ORDERS:
ORDER ON MOTION TO DISMISS
I. Introduction
The South Carolina Department of Insurance (DOI) filed a Motion to Dismiss under Rule 19, ALJD and Rule 12(b)(6),
SCRCP. A telephone conference to address the motion was held October 25, 1999 attended by all parties. The Motion to
Dismiss is granted without prejudice.
II. Facts
The facts relevant to the Motion to Dismiss are undisputed. National Health Insurance Company acted as a sponsor for
Dennis O. Barker (Barker) in an effort to have Barker appointed as an agent. An application seeking to appoint Barker as an
agent was filed with DOI, but the application was denied since DOI determined that Barker's past actions had deceived or
dealt unjustly with the citizens of South Carolina. Barker sought a review of DOI's decision before the Administrative Law
Judge Division (ALJD).
On October 7, 1999, while the matter was still pending before the ALJD, National Health Insurance Company withdrew its
sponsorship of Barker. On October 22, 1999, DOI sought a dismissal on the ground that a license cannot be granted
without a sponsoring insurer.
III. Analysis
No person may act as a agent for an insurer unless an agent's license has been issued to that person by DOI. S. C. Code
Ann. § 38-43-20 (Supp. 1998). In order to obtain such a license, DOI must assure that the person requesting the agent's
license has been "vouched for by an official or a licensed representative of the insurer for which the applicant proposes to
act." S.C. Code Ann. § 38-43-50 (Rev. 1989). Here, the application seeking a license has no sponsoring insurance company.
Thus, the license request must be dismissed. S.C. Code Ann. § 38-43-50 (Rev. 1989).
However, this dismissal is without prejudice. Barker indicates he has a new sponsor and that the new sponsor has an
application pending with DOI seeking to appoint Barker as a licensed agent. DOI indicates it cannot act on the new
application while an appeal is pending in the current case.
IV. Order
Accordingly, the instant case is dismissed without prejudice. Within ten days of the date of this order, Barker shall notify
DOI in writing that he is seeking an agent's license. The notice shall identify a pending application already filed with DOI
and shall identify sponsorship by a specifically named insurance company. DOI, upon identifying the appropriate application,
shall process the application in a timely manner. Should a denial by DOI result, Barker shall follow the normal route for
challenging DOI's decision.
AND IT IS SO ORDERED
Dated: October 25, 1999
RAY N. STEVENS
Administrative Law Judge
Edgar A. Brown Building
1205 Pendleton Street
Columbia, South Carolina 29201 |