The California Department of Insurance (CDI) recently issued an Order of Monetary Penalty and Reprimand ordering broker-agent Bonding & Insurance Specialists Agency, Inc. to pay a fine of $100,000.
The Illinois-based agency allegedly deceived customers by charging and collecting inappropriate and unauthorized premiums disguised as “Policy Fees” and “Workers’ Compensation Administration Fees,” according to an investigation by the CDI’s Investigations Bureau.
It was further alleged that the misrepresentations were made to retail insurance brokers and potential customers in violation of the California Insurance Code. The CDI purported that this activity occurred on at least 64 different occasions between March of 1988 and July of 2000. A total of $43,700 was collected.
While not admitting to CDI’s factual or legal allegations, Bonding & Insurance Specialists Agency, Inc. entered into a settlement with CDI to avoid the cost and uncertainties associated with further administrative or judicial proceedings arising from CDI’s allegations.
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