ALJDEC decisions subject to certification as final

19A-005-INS · Department of Insurance · 2019-04-22

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: April 2, 2019 APPEARANCES: Respondent Earl A. Alexander did not appear. The Arizona Department of Insurance was represented by Assistant Attorney General Deian Ousounov. ADMINISTRATIVE LAW JUDGE: Tammy L. Eigenheer _____________________________________________________________________ FINDINGS OF FACT On or about September 19, 2018, Earl A. Alexander (Respondent) submitted an application to the Arizona Department of Insurance (Department). Respondent answered “No” to question 1.B, which asks: “Have you ever been convicted of a felony, had a judgment withheld or deferred, or are you currently charged with committing a felony? You may exclude juvenile adjudications (offenses where you were adjudicated delinquent in juvenile court).” Respondent answered “Yes” to the Attestation section of the application, which provides as follows: “I hereby certify that, under penalty of perjury, all of the information submitted in this application and attachments is true and complete. I am aware that submitting false information or omitting pertinent or material information in connection with this application is grounds for license revocation or denial of the license and may subject me to civil or criminal penalties.” On or about October 5, 2018, the Department issued a license to Respondent as an insurance producer, National Producer Number 18917419 (License), which expires on May 31, 2022. As a result of the background investigation, the Department discovered that on or about April 7, 2008, Respondent plead guilty to and was convicted of Theft of Means of Transportation, a class 3 felony, before the Superior Court of Arizona, Maricopa County, in case number C2007-135113. Respondent’s business and mailing address of record with the Department was 14324 W. Desert Flower Dr., Goodyear, AZ 85395 and Respondent’s business email address of record was [email redacted]. On or about February 4, 2019, the Department issued a Notice of Hearing to Respondent via regular and certified mail to his address of record and to his email address of record setting this matter for hearing at 1:00 p.m. on April 2, 2019. Although the start of the hearing was delayed by 15 minutes, Respondent did not appear and did not ask that the hearing be continued or delayed for any reason and did not request to appear by telephone. Aqueelah Currie, Licensing Supervisor, testified if an applicant does not identify any issues in the application that would require further investigation, the Department relies on the attestation that the answers provided were accurate and issues a license pending the background investigation being returned. Ms. Currie also testified that she attempted to contact Appellant by telephone regarding the conviction, but Respondent never responded to her phone calls. Ms. Currie indicated that, as of the date of the hearing, Respondent had not contacted the Department concerning this issue. Respondent did not appear at the hearing; therefore, he did not present any evidence to refute or rebut the evidence presented by the Department. CONCLUSIONS OF LAW 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. The copies of the Notice of Hearing that the Department sent to Respondent at his address of record and at his email address of record were reasonable and Respondent is deemed to have received notice of the hearing. A.R.S. §§ 41-1092.04 and 41-1092.05(D). Respondent’s conduct, as described above, constituted a violation of A.R.S. § 20-295(A)(1) by providing incorrect, misleading, incomplete, or materially untrue information in the license application. Respondent’s conduct, as described above, constituted a violation of A.R.S. § 20-295(A)(6) by having been convicted of a felony. 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). Further, Respondent’s failure to appear at the hearing demonstrates that he is not able to be regulated at this time. ORDER Based upon the above, Respondent’s 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 five (5) days from the date of that certification. Done this day, April 22, 2019.

/s/ Tammy L. Eigenheer Administrative Law Judge

Transmitted electronically to:

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

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