A Princeton, Ill., insurance agency has been fined $30,000 and prohibited from producing new business for six months for failing to disclose administrative fees. The Illinois Division of Insurance last month ordered H. Ernie Parr and Parr Insurance Agency to refund $102,978 to 17 clients, according to the Bureau County Republican.
The city of Princeton and the village of Tiskilwa asked the insurance division to investigate Parr because he failed to disclose fees he charged in lieu of commissions on the municipalities’ commercial insurance policies, according to the newspaper.
Parr was also ordered to pay a $30,000 fine to the insurance division, and refund $6,510 in credit balances to clients. Parr agreed to the order in mid-February and made the following statement:
“Last summer, our agency was audited by the Insurance Department. A concern arose in regard to a service fee on the city of Princeton account. Essentially, we failed to properly follow the insurance department guidelines, when charging a service fee in lieu of a commission. Consequently, we’ve agreed to sign a consent order, which will allow us to reach closure on this matter and put it behind us.”
The order does not prohibit the agency from servicing its existing business.
Topics Illinois
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