NU Online News Service, May 16, 1:33 p.m. EDT
The chief executive of Hole-In-Won.com has been charged with insurance fraud in Montana after failing to pay prize money to a tournament participant who shot a hole-in-one almost two years ago.
Montana Commissioner of Securities and Insurance Monica J. Lindeen announced today that Kevin Kolenda, the chief executive officer of the web-based company, failed to pay the $18,000 prize won by Troy Peissig after he shot a hole-in-one at a Missoula Country Club golf tournament.
The department says that despite numerous eyewitness accounts and evidence that the tournaments met the requirements of the insurance contract, Kolenda has refused to pay the prize.
The department alleges that Kolenda took close to $1,000 in premium dollars from the tournament sponsors with no intention of covering the prize. He's been charged with felony insurance fraud and misdemeanor selling insurance without a license.
"Whether you've got life, auto, health, homeowners, or even golf insurance, my office is here to help you," says Lindeen in a statement. "Call my office before you buy and make sure you're working with a reputable, licensed insurer. Choosing a licensed insurer can help you avoid companies where denying claims is par for the course."
The department says Kolenda claims that the hole's length was supposed to be 165 yards, but was only 130 yards. Missoula Country Club owners say the hole was lengthened to the requirements. Satellite images and witness accounts back-up the country club's story.
A warrant has been issued for Kolenda's arrest.
The department says Kolenda was previously fined $5.9 million for selling insurance without a license, false representation of insurance products and unfair insurance practices by the Connecticut Insurance Commissioner in 2009.
The Hole-in-Won website says the product is not available in Connecticut.
A request for comment from Hole-in-One was not immediately returned.
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