Description
You work for a firm that specializes in representing financial services clients, with a specialty in insurance industry compliance. Cameron Davis walks into your office one day and explains that he has an issue that he needs help resolving.
Cameron works as public insurance claims adjuster in the state of New Tudor. He spends most of his days evaluating policyholders claims by reading through policies, interviewing witnesses, conducting inspections of the property damage and fighting with insurers to make sure his clients get a fair claims settlement.
Freedonia DOI Regulation 101 states, “No person shall act as an adjuster in this state without first obtaining an insurance adjuster license.” Thus, to work as a public insurance claims adjuster in the state of New Tudor, you need an adjusters license granted by the New Tudor Department of Insurance (DOI).
Cameron recently received a letter from the DOI stating that he was in violation of New Tudor DOI regulation 101. Cameron was perplexed by this letter, since he went through great lengths to ensure he followed all the right steps in order to obtain an adjusters license. He called the DOI and spoke with Mary Jane, who told him that in order to obtain a license; he needed to fill out an application and mail in $100, payable to the DOI. Mary said that once he did this, he could begin adjusting claims for the public. Cameron followed Mary’s instructions and then began operating as a public insurance adjuster. The DOIs letter said that Cameron did not take the exam requirement, which is necessary before obtaining an adjusters license.
The letter ended with a statement saying that Cameron could submit written evidence that he had complied with the exam requirement, but that no formal hearing would be granted. Also, if Cameron was indeed found to have acted as an adjuster without being properly licensed, he would have to pay a fine in the amount of $10,000 to the DOI. Cameron is obviously concerned about paying the fine, which he believes is exorbitant. However, Cameron is also concerned about the legal costs associated with litigating this issue.
Your supervising attorney has asked you to prepare a memo that identifies all potential issues relative to administrative law and determines which options are available to Cameron in order to contest the fine.
