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BEFORE THE OFFICE OF ADMINISTRATIVE HEARINGS STATE OF OREGON for the DEPARTMENT OF CONSUMER AND BUSINESS SERVICES INSURANCE DIVISION

In the Matter of

MICHAEL C. EATON

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Case No: INS 02-10-016

PROPOSED ORDER

HISTORY OF CASE

On January 15, 2003, the Director of the Department of Consumer and Business Services, Insurance Division (the director or department) issued a Notice of Proposed Action (Notice) proposing to revoke the Oregon insurance agent license issued to Michael C. Eaton (Respondent) pursuant to ORS 744.013(2)(a)(1999). Respondent requested a hearing challenging the proposed action. On January 17, 2003, the department referred this matter to the Office of Administrative Hearings (OAH), formerly the Hearing Officer Panel1 for hearing.

On November 20, 2003, Administrative Law Judge Ella D. Johnson conducted a hearing in this matter. Assistant Attorney General Kathleen Dahlin represented the department. Respondent appeared by telephone from Florida and represented himself pro se. The department called Insurance Division Investigator Ruth C. Johnson and Respondent as witnesses. Respondent also testified on his own behalf. The record closed on November 20, 2003.

ISSUES

(1) Whether Respondent violated ORS 744.013(2)(g) in six instances from December 3, 1999 to November 13, 2000 by misrepresenting to American Standard Insurance Company of Wisconsin (ASIC)2 that an insured under an auto insurance policy issued by ASIC was covered under a homeowner insurance policy also issued by ASIC, and therefore, entitled to a 20 percent discount in the premium on the auto insurance policy.

(2) Whether these violations, if proven, warrant revocation of Respondent’s Oregon insurance agent license.

1 The name of the Hearing Officer Panel was changed to the Office of Administrative Hearings by House Bill 2526, which became effective on the Governor’s signature on May 22, 2003.

2 The reference to ASIC also includes American Family Insurance inasmuch as they are part of the same insurance company.

Michael C. Eaton (Case No: INS 02-10-016) Page 1 of 6

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