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MAINE BUREAU OF INSURANCE
34 State House Station
Augusta, Maine 04333-0034

Tel. (207) 624-8475 Fax (207) 624-8599 TDD (207) 624-8563

Superintendent of Insurance to Hold Hearings to Address Violations of Maine Law by Bankers Life & Casualty and its Two Licensed Producers

January 11, 2005

Contact: Alessandro A. Iuppa, Superintendent
Tel: 207-624-8401

Augusta, Maine: Maine Bureau of Insurance staff have petitioned Superintendent of Insurance Alessandro A. Iuppa to take action against Bankers Life and Casualty Company of Illinois and its two producers, Mary E. Matarazzo and Alan D. Knowlton of the company’s Bangor, Maine branch sales office for violating Maine law.

Following an investigation of a consumer complaint, Bureau of Insurance staff allege that Mary Matarazzo violated Maine law when she sold an annuity to a Maine consumer. The petition alleges that at the time of sale, Ms. Matarazzo provided sales material that gave an incomplete and misleading comparison between an annuity and a certificate of deposit causing the consumer to cash in two certificates of deposit to purchase the annuity. In addition, the petition alleges that the producer failed to explain to the consumer that the annuity contained early withdrawal restrictions and service fees and that it was not FDIC insured. The petition further alleges that the producer committed illegal acts when, on two separate occasions, Ms. Matarazzo forged the consumer’s signature on change of beneficiary forms and then signed her own name as witnessing the consumer’s signature.

In a separate investigation, Bureau of Insurance staff received information from an attendee of a producer recruiting presentation given by Alan Knowlton, manager of the insurer’s Bangor branch office. Bureau of Insurance staff allege that Mr. Knowlton violated Maine law when he distributed material that misrepresented the financial condition of Bankers Life. The petition alleges that Mr. Knowlton knowingly distributed material at the Bankers Life recruitment meeting that contained a false statement concerning the A.M. Best Company’s financial rating for the insurer. A.M. Best Company is the leading source of financial ratings of insurance companies.

Bankers Life & Casualty Company is also subject to disciplinary action in these two cases as the company is accountable for the actions of its appointed producers.

A hearing on the alleged violations and potential disciplinary action in the Matarazzo case is scheduled for March 7, 2005, at 9:00 a.m. in the Kennebec Room of the Maine Department of Professional and Financial Regulation Building, 124 Northern Avenue, Gardiner Maine.

A hearing on the alleged violation and potential disciplinary action in the Knowlton case will be held on March 10, 2005, at 9:00 a.m. in the Central Conference Room of the Maine Department of Professional and Financial Regulation Building, 124 Northern Avenue, Gardiner Maine.

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 MaineInsuranceReg.org; by calling 800-300-5000 in state; or by writing to Bureau of Insurance, 34 State House Station, Augusta ME 04333.

Last Updated: May 24, 2011