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Advisory opinion regarding whether Mr. Martin J. Perret may reinstate his sponsorship of his business, Quality Plus Insurance, on a radio program hosted by Mr. James Perot, who is an employee of the Department of Insurance (DOI). |
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According to Mr. Perret's advisory opinion request, he was a sponsor of the Mr. Bitter program which is broadcast on Saturday mornings on Sports Radio ESPN 1420 in Lafayette, LA for several years. Mr. Bitter is hosted by Mr. James Perot. In 2009, Mr. Perot accepted a position with the Louisiana DOI as a Certified Financial Examiner. Following his acceptance of the position he informed Perret there may be a conflict of interest in maintaining Mr. Perret and his business as a sponsor. Not wanting to put Mr. Perot in a compromising position, Mr. Perret terminated sponsorship of his program.
According to follow up correspondence with both Mr. Perret and Mr. Perot, Quality Plus Insurance does not have an economic interest that might be affected by Mr. Perot's job duties with the DOI. In Mr. Perot's position as a financial examiner, he is responsible for reviewing financial statements of approximately eight companies domesticated in the State of Louisiana, none of which is affiliated with Mr. Perret's business. Quality Plus Insurance does write for two companies domesticated in the State, however, another analyst is responsible for reviewing the financial statements of those companies.
Further, while Quality Plus Insurance is regulated by the DOI, it is not regulated by Mr. Perot's division. Mr. Perret's business is regulated in that he is required to renew his license every other year with the DOI. One year he has to renew his license for Life/Health, and the following year he must renew his Property/Casualty license. Renewal and licensing is carried out by the Producer Licensing Division of the DOI. Each of Mr. Perret's employees must be licensed as well, and must meet the licensing standards regulated by the Producer Licensing Division. The DOI does have the authority to revoke Mr. Perret's license, or those of his employees, but only if Mr. Perret or his employees do not meet the standards and requirements of licensing (e.g. commit fraud, fail to take required continuing education, etc.). To the extent Mr. Perret, his employees, and his business are regulated by DOI, it is through the Producer Licensing Division, and not the Financial Solvency Division of DOI.
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Section 1111C(2)(d) of the Code of Ethics prohibits a public servant from receiving income for services provided to a person who is regulated by the public employee's agency or from a person who has a substantial economic interest in the performance or nonperformance of the public employee's job duties.
"Agency" is defined as a public servant's department, office, division, agency, commission, board, committee, or other organizational unit of a governmental entity. Specifically for public servants in the twenty principal departments of the executive branch of state government, the office in which such public servant carries out his primary responsibilities shall be considered the public servant's agency.
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Adopt proposed advisory opinion
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| Assigned Attorney: |
Brent Durham |
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