Anawan Insurance Agency, Inc. v. Division of Insurance

Summary

The Massachusetts Supreme Judicial Court reviews an administrative enforcement action against an insurance agency for paying commissions to an unlicensed broker. The court holds that the four-year limitations period in G. L. c. 260, § 5A, applies to enforcement actions under G. L. c. 175, § 177, and that the discovery rule may toll that period. It further holds that the Commissioner of Insurance may impose penalties under both G. L. c. 175, § 177, and G. L. c. 176D, §§ 2 and 7, and affirms the Superior Court judgment.

Holdings

1. The four-year statute of limitations in G. L. c. 260, § 5A, governs enforcement actions brought under G. L. c. 175, § 177, because that statute protects consumers from unlicensed insurance practitioners and therefore has the characteristics of a consumer-protection statute.
2. The discovery rule applies to the four-year limitations period in G. L. c. 260, § 5A, including when the Division brings an enforcement action seeking civil penalties under G. L. c. 175, § 177.
3. When the same conduct violates both G. L. c. 175, § 177, and G. L. c. 176D, § 2, the Commissioner may impose separate penalties under both statutes.

Questions Presented

1. Whether the two-year limitations period in G. L. c. 260, § 5, or the four-year period in G. L. c. 260, § 5A, governs a Division of Insurance enforcement action under G. L. c. 175, § 177.
2. Whether the discovery rule applies to the four-year limitations period in G. L. c. 260, § 5A.
3. Whether the Commissioner of Insurance may impose penalties under both G. L. c. 175, § 177, and G. L. c. 176D, §§ 2 and 7, for the same conduct.

Disposition

affirmed