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Administrative Law Court
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SC Administrative Law Court Decisions

CAPTION:
SCDOI vs. Consumer Health Solutions, LLC

AGENCY:
South Carolina Department of Insurance

PARTIES:
Petitioners:
South Carolina Department of Insurance

Respondents:
Consumer Health Solutions, LLC
 
DOCKET NUMBER:
05-ALJ-09-0370-CC

APPEARANCES:
Jeffrey A. Jacobs, Esquire
South Carolina Department of Insurance
Attorneys for Petitioner

L. Henry McKellar, Esquire
Collins & Lacy, P.C.
Attorneys for Respondent
 

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


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