Missouri Department Alleges Agency Failed to Remit Premiums

The Missouri Department of Insurance is seeking to discipline a Missouri insurance agency whose employees it says committed multiple violations of Missouri laws by failing to remit a total of $3,500 in insurance premiums to insurers.

The department said its investigation revealed that employees of Walker Insurance Agency in Clayton had failed to remit funds from customers to insurance companies. On multiple occasions employees with the insurance agency failed to forward money intended to be used for insurance premiums to insurance companies the agency represented, officials said in their complaint. Those companies included AIG, Inc., GMAC Insurance Company, and Hartford Financial Services Group, Inc., among others. Also included in those not forwarded insurance premium funds was the auto insurance Joint Underwriting Association (JUA).

The total amount of premiums believed to be misappropriated by Walker totaled over $3,500.

Missouri law requires insurance producers to submit customer funds
intended for insurance premiums to insurance companies within 30 days to receipt by the producer.

The complaint also alleges that employees with the Walker agency forged signatures of customers on various insurance documents. On several occasions during 2003 and 2004, employees signed customers’ names to insurance forms without those customers’ knowledge or consent, the complaint states.

Commenting on the allegations against the Walker agency, Missouri
Department of Insurance director Dale Finke stated, “Using customer funds for purposes other than intended by the customer will absolutely not be tolerated in the insurance business. The citizens of Missouri demand better of the individuals that market insurance coverage.”

The Administrative Hearing Commission will issue a determination as to whether the department has sufficient grounds to discipline the Walker agency’s license.

Latest Comments

• November 30, 2005 at 12:49 pm

  Arthur Ciszek says:

  $3500? What is that, 3 policies? The big failure that I see is the forging of signatures on the applications. That is a big no-no, and a more severe transgression than 3500 i... read more
• November 30, 2005 at 9:07 am

  Comment says:

  Yea whats the big deal everybody does that stuff in Missouri
• November 29, 2005 at 1:27 am

  Henry Stado says:

  Big deal. What about doing something that would actually help consumers - like requiring a producer trust account instead of letting every agent in the sttae live off the floa... read more