Insurance producer and agency suspended in emergency fraud action
Insurance producer and agency suspended in emergency fraud action | Insurance Business America
Insurance News
Insurance producer and agency suspended in emergency fraud action
Investigation found New Orleans agency left customers uncovered during hurricane season
Insurance News
By
Jen Frost
Louisiana Insurance Commissioner Jim Donelon has taken emergency action to suspend a New Orleans area insurance agent and agency following a fraud investigation that found the business left customers uncovered during parts of hurricane season.
A Louisiana Department of Insurance (LDI) Office of Insurance Fraud investigation found that the insurance agent, named as Syed Azizuddin Baghdadi, and his agency Gator Insurance had falsified information and misappropriated premiums “in several instances”, according to a news release shared by the LDI.
Louisiana insurance department received alleged fraud tip off and complaints
LDI investigators were tipped off to suspected fraudulent activity at Gator Insured by Citizens Property Insurance Corporation, which alleged that the agency had issued two letter with falsified information on policies and properties, the LDI said in the news release.
The LDI also received complaints and evidence that alleged that on “multiple occasions”, Baghdadi collected premium from title companies in the closing phase of real estate transactions but did not remit else delayed remittance of premiums to an insurer.
Baghdadi admitted to failing to remit timely premiums, according to the LDI news release.
Gator Insured was licensed as a producer agency in October 2020, with Baghdadi listed as the designated responsible licensed producer for the business.
The LDI summary suspension became effective October 31, with Baghdadi having 30 days from that date to lodge an appeal against the action.
“Louisiana residents rely on our licensed agents to honestly conduct their policy transactions and remit their premiums to secure coverage on their homes,” said Donelon. “For an agent to falsify policy information and fail to remit premiums puts residents in grave danger of losing their homes and other assets, especially during hurricane season.”
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