Washington Insurance Commissioner Mike Kreidler issued several fines for insurers, agents and entities in December, including ordering Zion Health to stop selling insurance illegally in Washington, fining the company $50,000.
Kreidler’s office issued an initial cease-and-desist order to Zion in February 2022. The final order was signed on Dec. 19, 2023.
Zion Health, domiciled in Salt Lake City, reportedly offered and sold insurance in Washington without being authorized to do so by the Office of the Insurance Commissioner. The company also excluded coverage for pre-existing health conditions for two years and excluded coverage for termination of pregnancy.
Zion, as of October 2021, had enrolled a total of 984 members in Washington and collected a total of $1,196,652 from those members, while paying out $568,274 in claims.
The $50,000 Zion Health fine was part of the $78,000 total in fines Kreidler’s office issued in December for violations of state insurance laws and regulations.
The other fines and reported violations included:
Allstate Property and Casualty Insurance Co., Northbrook, Ill.; fined $3,000
Allstate didn’t use its legal underwriting name on consumer-facing documents, including payment notification emails, estimates, email signatures and other formal written correspondence.
The Evangelical Alliance Mission, Villa Park, Ill.; fined $10,000
The Evangelical Alliance Mission issued charitable gift annuities before obtaining a certificate of exemption from the OIC and without meeting insurance code requirements. The organization issued 33 annuities to 14 Washington residents before receiving an exemption.
AICC LLC; Philadelphia, Penn.; fined $10,000
AICC sold insurance to two Washington businesses, and received commissions, without being licensed to do so by the OIC.
Michael Rawlings, Salt Lake City, Utah.; fined $5,000
Rawlings worked as an insurance adjuster in Washington between August 2022 and January 2023 without being licensed by the OIC to do so. In addition to the fine, he was issued a cease-and-desist order.
Topics Washington
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