Wash. Issues More Than $30,000 in Fines Against Insurers, Agents

Washington Insurance Commissioner Mike Kreidler has issued more than $30,000 in fines in the second quarter of 2010, primarily against insurers who violated state law. He also revoked the licenses of a dozen insurance agents and brokers, according to the Department of Insurance.

Fines collected by the state insurance commissioner’s office do not go to the agency. The money is deposited in the state’s general fund to pay for other state services.

Fines imposed from April through June 2010 include:

• National General Insurance Co., of Maryland Heights, Mo., was fined $25,000 with $10,000 suspended for improperly using the number of credit inquiries on some consumers’ credit reports to set premiums. The company also refunded a total of $82,192 to consumers.
• Country Mutual Insurance Co., of Bloomington, Ill., was fined $10,000 for improperly setting rates for some policyholders.
• State Farm Mutual Automobile Insurance Co., of Bloomington, Ill., was fined $6,500 for accepting applications for long term care insurance from agents who had not had the required long term care training.
• Nebraska Wesleyan University, of Lincoln, Neb., was fined $1,050 for issuing three annuities prior to having a state certificate of exemption.
• Commonwealth Insurance Company of America, of Seattle, was fined $500 for failing to file a registration statement with the state.
• University of Montana Foundation, of Missoula, Mont., was fined $500 for selling an annuity when it had less than the required unrestricted net assets.
• Kreidler also ordered several companies and individuals to stop selling unauthorized insurance products in Washington state, including:
• Pinnacle Health Solutions LLC, of Las Vegas, and managers James Parish, Nicholas Wall, and Michael Schultz,
• And Congressional Health Plans Inc., Insurance Group USA Inc., Rdk Insurance Inc. and Dan Kaleky, Kevin P. Caricato and Matthew Herman, all of Hallendale, Fla.

In addition, a number of insurance agents, brokers and related entities were disciplined for various violations, including:

• Rhonda Breard, of Kirkland: License suspended pending revocation. Breard pleaded guilty in federal court to a felony count of mail fraud.
• Leonard W. Brown, of Vashon: $1,000 fine, all of which is suspended if he complies with a two-year plan, including ethics training, and pays $2,000 in restitution to a consumer. He failed to inform a consumer of key changes when she changed an annuity contract.
• National Association of Insurance and Financial Advisors, Snohomish Chapter 30801: Fined $800 for failing to maintain records of continuing education coursework.
• Branko Cekarmis, of Kent: License revoked for failure to account for and pay premiums to insurer.
• Alisha S. West, of Oklahoma City, Okla.: License revoked for failure to respond to inquiries about arrest and charge reflected on background check.
• Heather M. Hill, of Fox Lake, Ill.: License revoked for failing to respond to inquiries about administrative action taken by the state of Virginia.
• Aaron J. Meade, of Beckley, W. Va.: License revoked for failing to respond to inquiries about administrative action taken by the state of Illinois.
• Satma Lal, of Stockton, Calif.: License revoked for failing to respond to inquiries about administrative action taken by the state of New York.
• Casey L. Hoffert, of Janesville, Iowa: License revoked for failing to respond to inquiries about administrative action taken by the state of North Dakota.
• Ross W. Culverhouse, of Spokane Valley: License revoked for diverting premium dollars for personal use.
• Destiny S. Adams, of Goldendale: $500 fine for failing to complete continuing education requirements and falsifying information on a license renewal application.
• Pamela D. Warren, of Selah: License revoked for violations including misappropriating funds.
• Mark E. James, of Lynnwood: License revoked for failing to disclose a felony conviction on his license application.
• Dawn E. Webber, of Wenatchee: License revoked for falsifying consumer information in order to qualify consumer for an insurance product.
• National Association of Insurance and Financial Advisors, Spokane Chapter 37822: $1,000 fine for advertising courses for credit without prior approval of the insurance commissioner and failing to list the insurance provider’s name in an advertisement.
• Guy M. Williams, of Spokane Valley: $1,000 fine for several violations, including failure to promptly pay premiums and return premiums to the insurer and customers.
• Cory B. Giles and Dealer Insurance Strategies NW, of Wilsonville, Ore.: License revoked for claiming that a client was insured when the client was not and misappropriating premium funds.
• Susan E. Kinney, of Redmond: License revoked for failing to report an arrest record, theft charges and a felony conviction.

Source: OIC