ALJDEC decisions subject to certification as final

19A-034-INS · Department of Insurance · 2019-11-12

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: November 12, 2019, at 1:00 p.m. APPEARANCES: The Arizona Department of Insurance (“the Department”) was represented by Chloe Woods, Esq., Assistant Attorney General; Tamauria Maschele Bagley (“Respondent”) failed to appear. ADMINISTRATIVE LAW JUDGE: Diane Mihalsky

FINDINGS OF FACT The Department referred this matter to the Office of Administrative Hearings (“OAH”), an independent state agency, for an evidentiary hearing. On or about September 27, 2019, the Department issued a Notice of Hearing, setting a hearing on November 12, 2019, at 1:00 p.m. on the issue of whether cause existed under A.R.S. §§ 20-285(E)(1) and (2) and 20-295(A)(1) and (2) to discipline Respondent’s insurance producer’s license. The Department sent the Notice of Hearing to Respondent at her address of record via U.S. First-Class Mail and Certified Mail, Return Receipt. A hearing was held on November 12, 2019. The Department submitted four exhibits and presented the testimony of Aqueelah Currie, its Licensing Supervisor. Respondent did not request to appear telephonically at the hearing and did not request that the hearing be continued. Although the start of the duly noticed hearing was delayed fifteen minutes to allow Respondent additional travel time, Respondent did not appear, personally or through an attorney, and did not contact OAH to request that the start of the hearing be further delayed. Consequently, Respondent did not present any evidence to defend her insurance producer’s license. Hearing Evidence Ms. Currie testified that persons who desire to be licensed as insurance producers in Arizona are required to take an examination and, after they have passed the examination, to file an application to the Department. Applicants are also required to provide additional documentation, including their fingerprints, to allow the Department to obtain a criminal background check from the Arizona Department of Public Safety (“ADPS”). Ms. Currie testified that, after the Department issues a license, licensees are required to notify the Department of any changes in contact information within 30 days. This requirement allows the Department to communicate and to regulate licensees. On or about May 25, 2018, Respondent filed an electronic application with the Department to be licensed as an insurance producer in Arizona. Respondent provided the address, 2526 W. Tumbleweed Drive, Phoenix, Arizona 85085, for her residence, business, and mailing addresses.[1] On or about May 29, 2018, the Department issued National Insurance Producer’s License No. 19800392 to Respondent. As of this date, Respondent’s insurance producer’s license is active.[2] On or about August 10, 2018, the Department sent a letter to Respondent at her address of record on Tumbleweed Drive, informing her that, because ADPS had returned the fingerprint card to the Department as illegible, the Department required Respondent to submit a replacement set of fingerprints on or before August 22, 2018. An attachment to the letter provided the locations of fingerprinting services.[3] Ms. Currie testified that Respondent did not respond to the Department’s August 10, 2018 letter. She also did not ever update her address of record. On or about September 10, 2018, the Department sent a second letter to Respondent at her address of record, requiring her to either submit a new set of fingerprints or to submit a voluntary surrender of her insurance producer’s license to the Department on or before October 1, 2018.[4] Ms. Currie testified that Respondent did not respond to the Department’s September 10, 2018 letter. Ms. Currie testified that Respondent’s license application was therefore incomplete. CONCLUSIONS OF LAW This matter lies within the Department’s jurisdiction.[5] The Notice of Hearing that the Department mailed to Respondent at the address that she provided on application was reasonable she is deemed to have received notice of the hearing.[6] A.R.S. § 20-285 required Respondent to file an application with the Department to be licensed and to transact business as an insurance producer. A.R.S. § 20-285(E) allows the Department to require Respondent to submit fingerprints to allow ADPS to obtain a criminal history as a condition of licensure.[7] Because Respondent’s illegible fingerprint submission did not satisfy the requirement of A.R.S. § 20-285(E)(2), the Department established that her application is incomplete. Grounds therefore exist under A.R.S. § 20- 295(A)(1) and (2) to discipline her insurance producer’s license.[8] Respondent’s failures to respond to the Department’s correspondence, to update her address of record with the Department, or to appear at the duly noticed hearing indicate that, at this time, she cannot be regulated. ORDER Based upon the above, IT IS ORDERED that, on the effective date of the final order in this matter, Respondent’s National Producer License No. 18799382 shall be 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 (5) days from the date of that certification. Done this day, November 12, 2019.

/s/ Diane Mihalsky Administrative Law Judge

Transmitted electronically to:

Keith A. Schraad, Director Arizona Department of Insurance

----------------------- [1] See the Department’s Exhibit 2. [2] See the Department’s Exhibit 1. [3] See the Department’s Exhibit 3. [4] See the Department’s Exhibit 4. [5] See A.R.S. §§ 20-142, 20-282. [6] See A.R.S. §§ 41-1092.04; 41-1092.05(D). [7] A.R.S. § 20-282(E) provides as follows: Before the director grants a license, the director may require the applicant to: 1. Provide any document that is reasonably necessary to verify the information that is contained in an application and other information including prior criminal records. 2. Submit a full set of fingerprints to the department. The department of insurance shall submit the fingerprints to the department of public safety for the purpose of obtaining a state and federal criminal records check pursuant to section 41-1750 and Public Law 92-544. The department of public safety may exchange this fingerprint data with the federal bureau of investigation. [8] A.R.S. § 20-295(A) provides in relevant part as follows: The director may deny, suspend for not more than twelve months, revoke or refuse to renew an insurance producer's license or may impose a civil penalty in accordance with subsection F of this section or any combination of actions for any one or more of the following causes: 1. Providing incorrect, misleading, incomplete or materially untrue information in the license application. 2. Violating any provision of this title or any rule, subpoena or order of the director.

-----------------------

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