A Michigan-based insurer has been fined $230,000 by the Conneticut Department of Insurance for failing to make sure agents were licensed and appointed to sell policies in the state.
Foremost Insurance Co., which specializes in selling insurance for travel trailers and motor homes, said in a statement Wednesday that it was “surprised and disappointed by the amount of the fine.”
“However, steps are being taken to make sure that all Foremost agents, including agency staff members, writing business for Foremost in Connecticut are properly licensed and appointed to prevent this from happening in the future,” the company said.
The Insurance Department, which did not accuse Foremost of harming consumers, said it found that during 2006, Foremost had in Connecticut 205 agents who were not appointed to represent the company. Ten other Foremost agents were not licensed to sell insurance in Connecticut, the state said.
Foremost, which is based in Caledonia, Mich., also failed to report 18 total losses of motor vehicles to the National Insurance Crime Bureau as required by state law, according to an order signed by Insurance Commissioner Thomas R. Sullivan.
Sullivan said Foremost acted quickly to resolve the violations. In a stipulation with the state, the company admitted to the allegations and agreed to “undertake a complete review of its practices and procedures to ensure the areas of concern … are compliant with Connecticut statutes.”
Topics Carriers Agencies Michigan Connecticut
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