Guarantee Trust Life Ins. Co. v. Superintendent of Ins.

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The Superintendent of Insurance ordered Guarantee Trust Life Insurance Company (GTL) to pay a civil penalty of $150,000 after finding that GTL violated Me. Rev. Stat. Ann. 24-A, 1420-M(1), 1902, and 2412(1-A)(B), and that GTL was accountable, pursuant to Me. Rev. Stat. Ann. 24-A, 1445(1)(D) for violations committed by Cinergy Health, Inc., a company that acted as GTL's producer. The business and consumer docket affirmed the decision of the Superintendent. The Supreme Court affirmed, holding (1) GTL was accountable pursuant to section 1445(1)(D) for Cinergy's misconduct occurring before the date on which GTL formally appointed Cinergy as its producer; (2) the Superintendent did not err in concluding that GTL provided coverage to Maine residents and was liable under section 2412(1-A)(B); (3) the Superintendent's did not issue an untimely decision pursuant to the plain language of Me. Rev. Stat. Ann. 24-A, 235(2); (4) the Superintendent did not abuse her discretion by holding GTL liable under section 1420-M(1); and (5) the Superintendent did not abuse her discretion by penalizing GTL for violating section 1902. View "Guarantee Trust Life Ins. Co. v. Superintendent of Ins." on Justia Law