For Consumers

Kreidler disciplines, fines insurance producers for violations

Contact Public Affairs: 360-725-7055

June 9, 2014

OLYMPIA, Wash. – Insurance Commissioner Mike Kreidler issued fines totaling $12,250 against insurance companies, agents and brokers who violated state insurance regulations during May.

The names of the insurance producers are linked to the disciplinary order that contains more information about each action.

Insurance companies

Benefit Marketing Solutions and Benefit Services Association; Norman, Okla.; cease and desist order

OIC ordered the company, which is not licensed in Washington, to cease and desist selling service contracts to Washington consumers. A service contract often is sold with products and covers services or repairs in the event of a product failure.

North Coast Life Insurance Co.; Spokane; Fined $3,250

North Coast, a life and disability insurance company, is required under state law to file quarterly financial statements to the Insurance Commissioner to show the company is financially solvent. The company failed to submit a signed statement verifying the validity of the statements for three quarters, which is required under state law.

Oblate Annuity Trust; Washington, D.C.; Fined $7,500

Oblate is a charitable organization and, as such, is required to obtain a certificate of exemption from the Insurance Commissioner before it is allowed to issue charitable gift annuities, which offer a lifetime stream of income in exchange for a large charitable donation. Charitable organizations must file for a certificate of exemption because the types of annuities they provide are governed by a different state law than for-profit annuities. Oblate issued 59 charitable gift annuities before it applied for an exemption in 2011; its application is still pending.

Partners in Health Care Inc.; Appleton, Wis.; cease and desist order

Partners in Health Care (PIHC) sold discount medical plan cards on behalf of another company, neither of which is licensed to sell insurance products in Washington. PIHC refunded the cards’ purchase price to 39 Washington consumers and agreed to notify other consumers who purchased the cards that they have a right to cancel their cards and receive a refund.

Universal Home Services, Inc. and Universal Administrators Services, Inc.; Louisville, Ky.; cease and desist order

The company issued home warranty service contracts to Washington consumers without a license and used another licensed insurance company’s name as the guarantor without its knowledge or consent.

Agents and brokers

Xavier T. Lawson-Kennedy, Richardson and Desoto, Texas; license revoked

Lawson-Kennedy’s failed to comply with the terms of his probationary license and failed to respond to an inquiry from the Insurance Commissioner. His probationary license required him to report repayment of child support debt and to respond to requests for documentation.

Stephen L. Nims; Kensington, Conn.; fined $500

Nims previously sold insurance to a Washington business using his employers’ Washington nonresident producer license. Nims then went into business for himself and continued to use his former employer’s Washington license, which is against the law. Nims has since obtained his own nonresident producer license.

Moses Torres; Hurst, Texas; license revoked

Torres surrendered his license in Texas after three misdemeanor convictions. He was required to report these convictions to the Washington Insurance Commissioner, where he held a nonresident producer license, but failed to do so. Washington and six other states have revoked his license or fined him.

Walter W. Wolf, Spokane Valley; fined $1,000

Wolf acted as a surety insurer in Washington without a certificate of authority. He solicited and sold insurance on behalf of an unauthorized insurer and was not licensed as a surplus line broker.

Kreidler’s office oversees Washington’s insurance industry to ensure that companies, agents and brokers follow state laws. From 2001 through 2013, Kreidler's office has assessed more than $14 million in fines. Fines are deposited in the state's general fund to pay for other state services.

The Insurance Commissioner’s Office posts on its website the disciplinary orders against companies, agents and brokers. Consumers can also look up complaints against insurance companies.

For an insurance question or complaint, please contact the Insurance Commissioner’s consumer advocates at 1-800-562-6900 or online