| Newsflash Details | |||
| Title | Insurance agency, agents face steep fines; licenses revoked | ||
| Description | The Illinois Department of Insurance revoked the insurance producer licenses of a Lake Bluff-based insurance agency and three insurance agents, including two from Antioch and one from Chicago, for the improper marketing and sale of life insurance to military personnel at Great Lakes Naval Air Station in North Chicago. According to insurance department, American Mutual of Illinois, Andrew M. Haley of Chicago, and Joseph J. Haley and Jamie G. Polec of Antioch violated numerous life insurance solicitation rules regarding sales to military personnel. Specifically, the agents and company failed to inform the service members that they were purchasing life insurance and misrepresented the life insurance as a "savings plan." As a part of the scheme, the service members were not told that any money deposited into the "savings plan," which was a life insurance side fund, would be used to pay life insurance premiums. The agents' activities gained the attention of the Armed Forces Disciplinary Control Board, which issued an emergency temporary off-limits order banning the agents from entering the base. In addition to the license revocations, American Mutual of Illinois and Andrew Haley were each fined $100,000, which is the maximum fine allowed under Illinois law. Joseph Haley and Jamie Polec were also assessed fines of $60,000 and $50,000, respectively. All of the affected agents and the insurance agency have the right to petition the director of insurance for a rehearing on the revocation of their insurance producer licenses. | ||
| Event date | 30/07/2010 | Source | Insurance Journal (www.insurancejournal.com) |
| Country | United States of America | Amount | 310,000.00 USD |
| Involved | American Mutual | ||
| Business line | Life Assurance | ||
