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Published Violations and Sanctions

2020

July 23, 2020

Conduct
Two agents held a Customer Appreciation Dinner for more than a hundred crop insurance clients and their families and paid for hotel rooms, meals, door prizes, and live entertainment. These activities did not constitute promotional or marketing items of minimal value that are provided to all persons in the normal course of business. Therefore, the benefits provided were in violation of section 508(a)(9) of the Federal Crop Insurance Act.

Agency Action
The Risk Management Agency (RMA) filed complaints seeking disqualification and civil fines against the two agents before the Office of Administrator Law Judge. Subsequently, RMA entered into Consent Decisions with the agents who agreed to:

(a) Pay a fine of $30,000.
(b) A 2-year probationary period of reporting all benefits, meals, gifts, and funds provided to or spent on any policyholders or prospective policyholders regardless of value.

2015

May 29, 2015

Conduct
An agent co-sponsored tickets and arranged transportation to a professional football game and held Customer Appreciation Dinners for hundreds of crop insurance customers. These activities did not constitute promotional or marketing items of minimal value that are provided all persons in the normal course of business. Therefore, the benefits provided were in violation of section 508(a)(9) of the Federal Crop Insurance Act.

Agency Action
The Risk Management Agency (RMA) issued a Notice of Proposed Debarment to the individual. Subsequently, RMA entered into a Compliance Agreement with the agent who agreed to:

(a) Pay a fine of $30,000.
(b) Report to RMA any and all benefits, meals, gifts and funds provided to or spent on any policyholders or prospective policyholders regardless of its value.
(c) Submit to a voluntary exclusion from Federal Crop Insurance Program for a defined period of time if the agent violates any provision of the Compliance agreement, the Federal Crop Insurance Act, or the Standard Reinsurance Agreement.

 

Contact Information
For more information, contact RMA Public Affairs.