California Department of Insurance (CDI) announced today the filing of an Accusation against Solo Insurance Services, Inc. and its owner, Stephanie Rager, for allegations of failing to refund return premiums, failure to properly service policies, unfair practices, and allowing unlicensed agents to transact insurance. The Accusation seeks the revocation of Rager’s individual license and Solo’s agency license to transact insurance business, a monetary penalty for each unfair and deceptive practice violation, and the prohibition of further participation in the insurance industry.
Investigators with the CDI Investigations Bureau allege that Solo did not return unearned premiums to policyholders in a timely manner, if at all. The Accusation alleges that from March 1998 through February 1999, Solo failed to return unearned premium to over 100 individual insureds.
The Accusation also alleges numerous instances wherein Solo failed to return premiums to customers within the 30 days required by law, and returned the monies only after the insureds made specific requests to Solo or filed a complaint with CDI.
The accusation further alleges that Solo failed to properly service policies, including failing to comply with insurance company guidelines, misquoting rates, charging additional broker fees to add a vehicle to a policy, selling duplicate policies for the same car, failing to file SR-22 proof of insurance forms with the DMV, failing to notify customers that their insurance applications were denied by insurers, and failing to provide proof of prior insurance to insurance companies. Solo’s alleged failure to properly service the policies resulted in higher premium rates, cancellation of policies, suspension of an insured’s driver’s license, and unpaid claims.
Investigators also discovered that Solo failed to ensure that all employees who transact insurance on behalf of Solo Insurance Services Inc. were properly licensed. Investigators gathered documentation indicating that more than 50 Solo employees transacted insurance without a license. The unlicensed employees allegedly interviewed prospective insureds, filled out applications, advised clients on insurance coverage, provided insurance quotes, charged and negotiated broker fees, requested and accepted premiums, provided insurance binders and proof of insurance cards, and were compensated on a commission basis.
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