Agent Loses License for Misappropriating Insurers Funds
Post 5254

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Insurance Agent Fraud Fails

In Rochell Provost v. State Of Louisiana Division Of Administrative Law And Louisiana Department Of Insurance, No. 2025 CA 0492, Court of Appeals of Louisiana, First Circuit (December 19, 2025) the Louisiana Department of Insurance (LDI) successfully appealed a district court judgment that reinstated Rochell Provost’s insurance producer license and reversed a $5,000 fine previously assessed against her.
FACTUAL BACKGROUND

The underlying dispute began when Union National Life Insurance Company/Kemper Life terminated Ms. Provost for cause, alleging she had committed fraudulent activity and misappropriated $31,471.39 in company funds. An investigative report supporting these findings was sent to LDI.

Following receipt of the report, LDI notified Ms. Provost of proposed regulatory action concerning the collection and failure to deposit insurance premiums. The Commissioner of Insurance proposed suspending or revoking her license and gave Ms. Provost the opportunity to respond. When no response was received, LDI formally revoked her license and imposed the fine, advising her of her right to an administrative appeal.

The district court initially reinstated Ms. Provost’s license and reversed the fine, but LDI appealed this decision.
THE APPEAL

Ms. Provost appealed, arguing the allegations were false and attributing her inability to deposit premiums to computer software issues and alleged workplace vendettas. The administrative law hearing was conducted telephonically with testimony from LDI’s Office of Insurance Fraud personnel about their investigation.
ANALYSIS AND STANDARD OF REVIEW

The Louisiana Administrative Procedure Act (the “Act”) governs the judicial review of a final decision in an agency adjudication. The exclusive grounds upon which an administrative agency’s decision may be reversed or modified on appeal is codified at La. R.S. 49:978.1(G).

The court may affirm the decision of the agency or remand the case for further proceedings. The court may reverse or modify the decision if substantial rights of the appellant have been prejudiced because the administrative findings, inferences, conclusions, or decisions are:

In violation of constitutional or statutory provisions;
In excess of the statutory authority of the agency;
Made upon unlawful procedure;
Affected by other error of law;
Arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion; or
Not supported and sustainable by a preponderance of the evidence as determined by the reviewing court. In the application of this rule, the court shall make its own determination and conclusions of fact by a preponderance of evidence based upon its own evaluation of the record reviewed in its entirety upon judicial review. In the application of the rule, where the agency has the opportunity to judge the credibility of witnesses by first-hand observation of demeanor on the witness stand and the reviewing court does not, due regard shall be given to the agency’s determination of credibility issues.

Any one of the six bases listed in the Act is sufficient to modify or reverse an agency determination. An administrative agency’s conclusion is “capricious” when it has no substantial evidence to support it. Likewise, the word “arbitrary” implies a disregard of evidence or the proper weight thereof.

The proceedings and findings of an administrative agency are presumed to be legitimate and correct. The burden of proof is on the appellant to demonstrate any grounds for reversal or modification.

Pursuant to Louisiana Revised Statutes 22:1554(A), the Commissioner of Insurance may revoke an insurance producer license, or may levy a fine, or any combination of these actions.

On appeal, LDI asserted that its revocation of Ms. Provost’s license and assessment of a fine was neither arbitrary nor capricious, and in fact was supported by a preponderance of the evidence. After an independent review of the administrative record, the Court of Appeals agreed.

The Court of Appeals reversed the district court’s judgment, upholding the administrative revocation and fine. The case centered on statutory interpretation of the insurance code, the sufficiency of evidence regarding alleged misappropriation, and administrative due process related to notice and opportunity to be heard.

The Court of Appeals reversed the district court’s September 2, 2025 amended judgment granting Rochell Provost’s Petition for Judicial Review by Trial De Novo and reinstated the Division of Administrative Law’s decision and order dated January 19, 2024, affirming the LDI’s revocation of insurance producer license number 639650, issued to Rochell Provost, and assessment of a $5,000.00 fine.
ZALMA OPINION

Ms. Provost’s actions and appeal revealed an extreme type of “Chutzpah” (Yiddish for unmitigated gall) by first stealing from the insurer she represented as an agent by keeping the premiums she collected and then claiming it was all due to software difficulties. She convinced the trial court only to have her actions reviewed by the Court of Appeals who affirmed the actions of the LDI.

(c) 2025 Barry Zalma & ClaimSchool, Inc.

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