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  ]  
  ] STATE OF MAINE
  ] BUREAU OF INSURANCE
In Re: ]  
Scott D. Georgalas ] DOCKET NO. INS-06-207
National Producer # 124454 ]  
  ] CONSENT AGREEMENT
  ]  

This document is a Consent Agreement authorized by Title 10 M.R.S.A. § 8003(5), entered into among Scott D. Georgalas, a resident of Florida; the Maine Bureau of Insurance; and the Maine Department of the Attorney General. Its purpose is to resolve, in lieu of an adjudicatory proceeding, issues implicating Title 24-A M.R.S.A. §1417(1) and §1420-K(1)(A).

STATEMENT OF FACTS

  1. The Superintendent of Insurance is the official charged with administering and enforcing Maine’s insurance laws and regulations, and the Bureau of Insurance is the administrative agency with such jurisdiction.
  2. Scott D. Georgalas has been licensed in Maine as a nonresident insurance producer with Life &\ Health authority since December 20, 1995.
  3. Mr. Georgalas applied for a Maine Nonresident Producer License with Property & Casualty authority in March, 2006.

Failure to disclose administrative matters

  1. Item 2 of the background questions on the application form electronically filed in connection with this application required a response to the following question:
    “Have you or any business in which you are or were an owner, partner, officer or director ever been involved in an administrative proceeding regarding any professional or occupational license?”
  2. Mr. Georgalas answered “No” to Item 2.
  3. The application included Mr. Georgalas’s “Certification and Attestation” under the statement:
    “I hereby certify that, under penalty of perjury, all of the information submitted in this application and attachments is true and complete. I am aware that submitting false information or omitting pertinent or material information in connection with this application is grounds for license revocation or denial of the license and may subject me to civil or criminal penalties.”
  4. Staff of the Maine Bureau of Insurance found, through its routine application review process, the following administrative proceedings involving Mr. Georgalas’s producer license:
    1. Wisconsin denial of license in 1998 for failure to disclose an administrative action on license application;
    2. South Dakota consent order and penalty of $250.00 in 1998 for misstatement on license application;
    3. North Dakota penalty of $200.00 in 1998 for misstatement on license action concerning another state’s action; and
    4. Maine consent order and penalty of $3,000.00 in 1995 for acting without required appointment.
  5. The Supervisor of Licensing for the Maine Bureau of Insurance requested, by letter dated April 4, 2006, an explanation for Mr. Georgalas’s failure to disclose the above matters, and requested relevant documentation.
  6. Mr. Georgalas’s written reply, received April 12, 2006, included relevant documentation, and stated the following:

    On the National Insurance Producer Registry uniform application for individual insurance producer non-resident license I misinterpreted the question to an owner, partner, officer or director. I had no intention to not disclose all facts to the department. As such I would like you to amend the application to include the following.

    I was fined by the state of Maine in 1995 for selling before my state license was issued. I was under the impression that my application was approved and that it was permissible for me to solicit in Maine; however, final issuance of the license had not occurred.

    Upon agreeing to the consent order and payment of the fine, my Maine license was issued and has been in good standing since. North Dakota, South Dakota, Wisconsin and Iowa have also entered into consent orders for failure to disclose this information. I was not aware that it was necessary once the problem had been resolved.

    I also entered into a consent agreement with the state of Vermont, in order to renew my license there. This was also for failure to disclose my previous fines.

    I now realize that it is necessary to dislose all my previous penalties and consent orders and I am in full compliance with all Department of Insurance Regulators.

CONCLUSIONS OF LAW

  1. The application form’s disclosure questions specifically require disclosure of insurance administrative matters. Mr. Georgalas provided incorrect, misleading, incomplete or materially untrue information in his 2006 Maine application for nonresident producer licensing by failing to disclose any of the above administrative matters when he applied, certified by his signature that the information was true and complete, and he has not provided an adequate legal explanation for this failure to provide accurate information.
  2. The provision of incorrect, misleading, incomplete or materially untrue information in the license application constitutes grounds for denial of the license application or other appropriate action, including the imposition of a civil penalty, under 24-A M.R.S.A. §1420-K(1)(A).

COVENANTS

  1. Scott D. Georgalas, the Maine Bureau of Insurance, and the Maine Department of the Attorney General agree to the following.
  2. This Consent Agreement is entered into in accordance with 10 M.R.S.A. § 8003(5)(B) and is not subject to review or appeal. This Consent Agreement is enforceable by an action in the Superior Court.
  3. At the time of executing this Consent Agreement, Mr. Georgalas will remit to the Maine Bureau of Insurance a civil penalty in the amount of $500.00, payable to the Treasurer of the State of Maine.
  4. Mr. Georgalas will promptly report any matters to the Maine Bureau of Insurance during all times as he is licensed through the Bureau, to the extent such reporting is required under the Maine Insurance Code, and will comply in all other respects with the provisions of the Maine Insurance Code, as applicable.
  5. In consideration of the applicant’s execution of this Consent Agreement, the State of Maine Bureau of Insurance shall issue the Nonresident Producer License for which he has applied.
  6. Mr. Georgalas understands and acknowledges that this Agreement will constitute a public record within the meaning of 1 MRSA § 402, and will be available for public inspection and copying as provided for by 1 MRSA § 408, and will be reported to the NAIC “RIRS” database.
  7. In consideration of the applicant’s execution of and compliance with the terms of this Consent Agreement, the Superintendent of Insurance, Bureau of Insurance, and Department of the Attorney General agree to forgo pursuing further disciplinary measures or other civil or administrative sanction for the actions described in this Consent Agreement, other than those agreed to herein. However, should Mr. Georgalas violate this Consent Agreement, he may be subject to any available legal remedy for the violation, including without limitation the suspension or revocation of all licenses issued to the applicant under the Maine Insurance Code.
  8. Nothing in this Agreement shall affect the rights or interests of any person who is not a party to this Agreement.
  Scott D. Georgalas
   
Dated: :______________, _____ ___________________________
  Scott D. Georgalas
   
State of Florida, _______________, ss  
Subscribed and Sworn to before me _______________________________
this _______ day of _______, _____. Notary Public
  ___________________________
  (printed name)
   
   
THE MAINE BUREAU OF INSURANCE
   
Dated: _______________, _____ ____________________________
  By Alessandro A. Iuppa, Superintendent
   
FOR THE DEPARTMENT OF THE ATTORNEY GENERAL
   
Dated: _______________, _____ ____________________________
  Assistant Attorney General
  ___________________________
  (printed name)

Last Updated: September 27, 2010