December 31, 2018
OLYMPIA, Wash. – Insurance Commissioner Mike Kreidler disciplined and issued fines in November 2018 totaling $700,500 against insurance companies, agents, brokers and others who violated state insurance regulations.
Dental Health Services, Seattle; fined $500,000, order 18-0437
Kreidler fined the dental insurer for:
- Failing to identify and process 23 policyholders’ appeals.
- Failing to identify and process 342 grievances from policyholders.
- Erroneously canceling polices.
- Double-charging 492 policyholders a total of $56,351. The company refunded the money with an additional $5,635 in interest.
- Failing to deliver enrollment materials to 76 policyholders.
In addition to the fine, Kreidler will prohibit the company from selling new policies for at least 12 months. After the probationary period, the company can ask Kreidler to allow it to sell policies if it completes compliance and corrective action plans to the commissioner’s satisfaction. Kreidler is suspending $400,000 of the fine and will impose additional penalties if the company fails to comply with the terms of the order.
Kreidler previously took action against Dental Health Services in 2017 and 2018. Kreidler fined the company $400,000 for mishandling consumer complaints and other issues.
American Pet Insurance Co., New York City; fined $10,000, order 16-0127
Kreidler imposed $10,000 of a suspended fine against the pet insurance company for failing to follow the compliance plan it agreed to in July 2016. The plan includes a self-audit, which revealed that one policyholder was charged the incorrect premium and eight policyholders did not receive the required 30-day notice for a rate change. Kreidler previously suspended $100,000 of the $250,000 to ensure compliance with the terms of the order. This is the first portion of the suspended fine that Kreidler has imposed on the company.
Kreidler disciplined the following companies for violating state insurance regulations:
- Country Mutual Insurance Co., Bloomington, Ill.; fined $50,000, order 18-0409
- Nationwide Agribusiness Insurance Co., Des Moines, Iowa; fined $25,000, order 18-0425
- Amica Mutual Insurance Co., Lincoln, R.I.; fined $20,000, order 18-0424
- Zurich American Insurance Co., New York City; fined $20,000, order 16-0107
- Horace Mann Insurance Co., Springfield, Ill.; fined $10,000, order 18-0408
- Garrison Property & Casualty Insurance Co., San Antonio, Texas; fined $10,000, order 18-0433
- Stillwater Insurance Co., Santa Barbara, Calif.; fined $10,000, order 18-0474
- Allied World Specialty Insurance Co., Wilmington, Del.; fined $3,500, order 18-0458
- Amica Mutual Insurance Co., Lincoln, R.I.; fined $3,000, order 18-0444
Agents and brokers
Kreidler disciplined the following insurance producers for violating state insurance regulations:
- Michelle F. Boyer, Parker, Colo.; fined $2,500, order 18-0390
- Rashun Mann, Mansfield, Texas; fined $500, order 18-0380
- Reed Jeff Insurance Agency and Jeffrey Reed, Silverdale, Wash.; fined $250, order 18-0363
- Steele Group Insurance Agency, Inc., and Kelly S. Steele, Eugene, Ore.; fined $250, order 18-0416
- Gentry Partners Ltd.; Greenwich, Conn.; fined $250, order 18-0440
- Bruce Gilchrist, San Carlos, Calif.; fined $250, order 18-0396
- Larry P. Chinn, Memphis, Tenn.; license revoked, order 18-0398
- Kathy Ann Graham, Fort Pierce, Fla.; license revoked, order 18-0427
- Andrea Godoy, Clovis, Calif.; license revoked, order 18-0428
- Tiana Tam, Everett, Wash.; probationary license issued, order 18-0438
- Kiara Munguia, Las Vegas; license revoked, order 18-0445
- Juan Alberto Porras, Phoenix; license revoked, order 18-0430
- Glenn Chavious, Hull, Mass.; license revoked, order 18-0431
- Bijan Richards, Omaha; license revoked, order 18-0432
- April Holmes, Mesa, Ariz.; license revoked, order 18-0435
Credit Acceptance Corp., Southfield, Mich.; fined $30,000, order 18-0426
Kreidler fined the company for selling nearly 10,000 guaranteed asset protection waivers to Washington consumers via car dealerships without being registered.
Device Doctorz of Clermont LLC, dba Insure Apple, Oviedo, Fla.; ordered to cease and desist, order 18-0462; fined $5,000, order 18-0463
A Washington state consumer complained to Kreidler’s office when Insure Apple denied his claim for the loss of his iPhone. Upon review, the commissioner found the company sold insurance without a license in Washington state. Altogether, it illegally sold 37 policies for $4,436 in premiums.
About the Office
Kreidler’s office oversees Washington’s insurance industry to ensure that companies, agents and brokers follow state laws. Since 2001, Kreidler has assessed more than $25 million in fines, which are deposited in the state's general fund to pay for state services.
The Office of the Insurance Commissioner publishes disciplinary orders against companies, agents and brokers.
For an insurance question or complaint, contact Kreidler’s consumer advocates online or by phone at 800-562-6900.