For Consumers

Kreidler fines Kaiser companies $80,000

The insurers erroneously notified 168,000 consumers that their health coverage changed

Contact Public Affairs: 360-725-7055

November 28, 2018

OLYMPIA, Wash. – Insurance Commissioner Mike Kreidler issued fines in October totaling $103,950 against insurance companies, agents and brokers who violated state insurance regulations.

Insurance companies

Kaiser Foundation Health Plan of Washington, Seattle; fined $30,000, order 18-0378
Kaiser Foundation Health Plan of Washington Options, Seattle; fined $50,000, order 18-0379
The companies erroneously sent a letter intended for Medicare Advantage Plan members only to nearly 168,000 members of its commercial plans in February 2017. The letter caused the members to think their health coverage had changed and misstated the name of the insurer. 

Everest Reinsurance Co., Wilmington, Del.; fined $1,000, order 18-0411
The company sold health plans in Washington state in 2017 that were marketed as having different benefits than those the insurance commissioner approved. The company is no longer selling the plans in Washington. 

American Service Insurance Co., Schaumburg, Ill.; fined $18,000, order 18-0364
The insurance commissioner fined the company for overcharging 359 Washington consumers nearly $75,000, which it has since repaid with 8 percent interest.

Markel American Insurance Co., Glen Allen, Va.; fined $2,000, order 18-0353
The insurance commissioner’s market conduct unit found problems with the company’s pet insurance product, including:

  • Missing documentation in underwriting files.
  • Not listing the full premium for some policies.
  • Company officers’ signatures were missing from some policies. 
  • Failing to provide the annual privacy notice to some policyholders. 

Agents and brokers

American Eagle Underwriting Managers, Delray Beach, Fla.; fined $500, order 18-0415
American Eagle sells insurance and surplus lines policies. The agency sold one insurance policy in Washington state before it was licensed to do so.

The insurance commissioner disciplined the following insurance producers for failing to notify the agency of administrative actions against them:

  • William Tanner, Poulsbo, Wash.; fined $250, order 18-0381
  • Jack T. Jarrell, Woodinville, Wash.; fined $250, order 18-0382
  • Allied National Inc., Overland Park, Kan.; fined $500, order 18-0358
  • John M. Brown Insurance Agency, Inc., Chicago; fined $250, order 18-0387
  • Julie A. Burton, King Hill, Idaho; license revoked, order 18-0392
  • Calton & Associates, Inc., Tampa; fined $250, order 18-0386
  • Jeremy Edward Carlson, Johnstown, Colo.; license revoked, order 18-0391
  • Shanelle Francis, Hopkinsville, Ky.; fined $250, order 18-0337
  • John W. Kaklis, Clearwater, Fla.; license revoked, order 18-0394
  • Fabienne Lunie Nau, Lilburn, Ga.; fined $250, order 18-0309
  • Khanh Nguyen, Westminster, Calif.; fined $250, order 18-0384
  • Johnathan Perkins, Chicago; license revoked, order 18-0393

Other organizations 

Washington Association of Health Underwriters, Seattle; fined $200, order 18-0412
The continuing education provider for insurance producers failed to keep attendance records that satisfied the requirements in state law. 

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. Consumers can also look up complaints against insurance companies. 

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