Oklahoma Insurance Commissioner Carroll Fisher suspended the license of Edmond agent Earl Cody after Cody refused to permit examiners from the Oklahoma Insurance Department to review records as part of an investigation into alleged misappropriation of premiums.
According to the Order of Suspension, Cody was earlier accused of:
· Forging insurance applications;
· Accepting money from consumers but failing to take out insurance policies with licensed companies;
· Misrepresentation to insureds regarding the existence of policies; and,
· “Churning” policies, which is the placing policyholders with a new company primarily for the purpose of collected increased first-year commissions. It is considered a dishonest practice. Cody was accused of making the changes even without the knowledge of the policyholders.
When Cody was told an examination had been ordered, he refused to allow investigators access to records.
“Obviously, with allegations of such a serious nature, the Oklahoma Insurance Department should investigate,” Fisher said. “Being denied immediate access to records sent up red flags that we needed to act promptly.”
Fisher’s order also suspended Cody’s partner Jenny Cody and their agency JLC Insurance Agency. The order prohibits insurance companies from paying commissions to the Codys. The pair has 30 days in which to appeal the order.
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