‘One-Day’ Policy Sales Lead to Agent License Suspensions in Michigan

The Michigan Department of Insurance and Financial Services (DIFS) announced it has suspended the licenses of father and son insurance agents Ali Ali and Adnan Ali-Aljadri and their insurance agencies AAS and ASA for violating numerous provisions of the Michigan Insurance Code.

Both agencies are located in Dearborn.

DIFS reported that after receiving a complaint regarding Ali’s and Ali-Aljadri’s business practices, it opened an investigation of the agencies and discovered the father and son agents were selling fraudulent automobile insurance certificates for “one-day policies” and pocketing the fees collected for personal use. The agents were selling a six-month policy and having customers sign a cancellation form which was used to cancel the policy the next day, DIFS said.

They charged $75 for the “one-day” policy. Such policies are not approved for use in Michigan.

The department said the policies were being sold as GEICO policies, but that neither Ali nor Ali-Aljadri were appointed to sell the company’s products. In all, GEICO documented more than 800 unauthorized policies sold by the pair.

According to the department’s order, the policies were purchased by credit card and then canceled within 72 hours of purchase. The policies were purchased as six-month policies but because they were cancelled soon after they were placed, the agents were known in the community as selling “one-day” policies, the commissioner’s order stated.

The pair have been convicted of criminal offenses.

“In a 15 count felony complaint, Ali and Alijadri were charged with one count of conducting criminal enterprises, two counts of using a computer to commit a crime and 12 counts of false pretenses,” the order states.

Topics Agencies Michigan