High Court Overturns $25,000 Fine on Comp Carrier

The Montana Supreme Court upheld a finding that Victory Insurance Co. violated the state Insurance Code by failing to disclose a federal lawsuit but remanded the case with instructions for regulators to explain why they levied the maximum $25,000 fine. "When faced with a situation where there has been a demonstrated violation of the Insurance Code but the maximum fine was imposed without explanation, the proper remedy is not to completely dismiss the agency action; it is to remand with instructions to the agency to 'cogently explain why it has exercised its discretion in a given mann...