The Michigan Department of Insurance and Financial Services (DIFS) has suspended the licenses of three LA Insurance Agencies for violations of the Michigan Insurance Code.
In addition, four individuals selling insurance at the agencies named in the order also had their agent licenses suspended, the DIFS announced.
The three agencies named in the order were: LA Insurance Agency # 179 on M21 in Owosso; LA Insurance Agency # 100 on Washtenaw Ave. in Ypsilanti; and LA Insurance Agency # 117 on Michigan Ave. in Ypsilanti.
The agents whose licenses have been suspended are Jennifer J. Essak, Laurance Essak, Ronnie K. Kassab and Brandon Kiminaia, according to the DIFS.
DIFS said its investigation found that insurance policies were sold by unlicensed or un-appointed agents representing LA Insurance. It also found that additional “coverages” were added to policies without consumers’ knowledge or consent.
The agents and agencies are prevented from selling insurance in Michigan until a hearing is held.
Progressive Michigan Insurance Company and Integon National Insurance Company are among those companies named in the DIFS order as being affected by the actions of the agents/agencies.
The order states that the agents/agencies also “misrepresented Nation Safe Drivers Motor Club memberships to insurance customers in order to generate a profit. NSD memberships provided roadside assistance and tow services for a fee.”
Out of 110 customers interviewed as part of the DIFS investigation, only two were fully aware that they had signed an application for NSD membership or had paid for such memberships, the order states.
Source: Michigan DIFS