For Consumers

Kreidler fines insurers for letting producers' appointments lapse

Contact Public Affairs: 360-725-7055

June 22, 2016

OLYMPIA, Wash. – Insurance Commissioner Mike Kreidler issued fines in May totaling $30,100 against insurance companies, agents and brokers who violated state insurance regulations.

For more information, search the order number on the Commissioner’s website.

Insurance companies

CorePointe Insurance Co., Birmingham, Mich.; fined $2,100, order 16-0089
CorePointe allowed 13 insurance producers’ appointments to lapse. One of the producers made 21 transactions involving premiums totaling $37,000. State law requires insurers to file a notice and pay a fee to the insurance commissioner for each licensed producer who will act as an agent of an insurer.

Fair American Insurance and Reinsurance Co., New York; fined $1,500, order 16-0117
FAIRCO allowed nine of its insurance producers’ appointments to lapse. One insurance producer made 17 transactions involving premiums totaling more than $48,000. State law requires insurers to file a notice and pay a fee to the insurance commissioner for each licensed producer who will act as an agent of an insurer.

Freedom Specialty Insurance Co., Columbus, Ohio; fined $1,000, order 16-0073
The company allowed two insurance producers with lapsed appointments to write three medical professional liability policies from August to October 2014. State law requires insurers to file a notice and pay a fee to the insurance commissioner for each licensed producer who will act as an agent of an insurer.

Hiscox Insurance Co. Inc., Chicago; fined $2,000, order 16-0119
Hiscox allowed 20 insurance producers whose appointments had lapsed to conduct 112 transactions involving premiums totaling more than $73,000. State law requires insurers to file a notice and pay a fee to the insurance commissioner for each licensed producer who will act as an agent of an insurer.

Moda Health Plan, Portland, Ore.; fined $15,000, 16-0031
Moda was using health insurance rates that it filed late and had not been approved by the insurance commissioner. Moda issued seven group policies to 1,580 Washington consumers using the unapproved rates.

RSUI Indemnity Co., Manchester, N.H.; fined $1,500, order 16-0110
RSUI allowed three insurance producers whose appointments had lapsed to write six commercial insurance policies totaling more than $70,700 in premiums. State law requires insurers to file a notice and pay a fee to the insurance commissioner for each licensed producer who will act as an agent of an insurer.

United American Insurance Co., Omaha, Neb.; fined $1,500, order 16-0118
United American allowed 213 of its producers’ appointments to lapse. Twelve producers made 27 transactions involving premiums totaling more than $2,600. State law requires insurers to file a notice and pay a fee to the insurance commissioner for each licensed producer who will act as an agent of an insurer.

Voya Retirement Insurance and Annuity Co., Windsor, Conn.; fined $2,000, order 16-0120
Voya allowed 12 insurance producers whose appointments had lapsed to conduct 25 transactions involving premiums totaling more than $53,800. State law requires insurers to file a notice and pay a fee to the insurance commissioner for each licensed producer who will act as an agent of an insurer.

Westport Insurance Corp., Jefferson City, Mo.; fined $1,000, order 16-0083
The company was 52 days late in filing its required special liability insurance report to the insurance commissioner.

Agents and brokers

Juan C. Barajas, Kennewick; license revoked, order 16-0007
Barajas applied for a resident insurance producer license in 2011 and used a false social security number on the application. He reaffirmed the number was accurate when he renewed his license in 2013. In 2015, he asked the insurance commissioner to update his social security number, later admitting he had submitted an incorrect number.

Harinderjit Singh Bisla, Ferndale; license revoked, order 16-0088
Bisla took photos during an exam that is required for insurance producers in Washington in an attempt to help his wife and his friend pass the exam. He took the exam multiple times in an attempt to record the exam questions.

Loree Cristen Marcheau, Seabeck; license revoked, order 16-0084
A consumer contacted Marcheau for a quote on an auto insurance policy and then declined the coverage. Marcheau opened four policies on behalf of the consumer to meet sales goals and paid the first month’s premiums out of her agent bank account. The consumer had no knowledge that the policies existed. Marcheau left the policies in place for three months, making policy changes each month to avoid having to pay the monthly premium. After that, the policies were unpaid and went into arrears. The consumer filed a complaint with the insurance commissioner after being contacted by a collection agency about the overdue premiums.

Allen McNulty, Kent; license revoked, order 16-0090
A client asked McNulty to add a client’s coin collection to his homeowner’s policy. McNulty didn’t issue a policy rider to cover the collection, resulting in a $10,000 loss when the client’s home was burglarized.

Judith A. Simpson, Kennewick; license placed on probationary status, order 16-0109
Simpson applied for a resident insurance producer’s license in February 2016 to sell life insurance. Simpson disclosed a 1992 felony conviction for which she owes more than $18,000 in restitution. Her insurance producer’s license will be on probationary status for two years or until her debt is paid off, whichever is later.

Randy W. Tate, Mead; license revoked, order 15-0239
Tate’s employer, Washington National Insurance Co., fired him for fraudulently creating and submitting insurance applications in the names of three Washington insurance consumers without their knowledge or consent. WNIC notified the insurance commissioner of the action, and Tate’s license was revoked following an investigation.

Insurance education providers

Gorman Health Group, Washington, DC; fined $500, order 16-0095
Insurance education providers must submit rosters of people who complete their classes with 10 days of the completion of each course. In 2014 and 2015, Gorman missed the deadline for submitting rosters 54 times.

Professional Training Center, Kennewick; fined $2,000, order 16-0094
Insurance education providers must submit rosters of people who complete their classes with 10 days of the completion of each course. In 2014 and 2015, PTC missed the deadline for submitting rosters 91 times.

About the Office

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 $20.2 million in fines, which are deposited in the state's general fund to pay for other state services.

The Office of the Insurance Commissioner posts disciplinary orders against companies, agents and brokers. Consumers can also look up complaints against insurance companies.

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

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