ALJDEC decisions subject to certification as final

18A-070-INS-RES2 · Department of Insurance · 2018-12-06

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: November 20, 2018 APPEARANCES: No one appeared for Respondent; Grant Pearson Esq. for the Department of Insurance ADMINISTRATIVE LAW JUDGE: Thomas Shedden FINDINGS OF FACT On September 24, 2018, the Arizona Department of Insurance (“Department”) issued a Notice of Hearing setting the above-captioned matter for hearing at 1:00 p.m. November 20, 2018 at the Office of Administrative Hearings. No representative for Anthony Mikalauskas appeared and the matter was convened in his absence at about 1:20 p.m. The Department presented the testimony of its investigator Wendy Greenwood. Mr. Mikalauskas is licensed as a non-resident Arizona insurance producer, National Producer Number 16804236. Mr. Mikalauskas’s Arizona license is due to expire on April 30, 2020. Through an Order Revoking License dated August 12, 2016, the Commonwealth of Virginia’s Bureau of Insurance revoked Mr. Mikalauskas’s license as an insurance agent finding that he had misrepresented the benefits of an insurance policy, he had made false or fraudulent statements or representations in an insurance application for the purpose of obtaining a fee, and he had failed to make records available promptly upon request. Mr. Mikalauskas did not report to the Department that Virginia had revoked his license. Through an Administrative Order, Notice of Nonrenewal of License dated August 24, 2017, the Indiana Department of Insurance informed Mr. Mikalauskas that his nonresident insurance producer’s license was not being renewed because Virginia had revoked his license and for using fraudulent, coercive, or dishonest practices in the conduct of business. Mr. Mikalauskas did not report to the Department that Indiana had not renewed his license. Through a Final Decision and Order dated August 29, 2017, the Insurance Department of the State of Delaware revoked Mr. Mikalauskas’s license for failing to timely report that he had been the subject of an adverse administrative action in another jurisdiction. Mr. Mikalauskas did not report to the Department that Delaware had revoked his license. The Department made attempts to contact Mr. Mikalauskas by mail at his address of record and by email at his email address of record. The mail was returned to the Department and the email delivery failed. The Department requests that Mr. Mikalauskas’s license be revoked. CONCLUSIONS OF LAW The Department bears the burden of persuasion. Ariz. Rev. Stat. § 41- 1092.07(G). The burden of proof at an administrative hearing falls to the party asserting a claim, right or entitlement. The standard of proof is that of the preponderance of the evidence. Ariz. Admin. Code § R2-19-119. A preponderance of the evidence is: The greater weight of the evidence, not necessarily established by the greater number of witnesses testifying to a fact but by evidence that has the most convincing force; superior evidentiary weight that, though not sufficient to free the mind wholly from all reasonable doubt, is still sufficient to incline a fair and impartial mind to one side of the issue rather than the other.

Black’s Law Dictionary 1373 (10th ed. 2014). Because Virginia and Delaware revoked, and Indiana denied renewal of, Mr. Mikalauskas’s licenses, the Department has authority to suspend or revoke his Arizona license. Ariz. Rev. Stat. § 20-295(A)(9). Mr. Mikalauskas was required to report to the Department the administrative actions taken against him in other jurisdictions but he failed to do so, which is a violation of Ariz. Rev. Stat. section 20-301. Consequently, the Department has authority to suspend or revoke his Arizona license. Ariz. Rev. Stat. § 20-295(A)(2). Mr. Mikalauskas was required to report to the Department any change of address within thirty days of that change but he failed to do so, which is a violation of Ariz. Rev. Stat. section 20-286(C)(1). Consequently, the Department has authority to suspend or revoke his Arizona license. Ariz. Rev. Stat. § 20-295(A)(2). Considering the facts and circumstances of this matter, including Mr. Mikalauskas’s failure to appear at the hearing, Mr. Mikalauskas’s license should be revoked. ORDER IT IS ORDERED that Anthony Mikalauskas’s non-resident Arizona insurance producer’s license is revoked. 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 five days after the date of that certification.

Done this day, December 6, 2018. /s/ Thomas Shedden Thomas Shedden Administrative Law Judge

Transmitted electronically to:

Keith A. Schraad, Interim Director Arizona Department of Insurance -----------------------

Office of Administrative Hearings 1740 West Adams Street, Lower Level Phoenix, Arizona 85007 (602) 542-9826