Washington Insurance Commissioner Issues $510,000 in Fines for Licensing Violations
Between January and April, Washington's Insurance Commissioner issued over $500,000 in fines for various violations of state insurance laws, targeting unauthorized activities across several insurers and agents. The largest penalty, $250,000, was imposed on United Benefits Partnership Group for operating as an unlicensed insurer by marketing unqualified ERISA health plans between 2018 and 2019. These plans were advertised as coverage for general partners but were sold to individuals with no employee or partner status, with premiums ranging from $139 to $1,200 monthly.
Additional enforcement actions included a combined $30,000 fine against Petcube Inc. and Vets Plus More for offering unauthorized pet insurance marketed as the Emergency Vet Protect Club. This product met the state's insurance definition despite being presented as a telehealth membership, leading to penalties due to lack of approval and licensing.
Other significant fines involved ASI Underwriters Corp. and American Strategic Insurance Corp., each fined $16,000 for acting as managing general agents without proper insurer designations or appointments. Acrisure, LLC and associated individuals faced $25,000 in fines related to unreported assumed names, conducting business with unlicensed producers, and unauthorized transactions.
Further penalties targeted Central States Indemnity Company for selling irrigation equipment insurance without proper filings, Dentegra Insurance Company for misrepresenting legal names and NAIC numbers, and Farmers Property and Casualty Insurance Company for incorrect classification impacting premiums on thousands of homeowner policies. Additional smaller fines addressed unregistered captive insurance operations, incomplete documentation on charitable annuities, and minor violations by individual agents.
These enforcement measures reflect Washington's commitment to regulatory compliance and consumer protection within the insurance market. Since 2001, the Office of the Insurance Commissioner has assessed over $42 million in fines, with collected funds allocated to the state's general fund. These actions emphasize oversight on licensing, accurate product representation, and adherence to procedural requirements for insurers and agents operating in the state.