Fraud of the Week

September 19, 2016

Insuring Agent Fraud–California

Amount: Unknown

 

Arraignment has been set for a former California insurance broker who has been charged in a decade-long automobile insurance scheme. The ex-insurance agent in Los Angeles was charged with one misdemeanor count for transacting insurance without a license. After receiving a complaint from one of the affected clients, an investigation was implemented by the California Department of Insurance that revealed that the agents' license had expired in 2002 and she had failed to renew her license while continuing to pose as an insurance broker. The investigation also revealed the ex-agent had been misrepresenting client information on automobile insurance applications for over a decade. The ex-agent falsified the birth dates and addresses of her clients to offer lower premiums in order to secure more business for herself and cheaper premiums for her clients. The victims did not know that their policy documents had been falsified and are not facing any penalties for the actions of this ex-agent.