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EVIDENTIARY RULINGS

The department’s Exhibits A1 through A46 were received into the record without objection.

FINDINGS OF FACT

(1) Respondent was first licensed as an insurance agent in Oregon on January 27, 1998. Respondent’s license expired due to non-renewal on January 31, 2003. Respondent now lives in Coconut Creek, Florida. (Ex. A1) During this period of time, Respondent worked with two other agents who were subsequently terminated which left him to work their files. He became overwhelmed. (Test. of Respondent.)

(2) Agents are responsible for knowing the underwriting rules in writing policies. ASIC’s underwriting rules allowed for a 20 percent Auto and Home Premium Advantage Discount (Advantage Discount) on auto insurance provided that the insured also had a homeowner or renter policy on their primary residence with ASIC which was effective the same date that the Advantage Discount was applied to the auto policy. ASIC required that an active homeowner policy number be entered into the computer in order for the discount to be processed or within 30 days the agent would receive notification of the problem in the form of a “ticket” and within 40 days from the date the discount was added, the discount would be removed. (Exs. A3, A43, A44.) An agent could generally receive a policy number for a new homeowner policy within 24 hours of notifying the company. (Ex. 46.)

(3) Teresa Green was Respondent’s unlicensed customer services representative. One of her duties was to perform data entry. (Ex. 45.) Due to ASIC’s underwriting rules and the perceived delay in processing new homeowner policies, Ms. Green began using Janice Abbagliato’s homeowner policy number to reserve the discount for insureds who did not as yet have an ASIC homeowner policy. Later, Respondent told her to use his homeowner insurance policy number in case there was a problem. When she received the insured’s new policy number, she would try to replace the false policy number with the correct number, but sometimes she forgot to change the numbers. Respondent told her that he had authorization from ASIC District Manager Shawn Hunter for this practice. (Exs. 45, 46; test. of Johnson.)

(4) On December 18, 1999, Respondent added the Advantage Discount to the auto policy issued to insureds Erick Burkinshaw and Brandy Butchek. Respondent used the homeowner policy number 36PO1544-01 OPT MCE002 belonging to James Fransico Burley to qualify Erick Burkinshaw and Brandy Butchek for the discount. On January 18, 2000, the discount was taken off and then put back on using Mr. Burley’s policy number. On December 20, 2000, the discount was again removed. No homeowner policy was ever issued to Erick Burkinshaw and/or Brandy Butchek. (Exs. A9 – A15, A39, A43.)

(5) On November 15, 1999, Respondent wrote an ASIC auto policy for Jon Weirick and Natasha Mitchell and gave them a 20 percent Advantage Discount for also having their homeowner policy with ASIC. On February 15, 2000, Respondent used homeowner policy

Michael C. Eaton (Case No: INS 02-10-016) Page 2 of 6

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