Two Louisiana agents have been served cease and desist orders for allegedly misappropriating their clients’ insurance premiums, among other charges, Commissioner of Insurance Robert Wooley announced.
Garrett Lane Frey of Crowley is accused of misleading policyholders
regarding annuities they had purchased from him. The cease and desist order states that Frey sold a $50,000 annuity to a couple in 2001.
In February 2003, Frey is accused of having the couple sign a form giving him ownership of the annuity, which also named Frey’s ex-wife as the beneficiary. The couple claims they believed the forms were to transfer the annuity to one with a higher interest rate, as well as to purchase an additional annuity. The couple then reportedly proceeded to write Frey a check for $25,000 for an additional annuity.
The cease and desist further states that Frey allegedly cashed in the annuity in the amount of $52,954.59 and deposited the couple’s $25,000 check into his own bank account. Wooley said the Department of Insurance has suspended Frey’s insurance licenses. Department records show Frey was issued a Life & Health license in September 2000 and a Property & Casualty license in December 2002.
In a separate matter, Koddy Jewuan Hill of New Iberia is accused of allegedly collecting insurance premiums from his policyholders but not remitting those payments to the insurance company. Hill was issued a Life & Health license in February 1998. That license expired in May 2000 and was never renewed by Hill.
Wooley said policyholders who have bought insurance from Frey or Hill should call their insurance company to verify their coverage.
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