A Chattanooga, Tenn. insurance agent has been charged with insurance fraud and theft for allegedly adding commissions to policies when he told policyholders that the coverage was being sold on a net basis – with a set fee, but without a commission, according to Georgia Insurance Commissioner John W. Oxendine.
Warrants were issued for Edward Prater, 61. Oxendine said Prater was not a licensed insurance agent in Georgia, but through his truck insurance agency sold the policies with improper commissions in the state.
Oxendine said Prater received $2.6 million in commissions by altering documents to deceive clients about their premium payments. Prater earned the commissions primarily on group auto and workers compensation policies, according to officials. The alleged fraud has been going on since 2003, Oxendine said.
In 1996 Prater co-founded the U.S. Insurance Group agency in Chattanooga. The agency says it is licensed in 40 states and also has offices in Nashville and Lakeland, Florida.
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