Illinois Fines Insurance Agent, Agency $100K and Revokes Licenses

January 26, 2010

The Illinois Department of Insurance has revoked the licenses to sell insurance of Daniel Martin Deitz of Bloomingdale and his Schaumburg-based agency Danny Martin CLU and Associates (collectively “Martin”) and imposed a $100,000 fine – the maximum penalties allowed under Illinois law – for participating in an auto insurance scam.

Regulators say Martin sent fraudulent letters on stationary falsely appearing to be from the insurance department that misled his current or former clients to believe their automobile insurance policies had expired and their driving licenses would be suspended unless they met certain insurance requirements.

In December 2009, the DOI learned that some Illinois residents had received letters printed on Martin’s fake department letterhead advising recipients that their “automobile insurance policy is cancelled” and that their “Driver’s License and/or License Plates will be suspended within 10 days from receipt of this letter.”

The department traced the fraudulent letters to Martin, who eventually confessed to creating and distributing the letters and to impersonating a public official. Martin also provided a list of some consumers to whom the fraudulent letters were mailed.

Martin was ordered to cease and desist the unlawful conduct.

On Jan. 21, 2010, the department revoked his Illinois insurance producer license and his insurance agency’s business entity license.

The Illinois DOI said it does not maintain insurance records on individual consumers, and would not send unsolicited letters, faxes, or emails asking consumers for “proof of insurance” or other personal information. Moreover, the department does not have the authority to suspend any individual’s driver’s license or license plate.

Source: Illinois Department of Insurance,

Topics Agencies Illinois

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