Wash. State Disciplines, Fines Producers More Than $24,000 - Insurance News | InsuranceNewsNet

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April 30, 2014 Property and Casualty News
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Wash. State Disciplines, Fines Producers More Than $24,000

Targeted News Service

OLYMPIA, Wash., April 29 -- The Washington stateOffice of the Insurance Commissioner issued the following news release:

Insurance Commissioner Mike Kreidler in March 2014 disciplined and issued fines totaling $24,250 against insurance companies, agents and brokers who violated state insurance regulations.

The names of the insurance producers are linked to the disciplinary orders that contain more information about each action.

Insurance companies

Unitrin Auto and Home Insurance Co. (http://www.insurance.wa.gov/oicfiles/orders/2014orders/14-0003.pdf), Jacksonville, Fla.; fined $20,000

Unitrin issued insurance policies using rates that were not filed and approved by the Insurance Commissioner due to a technology issue on the company's part. As a result, it undercharged 2,535 Washington policyholders more than $840,000between Aug. 30 and Oct. 14, 2013. Undercharging for policies can affect the company's solvency and its ability to honor contracts that consumers purchase.

Agents and brokers

Jodi Dawn Borelli (http://www.insurance.wa.gov/oicfiles/orders/2014orders/14-0028.pdf), Bonney Lake. Wash.; license revoked

Borelli, licensed to sell life and disability insurance, submitted at least 66 fraudulent accident and health policies, earning at least $14,740 in fraudulent commissions. She used the personal information of at least 19 friends and relatives in the policies.

David Levang (http://www.insurance.wa.gov/oicfiles/orders/2014orders/14-0025.pdf), Seattle; license revoked

Levang falsified information on at least 11 auto and homeowner policies resulting in friends, clients and relatives paying lower premiums than they qualified for. Levang placed the insurance companies in the position of earning less on policies that carried a higher likelihood of risk, which on a large scale could affect the companies' solvency. Levang violated several state laws that prohibit false, deceptive or misleading practices and giving a rebate on a policy, which is essentially what these consumers received by paying a lower premium than they qualified for.

Steven H. Minnich (http://www.insurance.wa.gov/oicfiles/orders/2013orders/13-0110.pdf), Newport, Wash.; fined $1,500

Charles D. Oliver (http://www.insurance.wa.gov/oicfiles/orders/2013orders/13-0109.pdf), Winter Park, Fla.; fined $2,500

A Washington consumer purchased two life insurance policies and one annuity with Minnich as part of a retirement planning strategy. Minnich worked with Oliver, who was unlicensed in Washington. The two actively sought an annuity that was sold in other states, but not legal to sell to a Washington resident. These producers also failed to fully explain some aspects of the policies to the consumer and failed to complete one of the required forms.

Carlton M. Williams (http://www.insurance.wa.gov/oicfiles/orders/2014orders/14-0049.pdf), Seattle; issued probationary license

Williams' previous producer license was revoked in 2010 for a 2009 felony conviction. He reapplied for a producer license in February 2014, after the conditions of his sentence were met. The Insurance Commissioner granted a five-year probationary license with the condition that Williams' work be reviewed by his supervisor and the supervisor will report on Williams' conduct quarterly to the Insurance Commissioner.

<person>Jillian E. Wood (http://www.insurance.wa.gov/oicfiles/orders/2014orders/14-0020.pdf), Colorado Springs; fined $250

Wood failed to report a misdemeanor conviction when she applied for a nonresident producer license in October 2013.

Kreidler's office oversees Washington's insurance industry to ensure that companies, agents and brokers follow state laws. From 2001 through 2013, Kreidler's office has assessed more than $14 million in fines. Fines are deposited in the state's general fund to pay for other state services.

The Insurance Commissioner's Office posts on its website disciplinary orders (http://www.insurance.wa.gov/orders/enforcement.asp) against companies, agents and brokers. Consumers can also look up complaints against insurance companies (https://fortress.wa.gov/oic/complaints/).

For an insurance question or complaint, please contact the Insurance Commissioner's consumer advocates at 1-800-562-6900 or online (http://www.insurance.wa.gov/about-oic/what-we-do/advocate-for-consumers/consumer-advocacy/talk-with-an-expert/).

CC AutoTriage12bkp-140430-30VitinMar-4718807

Copyright:  (c) 2014 Targeted News Service
Wordcount:  557

 

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