For more information, contact: Robert Luck, Consumer Attorney,
Phone: (608) 266-0082,
E-mail: robert.luck@oci.state.wi.us

Madison, WI - OCI has taken the following administrative actions. In many of these cases the respondent denied the allegations but consented to the action taken.

OCI is responsible for overseeing the operations and marketing of insurance companies and agents in Wisconsin. OCI encourages anyone with a question or a complaint regarding an insurance company or agent to contact the office at this toll-free telephone number: 1-800-236-8517.

Allegations and Actions Against Agents

Porche L. Allah, 9305 N. McArthur # B, Oklahoma City, OK 73132, agreed to pay a forfeiture of $250.00 and agreed to respond promptly in writing to all inquiries from the commissioner. This action was based on allegations of a criminal conviction substantially related to insurance marketing type conduct and failure to provide additional information.

Jeffrey Dale Brunken, 5340 S. Cottonwood Ln., Salt Lake City, UT 84117, agreed to pay a forfeiture of $250.00. This action was based on allegations of failing to report an administrative action taken by another state.

Fredric Allen Knuth, 7601 Chadwick, Prairie Village, KS 66208, paid a forfeiture of $500.00 and was ordered to cease and desist from utilizing the services of any persons who do not have an intermediary agents license. This action was based on allegations of utilizing the services of an unlicensed agent.

Thomas E. Mikunda, W9943 Kernan Rd., Exeland, WI 54835, has had his license summarily suspended. This action was based on allegations of failing to properly consider suitability in selling insurance, incorrect forms filing, entering into personal financial transactions with customers, retaining customer funds, and misrepresentations concerning insurance sales.

Melvin T. Shafel, W7589 Park Ave., Shiocton, WI 54170, has had his insurance license revoked. This action was based on allegations of failing to pay Wisconsin delinquent taxes due.

Frederick B. Steves, 2337 Bluebonnet Blvd., Houston, TX 77030, paid a forfeiture of $1,000.00 and was ordered to cease and desist from transacting a surplus lines insurance business in Wisconsin until he is a properly licensed agent. This action was based on allegations of doing a surplus lines insurance business without proper authority.

Allegations and Actions Against Companies

Admiral Insurance Company, 1255 Caldwell Rd., Cherry Hill, NJ 08034, agreed to pay a forfeiture of $1,000.00 and agreed to reissue policy using an approved form and to cease and desist from issuing health care liability policies in Wisconsin without an approved policy form and without filing a valid certificate with the Patients Compensation Fund. This action was based on allegations of using unapproved policy forms and failing to file certificate(s) with the Patients Compensation Fund.

AIG Warranty Guard, Inc., 175 Water St., 20th Fl., New York, NY 10038, paid a forfeiture of $50,000.00 and was ordered to cease and desist from using forms until they have been filed and approved by the commissioner. This action was based on allegations of using unapproved policy forms.

American Compensation Insurance Company, 8500 Normandale Lake Blvd., Ste. 1400, Bloomington, MN 55437, paid a forfeiture of $500.00 and was ordered to promptly reply in writing and provide all information requested in response to all inquires from the commissioner. This action was based on allegations of failing to respond promptly to inquiries from OCI.

American Family Mutual Insurance Company, 6000 American Pkwy., Madison, WI 53783, paid a forfeiture of $2,000.00 and was ordered to cease and desist from mid-term canceling worker's compensation policies for underwriting reasons and to cease and desist from misrepresenting cancellation reasons to the Wisconsin Compensation Rating Bureau and the Department of Workforce Development. This action was based on allegations of issuing an improper mid-term cancellation of an insurance policy.

American Hardware Mutual Insurance Company, 471 E. Broad St., Columbus, OH 43215, paid a forfeiture of $1,000.00 and was ordered to cease and desist from issuing insurance cancellation notices that do not state with reasonable precision the facts on which the decision is based. This action was based on allegations of issuing an improper mid-term cancellation of an insurance policy.

Auto Services Company, Inc., 801 S. College St., Mountain Home, AR 72653, paid a forfeiture of $500.00 and was ordered to provide the requested information and promptly reply in writing to all future requests from the commissioner. This action was based on allegations of failing to respond promptly to inquiries from OCI.

Car Warranties Direct, LLC, 830 W. Main St. #239, Lake Zurich, IL 60047, paid a forfeiture of $1,500.00 and was ordered to cease and desist from soliciting warranties in Wisconsin unless and until it has obtained a limited certificate of authority to solicit a warranty plan in Wisconsin. This action was based on allegations of using unapproved policy forms.

Continental Car Club, Inc., 111 W. 16th St., Dayton, TN 37321, paid a forfeiture of $5,000.00 and was ordered to cease and desist from using forms until they have been filed with and approved by the commissioner. This action was based on allegations of using unapproved policy forms.

GE Capital Administrative Services, Inc., 7125 W. Jefferson Ave. Ste. 200, Lakewood, CO 80235, paid a forfeiture of $500.00. This action was based on allegations of failing to file a required financial statement by the due date.

Guarantee Trust Life Insurance Company, 1275 Milwaukee Ave., Glenview, IL 60025, paid a forfeiture of $500.00 and was ordered to provide the information requested and promptly respond to all inquires from the commissioner. This action was based on allegations of failing to respond promptly to inquiries from OCI.

Guaranty National Insurance Company, 9800 S. Meridian Blvd., Englewood, CO 80112, paid a forfeiture of $3,500.00 and was ordered to cease and desist from returning a premium that is less than the pro rata unearned premium unless proper notice is given. This action was based on allegations of issuing an improper amount of return of premium after an insurance policy is cancelled.

The Hanover Insurance Company, 100 North Pkwy., Worcester, MA 01605, paid a forfeiture of $500.00 and was ordered to cease and desist from altering policy terms without adequate notice to insureds. This action was based on allegations of issuing an improper mid-term cancellation or nonrenewal of an insurance policy.

Hastings Mutual Insurance Company, 404 E. Woodlawn Ave., Hastings, MI 49058, paid a forfeiture of $500.00 and was ordered to cease and desist from improper mid-term cancellation of insurance policies for underwriting reasons. This action was based on allegations of issuing an improper mid-term cancellation of an insurance policy.

Insurance Company of the State of Pennsylvania, 70 Pine St., New York, NY 10270, paid a forfeiture of $500.00 and was ordered to provide the information requested and respond promptly to all future inquiries from the Commissioner. This action was based on allegations of failing to respond promptly to inquiries from OCI.

Interstate Administrative Services, P.O. Box 1670, Danville, IL 61834, was ordered to cease and desist from all activities related to the administration of health coverage offered through NAFPA or by UIIC, LTD and any other insurance company not authorized to do business in Wisconsin, to pay claims and to notify Wisconsin residents of coverage termination. This action was based on allegations of assisting an unauthorized insurer.

Interstate National Dealer Services, Inc., 333 Earle Ovington Blvd., Ste. 700, Uniondale, NY 11553, paid a forfeiture of $600.00 and was ordered to cease and desist from using any form that has not been filed with and approved by the commissioner. This action was based on allegations of violated Wis. Stats. s. 631.20 by using an insurance form that had not been filed with or approved by the Commissioner.

Liberty Mutual Fire Insurance Company, 175 Berkeley St., Boston, MA 02117, paid a forfeiture of $500.00 and was ordered to provide the information requested and reply promptly in writing to all future requests. This action was based on allegations of failing to respond promptly to inquiries from OCI.

Local Government Property Insurance Fund, 121 E. Wilson St., Madison, WI 53702, agreed to pay a forfeiture of $500.00. This action was based on allegations of failing to properly file rate changes.

MSI Preferred Insurance Company, P.O. Box 64035, St. Paul, MN 55164, paid a forfeiture of $500.00 and was ordered to cease and desist from returning premiums less than the pro rata unearned premium unless a proper and separate written notice is given to the policyholder. This action was based on allegations of issuing an improper mid-term cancellation or nonrenewal of an insurance policy.

National Administrative Dealer Services, Inc., 1997 Wadsworth Blvd. #B, Lakewood, CO 80215, paid a forfeiture of $750.00 and was ordered to cease and desist from soliciting unless and until it has obtained a limited certificate of authority to solicit a warranty plan in Wisconsin. This action was based on allegations of using unapproved policy forms.

National Association for Financial Planning Alternatives, Inc., 2312 Peachford Rd., Ste. B, Atlanta, GA 30338, was ordered to cease and desist from all activities related to the administration of health coverage offered through NAFPA or by UIIC, LTD and any other insurance company not authorized to do business in Wisconsin, to pay claims and to notify Wisconsin residents of coverage termination. This action was based on allegations of doing an insurance business without proper authority.

National Union Fire Insurance Company of Pittsburgh PA, 70 Pine St., New York, NY 10270, paid a forfeiture of $10,000.00 and was ordered to provide the requested information and promptly reply in writing to all requests. This action was based on allegations of failing to respond promptly to inquiries from OCI.

National Union Fire Insurance Company of Pittsburgh PA, 70 Pine St., New York, NY 10270, paid a forfeiture of $10,000.00 and was ordered to provide the requested information and promptly reply in writing to all inquiries from OCI. This action was based on allegations of failing to respond promptly to inquiries from OCI.

National Union Fire Insurance Company of Pittsburgh PA, 70 Pine St., New York, NY 10270, paid a forfeiture of $5,000.00 and was ordered to promptly reply in writing and provide all information requested. This action was based on allegations of failing to respond promptly to inquiries from OCI.

The Ohio Casualty Insurance Company, 9450 Seward Rd., Fairfield, OH 45014, paid a forfeiture of $500.00 and was ordered to cease and desist from raising premiums more than 25% without providing the required notifications to insureds. This action was based on allegations of issuing an improper mid-term cancellation or nonrenewal of an insurance policy.

Omni Insurance Company, P.O. Box 105440, Atlanta, GA 30348, paid a forfeiture of $500.00 and was ordered to cease and desist from utilizing the services of an agent who is not properly appointed. This action was based on allegations of violated Wis. Adm. Code s. 6.57(5) on three separate occasions by accepting insurance applications from an agent that was not listed with the insurer.

OneBeacon Midwest Insurance Company, 1 Beacon St., Boston, MA 02108, paid a forfeiture of $1,000.00 and was ordered to provide the information requested and promptly reply in writing to all inquires from the commissioner. This action was based on allegations of failing to respond promptly to inquiries from OCI.

Royal Insurance Company of America, P.O. Box 3144, Naperville, IL 50566, paid a forfeiture of $2,500.00 and was ordered to provide the information requested and promptly reply to all future requests from the commissioner. This action was based on allegations of failing to respond promptly to inquiries from OCI and failing to promptly comply with an order.

Sentry Insurance A Mutual Company, 1800 N. Point Dr., Stevens Point, WI 54481, paid a forfeiture of $500.00 and was ordered to cease and desist from providing improper altered terms or increased premium renewal notices. This action was based on allegations of issuing an improper nonrenewal of an insurance policy.

State Auto Property and Casualty Insurance Company, 518 E. Broad St., Columbus, OH 43215, paid a forfeiture of $500.00 and was ordered to cease and desist from issuing policyholders improper notices of non-renewal. This action was based on allegations of issuing an improper nonrenewal of an insurance policy.

Transportation Insurance Company, CNA Plaza, Chicago, IL 60685, paid a forfeiture of $500.00 and was ordered to provide the information requested and promptly reply in writing to all inquiries from the commissioner requesting a reply. This action was based on allegations of failing to respond promptly to inquiries from OCI.

Union Security Life Insurance Company, 260 Interstate North Cir. NW, Atlanta, GA 30339, paid a forfeiture of $1,000.00 and was ordered to provide the information requested and promptly reply in writing to future requests from the commissioner. This action was based on allegations of failing to respond promptly to inquiries from OCI.

United International Insurance Company, LTD, 22 Cayon St., W. Basseterre, St. Kitts, West Indies, was ordered to cease and desist from all activities related to the sale of insurance to Wisconsin residents, to pay claims related to health coverage under UIIC and LTD, and to notify Wisconsin residents of coverage termination. This action was based on allegations of doing an insurance business without proper authority.

Copies of Administrative Actions