Washington Insurance Commissioner Mike Kreidler’s office issued more than $500,000 in fines in May and June for violations of state insurance laws and regulations, including fining Unite Health Share Ministries $300,000 for acting as an unauthorized insurer in Washington.
Kreidler’s office opened an investigation after receiving a complaint that Unite Health had paid only $5,000 on a consumer’s medical claim, reportedly leaving the consumer with nearly $200,000 in medical bills.
Unite Health markets itself as a healthcare sharing ministry, but fails to meet the legal definition under state law, according to Kreidler’s office.
Unite Health acted as an unauthorized insurer when it enrolled more than 320 Washington residents in its membership program and collected membership fees. From 2019 to 2023, Unite Health collected a reported $2.9 million in membership fees from Washington residents, leaving it with $74,999 in unpaid premium taxes.
Unite Health has 90 days to request a hearing.
Other fines and the reported offenses in May and June included:
First Premier Home Warranty Corp., Brooklyn, NY; fined $50,000
First Premier submitted a service contract provider application to Kreidler’s office in August of 2022, but never included the documents required to complete the process. The company sold 22 service contracts, received $20,859.22 in payments and paid $5,549.83 to consumers without being registered to conduct business in Washington.
Midwest Family Mutual Insurance Company, West Des Moines, Iowa; fined $5,000
The company incorrectly applied commercial property loss costs and rating factors to 50 business policies and failed to file exceptions to two rating rules before issuing policies.
Allstate Fire & Casualty Insurance Company, Northbrook, Ill.; fined $25,000
Allstate mishandled an auto insurance claim and incorrectly stated that the policyholder’s right to an appraisal could not be invoked after repairs were made. Allstate initially paid $8,816 in two installments, but eventually adjusted the payment amount to $27,607 after both parties hired appraisers.
Zurich American Insurance Company of Illinois, Schaumburg, Ill.; fined $1,000
The company applied incorrect rating factors on commercial package policies in 2022.
American Zurich Insurance Co., Schaumburg, Ill.; fined $1,000
The company applied incorrect rating factors on commercial package policies in 2022.
Towers Administrators LLC, Middletown, Del.; fined $25,000
The company operated as a discount plan organization without obtaining a valid license to do so in Washington.
James Bischoff, Las Vegas, Nevada; fined $1,000
Bischoff was ordered to stop representing himself as a certified financial education instructor, which he had been doing without holding active certification.
United of Omaha Life Insurance Company, Omaha, Nebr.; fined $3,000
United of Omaha was fined for failing to timely file large group negotiated rates.
GadgetGuard, LLC; fined $30,000
The company sold GuardPlusISM, which it marketed as an insurance policy, on its website without being authorized to transact insurance business in Washington state. In addition to the fine, GadgetGuard was ordered to stop conducting insurance business in Washington.
Kaiser Foundation Health Plan of Washington, Seattle, Wash.; fined $30,000
Kaiser failed to include required language in 17 gender-affirming care denial letters sent in 2022.
Apogee Insurance Group, unlicensed; fined $7,500
Gateway Underwriters Agency, Inc. was doing business as Apogee Insurance Group, which was a trade name not registered with the insurance commissioner’s office.
RLI Insurance Company, Peoria, Ill.; fined $5,000
RLI issued policies using incorrect loss cost multipliers and construction classifications from 2020 to 2022, impacting 236 policies.
Jeffrey H. Franco, Blaine, Wash.; fined $2,000
Franco, an employee of Community Health Plan of Washington, changed consumers’ health plans without their knowledge or consent.
Blue Star Gas – Seattle Co., Tukwila, Wash.; fined $3,000
The company acted as an unauthorized insurer by servicing home heating fuel contracts without first registering with the insurance commissioner’s office.
State Farm Mutual Automobile Insurance Company, Bloomington, Ill.; fined $25,000
State Farm filed to include Fair Credit Reporting Act notices on renewal policies and new business declarations in 2023.
Since 2021, Kreidler’s office has assessed more than $41 million in fines, which are directed to the state’s general fund to pay for state services.
Topics Washington
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