AIKENS’ RECORD EXPUNGED

March 24, 2003

LaVera Aiken and Lanny Aiken Insurance Agency Inc. in Granbury, Texas, were completely exonerated of all allegations related to property insurance coverage for Hood County and all reference to proceedings against the Aikens have been expunged from court records. According to the Aikens, in 2000 the insurance agency and LaVera Aiken were indicted on charges of misapplication of a premium for property insurance. LaVera Aiken, a broker, had handled the county’s property insurance for many years. When a county official called an insurance company regarding hail damage to the courthouse, a company spokesman wrongly denied coverage existed, leading the official to assume the buildings were not covered. “In order to obtain broader coverage,” LaVera Aiken said, “we recommended that the county switch coverage from their ‘old’ insurance company which had covered them for years to another company at renewal time. Although the ‘new’ company had received the application, inspected the buildings and notified us they had placed the coverage into effect, we had not received the actual policy. Meanwhile, however, the renewal coverage with the ‘old’ company was never canceled so the county did, in fact, have coverage with both companies.” Eventually, the hail damage claim of over $348,000 was paid by insurers. Investigations conducted by the Hood County district attorney and TDI revealed that coverage in fact existed and that Ms. Aiken had done nothing wrong. “I was told by the TDI that they did not plan to bring disciplinary action against either Ms. Aiken or the insurance agency,” said Robert Kuhn, an Austin attorney who represents the Aiken Insurance Agency. “Actually, the TDI said there was nothing to dismiss since no official complaint was ever filed.”

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