Wash. Insurance Commissioner Reports Enforcement Actions
The revocation of an Edmonds, Washington insurance agent’s license by the state Insurance Commissioner’s Office on grounds that he exploited vulnerable senior citizens through misleading sales practices has been upheld in Snohomish County Superior Court.
The court affirmed the license revocation of Jack Chandler of Senior Loan Centre in Everett for using misleading sales practices. Specifically, the court cited a number of violations, including a case where Chandler convinced a 75-year-old widow to enter into a reverse mortgage on her house and then invest the proceeds in one of his investment schemes.
Insurance Commissioner Mike Kreidler said the license revocation was based on a lengthy investigation that was begun after his office received a series of complaints in 2002, mostly involving elderly consumers.
In other disciplinary actions, the Insurance Commissioner:
* Levied a $201,730 fine against Clarendon National Insurance Company, Trenton, N.J., for unlawful use of credit scoring in its personal automobile and homeowner lines of insurance. $101,730 was suspended on condition of no violations for two years.
* Fined American Income Life Insurance Co., Waco, Texas, $5,000 for unlawfully selling blanket disability insurance to unions, associations and other ineligible groups. The company also issued disability policies to eligible groups, but failed to provide individual certificates as required.
* Issued a $51,400 fine to Regence Blue Shield, Asuris Northwest Health and RegenceCare, all of Seattle, for miscellaneous violations of state insurance laws and regulations discovered during a market conduct examination of the companies. $20,000 was suspended on condition of no additional violations for two years.
* Fined Union Labor Life Insurance, Washington, D.C., $14,300 for issuing documentation to policyholders that failed to meet requirements of the state’s insurance code and regulations.
* Levied a $40,000 fine against Contractors Bonding and Insurance Co., Seattle, for miscellaneous violations of state insurance laws and regulations discovered during a market conduct examination of the company. $20,000 was suspended on condition of no violations for two years.
* Fined National Benefit Life Insurance Co., New York, N.Y., $1,000 for failing to file required documentation in a timely manner.
* Fined the Travelers Companies, Hartford, Conn., $62,500 for charging policyholders for unfiled and unapproved service and billing fees. $12,500 was suspended on condition of no additional violations for two years.
* Imposed a $5,000 fine against Aetna Health Inc., Walnut Creek, Calif., for failing to file required information in a timely manner.
* Levied a $3,000 fine against Hentschell & Associates Inc., Tacoma, for failing to disclose broker fees, commissions and contingent commissions as required by state insurance code and regulations.
* Fined the Omaha Home for Boys, Omaha, Neb., $1,875 for unlawfully issuing charitable gift annuities without appropriate proper authorization.
* Levied a $1,000 penalty against Reed Institute, Portland, Ore., for unlawfully issuing charitable gift annuities without proper authorization.
* Imposed a $725 fine against Johns Hopkins University, Baltimore, Md., for unlawfully issuing charitable gift annuities without proper authorization.
* Suspended the certificate of authority of Insurance Corporation of New York, New York, N.Y., for failing to file a plan for correcting a financially hazardous condition.
Penalties and fines collected by the Insurance Commissioner are deposited in the state General Fund where they are used to fund programs for Washington residents. A total of $1,068,033 in enforcement fines was collected in 2005.