November 20, 2014
OLYMPIA, Wash. – Insurance Commissioner Mike Kreidler disciplined and issued fines in October 2014 totaling $7,600 against insurance companies, agents and brokers who violated state insurance regulations.
The names of the licensees are linked to the disciplinary order that contains more information about each action.
Country Life is licensed to offer continuing education credits to licensed insurance producers in Washington. The company offered a course that was not approved for credit. It also issued certificates to attendees and submitted a class roster to the Insurance Commissioner using the identification number of a course that was approved in order to provide credit to the attendees. State law requires continuing education providers to maintain accurate records of courses and attendees.
Fife RV & Auto Center issued protection product guarantees without a license. Washington state law considers warranties to be insurance and requires warranty issuers to have an insurance producer license. The company sold protection policies to 236 Washington consumers; the product protected vehicle interior and exterior surfaces.
Insurance Finance Co. was ordered to cease and desist from financing insurance premiums without a Washington license in February 2014. The company applied for a Washington license in April 2014 and was given a license in May 2014. However, the company issued four insurance premium contracts in Washington before it was licensed. Premium finance companies loan money to a person or company to cover the cost of insurance premiums, either for a set amount of time or for the life of the policy. The finance company pays the insurance premiums and the borrower makes installment payments to the finance company.
Agents and brokers
Anderson sold commercial policies to car dealerships. He charged clients a deposit on their policies that he held in a trust account in case they failed to pay their premiums. State law requires that premium payments be immediately transmitted to the insurance companies.
In April 2014, Brown agreed to a fine for cutting and pasting a consumer’s signature on an insurance application. Brown failed to sign the agreement and to pay the fine in the agreed timeline. As a result of the violation and failure to follow the terms he agreed to, his license is revoked.
Kanagaratnam was employed by a State Farm Insurance agent. A consumer inquiry to State Farm about a fraudulent roadside assistance claim led to an investigation that revealed that Kanagaratnam had created nine false claims for emergency roadside services and then forged her employer’s signature on the checks, totaling $2,190. Kanagaratnam was terminated from her job and her insurance producer license is now revoked.
Reyna kept money that her clients gave her for insurance premiums; issued policies using her home address and phone number as the clients’ address or as the billing address for the policy; employed unlicensed producers in her agency, KPR Insurance & Financial Services, to generate quotes or submit applications; issued auto insurance policies without listing all drivers in the policyholders’ households; and issued auto insurance to consumers who did not have any legal or insurable interest in the vehicle.
Kreidler’s office oversees Washington’s insurance industry to ensure that companies, agents and brokers follow state laws. Since 2001, Kreidler's office has assessed more than $18 million in fines, which are deposited in the state's general fund to pay for other state services.
For an insurance question or complaint, please contact the office’s consumer advocates at 800-562-6900 or online.