November 8, 2023
OLYMPIA, Wash. — Insurance Commissioner Mike Kreidler issued fines in October totaling $607,613.35 against insurance companies and insurance producers who violated state insurance laws and regulations.
Insurance companies
AIG Property Casualty Company, Chicago, Ill.; fined $2,000 (order 23-0182).
- AIG used an incorrect rating factor in 49 instances.
Geico Advantage Insurance Company, Omaha, Neb.; fined $5,000 (order 23-0188).
- Geico failed to conduct insurance business under the company’s legal name.
UnitedHealthcare Insurance Company, Hartford, Conn.; fined $500,000 (order 23-0021).
- UnitedHealth failed to demonstrate its compliance with mental health parity laws. The company was fined $500,000 with $250,000 suspended, pending its adherence to a compliance plan.
Unauthorized insurers
Active Network LLC (Plano, Texas); fined $25,000 (order 23-0203).
- Active Network acted as an unauthorized insurer by selling its refund program to 3,922 people in Washington state for a total of $152,455.18. The company was fined $25,000 with $12,500 suspended.
E. Thongin, DMD, PS, et al., Lynnwood, Wash.; fined $15,000 (order 23-0199).
- E. Thongin, DMD, PS, a professional service corporation, and three professional limited liability companies acted as unauthorized insurers and unlicensed discount plan organizations by selling dental membership plans through its practices.
Producers, agents & brokers
Jessica Fukuchi and PCRG Insurance LLC, Riverton, Utah; fined $1,000 (order 23-0158).
- Fukuchi failed to establish adequate accounting records and adequately handle premium funds and failed to implement the required corrective actions after an initial examination.
Long-term care insurance
Note: Insurance agents are required to receive specific long-term care training and continuing education to ensure they have the knowledge to properly sell long-term care products. The legislature requires insurers to share in the responsibility through an annual education verification process.
RiverSource Life Insurance Company, Minneapolis, Minn.; fined $59,613.35 (order 23-0151).
- RiverSource failed to verify that 10 of its insurance producers completed the required long-term care training before they sold long-term care insurance products. The 10 producers sold 17 policies to Washington consumers on behalf of the company and earned $59,613.35 in commissions.
About the Office
Kreidler’s office oversees Washington’s insurance industry to ensure that individuals, companies, agents and brokers follow state laws. Since 2001, Kreidler has assessed more than $39 million in fines, which are directed to the state’s general fund to pay for state services.
The Office of the Insurance Commissioner publishes disciplinary orders against companies, agents and brokers. Consumers can also look up complaints against insurance companies.
For an insurance question or complaint, you may contact Kreidler’s consumer advocates online or by phone at 800-562-6900.