State of Michigan Suspends Burton Insurance Agent's License

State officials have suspended a Burton insurance agent's license following accusations she failed to submit customer applications and kept payments that left clients without insurance.

The state Department of Insurance and Financial Services on Nov. 12 suspended the license of Angella K. Swain-Jones, owner of Swain Insurance, 4251 Davison Road in Burton, who specializes in property and casualty insurance. 

A hearing in front of an administrative law judge can be requested by Swain-Jones in regard to the suspension no later than 20 days after the order was issued, or later if requested.

The state department said it began an investigation in March 2013 into Swain-Jones after receiving several complaints from customers.

"Although Swain Agency holds itself to the public as engaged in the business of insurance, Swain Agency is not a licensed resident producer agency as required by the (Michigan Insurance) Code, and is not authorized to transact the business of insurance in Michigan," states a summary order to suspend Swain-Jones' license.
The suspension order further states that Swain-Jones made an attempt to conceal "her misappropriation of customer funds" by issuing false proof of insurance certificates.

Several accusations were included in the suspension order of customers issued certificates for no-fault insurance and finding out they had no policy when switching to another agency. In another instance, a customer was in an automobile accident and Swain-Jones allegedly paid for damages, the order said.
The Department of Insurance and Financial Services said it attempted to conduct an examination on Sept. 17, 2013, of the business' finances, but they were refused access to documents.

Swain-Jones has been fined in the past by the state agency. She was ordered to pay $3,000 in January 2003 for "fiduciary violations," $300 in March 2006 for failing to pay premiums and maintain reasonable accounting methods, and $500 in December 2009 for the same reasons.   

Swain-Jones could not be immediately reached for comment on the suspension order.

Drivers who made a purchase through Ms. Swain-Jones are urged to contact the insurance company listed on their policy to determine if their coverage is in fact valid. Consumers who wish to file a complaint can contact DIFS toll-free at 877-999-6442.

A copy of the full order of Summary Suspension, Notice of Opportunity for Hearing, and Notice of Intent to Revoke can be viewed at, http://www.michigan.gov/documents/difs/Angela_Swain-Jones_13-11834_439881_7.pdf.

A a DUI arrest can haunt you for life

Whether it's called driving under the influence (DUI), operating while intoxicated (OWI) or driving while intoxicated (DWI), drunk driving is a nationwide problem of seismic magnitude. A majority of states use .08 percent as the legal level of intoxication for adults.
According to the National Highway Traffic Safety Administration, an estimated 10,228 people died in drunk driving crashes in 2011, accounting for 31 percent of all traffic deaths that year.

Since NHTSA began recording alcohol-related statistics in 1982, drunk driving fatalities have decreased 52 percent, from 21,113 in 1982, in large part because of public awareness campaigns and tough nationwide laws.

And a DUI can haunt every aspect of someone's life, from employment to insurance rates.

A DUI conviction can be a bar to employment.  If an employer has 10 qualified applicants for a position, does a background check and one of them has a DUI conviction, that person will likely be amongst the first cut. That is especially true in as competitive a job market as we have today.

DUI punishment

Ohio's OVI (operating a vehicle under the influence) penalties are particularly harsh. A first offense gets you a possible three-day jail stint, a 72-hour intervention program (usually held in an area hotel), a three- to six-month license suspension and fines of $375 to $1,075. Blow over .17 on a breathalyzer test and your jail time is mandatory -- and you've bought yourself a specialized bright yellow DUI license plate for your suspension period that lets everyone know you got a DUI.


Upon a second offense in Ohio, you get a mandatory ignition interlock, which costs up to $200 for installation and $80 per month maintenance. It uses a breathalyzer system that's connected to the vehicle's engine that's required to start the car and keep it running. If alcohol is detected the car won't start or will disable in motion. Currently 36 states have ignition interlock system laws.


Refusing to blow

So why not refuse the breathalyzer? Here's why: The majority of states have some type of "implied consent" law.


"This means that when you sign up for your driver's license, you also consent to taking a breathalyzer test upon demand from a police officer," says Eric Misterovich, a DUI attorney at Newburg Law in St. Joseph, Mich.

Many times people refuse a breathalyzer because they don't want to provide evidence of their blood alcohol to police out of fear of being arrested. However, the penalty for refusing the breath test can be harsher than the OWI charge, says Misterovich.


"A first-time OWI charge in Michigan is a misdemeanor punishable by 93 days in jail, $2,500 in various fines, six points on your record and a 30-day license suspension with an additional 150 days of a restricted license," he says.

The majority of first-time offenders are not sentenced to jail; rather, they are given probation, fines and license restrictions.

However, if you refuse to take a breathalyzer or refuse to take a chemical rights test in Michigan (but in some states called chemical test rights), you are subject to an automatic license suspension of one year and given six points on your record, among other penalties. "Worse, even if you refuse the chemical rights test, the police will be able to obtain a warrant to draw your blood," says Misterovich.

The one-year license suspension will likely have a greater impact on your life than an OWI charge. Plus, given the police's ability to draw your blood anyway, you could still be charged with OWI.

"In short, at least for first-time offenders where there is no car accident or bodily injury, refusing to take a breathalyzer will likely subject you to greater penalties than the OWI" in Michigan, says Misterovich.

Every DUI case is different and many variables -- from your past driving history, the judge assigned to your case -- and even the courtroom you're in -- play a role, as well as your attorney.


Forty-two states suspend licenses for first-time offenders. An SR-22 form is required to reinstate driving privileges after a DUI in most states. The form, which must be carried for three years, also puts offenders in a high-risk insurance category and raises rates by at least 30 percent.

The SR-22 car insurance form: When you have to prove you have auto insurance.

All states require drivers to buy auto insurance (with the exception of New Hampshire), and of course not everyone complies. But if you’re caught, you may find yourself required to have an SR-22, says Alex Hageli, director of personal lines policy with the Property Casualty Insurers Association America, an industry trade group.

The SR-22 form, also called a Certificate of Financial Responsibility (CFR), is a financial responsibility document that car insurance companies file with the state for customers who are required to prove they have insurance.

Rules on SR-22s vary by state, but usually it's legally required for drivers that have been convicted of certain driving-related violations. Examples include DUI convictions, reckless driving and accidents caused by uninsured drivers.

How to get an SR-22 insurance form

If you need an SR-22, the court or your state department of motor vehicles will notify you of the requirement, says Loretta L. Worters, vice president of the Insurance information Institute. "A person should notify the insurer providing his or her insurance that an SR-22 is needed," Worters says. "Once the [insurance] purchase is completed, the insurer will begin the process of filing the certificate on the behalf of the policyholder."

According to Worters, Delaware, Kentucky, Minnesota, New Mexico, Oklahoma and Pennsylvania don't require SR-22s. But if you already have an SR-22 and move to one of those states, you must continue to meet the requirements of the SR-22 state where your offense was committed. Also, your insurance policy in your new state must have the liability limit minimums required in your former state, Worters says.

New York and North Carolina don't require SR-22 filings, and if you have an SR-22 and move there, you don’t have to follow your former state’s requirements because most companies don't offer out-of-state SR-22 filings for policies in those states.You’ll generally need to pay a $25 one-time fee to file an SR-22.  You’ll have to pay the fee again if you allow your policy to lapse and the SR-22 has to be re-filed. In addition, a filing fee is charged for each individual SR-22 filed. For example, if you and your spouse need SR-22s, you’ll pay the fee twice, Worters says.

The long SR-22 insurance road ahead

As long as your auto insurance policy remains in force, the SR-22 remains valid. If your policy is cancelled while you're still required to carry an SR-22, your insurer is required to notify the state. Failure to maintain continuous coverage could cause you to lose your driver’s license.

How long the SR-22 filings are required can vary by state and the severity of the offense, but it’s typically three to five years, Worters says.

If you cancel your policy prior to the termination date, your insurance company must file an SR-26 notifying your state you no longer have insurance.

Some insurers can’t be bothered. Also, many auto insurance companies don't want the hassle of filing SR-22s with states -- and also filing SR-26s when policies lapse, Hageli says. "And there are companies that decide that people who require SR-22s are not the type that fits their profile of someone they will underwrite."

The SR-22 will affect both your choice of insurance companies and the car insurance rates you’ll pay, now and in the future. You’ll likely be moved into a higher risk category and pay more for insurance due to your violation. "Some companies review rates on a case-by-case basis, looking at factors such as age, gender, driving history and vehicle model," Worters says. "It's possible that your insurance company will never find out about your DUI conviction if your state doesn't require you seek an SR-22." If your insurance company misses the conviction at the time it happens, however, it may still have a few years to raise rates if it discovers the DUI later.