ALJDEC decisions subject to certification as final

07A-180-INS · Department of Insurance · 2009-01-26

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: January 6, 2009 APPEARANCES: No one appeared for Respondent; Assistant Attorney General Alyce C. Meislik appeared on behalf of the Arizona Department of Insurance. ADMINISTRATIVE LAW JUDGE: Thomas Shedden _____________________________________________________________________ FINDINGS OF FACT On November 25, 2008, the Arizona Department of Insurance issued a Notice of Hearing setting this matter for hearing at 1:30 p.m. January 6, 2009. Respondent Ethan Erickson did not appear at the scheduled time and the matter was convened in his absence at about 2:00 p.m. The Department presented the testimony of investigator Emily Penunuri and had 7 exhibits entered into evidence. Mr. Erickson holds a non-resident life producer license (No. 864105) that is due to expire on January 31, 2010. On or about February 14, 2007 the Department received a Complaint related to Affinity Health Plans and the National Trade Business Alliance of America (“NTBAA”). See Exhibit 3. On October 12, 2007 the Department issued an Order to Cease and Desist that was directed to a number of respondents including Mr. Erickson and NTBAA. See Exhibit.

The Department determined that Mr. Erickson had aided and assisted in the unauthorized transaction of insurance business in Arizona. See Exhibit 5, at page 6. Mr. Erickson did not appeal the Order to Cease and Desist. NTBAA and others did appeal the Order to Cease and Desist; NTBAA subsequently entered into a Consent Order acknowledging that it had engaged in the unauthorized transaction of insurance business and that Mr. Erickson assisted in the same. In an Order dated January 31, 2008 the North Carolina Department of Insurance revoked Mr. Erickson’s North Carolina license. See Exhibit 6. As of September 8, 2008, Mr. Erickson’s California insurance license was revoked. See Exhibit 7. The Department notified Mr. Erickson of the instant matter by mailing the Notice of Hearing to his addresses of record. See Exhibit 8. The Department requested that Mr. Erickson’s license be revoked. CONCLUSIONS OF LAW The Department bears the burden of persuasion to show that that Mr. Erickson’s life producer’s license should be revoked. See A.R.S. § 41- 1092.07(G)(2). The standard of proof is that of the preponderance of the evidence. See A.A.C. R2-19-119. A preponderance of the evidence is “[e]vidence which is of greater weight or more convincing than the evidence which is offered in opposition to it; that is, evidence which as a whole shows that the fact sought to be proved is more probable than not.” Black’s Law Dictionary 1182 (6th ed. 1990). The preponderance of the evidence shows that Mr. Erickson’s North Carolina and California licenses have been revoked, which provides grounds for the Department to revoke his Arizona license. See A.R.S. § 20-295(A)(9). The preponderance of the evidence shows that Mr. Erickson has aided and assisted in the unauthorized transaction of insurance business in Arizona, which provides grounds for the Department to revoke his Arizona license. See A.R.S. § 20-295(A)(11). Mr. Erickson did not appear, which is considered a factor in aggravation, and no evidence in mitigation was presented. Based on the proven violations of A.R.S. § 20-295(A), Mr. Erickson’s license should be revoked. RECOMMENDED ORDER IT IS ORDERED that Mr. Erickson’s license No. 864105 is revoked.

Done this day, January 26, 2009

______________________________________ Thomas Shedden Administrative Law Judge

Original transmitted by mail this ____ day of ____________, 2009, to:

Christina Urias, Director Department of Insurance 2910 North 44th Street, Ste. 210 Phoenix, AZ 85018

By ___________________________ -----------------------

Office of Administrative Hearings 1400 West Washington, Suite 101 Phoenix, Arizona 85007 (602) 542-9826