Insurance agent loses license over unpaid taxes

The license of a Kalispell insurance agent has been suspended because he owes the state more than $65,000 in taxes.

After discovering that Michael Loween of Michael Loween & Associates in Kalispell failed to pay his state income taxes for tax years 2001 through 2005, Montana Commissioner of Securities and Insurance Monica J. Lindeen issued an order Friday to suspend Loween’s insurance license, according to Jackie Boyle, spokeswoman for Lindeen’s office.

A temporary cease-and-desist order has been in place since then, meaning that Loween cannot conduct business.

Failure to pay state income taxes is a reason to suspend or revoke an insurance producer’s license to do business in Montana.

Loween has 15 days to request a hearing to dispute the order. However, as of Tuesday, Boyle said the Montana Commissioner of Securities and Insurance office hadn’t received word that Loween has an attorney or plans to fight the order.

Loween could not be reached for comment.

“If we hear nothing, the cease-and-desist order will become permanent,” said Boyle.

The part of the law that allows for suspension was created during the last legislative session and went into effect July 1, 2009, making this the first time a professional license was endangered for non-payment of personal state income taxes.

Boyle said the Montana Commissioner of Securities and Insurance office rarely takes action on cases of tax evasion because it doesn’t always know when someone fails to pay taxes.

In an attempt to contact Loween after he failed to file a change of address, the office conducted a public records search. The office discovered he was delinquent on taxes, penalties and interests.

If Loween doesn’t respond to the order, he will lose his license and won’t be able to contest that loss for up to five years, at which point he will have to reapply for his license, Boyle said.