The Iowa Insurance Division has ordered Covals Douze, of Coconut Creek, Florida, to pay administrative fines and fees totaling $43,895 and revoked his non-resident insurance producer license in a “bait and switch” scheme.
The division has also prohibited Douze from reapplying for licensure as an insurance producer in Iowa for 15 years.
“It’s easy for consumers to purchase insurance coverage online or over the phone. While that convenience can be good for consumers, it’s also easier for scammers to do harm,” Iowa Insurance Division spokesman Chance McElhaney said. “In this case, consumers were told they were purchasing a health insurance policy, but received a life insurance policy. It’s important for Iowa consumers to reach out to our office if something seems off, especially when dealing with out-of-state insurance sales operations.”
According to the insurance division, Douze’s violations of insurance laws included:
- Submitting an application for a policy that a consumer did not ask to be submitted and one of which they had no knowledge;
- Signing a consumer’s signature on an application for insurance and signing a consumer’s signature without the consumer’s knowledge or consent;
- Leading a consumer to believe that an application for health insurance was being completed when in fact he completed and submitted a life insurance application for the consumer;
- Providing a false email address for the consumer precluding the consumer from having the opportunity to view the application for correctness and to identify that contrary to her wishes and beliefs, he had completed an application for a life insurance policy, not an application for a health insurance policy;
- Refusing to cooperate with an investigation by the Division;
- Failing to provide the Division with his updated residence address;
- Failing to provide the Division with his updated business address; and
- Failing to provide the Division with his mailing address.
Source: Iowa Insurance Division
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