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PA Bulletin, Doc. No. 99-28


The Fidelity Group, Inc., National Association of Business Owners and Professionals (NABOP); Doc. No. MS98-12-011

[29 Pa.B. 82]

   On December 21, 1998, the Insurance Department (Department), filed a petition for injunctive relief seeking entry of an order by the Insurance Commissioner of Pennsylvania ordering The Fidelity Group, Inc., and the National Association of Business Owners and Professionals (NABOP) (collectively the Respondents) to cease and desist doing the business of insurance in this Commonwealth. The Commissioner found that there is articulable evidence that Respondents are doing an insurance business in this Commonwealth without a certificate of authority and that the interests of policyholders, creditors or the public may be irreparably harmed by delay in the absence of a cease and desist order. Under the cease and desist authority under 40 P. S. § 47, the Commissioner granted the Department's Petition by Order dated December 21, 1998.

   In addition to ordering the Respondents to cease and desist doing the business of insurance in this Commonwealth, the Commissioner ordered the Respondents to continue providing ongoing coverage to current insureds until such time as the insureds secure effective replacement coverage or 30 days from the date of her order, whichever date is earlier. The Commissioner also ordered Respondents to cease and desist from refusing or failing to pay legitimate claims incurred and reported by Pennsylvania insureds and that all such claims shall be paid within 45 days of entry of the Order. The Commissioner ordered Respondents to provide a copy of her order to all their Pennsylvania agents or representatives and to all Pennsylvania insureds participating in the Respondents' plan.

   Finally, the Commissioner specifically retained jurisdiction over the matter and ordered the scheduling of a hearing.

   Under the provisions of 40 P. S. § 47, the cease and desist Order of the Commissioner dated December 21, 1998, and 1 Pa. Code §§ 35.111--35.116, and § 121 a hearing shall occur on January 4, 1999, at 10 a.m. in Room 200, Administrative Hearing Office, Capitol Associates Building, 901 North Seventh Street, Harrisburg, PA 17102. The hearing will be held in accordance with the requirements of the Act, Administrative Rules of Practice and Procedure, 1 Pa. Code § 31.1 et seq. and the Insurance Department's Special Rules of Administrative Practice and Procedure, 31 Pa. Code §§ 56.1--56.3.

   A written request for continuance of the scheduled hearing, for good cause, will be considered by the Presiding Officer. Prior to requesting a continuance, a party must contact the opposing party. All continuance requests must indicate whether the opposing party objects to a continuance.

   Following the hearing and receipt of the stenographic transcript, the Insurance Commissioner will issue a written order resolving the factual issues presented at the hearing and stating what remedial action, if any, is required. The Commissioner's Order will be sent to those persons participating in the hearing or their designated representatives. The Order of the Commissioner is subject to judicial review by the Commonwealth Court.

   Persons with a disability who wish to attend the above-referenced administrative hearing and require an auxiliary aid service or other accommodation to participate in the hearing, should contact Tracey Pontius, Agency Coordinator at (717) 787-4298.

Insurance Commissioner

[Pa.B. Doc. No. 99-28. Filed for public inspection December 31, 1999, 9:00 a.m.]

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