When an individual or business violates the law and is punished, part of the deal is supposed to be that it happens publicly. State regulatory agencies regularly fire off press releases about a fine or a sanction that was issued, which serve to alert the public to a business that operates in a questionable manner and act as a deterrent for others who might be afraid of seeing their names sullied.

But it only works if it’s applied to everyone. Letting one company get by with a secret punishment &045; and even agreeing not to call it a fine &045; while others are publicly chastised is unfair not only to the companies who don’t get the benefit of privacy, but also to the public, which deserves to know about it when the state sanctions a business.

That’s why it’s so baffling that the state made a written agreement promising confidentiality to an insurance company accused of scamming Minnesota seniors. The agreement, signed by Commerce Commissioner Glen Wilson, stated that no press releases would be issued and no state employee would discuss the matter. In exchange, the state got a $100,000 settlement but agreed that it wouldn’t be referred to as a fine.

Gov. Tim Pawlenty says the state has no ban on such non-disclosure agreements, but it should. There is no reason to protect a company accused of misleading and unethical practices. The insurance company in question, Texas-based United American Insurance Company, was banned from doing business in the state for two-and-a-half years, which seemingly wouldn’t happen if the company hadn’t broken any laws. So why is this highly questionable company, which has been sanctioned in at least 10 other states, being protected? The fact is that there is no good reason, and the state should not allow it to happen again.