Kansas Agent Sentenced to Jail; Must Return $137K to Victims

A former Pittsburg, Kan., insurance agent will have to pay back more than $137,000 to victims of forgery and theft following a Kansas Insurance Department (KID)-led investigation involving non-payment of clients’ insurance premiums to companies.

The insurance department reported that Crawford County District Court judge sentenced Kregg Muninger to 32 months’ incarceration on forgery and theft convictions.

He was granted probation for two years; the probation conditions include repaying $137,664.63 to the 14 victims whose premiums were not forwarded to their insurance companies, and to one victim whose losses were uninsured. Muninger is also to complete 360 hours of community service.

“We are pleased with the court’s decision to order restitution for those who were harmed,” Commissioner of Insurance Sandy Praeger said. “Dishonest practices and financial irresponsibility have no part in the Kansas insurance industry.”

Insurance Commissioner Sandy Praeger revoked Muninger’s insurance license in July 2010, following an investigation headed by the KID’s Antifraud and Consumer Assistance Divisions and the Pittsburg Police Department.

The KID investigation began in 2009 based on complaints that Muninger, doing business as Midwest Insurance Agency, accepted premium payments for commercial and professional liability insurance policies and then failed to forward the money to the appropriate insurance companies. Also, KID investigators discovered that false policies and insurance certificates were created to disguise the thefts.

Michael Gayoso, Crawford County Attorney, and KID cooperated in the prosecution.

Insurance policies should be delivered by the agent to the policyholder within 30 days, Commissioner Praeger said, and certificates of insurance and policies should be verified with the listed insurance companies to ensure they are valid.

Source: Kansas Insurance Department

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