Case Notes - June 2025

Case: An investigation was opened on an owner of an insurance agency and its agent in charge (AIC) for misappropriating insurance premiums. They engaged in a scheme to divert escrow checks they received from a title insurance agency into the bank account of their insurance agency. The funds were intended to pay the homeowner insurance premiums for several insureds. At no time did the two licensees ever secure homeowner’s insurance for the consumers. To conceal their actions, the agents issued invoices to the title agency reflecting false policy numbers. Once our investigation became known, the agents began issuing refunds and excuses to the consumers and the Department.
Disposition: Both agents had their licenses suspended.

Case: The Department's Bureau of Licensing referred a public adjusting firm application to investigators to review for material misrepresentations on a public adjuster's adjusting firm license application.

The public adjuster applied for a public adjusting firm license and answered "No" to the question whether any of the firm's owners, partners, officers or directors had ever been convicted of a felony. The Department determined the applicant's spouse, a corporate officer of the firm, was a convicted felon with had an extensive criminal history that included leaving the scene of an accident, drug possession and a probation violation among others.

Disposition: Fined $1,000.

Case: An investigation was opened on a life, health and variable annuity agent after the Centers for Medicare & Medicaid Services (CMS) suspended then revoked the agent's application and access privileges which were later terminated by the Federally Facilitated Marketplace (FFM) for enrolling consumers in the Marketplace without their knowledge and consent.

Investigators acquired enrollment documentation from CMS which indicated the agent had enrolled consumers in multiple states or health insurance policies without their knowledge or consent.
Disposition: Licenses revoked.