Kreidler Disciplines, Fines Insurance Professionals $39,000 in March

OLYMPIA, Washington, April 27 -- The Washington state Office of the Insurance Commissioner issued the following news release:

Insurance Commissioner Mike Kreidler issued fines in March totaling $39,000 against insurance companies, agents and brokers who violated state insurance regulations.

Insurance companies

Developers Surety and Indemnity Co., Irvine, Calif.; fined $10,000, order 18-0020*

The insurance company used incorrect rates, which were not approved by the insurance commissioner, and as a result:

* Overcharged 114 policies a total of $14,117. The company agrees to refund the overcharges plus 8 percent interest.

* Undercharged 319 policies a total of $26,608.

Contractors Bonding and Insurance Co., Peoria, Ill.; fined $3,000, order 18-0064

The insurance commissioner's market conduct unit reviewed 84 policies and found that the company used incorrect fire protection class codes and incorrect rate loss codes for 22 of the policies, which affected 14 policyholders.

Agents and brokers

Ticor Title, Kent, Wash.; fined $10,000, order 17-0492

The business, a licensed title insurance agent, scheduled and advertised a free educational event that was not related to title insurance. It canceled the event about an hour before it was scheduled to begin. It's illegal for title agents to hold free educational events on topics that don't pertain to title insurance.

Cristobal R. Espindola, Grandview, Wash., fined $1,000, order 18-0004

A consumer filed a complaint about Espindola, a licensed insurance producer who sold her husband a life insurance policy. The consumer said Espindola failed to ask her husband any of the health questions required for the policy. When her husband passed away, the life insurer denied to pay because the husband had a pre-existing health condition. The consumer and her husband do not speak English and relied on Espindola to translate the application into Spanish so they understood what they were buying and could properly answer the questions on the application.

Northeast National Brokerage LLC, Medford, Ore.; fined $250, order 18-0035

The licensee failed to report an administrative action against it by the state of Texas within 30 days, as required by state law.

Christian Dominic Lipscomb, Parker, Colo.; fined $250, order 18-0074

Lipscomb failed to report an administrative action against his insurance producer license by the state of Indiana within 30 days, as required by state law.

Marc Mauricio Morrow, Houston, fined $250, order 18-0075

Morrow failed to report an administrative action against his insurance producer license by the state of Louisiana within 30 days, as required by state law.

Tracyann Hamilton, Miami Gardens, Fla.; fined $250, order 18-0051

Hamilton failed to report an administrative action against her by the state of Kansas within 30 days, as required by state law.

Nikolaos L. Paras, New Hyde Park, NY; fined $500, order 18-0044

Paras failed to report an administrative action against him by the state of Kansas within 30 days, as required by state law. He also failed to respond to inquiries from the insurance commissioner.

Christopher Longworth, Anacortes, Wash.; fined $500, order 18-0058

Longworth failed to report a consent decree and a civil penalty against him by the Washington state attorney general that relates to his insurance dealings within 30 days, as required by state law. The consent decree allows him to do only very limited and specific insurance business. He then registered a sole proprietorship and failed to add his name as a DBA or business entity, as required under state law.

Jeffery Alan Maxwell, Fresno, Calif.; revocation rescinded and fined $500, order 18-0062

The insurance commissioner revoked Maxwell's insurance producer license in January 2018 for failing to report an administrative action against his license in Louisiana and for failure to respond to the commissioner's inquiries. In February 2018, he contacted the insurance commissioner to find out if he could reinstate his license. Maxwell agrees to follow state insurance laws and pay the fine in order to reinstate his license.

Sean Johnson, Spokane, Wash., license revoked, order 18-0071

The state of California revoked Johnson's insurance producer license in November 2017, and he failed to report it to the Washington insurance commissioner within 30 days, as required by state law. He has failed to respond to the insurance commissioner's inquiries since January 2018, a violation of state law. His license is now revoked and he is not authorized to sell insurance in Washington state.

Gahan Sharei Adams, Akron, Ohio; license revoked, order 18-0073

The state of California revoked Adams' insurance producer license in December 2017. Adams failed to report it to the Washington insurance commissioner within 30 days, as required by state law, and has failed to respond to the insurance commissioner's inquiries since January 2018, a violation of state law. Adams' license is now revoked and he is not authorized to sell insurance in Washington state.

Adjusters/appraisers

Michael R. Marinelli and Insurance Appraisal Services, Bellevue, Wash.; fined $7,500, order 18-0078

Rob Marinelli acted as insurance adjuster from 1995 until 2018 without being licensed. In 2016, the insurance commissioner ordered Marinelli to cease and desist from acting as an adjuster without being licensed. Marinelli received an adjuster license in February 2018 and entered into a consent order with the insurance commissioner to resolve the matter and pay a $7,500 fine.

SCA Enterprises, Inc., Burbank, Calif.; fined $5,000, order 18-0030

The company and three of its independent contractors acted as independent adjusters on behalf of USAA Insurance without being licensed in Washington state, completing approximately 2,000 estimates.

Big Block Appraisal Service, Inc. and Larry Nilson, Oregon City, Ore.; ordered to cease and desist, order 18-0068

Big Block and Nilson have been conducting appraisals in Washington state since 2001 without an adjuster license, as required by law. Nilson estimated that he or his company have performed 335 appraisals for a total of $214,808 in Washington state.

Auto Appraisal Network and Mark Ito, Laguna Niguel, Calif.; ordered to cease and desist, order 18-0082

Both are ordered to cease and desist from acting as an adjuster or appraiser without being licensed by the insurance commissioner.

About the Office

Kreidler's office oversees Washington's insurance industry to ensure that companies, agents and brokers follow state laws. Since 2001, Kreidler has assessed more than $23 million in fines, which are deposited in the state's general fund to pay for other state services.

The Office of the Insurance Commissioner publishes disciplinary orders against companies, agents and brokers. Consumers can also look up complaints against insurance companies.

For an insurance question or complaint, contact Kreidler's consumer advocates online or by phone at 800-562-6900.