A New Hampshire Insurance department hearing officer has ruled that a former Benson administration Volunteer should be fined $42.000 for acting an unlicensed insurance broker
In a sharply written ten-page order, Hearing officer Russell Hilliard ruled that Linda Pepin's work on state employee heath and dental insurance contracts violated state law. Over an 8 month period last year, the former Cabletron executive collected 187,000 dollars in commissions from state contracts……She has been fined 2500 for each time she received a check.
"It sends a message that a violator will receive a fine commensurate with the action that they did and will be more than simply a cost of doing business."
That's New Hampshire Insurance Commissioner Roger Sevigny.
He says enforcing violations is essential to maintaining the integrity of the market.
"We don't have the ability to police all the agents and brokers in the state of NH……It would take a force of huge magnatide to do that……so it large measure it’s a voluntary process…and it would really undermine that if we were not able to uphold that law."
Linda Pepin, for her part, plans to appeal the ruling. In his order Russell Hillard dismissed many of the Pepin's arguments as "an effort to snatch ambiguity from the jaws of clarity." He added that "ignorance of the law is no excuse"….. Pepin's lawyer, Andru Volinsky says given the vehemence of the ruling, Hilliard needn't have forced his client to try to make her case at hearing.
"He could have issued this ruling before the hearing even happened. And it's a little disappointing that we had to go through a very extensive 4 day hearing before finding out what he though of the legal defenses."
Volinsky further criticizes Hilliard for not providing explicit guidance as to the line that divides human resources work from insurance consulting……But as Volinsky stresses, Hillard's ruling isn't necessarily the last word.
"You know….the hearing officer has his opinion about the meaning of the language in the various statutes but ultimately that's an appellate decision and we'll pursue it."
In the meantime, Linda Pepin also faces a separate proceeding brought by NH attorney general Peter Heed. Heed has gone to Rockingham county Superior court in an effort to recoup the $187,000 Pepin was paid. That matter is scheduled for hearing in late June..
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