Mo. Department Files Complaint Against Producer Who Allegedly Pocketed $16,000 in Client Funds

April 18, 2006

The Missouri Department of Insurance is seeking discipline against an insurance producer accused of allegedly issuing phony insurance policies. The agent, Michael Spillman of Lake Ozark, was to secure insurance coverage for a construction client, but failed to forward the client’s money to the insurance company. The client gave Spillman a total of almost $16,000 to purchase an insurance policy that would cover workers’ compensation claims the client may have. Spillman allegedly failed to forward the funds to an insurance company to ensure that the client was covered should a claim arise.

After Spillman initially received the funds, he issued a fake insurance card to the client leading the client to believe that their workers’ compensation claims would be covered by an insurance company. The client was actually without workers’ compensation coverage for the entire period, according to the Missouri Department of Insurance press release.

Additionally, Spillman allegedly solicited a $10,000 loan from another of his clients. This was done in violation of Missouri insurance laws which prohibit an insurance producer from obtaining a loan from an insurance client.

The department filed the action with the Administrative Hearing Commission which will make a determination as to whether the department has the grounds to discipline the insurance producer license of Spillman. The discipline can and may include suspension or revocation of Spillman’s license, according the Missouri Department of Insurance.

Source: Missouri Department of Insurance

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