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Washington State Office of the Insurance Commissioner

News Release

Mike Kreidler
Washington Insurance Commissioner
Web page: www.insurance.wa.gov

For More Information, Contact:
Public Affairs: (360) 725-7055
Office of Insurance Commissioner

For immediate release - April 28, 2011

11-18

Kreidler calls for $75,000 fine against insurer, orders it to stop selling illegal insurance in Washington state

OLYMPIA, Wash. – Insurance Commissioner Mike Kreidler on Thursday called for a $75,000 fine against a South Dakota insurance company for selling insurance illegally in Washington state.

He also ordered the company, ReliaMax Surety Co., of Sioux Falls, S.D., to stop unauthorized insurance sales in the state. The company was selling insurance to credit unions to protect against people who default on their student loans.

“Insurers must be licensed here if they want to sell products in this state, and they should know that,” said Kreidler. “In this case, the company initially claimed that it only needed to be licensed in South Dakota. That’s simply not true.”

The company has since acknowledged that it needs to be licensed in Washington state in order to sell its products here.

The company has the right to demand a hearing. The fine is subject to a consent order or would take effect after a hearing.

Note to reporters: The order will be posted online soon at http://www.insurance.wa.gov/orders/enforcement.asp.

 


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