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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Convicted Criminal Seeks to Compel Receiver to Protect his Assets
Post number 5291
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The Work of a Court Appointed Receiver is Constitutionally Protected
In Simon Semaan et al. v. Robert P. Mosier et al., G064385, California Court of Appeals, Fourth District, Third Division (February 6, 2026) the Court of Appeals applied the California anti-SLAPP statute which protects defendants from meritless lawsuits arising from constitutionally protected activities, including those performed in official capacities. The court also considered the doctrine of quasi-judicial immunity, which shields court-appointed receivers from liability for discretionary acts performed within their official duties.
Facts
In September 2021, the State of California filed felony charges against Simon Semaan, alleging violations of Insurance Code section 11760(a) for making...
When There are Two Different Other Insurance Clauses They Eliminate Each Other and Both Insurers Owe Indemnity Equally
Post number 5289
In Great West Casualty Co. v. Nationwide Agribusiness Insurance Co., and Conserv FS, Inc., and Timothy A. Brennan, as Administrator of the Estate of Pat- rick J. Brennan, deceased, Nos. 24-1258, 24-1259, United States Court of Appeals, Seventh Circuit (February 11, 2026) the USCA was required to resolve a dispute that arose when a tractor-trailer operated by Robert D. Fisher (agent of Deerpass Farms Trucking, LLC-II) was involved in a side-impact collision with an SUV driven by Patrick J. Brennan, resulting in Brennan’s death.
Facts
Deerpass Trucking, an interstate motor carrier, leased the tractor from Deerpass Farms Services, LLC, and hauled cargo for Conserv FS, Inc. under a trailer interchange agreement. The tractor was insured by Great West Casualty Company with a $1 million policy limit, while the trailer was insured by Nationwide Agribusiness Insurance Company with a $2 million ...
Opiod Producer Seeks Indemnity from CGL Insurers
Post number 5288
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Insurers Exclude Damages Due to Insured’s Products
In Matthew Dundon, As The Trustee Of The Endo General Unsecured Creditors’ Trust v. ACE Property And Casualty Insurance Company, et al., Civil Action No. 24-4221, United States District Court, E.D. Pennsylvania (February 10, 2026) Matthew Dundon, trustee of the Endo General Unsecured Creditors’ Trust, sued multiple commercial general liability (CGL) insurers for coverage of opioid-related litigation involving Endo International PLC a pharmaceutical manufacturer.
KEY FACTS
Beginning as early as 2014, thousands of opioid suits were filed by governments, third parties, and individuals alleging harms tied to opioid manufacturing and marketing.
Bankruptcy & Settlements
Endo filed Chapter 11 in August 2022; before bankruptcy it ...
Passover for Americans
Posted on February 19, 2026 by Barry Zalma
“The Passover Seder For Americans”
For more than 3,000 years Jewish fathers have told the story of the Exodus of the enslaved Jews from Egypt. Telling the story has been required of all Jewish fathers. Americans, who have lived in North America for more than 300 years have become Americans and many have lost the ability to read, write and understand the Hebrew language in which the story of Passover was first told in the Torah. Passover is one of the many holidays Jewish People celebrate to help them remember the importance of G_d in their lives. We see the animals, the oceans, the rivers, the mountains, the rain, sun, the planets, the stars, and the people and wonder how did all these wonderful things come into being. Jews believe the force we call G_d created the entire universe and everything in it. Jews feel G_d is all seeing and knowing and although we can’t see Him, He is everywhere and in everyone.We understand...
Passover for Americans
Posted on February 19, 2026 by Barry Zalma
Read the full article at https://www.linkedin.com/pulse/passover-americans-barry-zalma-esq-cfe-5vgkc.
“The Passover Seder For Americans”
For more than 3,000 years Jewish fathers have told the story of the Exodus of the enslaved Jews from Egypt. Telling the story has been required of all Jewish fathers. Americans, who have lived in North America for more than 300 years have become Americans and many have lostthe ability to read, write and understand the Hebrew language in which the story of Passover was first told in the Torah.
Passover is one of the many holidays Jewish People celebrate to help them remember the importance of G_d in their lives. We see the animals, the oceans, the rivers, the mountains, the rain, sun, the planets, the stars, and the people and ...
You Get What You Pay For – Less Coverage Means Lower Premium
Post number 5275
Posted on January 30, 2026 by Barry Zalma
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When Experts for Both Sides Agree That Two Causes Concur to Cause a Wall to Collapse Exclusion Applies
In Lido Hospitality, Inc. v. AIX Specialty Insurance Company, No. 1-24-1465, 2026 IL App (1st) 241465-U, Court of Appeals of Illinois (January 27, 2026) resolved the effect of an anti-concurrent cause exclusion to a loss with more than one cause.
Facts and Background
Lido Hospitality, Inc. operates the Lido Motel in Franklin Park, Illinois. In November 2020, a windstorm caused one of the motel’s brick veneer walls to collapse. At the time, Lido was insured under a policy issued by AIX Specialty Insurance Company which provided coverage for windstorm damage. However, the policy contained an exclusion for any loss or damage directly or indirectly resulting from ...
