Fraud of the Week
Premium Fraud – California
Amount: $1169.00
An unlicensed broker was sentenced to three years of probation, twenty days of community service and restitution of $1169 for selling auto insurance to an individual but failing to actually place the coverage, leaving the person uninsured when they had an accident. Upon investigation it was discovered that she had sold another auto policy to a different individual and again did not place the coverage, but diverted the premium payment for her own personal use.
She has previously been convicted of transacting insurance without a license and misrepresenting information on insurance applications for a decade. In her prior conviction she was sentenced to ten years of probation and ten days of community labor.