OIC takes action against insurance industry in January 2020

Part of our mission is to regulate the insurance industry — including insurance companies and the people who sell insurance, called producers — to make sure insurance consumers can find insurance and get what they pay for. We also make sure companies and producers follow the rules.

Each month, Insurance Commissioner Mike Kreidler takes disciplinary action against insurance companies and producers who violate state insurance regulations.

A summary of the January 2020 cases of interest to Washington consumers is below:

Insurance companies

American General Life Insurance Co., Houston, fined $10,000

Why we fined them: We found during a market conduct continuum that the company overcharged 59 Washington consumers a total of $41,665. The company refunded clients in December 2018 but failed to include interest. It sent interest payments to the consumers in May 2019.

Read more: Order 19–0601

Farmers Insurance Co. of Washington, Bellevue and other Farmers companies, fined $50,000

Why we fined them: The company filed a 20% rate increase for home earthquake insurance policies effective May 2018. In February 2019, they notified us they had applied incorrect rates for 355 days toapproximately 4,500 policies., They corrected the rating error in April 2019, two months after they notified the Commissioner of the issue.

Read more: Order 19–0606

Enumclaw Property and Casualty Insurance Co., Lake Oswego, Ore., fined $10,000

Why we fined them: The company failed to include its name on more than 3,500 adverse action notices it sent to policyholders. Adverse action notices inform policyholders of things like a non-renewal, cancelation for nonpayment, claim denial, raising your rates — in short, any action that will adversely affect you.

Read more: order 19–0619

Agents and brokers

Aric Walker, Tacoma, fined $10,000 and Thomas T. Davis, Olympia, license revoked and ordered to cease and desist from selling insurance

Why we fined them: A consumer filed a complaint with us after Mr. Walker and Mr. Davis cost them nearly $12,000 in penalties for surrendering an annuity and buying a new one. Mr. Walker and Mr. Davis earned commissions totaling more than $13,000. Mr. Davis has demanded a hearing to appeal the insurance commissioner’s action.

Read more: Order 19–0650 (Walker) and order 19–0651 (Davis)

Daniel N. Winger, Bonney Lake, Wash.; revoked and fined $2,500

Why we fined him: Mr. Winger took $100,000 from an elderly consumer who bought annuities from him. The consumer’s son realized the money was missing and reported it. We revoked Mr. Winger’s license in August 2019 [order 19–0379] and referred the case to our Criminal Investigations Unit to consider referring the case to a prosecutor. Mr. Winger repaid the consumer all but $100.

Read more: Order 19–0604

Agentra, LLC, Dallas, fined $75,000

Why we fined them: Agentra sold 835 products that weren’t legal to sell in Washington state from Nov. 1, 2016 until Nov. 1, 2018. It also allowed 127 producers who were not affiliated to Agentra to sell to Washington consumers, among other violations.

Read more: Order 19–0463

Sara M. Kenny, Camas, Wash., fined $500

Why we fined her: Ms. Kenny applied for an Allstate life insurance policy for herself and didn’t disclose relevant health history, which is required and could change the rate she would’ve been charged for the policy. Allstate requested the information, which she didn’t provide. The company denied the policy and also terminated her employment.

Read more: Order 19–0492

Michael Boblett, Vancouver, Wash., license revoked

Why we revoked his license: He didn’t pay his insurance producer license renewal fee and he is no longer allowed to sell insurance in Washington state.

Read more: Order 20–0006

Jacob Ryan Scott, Benton City, Wash., license revoked

Why we revoked his license: He didn’t pay his insurance producer license renewal fee and he is no longer allowed to sell insurance in Washington state.

Read more: Order 20–0007

Other organizations

Hole In One International, Reno, Nev.; fined $75,000 with $50,000 suspended

Why we fined them: Acting as an insurer for hole-in-one tournaments without a certificate of authority, selling 860 policies and collecting more than $395,000 in premiums. Also ordered to pay $10,814 in unpaid premium taxes, interest and penalties.

Read more: Order 19–0254

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 $29 million in fines, which are deposited in the state’s general fund to pay for state services.

Find disciplinary orders against companies, agents and brokers. You can search by name, year, or month they took effect.

For an insurance question or complaint, contact Kreidler’s consumer advocates online or call 800–562–6900.

WA State Office of the Insurance Commissioner

Written by

Washington state Insurance Commissioner Mike Kreidler regulates the insurance industry and protects insurance consumers.

Commissioner’s Eye on Insurance

The Washington state Office of the Insurance Commissioner protects insurance consumers and oversees the insurance industry.

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