Livonia insurance agency license suspended

March 22--The state Department of Insurance and Financial Services has suspended the licenses of a Livonia insurance agency and two agents associated with it.

According to investigators, Karen and Keith Larson of Larson's Insurance Solutions didn't pass along clients' insurance premium payments to insurers and used forged documents to take out loans in their clients' names to pay insurance premiums without the clients knowing. They allegedly used the money for personal and business expenses.

Their "actions demonstrate a pattern of behavior constituting a serious threat to the public," the summary suspension order reads.

The Department of Insurance and Financial Services said the Larsons left their customers liable for the borrowed money, and possibly without insurance coverage.

The probe began in February after the agency received a complaint about the Larsons.

"Somebody embezzled $1.5 million from my agency, and my husband and I took no money from any customers or used the money personally or for our business, and we will be vindicated," Karen Larson said Friday.

The Department of Insurance and Financial Services advises people who got their insurance policies from the Larsons to check with their insurers to make sure policies are valid. Those wishing to file formal complaints may call the department at 877-999-6442.

Under state rule, people with suspended licenses may request a hearing to be held within 20 calendar days after the order was issued.

Contact Zlati Meyer: 313-223-4439 or [email protected]. Follow her on Twitter @ZlatiMeyer.

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