Aug. 29, 2008 at 10:17am
Insurance agents in Washington can lose their licenses if they are deemed "untrustworthy."
In an important decision this week, the state Court of Appeals ruled that Insurance Commissioner Mike Kreidler was correct in revoking insurance agent Jack Chandler's license based on the fact that he had shown himself to be untrustworthy in his sales conduct with elderly consumers.
"Mr. Chandler preyed on some of our most vulnerable citizens and I cannot allow that to happen," said Kreidler. "While this case took several years to reach conclusion, it was worth every minute. I am very satisfied with the result."
The court also agreed with Kreidler that Chandler attempted to exploit senior citizens by using misleading marketing tactics to get them to buy reverse mortgages, living trusts and long-term care insurance. He also misrepresented himself on his Washington licensing application when he failed to disclose complaints against him in California.
Chandler's license was revoked in 2002. He appealed that decision on the grounds that the term "untrustworthy" is unconstitutionally vague and subjective. The court disagreed and upheld the license revocation. Chandler then attempted to appeal to the Washington State Supreme Court, but his petition for review was denied.
Kreidler also recently took the following enforcement actions: Willamette Dental was fined $30,000, with $10,000 suspended, for failing to record complete claims data, using unlicensed agents, failing to coordinate benefits according to law and using rates and forms different from those that had been approved; and Vision Services Plan was fined $29,500, with $14,750 suspended, for a series of violations, including the use of rates and forms that had not been approved.
Nationwide Home Warranty was ordered to stop doing business in Washington because it is not registered as a service-contract provider. Fremont Life Insurance Company had its license revoked and can no longer sell insurance in Washington state because it failed to maintain minimal financial standards.
Posted in BE Daily, Health care, Law and Legislation, Olympia, Pierce County, South King County, Tacoma, Workforce by Steve Dunkelberger | Email Steve
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