Wash. Regulator Fines Insurers, Agents $750,000

June 22, 2011

Washington Insurance Commissioner Mike Kreidler has fined insurance companies, agents and brokers more than $750,000 in 2011. Violations included charging unapproved rates and submitting false documents.

From January through mid-June, the insurance commissioner’s office has imposed $787,815 in fines. The largest, by far, was a $534,000 fine issued in January. Fines are deposited in the state’s general fund to pay for other state services.

Among the fines and disciplinary actions from March 10 through June 10 include:

  • American Family Mutual Insurance Co., American Family Life Insurance Co, American Standard Insurance Co. of Wisconsin: Not identifying their proper legal name on documents provided to consumers. Fined $20,000.
  • Servicemaster Clean, of Bellevue: Submitted a falsified insurance class roster and issued false certificates to 14 attendees. Fined $14,000.
  • Northpoint Escrow and Title, of Kirkland: Fined $8,740.
  • Bankers Fidelity Life Insurance Co., of Atlanta, Ga.: Charged unapproved rates. Fined $5,000.
  • Old Republic Title Ltd., of Lynnwood: Fined $5,000.
  • Presidential Life Insurance Co., of Nyack, N.J.: Failed to file rate documents. Fined $5,000.
  • OM Financial Life Insurance Co, of Baltimore, Md.: Charged premiums that exceeded the allowed amount. Fined $4,000.
  • Ticor Title Co., of Cleveland, Ohio: Advertised with title insurance agents. Fined $3,000.
  • Attorney’s Title of Washington, Inc., of Tacoma: Fined $2,000.
  • Young Men’s Christian Association of Seattle: Failed to file annual financial reports. Fined $2000.
  • Vision Service Plan, of Seattle: Fined $1,000.
  • ReliaMax Surety Co., Sioux Falls, S.D.: Ordered to stop doing unauthorized insurance business in Washington.

Kreidler also took the following action against agents and brokers for reasons that included:

  • Paul A. Bowman, of Grangeville, Idaho: License revoked after Idaho revoked Bowman’s license for forging a signature.
  • John S. Claffey, of Snohomish: License revoked. Violations included accepting a premium for a customer but failing to get insurance, as well as failure to provide prompt refunds.
  • Earl C. Dennis, of Edmonds: 30 day license suspension and $1,000 fine: Selling an unapproved policy.
  • Woodson L. Ennis III, of Ridgefield: $2,000 fine: Using an unapproved application form.
  • Jessica L. Hillius, formerly Jessica L. Torgeson, of Ferndale: License revoked for violations including making false statements.
  • * P. Edward Kraft and American Insurance Managers, Inc., of Shoreline and Lynnwood: License not renewed for refusing to pay a late-payment penalty.
  • Kimberly A. Kelly and People’s Insurance Agency, Inc.: $4,000 fine. Failing to add lien holders to insurance policies.
  • Nicholas J. Mueller, of Portland, Ore.: License revoked due to a felony conviction in Oregon.

Orders and specific details about each of these cases are posted online at http://www.insurance.wa.gov/orders/enforcement.asp.

Source: OIC

Topics Carriers Agencies Washington

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