ALJDEC decisions subject to certification as final

19A-050-INS · Department of Insurance · 2019-08-26

IN THE OFFICE OF ADMINISTRATIVE HEARINGS

HEARING: August 5, 2019. APPEARANCES: Assistant Attorney General Deian Ousounov represented the Arizona Department of Insurance (“Department”). Stephan Joseph McCray (“Respondent”) did not appear). ADMINISTRATIVE LAW JUDGE: Kay Abramsohn _____________________________________________________________________

FINDINGS OF FACT The Department issued a Notice of Hearing (“Notice”) advising Respondent of a hearing date and time of August 5, 2019, at 1:00 p.m., at the Office of Administrative Hearings located at 1740 West Adams, Lower Level, Phoenix, Arizona. The Notice was sent to Respondent at a business address and at a residence address on record with the Department.[1] The Tribunal waited a minimum of 15 minutes to convene the hearing in order to afford additional time for Respondent; he failed to appear. Respondent had not contacted the Office of Administrative Hearings to advise of any reason for his absence or a delay, nor did he request to appear telephonically or that the hearing be continued. Therefore, the hearing proceeded in Respondent’s absence.[2] At all times relevant to this matter, Petitioner is and was licensed with National Producer Number 18918151 by the Department; that license will expire on December 31, 2020.[3] On September 19, 2018, Respondent had submitted an online application with the Department.[4] In the application, Respondent answered “NO” to the following questions: 1A: Have you ever been convicted of a misdemeanor, had a judgement withheld or deferred, or are you currently charged with committing a misdemeanor? [certain exclusions follow]. 1B: Have you ever been convicted of a felony, had a judgement withheld or deferred, or are you currently charged with committing a felony? [certain exclusions follow]. In the application, Respondent also answered “YES” to the Attestation portion, which would be his indication that, under the penalty of perjury, all of the information submitted in the application was “true and complete” and that the submission of false information or omitting information would be grounds for revocation or denial of a license. The Department subsequently learned of an undesignated felony and a misdemeanor for which Respondent had been convicted in Maricopa County Superior Court, Case No. CR2017-114276, on August 30, 2017 and for which he was placed on probation (five years on the felony and one consecutive year on the misdemeanor). The Department argued that Petitioner’s License should be revoked based on Petitioner having provided false information on the application and falsely attesting that the application information was true and complete. CONCLUSIONS OF LAW This matter is a disciplinary proceeding wherein the Department must prove by a preponderance of the evidence that Petitioner violated the State’s Insurance Laws. See A.A.C. R2-19-119. Respondent’s conduct, as set forth above and in the Notice of Hearing, constitutes a violation of A.R.S. § 20-295(A)(3) for obtaining an insurance license through misrepresentation or fraud. Respondent’s conduct, as set forth above, constitutes a violation of Title or any rule, subpoena or order of the Director. Based on the foregoing, grounds exist for the Department’s Director to suspend or revoke Respondent’s License pursuant to A.R.S. § 20-295. RECOMMENDED ORDER IT IS ORDERED Respondent’s National Producer License No. 18918151 is revoked on the effective date of the Department’s 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, August 26, 2019.

/s/ Kay Abramsohn Administrative Law Judge

Transmitted electronically to:

Keith A. Schraad, Director Arizona Department of Insurance ----------------------- [1] See Exhibit 1. [2] See A.A.C. R2-19-117. [3] See Exhibit 1. [4] See Exhibit 2.

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