July 28, 2010 in Business

Insurance violations result in penalties

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A Spokane Valley man has lost his insurance license and a second agent has been fined for bookkeeping so sloppy that one client’s policy got cancelled because premiums were not forwarded to his insurance company, according to the Washington Insurance Commissioner’s Office.

Ross Culverhouse had his license revoked after notifying his employer, Schrader & Murphy Insurance Inc., he had taken $700 from an agency trust account.

His employment was terminated and the theft reported to the insurance commissioner and police. The revocation followed several unsuccessful attempts to contact him, the revocation notice says.

A $3,000 fine imposed on Guy Williams, with $2,000 suspended, followed an audit that found some client premiums were not forwarded to their insurers. Also, some clients did not receive premiums and fees rebated by insurers. Williams also used some trust account money to pay for advertising.

A November 2009 audit of Associated Agents Group Inc. turned up the bookkeeping errors.

Insurance commissioner spokesman Rich Roesler said a follow-up audit found the problems had been solved. “We don’t believe it was intentional,” he said.

Also, the Spokane Chapter of the National Association of Insurance and Financial Advisers was fined $1,000 for advertising courses for professional credit without commissioner approval, and for not including the provider’s name in an ad.

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