by MaxHerr » Mon Oct 11, 2010 03:03 am
To those who think complaining to a state insurance regulator is not worth the effort, or that it doesn't amount to anything, please read on. Without the filing of the complaint to the CA Dept of Insurance, this case may never have been prosecuted, and a rogue agent put out of business.
July 7, 2010 3:52 PM
Insurance Commissioner Steve Poizner announced today that former insurance agent Mia Christine Chang, 46, of Los Angeles, was found guilty of grand theft on June 9 for stealing insurance premiums from a client.
Chang was sentenced to 36 months of summary probation and ordered to perform 300 hours of community service, and pay court fines plus $5,763.54 in restitution to the victim.
In July 2005, Chang, DBA Lotte Insurance Services, received at least $4,641 as a partial payment for general liability insurance from a steel contractor. The quote she provided her client was $9,141 for an annual term. The total premium for the policy that was actually issued was only $7,141. Chang failed to remit any payments to the wholesale broker, which resulted in the policy being cancelled for non-payment several months after the effective date of coverage.
In April and June of 2006, Chang received at least $8,490.50 for general liability insurance after providing a quote to the same steel contractor for an annual term. The total premium for the policy that was actually issued was only $3,317.79.
CDI investigators determined that, despite the fact that Chang collected more than full premium for the policy, she arranged for premium financing without the knowledge or consent of her client and failed to make timely payments to the wholesale insurance broker for the deposit premium. Several months after the inception date of the policy, the insured discovered that the policy was premium financed and learned what the true premium was. The insured subsequently complained to Chang, who repeatedly promised to "fix the problem." The policy ultimately was cancelled for underwriting reasons. Only after the insured told Chang that he planned to file a complaint with CDI, did Chang refund any portion of the premium she had collected. Chang refunded $4,245.50.
CDI became aware of this scheme when the steel contractor filed a complaint with CDI, alleging that Chang only remitted a portion of the full premium paid, and that premium finance documents disclosed a total premium that was much less than what Chang had quoted.
Chang's licenses were revoked in October 2007, as the result of an administrative action brought by CDI, following a CDI investigation which revealed at least 20 transactions similar to the steel contractor complaint, which dated back to 1999. Chang's conduct in these transactions included auto, commercial general liability and workers' compensation policies. She allegedly failed to place coverage, failed to remit sufficient premium monies to keep the policy in force, premium financed the policy without the insured's knowledge or consent, and issued false insurance certificates to her insured clients and to the California Contractors State License Board.
This case was prosecuted by the Los Angeles City Attorney's Office.
July 7, 2010 3:52 PM
Insurance Commissioner Steve Poizner announced today that former insurance agent Mia Christine Chang, 46, of Los Angeles, was found guilty of grand theft on June 9 for stealing insurance premiums from a client.
Chang was sentenced to 36 months of summary probation and ordered to perform 300 hours of community service, and pay court fines plus $5,763.54 in restitution to the victim.
In July 2005, Chang, DBA Lotte Insurance Services, received at least $4,641 as a partial payment for general liability insurance from a steel contractor. The quote she provided her client was $9,141 for an annual term. The total premium for the policy that was actually issued was only $7,141. Chang failed to remit any payments to the wholesale broker, which resulted in the policy being cancelled for non-payment several months after the effective date of coverage.
In April and June of 2006, Chang received at least $8,490.50 for general liability insurance after providing a quote to the same steel contractor for an annual term. The total premium for the policy that was actually issued was only $3,317.79.
CDI investigators determined that, despite the fact that Chang collected more than full premium for the policy, she arranged for premium financing without the knowledge or consent of her client and failed to make timely payments to the wholesale insurance broker for the deposit premium. Several months after the inception date of the policy, the insured discovered that the policy was premium financed and learned what the true premium was. The insured subsequently complained to Chang, who repeatedly promised to "fix the problem." The policy ultimately was cancelled for underwriting reasons. Only after the insured told Chang that he planned to file a complaint with CDI, did Chang refund any portion of the premium she had collected. Chang refunded $4,245.50.
CDI became aware of this scheme when the steel contractor filed a complaint with CDI, alleging that Chang only remitted a portion of the full premium paid, and that premium finance documents disclosed a total premium that was much less than what Chang had quoted.
Chang's licenses were revoked in October 2007, as the result of an administrative action brought by CDI, following a CDI investigation which revealed at least 20 transactions similar to the steel contractor complaint, which dated back to 1999. Chang's conduct in these transactions included auto, commercial general liability and workers' compensation policies. She allegedly failed to place coverage, failed to remit sufficient premium monies to keep the policy in force, premium financed the policy without the insured's knowledge or consent, and issued false insurance certificates to her insured clients and to the California Contractors State License Board.
This case was prosecuted by the Los Angeles City Attorney's Office.
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