For Consumers

Former insurance agent charged in premium thefts, leaving clients at risk

Contact Public Affairs: 360-725-7055

August 7, 2018

Thumbnail

OLYMPIA, Wash. – Former insurance producer Donald W. Morgan, 67, of Stanwood, pleaded not guilty in Snohomish County Superior Court to two counts of first-degree theft and two counts of second-degree theft on July 31. Charges were filed after an investigation by Insurance Commissioner Mike Kreidler’s Criminal Investigations Unit (CIU)

Kreidler revoked Morgan’s insurance producer license in March 2016 for misappropriating clients’ insurance premiums worth more than $203,000. He operated an insurance agency that sold commercial insurance policies to businesses. The investigation revealed he kept some insurance premiums that his clients paid him rather than remitting the money to the insurance companies, causing the clients to be uninsured. 

Victims in Snohomish County included early learning centers, an architectural firm and premium finance companies. Morgan acquired loans from premium finance companies on behalf of clients without their knowledge.  

“This was a particularly egregious case of insurance fraud,” said Kreidler. “Insurance producers are in a position of trust, and Mr. Morgan flagrantly violated that trust and put small businesses in jeopardy.” 

A pre-trial hearing for the Snohomish County charges is scheduled for Aug. 24, and a trial is set for Oct. 19.

Kreidler’s CIU investigates insurance fraud and works with the state Attorney General’s Office and local prosecutors on criminal cases. Insurance fraud costs the average family $400 to $700 per year in increased premiums. Insurance companies are required by law to report fraud to the commissioner. Consumers can report suspected insurance fraud on the insurance commissioner’s website.