Pa. Commissioner Closes Doors on Insurer

December 28, 2004

Pennsylvania Insurance Commissioner Diane Koken has shut down the operations of Nation’s Hazard Insurance Agency, which has been doing business as Nation’s Hazard Insurance Company.

The company is reportedly an illegal insurance entity that sold errors and omissions coverage for home inspectors, using the Internet as their primary means of communicating and soliciting business. None of the “policies” issued were valid.

Koken has ordered its principal, Michael Francis Napadow, to cease and desist and pay a penalty in the sum of $230,000, as well as pay restitution in full to any and all Pennsylvania residents from whom the company solicited and accepted premium payments.

“Mr. Napadow has caused irreparable harm to Pennsylvania consumers by selling fake insurance policies, which may not provide sufficient, if any, coverage,” Koken said. “I urge people shopping for insurance to check with the Insurance Department before they buy to verify they are dealing with a licensed insurance company and a licensed insurance producer.”

According to Koken, Napadow and Nation’s Hazard Insurance Agency has never been licensed or authorized to transact the business of insurance in the Commonwealth of Pennsylvania. Napadow also fraudulently operated under the name “Hartford Casualty Insurance” which is not affiliated with the legitimate insurance company, The Hartford Group.

Koken said that consumers can verify whether or not an individual or company holds a license to conduct the business of insurance by using the producer, business entity or company search mechanisms on the Insurance Department Web site.

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