Insurance Commissioner Rejects Settlement in Unlicensed Agent Accusation

An investigative report by an investigator from the California Department of Insurance stated that our client accepted insurance premiums from clients but failed to pay insurance companies, which resulted in cancellation of insurance policies.  Our own investigation revealed that the policies were cancelled because the insurance customers failed to pay their bills to insurance finance companies.

We reached a tentative settlement by stipulation with staff counsel, subject to approval by the Commissioner.  The settlement would have resulted in the restriction of our client’s license and changes in business practices to avoid unlicensed activity in the future.  Unfortunately, the Insurance Commissioner rejected the stipulation and reinstated the accusation.