ORDERS:
ORDER
This matter comes
before me pursuant to an agreement reached between Petitioner, South Carolina
Department of Insurance, and Respondent, Consumer Health Solutions, L.L.C.
Both parties seek the Court’s approval of this Agreement.
This proceeding stems
from a letter written by Petitioner to respondent on November 29, 2004. in
that letter, Petitioner notified Respondent that it intended to revoke
Respondent’s administrator’s license. Petitioner has alleged several
violations of the insurance laws of South Carolina, including failing to hold
funds in a fiduciary capacity, “lapping” premium, failing to procure reinsurance,
and attempting to pay claims with checks drawn upon insufficient funds. These
allegations have not been proven, and Respondent does not admit any of
Petitioner’s allegations indicated above.
Rather than contest
this matter, the parties have agreed to compromise and settle this case, and to
submit it to me for my approval of their Agreement. The parties have agreed
Respondent will waive its right to a public hearing and, although Respondent
did not seek renewal of its license and that license is now inactive,
Respondent consents to the revocation of its administrator’s license.
Respondent does not have the original administrator’s license issued by
Petitioner but will surrender all known copies of the license issued by
Petitioner within thirty (30) days of the signing of this Order.
After a thorough review
of the matter, carefully considering the Agreement and recommendations of the
parties, I hereby accept the parties’ Agreement and Order that Respondent’s
administrator’s license is hereby revoked.
The parties also
expressly agree and understand that Respondent’s agreement for the revocation
of its administrator’s license constitutes full accord and satisfaction of this
matter, that the Respondent admits no liability for any alleged statutory or
regulatory violation, and that this Agreement constitutes settlement of a
disputed claim.
Respondent acknowledges
it understands this Order is a public record subject to the disclosure
requirements of the Freedom of Information Act, S.C. Code Ann. § 30-4-10 through
-660.
Nothing contained in
this Order should be construed to limit, or to deprive any person of, any
private right of action under the law. Nothing contained within this Order
should be construed to limit, in any manner, the criminal jurisdiction of any
law enforcement or judicial officer. Nothing contained within this Order
should be construed to limit the statutory duty, pursuant to S.C. Code Ann. §
38-3-110, of the Director of Insurance, exercised either directly or through
the Department, 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.”
It is further ordered
that a copy of this Order may be transmitted to the National Association of
Insurance Commissioners for distribution to its member states.
It is therefore ordered
that Respondent’s administrator’s license is hereby revoked and all known
copies of this license in Respondent’s possession are to be returned to
Petitioner within thirty (30) days of the signing of this Order.
IT IS SO ORDERED.
________________________________
Ralph King Anderson, III
Administrative Law Judge
August 23, 2006
Columbia, South Carolina
WE CONSENT:
________________________________
________________________________
Jeffrey A. Jacobs, Esquire L.
Henry McKellar, Esquire
South Carolina Department of Insurance Collins
& Lacy, P.C.
P.O. Box 100105 Post
Office Box 12487
Columbia, SC 29202 Columbia,
SC 29211
Attorneys for Petitioner Attorneys
for Respondent |
