Kreidler disciplines, fines insurance producers

Insurance Commissioner Mike Kreidler issued a $3,500 fine in August against a Gig Harbor insurance agent who violated state insurance regulations.

OLYMPIA — Insurance Commissioner Mike Kreidler issued a $3,500 fine in August against a Gig Harbor insurance agent who violated state insurance regulations.

Sandra Cooley Allen was fined $3,500 with $2,500 suspended along with revocation rescinded and probationary license issued.

According to the Office of Insurance Commissioner, Allen exercised her right to a hearing when the OIC revoked her license in November 2013 based on several complaints about her practices while selling life insurance. Allen and the OIC agreed to issue her a probationary license for 24 months as long as she has no more violations of the insurance code, works with a mentor assigned to her, pays the fine, completes 10 hours of ethics training and notifies the OIC if she leaves her current employment.

Also, Group Health Option, Inc., of Seattle, was fined 2,000.

Group Health denied a consumer an appeal through an independent review organization (IRO). The consumer’s complaint had to do with Group Health’s determination that some medical tests are diagnostic and therefore subject to cost-sharing, rather than routine preventive services, which are not subject to cost-sharing.

Group Health later identified eight more Washington consumers who had been eligible for but denied an IRO appeal. Group Health refunded the out-of-pocket expenses for all nine consumers including 8 percent interest, in addition to agreeing to pay the fine the OIC imposed.

 

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