Wis. Commissioner Announces Administrative Actions

The Wisconsin Office of the Commissioner of Insurance (OCI) has taken the following administrative actions. In many of these cases the respondent denied the allegations but consented to the action taken.

Allegations and actions against agents

Mark A. Aicher, 1723 Meadow View Ln., Little Chute, WI 54140, has had his application for an insurance license denied. This action was based on allegations of failing to respond promptly to inquiries from OCI regarding bankruptcy.

Leonor Arellano, 308 S. Stanislaus # B7, Stockton, CA 95203, has had her application for an insurance license denied. This action was based on allegations of failing to disclose administrative action taken by the state of California on an insurance license application and nonresponse to OCI’s request for information.

Daniel D. Hawk, 1318 Glacier Hill Dr., Madison, WI 53704, was ordered to pay a forfeiture of $10,000.00 and was ordered to cease and desist from soliciting contributions for Native American Mutual Insurance Company, refund all contributions received to date, provide the information requested, pay an additional forfeiture of $200 per day of continued noncompliance, and has had his insurance license revoked. This action was based on allegations of failing to respond promptly to inquiries from OCI, refusing to comply with orders issued by OCI, misrepresentations to OCI, and soliciting contributions for an insurer without obtaining proper authority from OCI.

James C. Hill, N6811 Raymond Rd., Pardeeville, WI 53954, was ordered to cease and desist from misrepresenting that coverage is in force when it is not. This action was based on allegations of misrepresenting that insurance coverage was in force when, in fact, it was not.

Michael E. Verity, 50587 Second St. S., P.O. Box 220, Eleva, WI 54738, has had his license summarily suspended. This action was based on allegations of converting policy surrender proceeds for personal use, converting premiums for own use, failing to submit applications to insurer, issuing false certificates of insurance and failing to respond to OCI’s inquiry.

Allegations and actions against companies

Associated Service Corporation, 655 Craig Rd. Ste. 100, St. Louis, MO 63141, paid a forfeiture of $5,700.00 and was ordered to cease and desist from using any form that has not been filed and approved by the commissioner. This action was based on allegations of violated s. 631.20, Wis. Stats., by using an insurance form that had not been filed with or approved by the Commissioner.

Capitol Indemnity Corporation, 4610 University Ave., Madison, WI 53705, paid a forfeiture of $1,500.00 and was ordered to cease and desist from canceling policies midterm unless the reason given falls within an acceptable reason under Wisconsin statutes. This action was based on allegations of issuing an improper midterm cancellation of an insurance policy.

GE-Zurich Warranty Management, Inc., 1400 American Ln., Schaumburg, IL 60196, paid a forfeiture of $12,000.00. This action was based on allegations of using unapproved warranty plan policy forms.

National General Insurance Company, One National General Plaza, Hazelwood, MO 63045, paid a forfeiture of $1,500.00 and was ordered to cease and desist mailing renewal premium offers/notices to policyholders less than 60 days prior to the policy renewal date when increasing the renewal premium 25% or more. This action was based on allegations of issuing an improper midterm cancellation or nonrenewal of an insurance policy.

Pro-Guard International, Inc., 2131 Verdugo Dr., Laguna Hills, CA 92653, paid a forfeiture of $550.00 and was ordered to cease and desist from using any form that has not been filed with and approved by the commissioner. This action was based on allegations of violating Wis. Stats. s. 631.20 by using an insurance form that had not been filed with or approved by the Commissioner.

Property and Casualty Insurance Company of Hartford, Hartford Plz, Hartford, CT 06115, paid a forfeiture of $500.00 and was ordered to cease and desist from improper midterm cancellations. This action was based on allegations of issuing an improper midterm cancellation of an insurance policy.

Vision Insurance Plan of America, Inc., 1126 W. 70th St. Ste. N100B, P.O. Box 44077, Milwaukee, WI 53214, paid a forfeiture of $2,000.00. This action was based on allegations of failing to comply with a previous examination order.