Kara S. Baysinger MA YER BROWN LLP 101 Second Street, Suite 375 San Francisco, CA 94105 (415) 874-4320 kbaysinger@mayerbrown.com

John L. Williams (WSB No. 39653) COZEN O'CONNOR 999 Third Avenue, 19th Floor Seattle, WA 98105 (206) 340-1000 j lwilliams@cozen.com

Attorneys for eHealthinsurance Services, Inc.

RECEIVED TACOMA

OEC 1 0 20 lQ

OFFICE OF ADMINISTRATIVE HEARINGS

STATE OF WASHING TON

OFFICE OF ADMINISTRATIVE HEARINGS

In the Matter of,

eHealthlnsurance Services, Inc.,

Licensee.

DOCKET NO. 08-2019-INS-00062

NOTICE OF WITHDRAWAL OF DEMAND FOR HEARING

Agency: Office of the Insurance Commissioner

Order No.: 19-0221

eHealthlnsurance Services, Inc. ("eHealth") and the Insurance Commissioner of the State

of Washington have entered into Order No. 19-022, Consent Order Rescinding Order to Cease

and Desist No. 19-0221, attached hereto as Exhibit A. Accordingly, eHealth hereby withdraws

LEGAL\43948770\l

ORIGINAL

its demand made pursuant to RCW 48.04. l 0( 1 )(b) for a hearing on the Order to Cease and

Desist, Order No. 19-0221, entered on May 7, 2019.

DATED: December 9, 2019 COZEN O'CONNOR

S. Baysinger

Attorneys for eHealthlnsurance Services, Inc.

- 2 -LEGAL\43948770\1

CERTIFICATE OF SERVICE

The undersigned certifies, under penalty of perjury under the laws of the State of

Washington, that the foregoing document was served upon the interested parties in the manner

indicated below:

Tacoma Office of Administrative Hearings 949 Market Street, Suite 500 Tacoma, Washington 98402

Ross Valore Insurance Enforcement Specialist Legal Affairs Division State of Washington OIC Post Office Box 40255 Olympia, Washington 98504-0255 Email: rossv@oic.wa.gov

Agency Representative

Scott Giesler SVP and General Counsel eHealth 2625 Augustine Drive, Second Floor Santa Clara, CA 95054 Phone: (650) 210-3155 Email: scott.giesler@ehealth.com

Appellant

LEGAL\43948770'11

D ~

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Via Legal Messenger Via Federal Express Via Facsimile Via U.S. Mail Via E-Mail

Via Legal Messenger Via Federal Express Via Facsimile Via U.S. Mail Via E-Mail

Via Legal Messenger Via Federal Express Via Facsimile Via U.S. Mail Via E-Mail

Kara S. Baysinger Partner Co-Leader, US Insurance Regulatory and Enforcement Practice Mayer Brown LLP 101 Second Street Suite 375 San Francisco, CA 94105-3670 Email: kbaysinger@mayerbrown.com

Appellant Representative

□ □ □ □ ~

Via Legal Messenger Via Federal Express Via Facsimile Via U.S. Mail Via E-Mail

SIGNED AND DATED this 9 th day of December, 2019, at Seattle, Washington.

COZEN O'CONNOR

By: Bo~r,L24.~

-4-LEGAL\43948770ll

EXHIBIT A

STATE or WASHINGTON OfflCE OP THE INSURANCE COMMISSIONER

In ths Maner of

EHEALTHINSURANCE SERVICES, INC.

Order No. 19-0222

WAOIC No, 170009 NPNNo. 2971515

CONSENT ORDER RESCINDING ORDBR TO CBASB .AND DESIST NO.19-0221

This Consent Order Rc&eimling Order To Cease mi Desist No. 19-0221 ("Order") is

eateml into by the ln8unmce Commiasionr:r of tho state of Wuhington ("Insurance

Commissioner" or 4'0IC"), acting pursuant to tho authority aet mrth in RCW 48.02.060 and

RCW 48.17.530, and eHealtbJnsunmce Services Inc. This Order is a P1:1blic record end will be,

dissemmatcd punnumt to Title 48 RCW and the Insurance Commissioner's policies and

procedures.

BASJS:

1. eHealthlnsurance Sorviccs, Inc. ("the Licensee,'') ill a nonresidmt!, insurance

producer :fint liccmscd in W81bington onAugoat 24, 2000. The Licensee is authorized to soll life

and disability lines.

CON9BNT ORDBR.RBSCIND.INO ORDER. TO CBASB AND DESIST NO. 19.0221 ORDER.NO. 19-0222

LA-15973$-2

1 Stam ofWubinaton OfBco oflmuranco ~CIDJnJaioaa' POBm-40255 Olympia. WA 98504-0255

2. This matter wu referred by tho Insurance, Commissioner's Producer Licensing &

Oversight division {1'PL&O11) as a result of a mailer sent to a Washington consumer by LioC1D1Ce.

The mailer prominently djsplays Medicare.com at the top of page, 1, BDd tho return address on

the envelope containing thb mailer identiJioa Medicare.com. The mailer infbrma the recipient

that they 11may be eligible to enroll fn a special kfnd of Medicare health plan that could save you

money on yom out-of:.pookd health care costs," At page 2, the mailer discloses "Medicare.com

ls a non-govcmmmit resource operated by eHealthlmurance Services, Ino., a health insurance

agency licensc,d to sell Medicare insurance products. Medicare has neithor reviewed nor

approved this matmial.,,

3. Based on the mailar, PL&O advised the Licensee of the rcquiremmlt of RCW

48.17.180 which spc,oifica that an mrtity doing business under any name othm than im legal name

must register that nmne as a trade name and infurm the Insurance CornmfuJ.oner bdm, use.

4. PL&O confirmed that •'Medicare.com" was not registen,d with the Wasbington

Stato Department of RcMmue. nor wu it added as a doing busincBB as (11DBA") to

cHealtblnaurancc Services' nonrcaidcnt producor license,

S. The Licensee disagreed that the name Medicare.com requimd trade name

registration or separate liccmsure. The Llceuscc stated that use of the term "Medicare.com" Is

not for the purpose of doing buaincsa or transacting business, and reference to "Medfcare.com"

is a refmence to a website url operated by Lice:nscc.

6. RCW 48.17.180 provides that an insurance producer doing business under my

name other than the insurance producer's legal name la required to register the name in

accordance with chapter 19.80 RCW and notffy the IDsurance Comrnissioatt befhrc using the

88111111m :name.

7. RCW 48.l7_.S30(l)(b) allows the Inaurance Commisaiomr to place on probatio11t

suspend, revoke. or retbso to Jssuc or renew an fmurance producer's license, or levy a civil

penalty m acconlance withRCW 48.17.560, fbr violating any msurancc laws, or violating any

CONSENT ORDBRRHSCINDINOORDBR. TO CBASB AND DBSIST N0.19-0221 ORDER NO. 19-0222

LA-1597369 • 2

2 Stato ofWuhingtm OfBoo ofimunmce CmurdHICllCI' PO Bax '40255 Olympia, WA 98504-0255

rule, subpomia. or order of the Insunmco Commissioner or of another state's insurance

COIDIIU88ioDCI".

8. On May 7, 2019, Order to Cease and Desist No, 19-0221 was issued against tho

Licensee, ordering the LiC8DBeo to immediately cease ftom 1) qaging Jn or transaotiug the

unauthorized business of insurance undor the name ''Modicm.com" in tho state ofWaahington,

2) scckins, pursuing, or obtaining any insurance or scmcc contract business Jn the atate of

Washington under tho name -Medicare.comtl and 3) selling, aoliofting, or nogotiatfng insurance

under tho naino "'Medicarc.comst in the state of Washington.

9. On August S, 2019, the Licensoe demanded a hearing with the OIC Hearings

Unit, contosting Order to Cease, and Desiat No. 19-0221.

10. By fail.ins to register Medicare.oom, the Jnaurange Commissioner determined that

Licensee violated RCW 48.17.180 and RCW 48.17.S30(1)(b).

11. In order to resolve this matter, the Insurance, Commissioner is willing to rescind

Order to Cease and Deaiat ~o. 19-0221 without furthm- penalty in this particular caao if tho

Licensee enters into this Consent Order &Dd mo tho Licm1&cc bas registered "Medicare.com"

under RCW 19.80.10, notwithstanding Licensee's position that such registration was not

required.

CONSENT TO ORDER:

The Insurance Commissionc,r of the state ofWashhlgton and the Licensee agree the best

interest of the public will be served by cmterina into this Order. NOW, THBREFORB, the

Licemee consents to the :f.bllowing in coDSidcratfon of its desire to reso.m, this matter without

further administrative or judicial pn,coedings. The Insurance Commissioner conaonts to settle

this matter in consideration of terma and conditions as set fi>rth below:

1. The Licensee acknowledges its duty to comply fully with the applicable laws of

the state ofWashington.

CONSBNT ORDBRRBSClNDlNO ORDER TO CEASB AND DESIST NO. 19-0221 ORDER NO. 19-0222

LA -1597369 - 2

3 State of Wubfngton Office oflnsul'mce Cormnlul~er P0Bait402SS Olympia. WA 98504-0255

2. The Liccmee consents to the entry of this Order by Dec:ember 5, 2019, waives

any and all hearing or other procedural rights, and :fiuthe.r administrative, or judicial challenges

to this Order.

3. NotbJng in this Order, however, waives orprecludesthoLiccnscoorthelnsurance

Cominisaiouer ftom exercising their rc,spectivc hearing or other procedural righta and rights to

administratiw or judicial challenges in the ownt the Washington State Department ofRevelDle

or tM Insurance Commisslonor hereafter decline or fail to renow the Lk:emee's registration of

"Medicare.com."

4. The Company agrc,ea to withdraw its demand :fi>r hearing related to Order to

Cease and Desist No. 19-0221, OAH Docket No. 08-2019-INS-00062, upon exeoutfon of this

Consent Order by the Licensoo and the Insurance Comm.issk>n«.

5. By agrecment of the parties, Ordm- to Coasc, and Desist No. 19-0221 is haroby

reacindcd and only this Order, Conamrt Order No. 19-0222, ahaU remain in effcct.

6. The Licensee undcratands and agroc,a that any filrther failure to comply with the

Btatutea and/or n,,gulatiom that an, the subject of this Order constitutes ground, fur further

pma)tie1:1, which may be imposed in din:ct response to further violations, pursaant to the

Washington lnsurm:le Code. Tho Insunmce CnmmJBldoner agrees that any declination of or

failure by the Insurance Commiaaioner or tho Department of Revenue to renew Licensee's

registration of "Medicarc.com0 under RCW 19.80.10 would not constitute a violation of this

Ordm-, or ofWubingtonlaw, by tm, Licensee. This does not limit tbtJ Insurance Commissioner's

authority to pursue cmtbrcemcnt action against the Licensee, if the Liccmscc, fails to pursw,

reru,wal of its registration of"Mcdicarc.com" under RCW 19.80.1 0.

7. Thia Order and the violations set ibrth hm'ein constitute admiaaible ovidcmce that

may be considered Jn any future action by the Inaurancc Commiaaionm- involving the Licensee.

Howewr, the &ct of this Order, and any provision, finding, or conclusion contafmd herein does

CONSBNT ORDER. RESCINDING ORDER. TO CHASE AND DESIST NO. 19-0221 ORDBR.NO. 1g.0222

LA-1597369 - 2

4 Stato of Wuhlngton OfBoo oflmunmca ComminiODCII' PO Box. 40l5S Olympia, WA 98504-o25S

not, and is not intended to, determine any factual or legal issue or have any pn,cluaive or

collateral eetoppel effects in any lawsuit by any party other than the Insuranoo Commisaionm.

8. Notwithstanding paragraph 7 of thfs section, this Order does not, and is not

intended to, detmmine any factual or legal lame or have any precluaive or collatmal estoppel

eflbct m any proceeding between the Insurance Commissioner ml the Licemee, under the

circumstaocca described in Paragraph 3 of this Section.

'l \" J. BXBCUTED this-=-.::l_ day of

EHEALTHIN§.URANCB SERVICES, INC.

By. l:Z"vf ~~- -I :,

Printed Name:---'~=-=t!..=-0-....... f~ ...... -_(.._~ ...... ~--e...-::»_~_,.r __ _

AGREED ORDER:

Pursuant to tho 1bregoing fiwtual Buis and Consent to Order, the Insurance

Commissioner of the &ttlte ofWaahington hmcby Orders as fbllowa:

1, Upon receipt of this mgned Conaent Order by the date set forth above, Order to

Cease and Desist No. 19-0221 iB hereby rescinded and only this Order, Consent Order No. 19~

0222, shall remain in effcet.

CONSBNI' ORDBRRBSCINDINO ORDER TO CBASB AND DESIST NO. 19-0211 ORilBR. NO. 19-0222

LA-1S97369-2

5 State ofWaahlnatm Office ofinmranco Commlslloner PO Bax. 40255 01.ympfa, WA 98504-0255

2. The Company withdraws its demand for homing reJated to Order to Cease and

Dmist No. 19-0221, OAH Docket No. 08-2019-INS-00062. upon axccution of this Consent

Order by the, Licensee and the Insurance Commissiom,r,

3. This Order and tho violations act furth harem constitutes admissible evidence that

may be considered in any future action by tho Insurance Commiasiomr involving tho Licensee.

' Howc:Mlt', the fact of this Order, and any provision, finding, Qt conclusion contained herein does

not, and is not intended to, determine any filctual or legal issue or have any precluaivc or

collateral estoppel effects in any lawsuit or prnOttiding by any party other than the Insurance

Commissioner.

4. Notwitbstandfng paragraph 3 of thJa sectfon, this Order docs not, and is not

htended to, determine any factual or legal issue or haw any precluaivc, or colla1eral estoppcl

effect in any proQllflding between the Insurance Commissioner and the, Llccnaee, under the

cirowmtances described in Paragraph 3 of tho Consent to Order Section hereof

5t'-I. " ENTBRBD at Tumwater, WashingtDn, this...,:_......__ clayof ___ v ___ C __ ~~-~--~---- 2019.

MIKE KREIDLER Jnsurancc, Commiasionar

SV.n&A,w;, lnsunmco Enfim:emmJt Specialist Legal Affairs Division

CONSENT ORDERRESCINDINO ORDER. TO CEASB AND DBSISTNO. 19-0221 ORDBRNO. 19-0222

LA-1S97369 - 2

Stato olWlllhfngtm Office oflnMlnmcc Cnmrnlu{~ POBCllt4025S Olympia, WA 98j04-0255