Kreidler Issues $111K in Fines for Violations in October

November 21, 2022

Washington Insurance Commissioner Mike Kreidler issued fines in October totaling $111,000 against insurance companies, agents and brokers who violated state insurance regulations.

Following are the companies, their location, the size of their fines, and the allegations against them.

Insurance companies

AmGUARD Insurance Company, Wilkes Barre, Penn.; fined $30,000

AmGUARD failed to provide timely payment to a consumer who filed a claim after their apartment building was damaged. The consumer eventually filed suit under the Insurance Fair Claims Act (IFCA) and a judge’s partial summary judgement found AmGUARD to have engaged in unfair trade practices.

Sedera, Inc., Austin, Texas; fined $50,000

Sedera, a medical cost sharing community, was fined for transacting insurance business in Washington without authorization.

UnitedHealth, Lake Oswego, Ore.; fined $75,000 with $25,000 suspended

UnitedHealth incorrectly denied 195 physical therapy claims from 36 enrollees over a span of three months due to a lack of preauthorization.

Ameritas Life Insurance Corp., Nebraska; fined $2,500

Ameritas Life Insurance Corp. charged incorrect small group vision rates, amounting to $2,981 in overcharged premiums across 281 policies. Ameritas implemented corrected rates.

Reliance Standard Life Insurance Co., Chicago; fined $2,000

Reliance Standard Life Insurance Co. charged incorrect small group vision rates, amounting to $112 in overcharged premiums across 26 policies. Reliance implemented corrected rates.

Agents & brokers

John Donovan/John Donovan Agency, Kennewick; fined $2,000

PacificSource Health Plans, Springfield, Ore.; fined $1,000

Edwin Mackethan, Grosse Pointe Farms, Mich.; fined $500

Nhou Thao, Kirkland, fined $500

Jerome Burton, San Jose, Calif.; fined $500

Theresa Marie Morris, Mohawk, NY; fined $500

Bagheera Franklin, Gulfport, Miss.; fined $500

Brock Norton Insurance Agency, Chantilly, Va.; fined $250

Jennings Insurance Services Inc., Orlando, Fla.; fined $250

STP Enterprises Inc., Chicago, Ill.; fined $250,

Brent Giroux, Irvine, Calif.; fined $250

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