Insurance Commissioner Mike Kreidler issued more than $400,000 in fines in 2009, as well as revoking the licenses of several insurance agents.
“Most insurers and agents work hard to follow the rules, but when they drop the ball, they’re held accountable,” said Kreidler, the state’s top insurance regulator.
Kreidler’s office collected a total of $407,600 in fines in 2009. That’s considerably lower than the previous year, when the state fined insurers more than $1.2 million.
“Hopefully, it’s a sign that companies are getting better at following the rules,” said Kreidler. “The whole point of fines is to ensure that the consumer protections in state law are followed.”
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.
The enforcement orders described below are all posted on the Office of the Insurance Commissioner Web site at www.insurance.wa.gov/orders/enforcement.asp.
The orders issued in the last three quarters of 2009* included:
• Pacificare of Washington Inc., Pacificare Life Assurance Co., and Unitedhealthcare Insurance Co., all of Mercer Island, were fined $100,000 with $60,000 suspended for failing to file health care provider contracts and changes with the state.
• Farmers Insurance Company of Washington was fined $40,000 for issuing policies that weren’t in accordance with the documents they’d filed with the state.
• Nationwide Life Insurance Co. of Minneapolis, Minn. was fined $20,000 for issuing insurance documents that had not been filed with the state, among other violations.
• Kawasaki Motors Corp. of Wilmington, Del. was fined $20,000 for selling service contracts before they had been registered in Washington.
• RiverSource Life Insurance Co. of Minneapolis, Minn. was fined $25,000 with $10,000 suspended for charging rates that had not been properly filed with the state.
• Farmers Insurance Company of Washington was fined $25,000 with $14,000 suspended for improperly deducting collection agency fees and costs from reimbursements.
• Austin Mutual Insurance Company of Maple Grove, Minn. was fined $10,000 for issuing policies that weren’t in accordance with the documents they’d filed with the state.
• Aston Martin Lagonda of North America, Inc., based in Stamford, Conn., was fined $10,000 for selling service contracts before they had been registered in Washington.
• Teachers Insurance and Annuity Association of New York, NY was fined $14,000 with $7,000 suspended for failing to deliver 308 individual retirement annuity contracts and group certificates to Washington residents.
• The Voice of Prophecy, of Chico, Calif., was fined $5,000 for issuing charitable gift annuities without receiving a certificate of exemption and making unauthorized contracts of insurance.
• Health care Professionals Purchasing Group Association of Bloomingdale, Ill., was fined $4,500 for selling insurance policies while their registration was revoked.
• The Sierra Club Foundation of San Francisco, Calif. was fined $3,075 for issuing charitable gift annuities without a certificate.
• Town Toyota Inc. of East Wenatchee was fined $2,500 for failing to refund premiums due to consumers.
• Union Fidelity Life Insurance Company of Schaumburg, Ill. was fined $1,000 for failing to file some loss ratio reports for four years.
• The Union of Concerned Scientists of Washington, D.C. was fined $625 for issuing two annuities before the group had been issued its certificate.
• The University of Texas Foundation, Inc. of Austin, Texas was fined $400 for selling annuities before being issued a certificate.
In addition, the following insurance agents and others faced disciplinary action:
• Renee M. Dean of Vancouver: License revoked for failing to respond to inquiries regarding a court conviction and outstanding warrant.
• Gallant Insurance, Inc., of Kennewick: Fined $2,000 for violations, including failing to return premiums owed to customers.
• John F. Anderson of Ridgefield: License suspended and not renewed for misappropriating premiums and failing to maintain records of insurance transactions.
• Larisa Chirila of Bothell: License revoked due to failing to report a criminal history on an insurance license application.
• Frederick J. Heslip of Kelso: License revoked due to failure to respond to a state investigator’s questions about a consumer complaint.
• Kelly A. Winebarger of Pasco: License revoked due to failure to forward premiums to an insurer and diverting funds for personal use.
• Larry E. Rowe, Jr. of Spokane: License revoked due to failure to respond to consumer allegations.
• Renee R. Curtiss of Seattle: License revoked due to Class A felony conviction.
• Tera D. Gardner, of Vancouver: License revoked for multiple violations, including “willfully and knowingly facilitating the transaction of insurance by an unlicensed agent.”
• Stefan E. Johannsson of Spanaway: License revoked due to failure to respond to numerous requests to replace an insufficient-funds check used to pay for licensing fees.
• MGA Marketing Inc., of Vancouver: License revoked for multiple violations, including facilitating the transaction of insurance by an unlicensed agent.
*Note: For a list of fines and other enforcement actions in the first quarter of 2009, please see: www.insurance.wa.gov/news/2009/5_6_2009.shtml
