Unlicensed California Agent Fined $20K Following Cease and Desist Order

Former insurance agent, Karen Marie Dondanville, 53, of Lake Forest, Calif., this week was ordered to pay the California Department of Insurance $20,000 in penalties after a judge’s decision that affirms the cease and desist order issued against Dondanville for illegally transacting insurance without a license was adopted.

On Jan. 11, the CDI adopted an administrative law judge’s proposed decision, which affirmed the department’s cease and desist order and ordered Dondanville to pay a penalty of $20,000 within 90 days for her reported unlawful insurance transactions and fraud.

The department issued a cease and desist order in March 2020 against Dondanville, doing business as Broadstreet Insurance Services and Streamline Insurance Services Inc., after a consumer complained to CDI that Dondanville had taken premium money, but failed to place coverage on the consumer’s property.

The CDI conducted an investigation that reportedly showed Dondanville had continued to sell insurance after her insurance license was revoked on Nov. 6, 2019.

When the investigation uncovered another victim, the department issued an amended cease and desist order in September 2020. The investigation reportedly revealed that Dondanville collected insurance premiums and provided her customers proof of insurance, however, she failed to secure her customers’ insurance coverage, and the proof of coverage she provided was fraudulent.

Dondanville’s alleged actions left her customers without coverage, resulting in more than $100,000 in uncovered losses to one victim.

Investigators believe other California consumers may have also purchased insurance from Dondanville, doing business as Broadstreet, and may be at risk for potential uncovered losses.

Topics California Agencies