The Louisiana Department of Insurance has ordered a New Orleans insurance agent and her company to stop their insurance business after the agent allegedly failed to remit premiums she collected from clients.
Vilia Ann Ragas and her company, Citywide Insurance Agency, were to stop their insurance business last week.
At least two customers have been harmed by the scheme, according to LDI. and LDI is concerned there may be others. Insurance Commissioner Jim Donelon said customers of Ragas and Citywide Insurance Agency should call their insurers directly to verify that the coverage they paid for is in place and contact LDI if they see a problem or have experienced anything unusual.
In one allegation, a Citywide Insurance customer discovered that she had no insurance coverage for most of 2021 after filing a complaint about Ragas with the LDI in November. In another allegation, a customer learned that her homeowners insurance had been cancelled for non-payment of premium when she tried to file a claim for damage from Hurricane Ida.
On Dec. 3, LDI fraud investigators served cease and desist orders to Ragas and her agency, suspended their licenses, and issued them $5,000 in fines for violating the Louisiana Insurance Code. The license suspensions will become revocations in 30 days.
Ragas has 30 days from the date of notice to file an appeal. Action by the Louisiana Department of Insurance is not stayed by an appeal.
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