OLYMPIA, Wash. — Washington state Insurance Commissioner Patty Kuderer’s office issued more than $839,750 in fines for insurance law violations in the second half of May and the first half of June. That included a $275,000 fine for an illegal health care sharing ministry, a $300,000 fine for an illegal service contract provider and $45,000 for an unlicensed surplus lines provider.
Kuderer fines health care sharing ministry $275,000
Kuderer issued a cease-and-desist order and a fine of $275,000 against ClearShare Health and its associated companies Clearwater Benefits Administrators, Clearwater Benefits Holdings, and Clearwater Benefits Aggregator. ClearShare sold insurance plans, calling them “memberships,” without being authorized to do so by the OIC.
ClearShare sold 376 memberships to Washington consumers between August 1, 2022, and March 1, 2024, collecting $524,095 in monthly contributions from members and paying $54,201 towards expenses with $54,535 in denied expenses and $26,370 in pending requests for expenses.
The membership agreements, however, did not cover abortion services and had pre-existing conditions requirements, and ClearShare does not meet the qualifications of a health care sharing ministry as defined by the Affordable Care Act.
ClearShare was also ordered to pay taxes, penalties and interest on the premiums it collected.
Kuderer bars CRAST from doing business in Washington
Kuderer’s office issued a cease-and-desist order and $300,000 fine against CRAST, Inc. (doing business as America’s First Choice Home Club) for operating as a service contract provider in Washington without being registered with the OIC.
The OIC started its investigation after receiving a complaint from a consumer who paid $1,425 for a three-year membership plan in 2022 that claimed to cover up to $2,000 per item. The consumer contacted CRAST in November of 2022 to repair their furnace, but after 10 days and multiple calls, CRAST did not send a technician out to evaluate the furnace.
The consumer purchased a new furnace for approximately $5,000. CRAST said the original furnace, installed in the 1970s, was too old to be of any value, and offered a goodwill payment of $200 that was later increased to $400.
During the ensuing investigation, CRAST reported it sold 2,268 home club memberships to Washington consumers between December 26, 2015, and April 28, 2023, for a total of $1,494,317 in membership fees. CRAST reported it made $321,068 in payments to members, while denying 456 requests for benefits. Despite its claim that it stopped offering memberships in Washington, the company’s website listed Washington as a state it covered as of February 2025.
Kuderer fines unlicensed surplus lines broker $45,000
The OIC took action against BC Environmental Insurance Brokers, Inc. — and producer Marc Robicheau — for selling surplus line insurance products without being licensed as a producer or broker for those specific products.
Surplus lines is a specialized line of insurance that provides coverage for risks not covered in the traditional insurance market.
BC Environmental Insurance Brokers, Inc. was fined $45,000 and agreed to apply for a surplus line broker license for the agency and its employees. The agency was licensed to sell property and casualty insurance — but not surplus lines — as of January 2023 but wrote 31 policies in Washington between 2014 and 2021. BC Environmental Insurance Brokers, Inc. obtained its surplus line broker license in Washington in May 2025.
Additional fines
Amtrust Insurance Company; Milford Casualty Insurance Company; Security National Insurance Company; Wesco Insurance Company; Wilmington, Del.; fined $30,000 (order 25-0035).
- The companies used Washington Surveying and Rating Bureau loss costs to calculate premium rates without filing and acquiring approval to do so.
Pennsylvania Lumbermens Mutual Insurance Company, Philadelphia, Penn.; fined $50,000 (order 25-0014).
- The company failed to apply correct rating factors to commercial policies, resulting in $184,633 in overcharged premiums and $43,964 in undercharged premiums across 53 policies. The company refunded the policyholders who were overcharged.
Safeco Insurance Company of America, Portsmouth, N.H.; fined $3,000 (order 25-0029).
- Safeco failed to timely refund a cancelled home insurance policy and failed to keep adequate records of its transactions.
Allstate Fire & Casualty Insurance Company, Northbrook, Ill.; fined $1,250 (order 25-0025).
- Allstate failed to timely cancel a consumer’s policy.
UnitedHealthcare of Washington, Inc.; Seattle, Wash.; fined $40,000 (order 25-0050).
- UnitedHealthcare failed to ensure its Association Health Plans enrolled employer groups on the same effective date as their associated Association Health Plan’s Master Contract, resulting in 83 employer groups being offered rolling renewals.
Axis Insurance Company, Chicago, Ill.; fined $2,500 (order 25-0056).
- Axis used rates that were not in accordance with its effective filings.
Standard Fire Insurance Company, Hartford, Conn.; fined $40,000 (order 25-0046).
- In 93 instances, Standard applied a higher uninsured/underinsured property damage deductible than is allowed under Washington law. The investigation was prompted by a complaint in which a consumer was charged a $200 deductible for uninsured/underinsured motorist property damage, when only $100 is permitted in Washington for that specific coverage.
American International Group, fined $50,000 (order 25-0036).
- American International Group and its subsidiaries (Commerce and Industry Insurance Company, Granite State Insurance Company, Insurance Company of the State of Pennsylvania, National Union Fire Insurance Company of Pittsburgh, and New Hampshire Insurance Company) used incorrect rates for admiralty coverage, impacting 74 policies. Fifty-five policies’ premiums were overcharged by a total of $148,039, which was credited back to the policyholders.
Brotherhood Mutual Insurance Company, Ft. Wayne, Ind.; fined $3,000 (order 25-0077).
- The company applied incorrect classification codes to commercial package policies.
About the office
Kuderer’s office oversees Washington’s insurance industry to ensure that individuals, companies, agents, and brokers follow state laws designed to protect consumers. Since 2001, the office has assessed more than $42 million in fines, which are directed to the state’s general fund to pay for state services.
The Office of the Insurance Commissioner publishes disciplinary orders against companies, agents and brokers. Consumers can also look up complaints against insurance companies.
For an insurance question or complaint, you may contact Kuderer’s consumer advocates online or by phone at 800-562-6900.