This document is a Consent Agreement authorized by Title 10 M.R.S. § 8003(5), entered into among Steven E. Bugg, a resident of Connecticut; the Superintendent of the Maine Bureau of Insurance; and the Maine Office of the Attorney General. Its purpose is to resolve, in lieu of an adjudicatory proceeding, violations of the Insurance Code for which the Superintendent may impose discipline pursuant to Title 24-A M.R.S. §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. The Superintendent has jurisdiction over this matter pursuant to the Insurance Code generally, Title 24-A Maine Revised Statutes, in particular, 24-A M.R.S. §§ 12-A, 211, and 229, as well as other provisions.
2. Steven E. Bugg has been licensed in Maine as a nonresident insurance producer since September 9, 2011. His Maine Producer Number is PRN 193941. His National Producer Number is 2320986.
3. When Mr. Bugg applied for a Maine Nonresident Producer License, he answered “No” to the following background question on the electronic application form which he filed: “Have you ever been convicted of a crime, had a judgment withheld or deferred, or are you currently charged with committing a crime?
4. The application included Mr. Bugg’s “Certification and Attestation” with 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.”
5. Staff of the Maine Bureau of Insurance approved Mr. Bugg’s application and issued the producer license.
6. Through posting documents to the National Insurance Producer Registry warehouse on April 18, 2012, Mr. Bugg disclosed that in 1988 he had been convicted of felony manslaughter in connection with an auto accident.
7. In his April 2012 disclosure, Mr. Bugg stated: “I answered the criminal history question with an answer of no because of the wording of the question. I interpreted the question to allow for the exclusion of car and traffic related crimes.”
CONCLUSIONS OF LAW
8. The application form’s disclosure questions specifically ask whether the applicant has “ever been convicted of a crime.” The question includes an exception for certain minor issues:
You may exclude misdemeanor traffic citations and misdemeanor convictions or pending misdemeanor charges involving driving under the influence (DUI) or driving while intoxicated (DWI), driving without a license, reckless driving, or driving with a suspended or revoked license and juvenile offenses.
9. Mr. Bugg obtained his license in 2011 based in part upon incorrect, misleading, incomplete or materially untrue information in his Maine application for nonresident producer licensing, by failing to disclose the felony conviction when he applied, and certifying that the information was true and complete.
9. The provision of incorrect, misleading, incomplete or materially untrue information in a license application constitutes grounds for denial of the license application, revocation of the license, or other appropriate action, including the imposition of a civil penalty, under 24-A M.R.S. §1420-K(1)(A).
10. Steven E. Bugg, the Maine Superintendent of Insurance, and the Maine Office of the Attorney General agree to the following.
11. This Consent Agreement is entered into in accordance with 10 M.R.S. § 8003(5)(B). This Consent Agreement is enforceable by an action in the Superior Court.
12. This Consent Agreement is not subject to appeal. Mr. Bugg waives any further hearings or appeals regarding the matters that are the subject of this Consent Agreement.
13. At the time of executing this Consent Agreement, Mr. Bugg 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.
14. Mr. Bugg 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.
15. Mr. Bugg understands and acknowledges that this Agreement will constitute a public record within the meaning of 1 M.R.S. § 402, and will be available for public inspection and copying as provided for by 1 M.R.S. § 408, and will be reported to the NAIC “RIRS” database.
16. In consideration of the licensee's execution of and compliance with the terms of this Consent Agreement, the Superintendent of Insurance, the Bureau of Insurance, and Office of the Attorney General agree to forgo pursuing further disciplinary measures or other civil or administrative sanctions available under the Maine Insurance Code for the specific conduct described in this Consent Agreement, other than those agreed to herein. However, should Mr. Bugg 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 under the Maine Insurance Code.
17. Nothing in this Agreement shall affect the rights or interests of any person who is not a party to this Agreement.
Steven E. Bugg
Dated:______________, _____ ________________________
Steven E. Bugg
THE MAINE Superintendent OF INSURANCE
Dated: _______________, _____ ________________________________
Eric A. Cioppa, Superintendent
FOR THE OFFICE OF THE ATTORNEY GENERAL
Dated: ________________,_____ ___________________________
Assistant Attorney General