May 2, 2024
OLYMPIA, Wash. — Washington state Insurance Commissioner Mike Kreidler issued a cease-and-desist order and fined Fred Meyer Stores, Inc., $100,000 for selling insurance without state authorization.
Fred Meyer stores sold the GUARD Protection Plan, issued by Mack Camera & Video Service, to a consumer in Washington. That consumer filed a complaint with the Office of the Insurance Commissioner about the service contract, alleging claim delay and misrepresentation.
The OIC determined that the GUARD plan, which Fred Meyer sold from June 2016 to November 2022, constitutes a service contract and insurance. The company received $40 from Mack Camera & Video Service per contract sold at Fred Meyer stores.
Service contract providers must register with Kreidler’s office to do business in Washington state. Fred Meyer is not licensed to sell insurance.
Fred Meyer’s parent company, The Kroger Co., declined to provide the total number of GUARD products sold to Washington consumers, the amount Fred Meyer received from GUARD sales, or what service contractor would be providing service contracts after its contract with Mack ended.
The order was filed on May 1, 2024. The retail chain has 90 days — until July 30 — to request a hearing; if no hearing is requested, the fine will be due within 30 days.
Fines issued in April
In addition to the Fred Meyer fine, Kreidler’s office issued $22,000 in fines in April for violations of state insurance laws and regulations. The other fines included:
American Guarantee & Liability Insurance Company, New York, NY; fined $2,500 (order 24-0040).
- The company applied incorrect rating factors in nine instances in 2022.
Olga Radutskiy, Pronto Insurance Agency, Bellevue, Wash.; fined $1,000 and placed on probation (order 24-0008).
- Radutskiy failed to produce financial records and documents upon request from the OIC.
Kaiser Foundation Health Plan of the Northwest, Portland, Ore.; fined $2,500 (order 24-0029).
- Kaiser failed to timely file four large group negotiated rate filings.
Esurance Insurance Company, Northbrook, Ill.; fined $15,000 (order 24-0034).
- Esurance assigned incorrect protection classes to 1,139 home insurance policies, with a financial impact of $86.217. The company waived $5,531 in undercharges and made reimbursements for $80,686 in overcharges.
Forethought Life Insurance Company, Batesville, Ind.; fined $1,000 (order 24-0026).
- Forethought filed Medicare Supplement Insurance rate filings more than a month after the May 31 deadline in 2022.
About the OIC
Kreidler’s office oversees Washington’s insurance industry to ensure that individuals, companies, agents, and brokers follow state laws designed to protect consumers. Since 2001, Kreidler has assessed more than $41 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 Kreidler’s consumer advocates online or by phone at 800-562-6900.