The Insurance Division of Iowa has ordered Hole in Won LLC, Kevin Kolenda, and affiliated companies (respondents) to cease and desist acting as an insurer or insurance provider without a license in the state.
In different reported instances beginning in November 2014, the respondents offered and sold prize indemnity insurance coverage for events such as fishing, golf, and basketball contests. They were not licensed to sell insurance products in Iowa, and the insurance products the respondents were selling were not submitted to the Insurance Division for approval.
The respondents failed to do several things required of licensed insurers in the state of Iowa, including a failure to timely respond to policyholder questions, failure to pay legitimate claims, and failure to adhere to cease and desist orders issued in other states.
Iowa Insurance Regulators noted that Kolenda had previously been convicted of felonies for participating in similar schemes in both Connecticut and Washington, and he and other respondents have been subjected to administrative actions by state insurance regulators in ten other states, ranging back as far as 2001.
The respondents were ordered to pay civil penalties of $35,000, restitution of $2,930, and investigation costs of $3,415.
Read the complaint here.
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