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. This list of administrative actions does not include actions for which a separate press release is done.

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

Mary J. Hafeman, d/b/a Bay Benefits Group, 57 N. 12th Ave., Sturgeon Bay, WI 54235, agreed to pay a forfeiture of $500.00 and agreed to comply with the terms of the stipulation including the sale of Bay Benefits Group to Mr. Daryl Kapalin d/b/a Benefit Advantage, Inc. This action was based on allegations of failing to maintain a proper bond as required for employee benefit plan administrators and failing to respond promptly to inquiries from OCI.

Daniel J. Raymonds, 2880 Meadowside Ct., Brookfield, WI 53005, has had his insurance license revoked. This action was based on allegations of failing to pay Wisconsin delinquent taxes due.

Mark B. Sirianni, 4408 Kellyland St., Schofield, WI 54476, was ordered to cease and desist from all activities of an insurance intermediary and has had his license summarily suspended. This action was based on allegations of failing to properly consider suitability in sales and recommendations of annuities; unfair marketing practices; using false and misleading advertisements, solicitations, and representations in sales of annuities; using deceptive words, phrases, or illustrations in sales of annuities; and violating Wisconsin insurance laws.

Allegations and Actions Against Companies

1st Auto & Casualty Insurance Company, 2810 City View Rd., Madison, WI 53718, was ordered to cease and desist from nonrenewing insurance policies with less than a 60-day notice and to cease and desist from counting the day of mailing a nonrenewal notice as day one in fulfilling the 60-day notice requirement. This action was based on allegations of issuing an improper notice for nonrenewal of an insurance policy.

Acuity a Mutual Insurance Company, 2800 S. Taylor Dr., Sheboygan, WI 53081, paid a forfeiture of $500.00 and was ordered to notify the Commissioner at least 30 days prior to a dividend distribution. This action was based on allegations of failing to notify the Commissioner of the schedule for the basis of a dividend distribution at least 30 days prior to the distribution.

Alpha Property & Casualty Insurance Company, P.O. Box 223687, Dallas, TX 75222, paid a forfeiture of $500.00 and was ordered to cease and desist from failing to provide proper nonrenewal notification to its policyholders. This action was based on allegations of issuing an improper nonrenewal of an insurance policy.

American Family Mutual Insurance Company, 6000 American Pky., Madison, WI 53783, paid a forfeiture of $500.00 and was ordered to cease and desist from failing to provide proper notification to their policyholders of renewal with altered terms. This action was based on allegations of issuing an improper renewal with altered terms of an insurance policy.

American Family Mutual Insurance Company, 6000 American Pky., Madison, WI 53783, paid a forfeiture of $3,000.00 and was ordered to cease and desist from improperly canceling policies midterm for underwriting reasons that it knew or should have known at the time of issuing the policy. This action was based on allegations of issuing an improper midterm cancellation of an insurance policy.

American Family Mutual Insurance Company, 6000 American Pky., Madison, WI 53783, paid a forfeiture of $3,000.00 and was ordered to cease and desist from failing to provide proper nonrenewal notification to their policyholders. This action was based on allegations of issuing an improper nonrenewal of an insurance policy.

Boller Group, Inc., 205 E. Thomas St., P.O. Box 1724, Wausau, WI 54402, paid a forfeiture of $500.00 and was ordered to comply with the terms of the stipulation. This action was based on allegations of failing to respond promptly to inquiries from OCI and failing to maintain a proper bond.

Citizens Insurance Company of America, 645 W. Grand River Ave., Howell, MI 48843, paid a forfeiture of $500.00 and was ordered to cease and desist from nonrenewing automobile policies based on the age of the policyholder and to revise the Underwriting Guidelines so as to bring them into compliance with Wisconsin law. This action was based on allegations of issuing an improper nonrenewal of an insurance policy.

Depositors Insurance Company, 1100 Locust St., Des Moines, IA 50391, paid a forfeiture of $500.00 and was ordered to cease and desist from failing to provide either a renewal or nonrenewal notification to its policyholders. This action was based on allegations of issuing an improper nonrenewal of an insurance policy.

Electric Insurance Company, 75 Sam Fonzo Dr., Beverly, MA 01915, was ordered to cease and desist from improperly calculating refunds using a short-rate calculation unless the respondent gives proper notice. This action was based on allegations of improperly calculating refunds using a short-rate calculation without proper notification and issuing an improper notice of the short-rate calculation for a refund.

Fireman's Fund Insurance Company, 777 San Marin Dr., Novato, CA 94998, paid a forfeiture of $500.00 and was ordered to cease and desist from changing the terms of a policy midterm for underwriting reasons it should have known within the first 60 days of the new policy. This action was based on allegations of failing to comply with s. 631.36 (5), Wis. Stat.

GEICO General Insurance Company, 5260 Western Ave., Chevy Chase, MD 20815, paid a forfeiture of $500.00 and was ordered to cease and desist from applying premium refunds from one policy period to future installments not yet earned or due. This action was based on allegations of violating Wisconsin insurance laws regarding refunds.

General Casualty Company of Wisconsin, One General Dr., Sun Prairie, WI 53596, paid a forfeiture of $500.00 and was ordered to cease and desist from improper nonrenewal of insurance policies. This action was based on allegations of issuing an improper notice for nonrenewal of an insurance policy.

Grinnell Mutual Reinsurance Company, 4215 Hwy. 146, Grinnell, IA 50112, paid a forfeiture of $1,000.00 and was ordered to cease and desist from violating Wisconsin insurance law by deviating from the approved rates and rules on worker's compensation and to develop a process to ensure that policyholders are made aware of changes made to terms requested, marketed, or bound in an application. This action was based on allegations of using improper classification codes for worker's compensation insurance and failing to have in place a process to ensure policyholders are made aware of changes made to terms in an application.

Indiana Insurance Company, 350 E. 96th St., Indianapolis, IN 46240, paid a forfeiture of $1,500.00 and was ordered to cease and desist from violating Wisconsin insurance laws by failing to use a rate, rating plan, or classification or an expense loading approved by the Commissioner. This action was based on allegations of using discriminatory underwriting procedures, misrepresenting premium due on a policy, and using an unfiled and unapproved rate.

Midwest Family Mutual Insurance Company, P.O. Box 9425, Minneapolis, MN 55440, paid a forfeiture of $500.00 and was ordered to cease and desist from improperly canceling policies midterm for underwriting reasons it knew or should have known at the time of issuance. This action was based on allegations of issuing an improper midterm cancellation of an insurance policy.

National Administrative Service Company, Ltd., 5747 Perimeter Dr. Ste. 200, Dublin, OH 43071, paid a forfeiture of $2,000.00 and was ordered to use only forms which have been submitted to and approved in writing by the Commissioner. This action was based on allegations of using unapproved policy forms.

Old Republic Surety Company, 445 S. Mooreland Rd. Ste. 301, Brookfield, WI 53005, paid a forfeiture of $1,000.00 and was ordered to cease and desist from accepting insurance business from an intermediary unless the intermediary is licensed as well as listed as an agent for the respondent. This action was based on allegations of allowing an agent to submit applications prior to appointing the agent.

Partners Mutual Insurance Company, 20935 Swenson Dr., Waukesha, WI 53186, paid a forfeiture of $500.00 and was ordered to cease and desist from nonrenewing insurance policies without proper 60 days notice. This action was based on allegations of issuing an improper nonrenewal of an insurance policy in violation of s. 631.36 (4), Wis. Stat.

Pella Mutual Insurance Company, W11261 Hwy. D, Marion, WI 54950, paid a forfeiture of $2,000.00 and was ordered to cease and desist from violating s. 631.36, Wis. Stat. This action was based on allegations of issuing an improper midterm cancellation or nonrenewal of an insurance policy, failing to state with reasonable precision the facts on which the insurer based its decision to nonrenew, and canceling a policy for underwriting reasons.

RLI Insurance Company, 9025 N. Lindbergh Dr., Peoria, IL 61615, paid a forfeiture of $1,500.00 and was ordered to file notices of termination of its agents with OCI prior to or within 30 calendar days of the termination and submit complete explanations and documentation in writing to OCI regarding any problems with its agents. This action was based on allegations of failing to disclose agent problems on the OCI termination form.

SC & E Administrative Services, Inc., 600 E. Las Colinas Blvd. Ste. 900, Irving, TX 75039, was ordered to pay a forfeiture of $1,000.00 and was ordered to reply promptly in writing and to provide all information requested in response to all inquiries from the Commissioner. This action was based on allegations of failing to respond promptly to inquiries from OCI.

SC & E Administrative Services, Inc., 600 E. Las Colinas Blvd. Ste. 900, Irving, TX 75039, was ordered to pay a forfeiture of $500.00 and was ordered to provide the requested information. They were ordered to cease and desist from accepting any new warranty business and collecting any monies due for existing warranty business in Wisconsin unless and until proper proof of financial security is provided and to pay claims and make refunds for existing Wisconsin warranty business. This action was based on allegations of failing to respond promptly to inquiries from OCI.

St. Paul Fire & Marine Insurance Company, 385 Washington St., St. Paul, MN 55102, paid a forfeiture of $20,000.00 and was ordered to cease and desist from violating Wisconsin insurance law, specifically s. 631.36 (6), Wis. Stat., and s. Ins 21.01 (6) and (8), Wis. Adm. Code. This action was based on allegations of worker's compensation insurer failing to state the reason for nonrenewal of a policy and sending nonrenewal notices less than 60 days from policy expiration.

Universal Underwriters Service Corporation, 7045 College Blvd., Overland Park, KS 66211, paid a forfeiture of $3,500.00 and was ordered to cease and desist from issuing contracts other than as applied for without notice to the contract holder of the change. This action was based on allegations of altering and changing a vehicle service contract after it was issued without notice to the contract holder.

Westchester Specialty Insurance Services, Inc., 4550 River Green Pky., Duluth, GA 30096, paid a forfeiture of $500.00 and was ordered to respond promptly to all inquiries from OCI. This action was based on allegations of failing to respond promptly to inquiries from OCI.

World Wide Warranty, Inc., 1455 Bellevue Ave. #300, West Vancouver, British Columbia, Canada, agreed to pay a forfeiture of $500.00 and agreed to withdraw from Wisconsin and not write any new business. This action was based on allegations of failing to file a required financial statement by the due date.

Copies of Administrative Actions