ALJDEC decisions subject to certification as final

12A-023-INS · Department of Insurance · 2012-04-10

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: March 26, 2012 APPEARANCES: Special Assistant Attorney General Mary Kosinski represented the Arizona Department of Insurance. Respondent Sidney Ralph Peters did not appear. ADMINISTRATIVE LAW JUDGE: Sondra J. Vanella _____________________________________________________________________ FINDINGS OF FACT 1. At all times material to this matter, Sidney Ralph Peters (“Respondent”) was and currently is licensed by the Arizona Department of Insurance (“Department”). 2. On January 5, 2011, the Department issued Respondent an accident/health and life producer license, license number 983183 (“License”), which expires on January 31, 2015. 3. Steven Fromholtz (“Mr. Fromholtz”), Producer Licensing Administrator of the Licensing Section of the Department, testified that when an application for a producer’s license is received and processed, it is forwarded to the Arizona Department of Public Safety (“DPS”) for processing, which includes processing by the Federal Bureau of Investigation (“FBI”) for a criminal history background check to be conducted. The Department submits completed fingerprint forms to DPS and DPS submits the fingerprint forms to the FBI for national processing. 4. On March 30, 2011, the Department issued a letter to Respondent by mail, informing him that his fingerprint card could not be processed and was returned by DPS as illegible. In that letter, the Department requested that Respondent submit a replacement set of fingerprints and enclosed a blank Illegible Fingerprint Replacement Form. The Department provided a deadline of April 29, 2011, for the return of the completed replacement fingerprint form. 5. Because the Department did not receive the requested replacement fingerprint form from Respondent as requested, the Department sent another letter to Respondent dated August 17, 2011, giving Respondent a deadline of September 15, 2011, to file with the Department an Illegible Fingerprint Replacement Form with a new set of fingerprints or submit a Voluntary Surrender of Insurance License Form. The Department indicated that the failure to respond to the letter would result in the initiation of disciplinary action being taken against the License. 6. Mr. Fromholtz testified that the Department has not received any change of address notification from Respondent and that the above-mentioned letters were sent to the mailing/business and/or residential addresses of record the Department had for Respondent. 7. Mr. Fromholtz testified that to date, Respondent has not responded to the above-mentioned letters and has not submitted to the Department a new set of fingerprints. 8. Respondent did not present any evidence to refute or rebut the evidence presented by the Department. CONCLUSIONS OF LAW 1. This matter is a disciplinary proceeding wherein the Department must prove by a preponderance of the evidence that Respondent violated the State’s Insurance Laws. See A.A.C. R2-19-119. 2. During the application process, the Director of the Department required Respondent to submit a full set of fingerprints and Respondent’s illegible fingerprint submission did not satisfy that requirement. See A.R.S. § 20-285(E)(2). 3. Respondent’s conduct, as set forth above, constitutes a violation of A.R.S. § 20-295(A)(1) by having failed to provide complete information in the license application. 4. Respondent’s conduct, as set forth above, constitutes the violation of any provision of A.R.S., Title 20, within the meaning of A.R.S. § 20- 295(A)(2). 5. Grounds exist for the Director of the Department to suspend, revoke, or refuse to renew the License pursuant to A.R.S. § 20-295(A). ORDER Based upon the above, the License shall be revoked on the effective date of the Order entered in this matter. In the event of certification of the Administrative Law Judge Decision by the Director of the Office of Administrative Hearings, the effective date of the Order will be 5 days from the date of that certification. Done this day, April 10, 2012.

/s/ Sondra J. Vanella Administrative Law Judge

Transmitted electronically to:

Christina Urias, Director Department of Insurance -----------------------

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