December 14, 2023
OLYMPIA, Wash. — Insurance Commissioner Mike Kreidler issued fines in November totaling $305,694 against insurance companies and insurance producers who violated state insurance laws and regulations.
Insurance companies
UnitedHealthcare of Oregon, Inc., Lake Oswego, Ore.; fined $35,000 (order 23-0179).
- UnitedHealthcare incorrectly processed telemedicine claims during the 2021 plan year, resulting in 602 reprocessed claims from 159 consumers with $31,557 in claim underpayments.
Unauthorized insurers
Towers Administrators LLC, Middletown, Del.; fined $50,000 (order 23-0211).
- Towers Administrators sold prescription discount membership plans to five Washington residents without being authorized to do so.
Geoduck Insurance Group, Salt Lake City, Utah; fined $10,000 (order 23-0180).
- Geoduck conducted insurance business in Washington state between 2014 and 2021 without being registered as a captive insurer.
Bryn Mawr College, Bryn Mawr, Pa.; fined $25,000 (order 23-0215).
- Bryn Mawr issued charitable gift annuities to six Washington residents, totaling $81,971.29, without receiving a certificate of exemption from the OIC.
University of Wisconsin, Madison, Wis.; fined $25,000 (order 23-0221).
- The University of Wisconsin issued charitable gift annuities to four Washington residents, totaling $81,739.23, without receiving a certificate of exemption from the OIC.
GBU Financial Life, Pittsburgh, Penn.; fined $1,000 (order 23-0214).
- GBU Financial acted as a fraternal benefit society without being authorized to do so. The company was fined $1,000 and agreed to pay $18,421 in back premium taxes, penalties and interest on the $528,964 in premiums it collected on policies insuring Washington risk between 2012 and 2023.
Producers, agents & brokers
Zo Clerico, Arlington, Wash.; fined $1,000 (order 23-0660).
- Clerico’s license was revoked, in addition to the fine, for submitting insurance applications for fictitious individuals and using fraudulent practices.
Long-term care insurance
Note: Insurance agents are required to receive specific long-term care training and continuing education to ensure they have the knowledge to properly sell long-term care products. The legislature requires insurers to share in the responsibility through an annual education verification process.
Nationwide Life and Annuity Insurance Company, Columbus, Ohio; fined $140,273.87 (order 23-0148).
- Forty of Nationwide’s producers sold long-term care insurance products before the company verified that they’d received the required training.
About the Office
Kreidler’s office oversees Washington’s insurance industry to ensure that individuals, companies, agents and brokers follow state laws. Since 2001, Kreidler has assessed more than $39 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.