1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 STATE OF WASHINGTON
OFFICE OF THE INSURANCE COMMISSIONER
In the Matter of
L & B ENTERPRISES INC., Dba TOURNAMENT PROS, Unauthorized Entities,
And BOB ROUGH and
JAN-MICHAEL SHERMAN, As Individual Respondents.
Order No. 14-0178
ORDER TO CEASE AND DESIST
Pursuant to RCW 48.02.080, RCW 48.15.020, and RCW 48.15.023, the Insurance Commissioner of the State of Washington orders L & B
Enterprises Inc., Tournament Pros, Bob Rough, Jan-Michael Sherman, and their officers, directors, employees, agents, and affiliates ("Respondents") to immediately cease and desist from:
A. Engaging in or transacting the unauthorized business of insurance in the State of Washington, including the attempted collection of premium monies and the advertising and soliciting of insurance and
ORDER TO CEASE AND DESIST OIC ORDER NO. 14-0178
1134279
State of Washington Office of Insurance Commissioner
Insurance 5000 Building PO BON 40255 Olympia, WA 98504-0244
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insurance-related products to Washington residents without a certificate of authority issued by the Insurance Commissioner;
B. Soliciting, taking applications for, procuring, or placing any kind of insurance business in the State of Washington for which they are not then licensed by the Insurance Commissioner;
C. Soliciting by e-mail, facsimile, telephone, mail, website or any other means, taking applications for, procuring or placing any contract providing indemnification for sporting event winnings or losses in Washington or any other form of insurance;
D. This Order shall not prevent Respondents from fulfilling the terms of contracts formed prior to the effective date of this Order pursuant to RCW48.15.020(2)(b).
THIS ORDER IS BASED ON THE FOLLOWING:
1. Respondent L & B Enterprises, Inc. is a corporation
headquartered in Maryland and does business under the name "Tournament Pros." Respondent Bob Rough holds himself out as the owner of L & B Enterprises, and Respondent Jan-Michael holds himself out as the Vice President of Marketing for the company.
2. Respondents have not applied for, nor have they been granted, a certificate of authority to act as an insurer in Washington. Neither have
ORDER TO CEASE AND DESIST OIC ORDER NO. 14-0178
1134279
Stale of Washington Office of Insurance Commissioner
Insurance 5000 Building PO Box 40255 OI>-mpia, WA 98504-0244
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they applied for, nor have they been granted, any license to solicit or sell insurance in this state.
3. Since 2012, Respondents have sold 18 contracts to Washington gold tournament sponsors promising to pay specified amounts, or provide specific prizes, to tournament participants who win contests such as putting or chipping contests or who score a hole in one. These are contracts to indemnify another or pay a specified amount upon determinable
contingencies and constitute "insurance" under RCW 48.01.040.
4. Respondents' above-described conduct violates the Insurance Code of the State of Washington, including RCW 48.05.030, certificate of authority required, RCW 48.15.020, solicitation by unauthorized insurer prohibited, RCW 48.15.023(3), knowing violations of RCW 48.15.020(1) Solicitation by unauthorized insurer prohibited — Personal liability, and RCW 48.110.055, product protection guarantee provider registration required.
IT IS FURTHER ORDERED that nothing herein shall prevent Respondents from frilfilling the terms of contracts formed prior to the effective date of this Order pursuant to RCW 48.15.020(2)(b).
Any violation of the terms of this Order by Respondents, their officers, directors, agents, or employees, or affiliates, will render the violator(s) subject to the full penalties authorized by RCW 48.02.080, 48.15.023, and other applicable sections of the Insurance Code of the State of Washington.
ORDER TO CEASE AND DESiST 0!C ORDER NO. 14-0178
1134279
State of Washmeton Office of Insurance Commissioner
Insurance 5000 Building PO Box 40255 OI>-mpia, WA 98504-0244
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Respondents have the right to demand a hearing pursuant to RCW Chapters 48.04 and 34.05. This Order shall remain in effect subject to the further order of the Commissioner.
TfflS ORDER IS EFFECTIVE IMMEDIATELY AND IS ENTERED at Tumwater, Washington, this 15^^ day of September, 2014.
MIKE KREIDLER Insurance Commissioner By and through his designee
Charles D. Brown
Insurance Enforcement Specialist Legal Affairs Division
ORDER TO CEASE AND DESIST OIC ORDER NO. 14-0178
1134279
State of Washington Office of Insurance Commissioner
Insurance 5000 Buiidmg PO Box 40255 Otympia. WA 9S5O4-0244
CERTIFICATE OF MAILING 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
The undersigned certifies under the penalty of perjury under the laws of the state of Washington that I am now and at all times herein mentioned, a citizen of the United States, a resident of the state of Washington, over the age of eighteen years, not a party to or interested in the above-entitled
action, and competent to be a witness herein.
On the date given below I caused to be served the foregoing ORDER TO CEASE AND DESIST on the following individuals via US Mail and Email at the below indicated addresses:
VIA US MAIL and EMAIL: Tournament Pros Bob Rough 105 Park Lane Thurmont,MD 21788 bob@toumamentpros.com Tournament Pros Jan-Michael Sherman 105 Park Lane Thurmont,MD 21788 Jan@toumamentpros.com
SIGNED this \5!^ day of September, 2014, at Tumwater, Washington.
Christine Tribe
ORDER TO CEASE AND DESIST OIC ORDER NO. 14-0178
1134279
State of Washington Office of Insurance Commissioner
Insurance 5000 Building PO Box 40255 OI>-mpia. WA 9S504-0244
