The Oklahoma Department of Insurance reported that Commissioner Kim Holland has turned down former state senator Gene Stipe’s request that he be allowed to be in the insurance business.
“We want to make sure that people we license and regulate are held to the highest standards of ethics and honesty,” Holland said. “Mr. Stipe has been convicted of several felonies that involve dishonesty, and that is not the type of character we want in control of the insurance-buying public’s money.”
In 2003, Stipe pleaded guilty to Conspiracy to Violate the Federal Election Campaign Act, Conspiracy to Obstruct a Federal Election Commission Investigation, and Perjury. Because of those convictions, federal law prohibits him from participating or engaging in the interstate business of insurance. However, the law gives convicted felons the opportunity to ask the insurance commissioner for special permission to work in insurance.
The issue came up when Stipe filed a lawsuit that alleges he is a partner in “ownership and operation of abstracting and title insurance companies.”
Although he is not licensed as an insurance agent and does not appear in state filings as an owner of an insurer, Holland was concerned about Stipe’s allegation.
Commissioner Holland sent Stipe an application form used by the department to investigate convicted felons. After reviewing his application and supporting documents, she decided that consumers and the insurance industry would not benefit by giving special permission to Stipe.
Under the federal law, if Stipe participates or engages in the business of insurance without Commissioner Holland’s consent, he may be subject to criminal prosecution.
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