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Augusta, Maine -

Superintendent of Insurance Mila Kofman announced on Thursday that the Bureau of Insurance has revoked the insurance producer (agent) license of Benjamin T. Watts, whose business was based in Union, Maine. This action follows an investigation by the Bureau and the Office of the Attorney General, and a hearing held April 27, 2009.

As stated in the May 27th Decision and Order, which can be viewed on the Bureau’s website at www.maine.gov/insurance, Mr. Watts borrowed $50,000 from an elderly insurance client and only paid back a portion of the amount. Later, he borrowed an additional $30,000 from the same client, none of which was paid back.

The Superintendent of Insurance found that by soliciting and receiving the loans, Mr. Watts violated the Maine Insurance Code by using knowledge gained as a result of his insurance relationship with the consumer for his own personal gain. The Superintendent also found that by not repaying the consumer, Mr. Watts engaged in a dishonest practice that demonstrates untrustworthiness in the conduct of business.

Mr. Watts’ misuse of the trust placed in him by receiving loans from a client, as well as his failure to abide by the terms of those loans, caused significant hardship to the consumer and violated his fiduciary obligations, therefore warranting the most severe license sanction.

“Most of Maine’s insurance professionals are honest and reputable. They provide valuable services to consumers and act in the best interests of Maine families and businesses. However, the Bureau will take strong action whenever someone deviates from this standard and violates the trust that should always exist between insurance professionals and their clients,” Superintendent Kofman commented.

“The Office of the Attorney General will not tolerate the actions of individuals who take advantage of the elderly,” said Attorney General Janet T. Mills. “We will continue to work with the Bureau of Insurance to take action against individuals who do not conduct business in a fair and honest manner.”

The Bureau of Insurance is part of the Department of Professional and Financial Regulation which encourages sound ethical business practices through high quality, impartial and efficient regulation of insurers, financial institutions, creditors, investment providers, and numerous professions and occupations for the purpose of protecting the citizens of Maine. Consumers can reach the Bureau through its web site at www.maine.gov/insurance; by calling 800-300-5000 in state; or by writing to Bureau of Insurance, 34 State House Station, Augusta ME 04333.

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Last Updated: October 28, 2009 1:28 PM