Colorado Agent Gets Largest Fine For Insurance Fraud
A Judge in Colorado has fined a former Thornton, Colorado man $1.2 million for violating a number of Colorado insurance laws. The Judge handed down the states largest fine in Colorado history.
The former Thornton, Colorado man who is now missing and his whereabouts are unknown; was fined $4,678.47 in restitution for the insurance company -Bankers Life and Casualty. The former Thorton, Colorado resident whom will go nameless for this post has been accused of perpetrating unfair trade practices and insurance fraud. This Colorado case dates back to the early months of 2010. It appears Bakers Life and Casualty Insurance Company advised the Colorado Department of Insurance that one of their agents had written submitted 50 fraudulent Life Insurance Applications in the years 2009 and 2010. All the Life Insurance Applications included fake social security numbers, street addresses and bank account numbers. The fraudulent life insurance applications were written and submitted to the insurance company to receive advanced commissions from Bankers Life.
The Colorado Department of Insurance had also found the man had failed to disclose to the Department that he had committed previous crimes and had a criminal background. If he had disclosed these acts on his application for insurance license, he would have been denied the privilege of a Colorado insurance agents license. Once the Insurance Department discovered this, his insurance licensed we immediately suspended in November. On June 24 , a decision was made by the judge to permanently revoke the mans license and found him guilty of committing 416 violations of the Colorado state’s insurance laws.
The Director of the Colorado’s Division of Compliance and Investigations Section praised the work of the Bankers Life Insurance Companies Investigations Staff. “They immediately identified the problem quickly. Their office did a detailed investigation, and brought the matter to the Division of Insurance attention.