IN THE MATTER OF:
CASE NO. 40504-01-CO
MASSACHUSETTS BAY
INSURANCE COMPANY
2000 Property and Casualty
Target Market Conduct Examination
_________________________________/
CONSENT ORDER
THIS CAUSE came on for consideration as
the result of an agreement between MASSACHUSETTS BAY
INSURANCE COMPANY (hereinafter referred to as “MASSACHUSETTS
BAY”) and the FLORIDA DEPARTMENT OF INSURANCE
(hereinafter referred to as “the DEPARTMENT”).
Following a complete review of the entire record, and upon
consideration thereof, and being otherwise fully advised in the
premises, the Treasurer and Insurance Commissioner, as head of
the FLORIDA DEPARTMENT OF INSURANCE, hereby finds as
follows:
1.
The Treasurer and Insurance Commissioner, as head of the
DEPARTMENT, has jurisdiction over the subject matter of, and
parties to, this proceeding.
2.
MASSACHUSETTS BAY is a foreign property and casualty
insurer authorized to transact insurance business in Florida and
is subject to the jurisdiction and regulation of the
DEPARTMENT pursuant to the Florida Insurance Code.
3.
The DEPARTMENT conducted a property and casualty target
market conduct examination of MASSACHUSETTS BAY covering
the period of January 1998 through December 1998, pursuant to
Section 624.3161, Florida Statutes. As a result of such
examination, the DEPARTMENT determined that
MASSACHUSETTS BAY committed the following violations of the
Florida Insurance Code or Florida Administrative Code as
outlined in total in the Fine Worksheet provided with the Report
of Examination Findings.
1.
Section 624.401, F.S.-Failure to Comply with Provisions of
Chapters 175 and 185.
4.
The DEPARTMENT and MASSACHUSETTS BAY expressly
waive a hearing in this matter and the making of Findings of
Fact and Conclusions of Law by the DEPARTMENT and all
further and other proceedings herein to which the parties may be
entitled by law. MASSACHUSETTS BAY hereby knowingly and
voluntarily waives the rights to challenge or to contest this
Order, in any forum now available to it, including the right to
any administrative proceeding, circuit or federal court action,
or any appeal.
5.
For each violation noted in Paragraph 3, MASSACHUSETTS BAY
shall provide written documentation to the DEPARTMENT no
later than 90 days after the execution of the Consent Order,
detailing the corrective action as follows:
a.
File a corrected 1998 DR-908 report with the Florida Department
of Revenue.
b.
Modify procedures for preparing reports to the Florida
Department of Revenue to allow for accurate reporting.
c.
Provide documentation to the Department of Insurance that these
corrective actions have been completed within 90 days of the
issuance of this Report.
d.
Provide a copy of the corrected report to the Florida Division
of Retirement.
6.
MASSACHUSETTS BAY agrees that upon the execution of this
Consent Order it shall be subject to the following terms and
conditions:
(a)
MASSACHUSETTS BAY shall pay an administrative penalty of
$1,750 and administrative costs of $500 on or before the 30th
day after this Consent Order is executed.
(b)
MASSACHUSETTS BAY shall henceforth comply with all of the
provisions of the Florida Insurance Code and Florida
Administrative Code, and will implement the recommendations
contained in this report within 90 days after execution of
Consent Order.
(c) MASSACHUSETTS
BAY is hereby placed on notice of the requirements of the
above referenced sections of law and agrees that any future
violations of these sections by MASSACHUSETTS BAY may be
deemed willful, subjecting MASSACHUSETTS BAY to
appropriate penalties.
7.
MASSACHUSETTS BAY agrees that the failure to adhere to one
or more of the above terms and conditions of this Order shall
constitute a violation of a lawful order of the DEPARTMENT,
and shall subject MASSACHUSETTS BAY to such
administrative action as the Treasurer and Insurance
Commissioner may deem appropriate.
8. Except as
noted above, each party to this action shall bear its own costs
and attorney’s fees.
9.
THEREFORE, the agreement between MASSACHUSETTS BAY INSURANCE
COMPANY and the DEPARTMENT, the terms and conditions
of that are set forth above, is approved.
FURTHER, all terms and conditions above
are hereby ORDERED.
DONE AND ORDERED this _____day of____, 2001.
KEVIN MCCARTY
Deputy Insurance Commissioner
By execution hereof MASSACHUSETTS BAY
INSURANCE COMPANY consents to entry of this Order, agrees
without reservation to all of the above terms and conditions,
and shall be bound by all provisions herein. I am
authorized to execute this document.
MASSACHUSETTS BAY INSURANCE COMPANY
By:____________________________________
Title:_________________________________
Date:__________________________________
Copies furnished to:
Mr. John B. May, President
Massachusetts Bay Insurance Company
440 Lincoln Street Mail Station S-385
Worcester, MA 01653
Cheryl C. Jones, AIE
Field Insurance Regional Administrator
Division of Insurer Services
Bureau of P&C Insurer Solvency and
Market Conduct Review
200 East Gaines Street, Suite 131B
Tallahassee, Florida 32399-0329
Meredith Trammel, Senior Attorney
Department of Insurance
Division of Legal Services
200 East Gaines Street
Office 612-J, Larson Building
Tallahassee, Florida 32399-0333