Mo. Insurance Department Accuses Man of Selling Bogus Policies

June 5, 2006

The Missouri Department of Insurance has filed a complaint against a West Plains insurance dealer for allegedly selling fake policies.

The complaint filed with the Administrative Hearing Commission was announced Friday. It alleges that licensed insurance producer David LaFevers accepted more than $17,000 for worthless insurance policies.

According to the Associated Press story in the complaint LaFevers sold a phony workers’ compensation policy in 2005, even providing proof of insurance to the customer. The Department of Insurance later discovered after subpoenaing LaFevers’ bank records that the West Plains man had deposited the money but never forwarded it to an insurance company to pay for a policy.

A second count in the complaint says LaFevers lied about the benefits of a health plan sold to a second customer in 2005, forcing her to pay for medical bills out of her own pocket.

Department of Insurance Director Dale Fink said in a written statement that “customers deserve to have the peace of mind that comes with the insurance coverage that they paid for.”

The administrative review panel will evaluate the case and determine if the department can discipline LaFevers. Penalties can include the suspension or revocation of his insurance license.

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