ORDERS:
CONSENT ORDER
This matter comes before me pursuant to S.C. Code Ann. §§ 1-23-600(B) and 38-43-130 (Supp. 1999) upon Andrew A.
Jones' and R & A Insurance Agency, Inc.'s (Respondents) request for a contested case hearing regarding the decision of the
South Carolina Department of Insurance (Petitioner) to revoke the Respondents' resident insurance agent's and/or agency's
licenses for allegedly violating S.C. Code Ann. § 38-43-130 (Supp. 1999). A hearing was scheduled for February 8, 2000,
but prior to that hearing date, an agreement was reached between the Petitioner and the Respondents. That agreement is as
follows:
Respondents hereby admit, and I find as fact, that they have jointly and severally violated the insurance laws of South
Carolina and the regulations promulgated by the Department of Insurance and have willfully deceived or dealt unjustly with
the citizens of this State under S.C. Code Ann. § 38-43-130 by: 1) "failing to transmit promptly or pay all or a portion of the
amount of an insurance premium when the agent or one of his employees has received payment from a customer or insured",
2) "issuing his check covering all or a portion of an insurance premium which is not accepted by the bank on which it is
written when it is initially submitted to the bank", 3) "failing to deliver promptly a payment", 4) "failing to notify promptly
the customer or insured if the agent has been unable to obtain the requested insurance for him", 5) "failing to refund
premiums to a customer for which insurance had not been obtained not been obtained, and 6) failing to comply with the
Department of Insurance Director's Order dated April 21, 1999, to provide proof to the Department of taking six hours of
continuing education courses beyond that required by law within 90 days of that Order. These actions are all direct
violations of S.C. Code Ann. § 38-43-130 (Supp. 1999) that can ultimately lead to the revocation of Respondents' respective
licenses to transact the business of insurance in South Carolina.
The parties hereto agree that Respondent Andrew A. Jones' resident agent's license and R & A Insurance Agency, Inc.'s
resident agency license shall be immediately suspended for a period of 90 days; that the Respondents shall make restitution of
monies owed to those persons and/or entities below named within this 90 day time period; and that Respondents' respective
licenses shall be revoked upon their failure to timely make restitution. Proof of restitution must be submitted to the South
Carolina Department of Insurance and to this tribunal within 90 days of this Consent Order by obtaining a letter or note of
satisfaction from each party to whom money is owed. Should such proof not be submitted within this time period,
Respondent Andrew A. Jones' resident insurance agent's license and Respondent R & A Insurance Agency, Inc.'s resident
insurance agency's license shall be immediately revoked without any further administrative proceedings.
Respondents further agree that they shall never reapply for either an agent's license or an agency license in the State of South
Carolina, nor shall they seek the renewal of any licenses currently held through the South Carolina Department of Insurance.
By their signatures upon this Consent Order, Respondents acknowledge that they understand this administrative disciplinary
order is 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. 1999). Nothing contained within this administrative disciplinary 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 disciplinary order should be construed to limit, in any manner, the criminal jurisdiction of any law
enforcement or judicial officer. Nothing contained within this administrative disciplinary order should be construed to limit
the statutory duty, pursuant to S.C. Code Ann. § 38-3-110(4) (Supp. 1999), 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 law relative to the business of insurance or the provisions of this title which he considers
necessary to report."
S.C. Code Ann. § 38-43-130 (Supp. 1999) provides, "The director [of the Department of Insurance] or his designee may
revoke or suspend an agent's license after ten days' notice or refuse to reissue a license when it appears that an agent has . . .
violated this title or any regulation promulgated by the department, or has wilfully deceived or dealt unjustly with the citizens
of this State." Section 38-2-10 (2) provides that for each violation of the insurance laws of South Carolina the director or
his designee shall fine a violator $2,500 or shall suspend or revoke his license, or both. Section 38-2-10 further provides that
these penalties "are in addition to any criminal penalties provided by law or any other remedies provided by law", and that
these administrative proceedings "do not preclude civil or criminal proceedings from taking place before, during, or after the
administrative proceeding."
It is therefore ordered that Respondent Andrew A. Jones' resident agent's license and Respondent R & A Insurance Agency,
Inc.'s resident agency license shall be immediately suspended for a period of 90 days, and that the Respondents, jointly and
severally, shall make restitution of amounts owed to the following persons and/or entities within this 90 days. If restitution
has not been made and proof of this satisfaction of debt has not been submitted to the Department of Insurance and to this
tribunal within 90 days of the date of this Consent Order, Respondents' respective licenses shall be revoked without any
further administrative proceedings. Restitution shall be in the form of certified funds and shall be paid as follows:
1. Hanover Excess & Surplus, Inc. $5,163.30
2. Canal Insurance $1,468.00
3. Siuprem, Inc. $14,117.34
4. Ms. Virgin Howard $678.16
5. Mr. Blake Halley $328.00
6. Mr. Ronnie D. Williams $704.00
7. Imperial A.I. Credit Companies $45,000.00
8. Ms. Christopher L. Holloman $623.00
9. James Glymph $1,000.00
10. Orion Insurance on behalf of James Glymph $8,600.00
It is further ordered that a copy of this Consent Order shall be transmitted to the National Association of Insurance
Commissioners for distribution to its current member states and to each insurer for which Andrew A. Jones is currently
licensed through the State of South Carolina Department of Insurance, as a resident insurance agent.
This Consent Order becomes effective as of the date of my signature below.
_____________________________
C. DUKES SCOTT
ADMINISTRATIVE LAW JUDGE
February 9, 2000, at
Columbia, South Carolina
WE CONSENT:
R & A Insurance Agency, Inc.
_______________________________ By:_____________________________
Andrew A. Jones Andrew A. Jones, President
209 Wilshire Way 9308-B Two Notch Road
Columbia, South Carolina 29229 Columbia, South Carolina 29223
South Carolina Department of Insurance
___________________________________ By:________________________________
F. Xavier Starkes, Esquire Amelia R. Linder, Esquire
Attorney for Andrew A. Jones and R & A Assistant General Counsel
Insurance Agency, Inc. 1612 Marion Street
1500 Hampton Street Columbia, South Carolina 29201
Columbia, South Carolina 29201 |
