Colorado Division of Insurance Fines Agent $1.25 Million for Life Insurance Fraud
July 4, 2011 by Caroline Saucer
|Copyright:||(c) 2011 A.M. Best Company, Inc.|
|Source:||A.M. Best Company, Inc.|
An administrative law judge has fined insurance agent Salies “Kwann” Perry$1.25 million for committing unfair trade practices and fraud. The fine is believed to be one of the largest in state history ever handed down to an insurance producer, the Colorado Division of Insurance said in a statement.
Bankers Life and Casualty Co. notified the Division of Insurance in early 2010 that Perry had submitted some 50 fraudulent applications for life insurance in 2009 and 2010. Those included false Social Security numbers, addresses and bank account numbers submitted in order to receive advanced commissions from Bankers Life.
Also, the Division of Insurance’s Compliance and Investigations Section discovered during its investigation that Perry failed to disclose his criminal background in his application for a Colorado insurance producer license.
Perry’s Colorado insurance producer license was summarily suspended in November. In his decision, Administrative Law Judge Robert Spencer permanently revoked Perry’s license, and ruled that Perry had committed 415 violations of the state’s insurance laws.
Perry, whose whereabouts are unknown, also was ordered to pay $4,678.57 in restitution to Bankers Life and Casualty.
Bankers Life and Casualty Co. has a current Best’s Financial Strength Rating of B+ (Good).
(By Caroline Saucer, editor, BestWeek: Caroline.Saucer@ambest.com)