

06-ALJ-09-0560-CC

WHEREAS pursuant to the licensing letter issued by the Department to Healthcare Casualty of America, Inc. on November 19, 2002, the Company was required to have one million two hundred fifty thousand ($1,250,000) dollars in capital and surplus as of December 31, 2005; and

WHEREAS on May 3, 2006, the Department issued a letter alleging, inter alia, that Healthcare Casualty failed to meet the requirements of Sections 38-90-40 and/or 38-90-50 of the Code of Laws of South Carolina 1976, as amended and notifying Healthcare Casualty of its right to a contested case hearing before the Administrative Law Court; and

WHEREAS, the Company timely requested a contested case hearing; and

WHEREAS, certain materials have been filed with the Clerk of the Administrative Law Judge Division and with the Administrative Law Judge assigned to the contested case which are confidential under one or more provisions of Title 38, Chapter 90 of the South Carolina Code of Laws; and

WHEREAS the Company acknowledges only that it failed to meet the requirements set forth in the Department’s letter of November 19, 2002 and Sections 38-90-40 and/or 38-90-50 with respect to capitalization and/or surplus; and

WHEREAS the parties wish to avoid the risks and expense of litigation, and settlement of this matter in accordance with the terms set forth herein and such further terms as the Court may direct is in the best interest of the parties and the public and is a just and equitable resolution of this matter.

NOW, THEREFORE, pursuant to the authority granted to the Director of the Department by S.C. Code Ann. 38-90-90 (2000 and Supp. 2005) and in accordance with the S.C. Administrative Procedures Act (APA) and S.C. Code Ann. § 1-23-10 et seq. the parties have agreed the Company will waive its right to a hearing and consent to the revocation of its captive insurance company license, and;

SETTLEMENT AGREEMENT

06-ALJ-09-0560-CC

IT IS FURTHER STIPULATED that the following materials are to be treated as CONFIDENTIAL pursuant to the requirements of S.C. Code Ann. 38-90-35 & S.C. Code Ann. 38-90-80(B) (2000 and Supp. 2005) by the Clerk of the Administrative Law Judge Division:

1. Attachment to the Notice of Request for Contested Case Hearing

2. Attachment to the Agency Information Sheet and Notice of Appearance

3. Agency Prehearing Statement

4. Respondent’s Prehearing Statement

The parties present these terms to the South Carolina Administrative Law Court for the entry of a Consent Order, stating that this agreement constitutes settlement of a disputed claim.

s/Geoffrey R. Bonham______ s/John P. Seibels, Jr.________________

Geoffrey R. Bonham, Esquire John P. Seibels, Jr., Esquire

South Carolina Department of Insurance Seibels Law Firm, P.A.

PO Box 100105 165 A King Street

Columbia, SC 29202-3105 Charleston, SC 29401

Attorney for Respondent

Healthcare Casualty of America, Inc.

Before the State of South Carolina

Department of Insurance

In the Matter of:

) SCDOI Docket # 07-1071

)

Dewey K. Donley ) CONSENT ORDER

) IMPOSING ADMINISTRATIVE PENALTY

) $2,500.00 AND ONE(1) MONTH SUSPENSION

______________________________)

This matter comes before me pursuant to an agreement entered into between the State of South Carolina Department of Insurance and Dewey K. Donley, a producer and surety bondsman licensed to transact business in the State of South Carolina.

Dewey K. Donley acknowledges that on or about October 01, 2005 and February 22, 2007, he solicited business on the premises of the Pickens County Detention Center, paid inmates of the Pickens County Detention Center to solicit bail bonding business for him and failed to respond to the notice of investigation sent by the Department by certified mail, after receiving and signing for it on July 25, 2007. These are direct violations of South Carolina Code of Laws and can ultimately lead to the revocation of a producer and bondman’s license to transact the business of insurance in South Carolina.

Prior to the initiation of any administrative proceedings by the Department against Dewey K. Donley, the parties agreed to submit the entire matter to me, along with their specific recommendation, for my summary decision, rather than to proceed toward a formal public hearing. The consensual recommendation was that, in lieu of the Department seeking to revoke Mr. Donley’s producer and bondsman license, they would waive their right to a public hearing, pay an administrative fine in the total amount of $2,500.00 and accept a one (1) month suspension to transact insurance business in this State. The administrative fine will be paid immediately and the one (1) month suspension will begin upon signing of this consent order.

After a thorough review of the record, carefully considering the recommendation of the parties, and pursuant to my findings of fact, I hereby conclude as a matter of law, that Dewey K. Donley has violated S.C. Code § 38-53-150(A)(2)(5)(8) and S.C. Code §38-53-170(C)(F). Although I can now revoke the producer’s license, I hereby invoke the discretionary authority given to me and impose an administrative penalty against Dewey K. Donley in the total amount of $2,500.00 and a one (1) month suspension. The fine must be paid as prescribed in the preceding paragraph. If that total fine amount is not timely paid, the producer’s license will be revoked without any further disciplinary proceedings. If after investigation, Mr. Donley is found to have transacted any insurance business during the period of his suspension, Mr. Donley’s producer and bondsman license will be revoked without any further disciplinary proceedings.

The parties have reached this fine as the result of negotiations and compromise, and in consideration of Dewey K. Donley’s assurance that he will comply with all statues and regulations of this Department. This penalty includes all expenses related to investigation of this matter as provided in § 38-13-70 of the South Carolina Code. The parties expressly agree and understand payment of the agreed-upon penalty constitutes full accord and satisfaction of this matter. By the signature of Dewey K. Donley upon this consent order, he acknowledges this administrative order as a public record subject to the disclosure requirements of the State of South Carolina’s Freedom of Information Act, S.C. Code Ann. §§ 30-4-10, et seq. (1991 and Supp. 2000).

Nothing contained within this administrative order should be construed to limit, or to deprive any person of, any private right of action under the law. Nothing contained within this administrative order should be construed to limit, in any manner, the criminal jurisdiction of any law enforcement officer or judicial officer. Nothing contained within this administrative order should be construed to limit the statutory duty, of the Director of Insurance, exercised either directly or through the Department of Insurance, to “report to the Attorney General or other appropriate law enforcement officials criminal violations of the laws relative to the business of insurance or the provisions of this title which he considers necessary to report.” S.C. Code Ann. § 38-3-110 (Supp. 2004).

THEREFORE, it is ordered that Dewey K. Donley shall, pay through the South Carolina Department of Insurance an administrative fine in the total amount of $2,500.00 and be suspended for a period of one (1) month.

It is FURTHER ORDERED that the National Association of Insurance Commissioners be immediately be notified of this consent order.

This consent order becomes effective as of the date of my signature below.

Scott H. Richardson

Director of Insurance

Dated this ___ day of May 2008

Columbia, South Carolina