La. Producer’s License Suspended for Allegedly Holding Onto Premiums

August 12, 2004

A Bastrop, La. insurance producer was issued a Cease and Desist order and a summary suspension of his insurance license for allegedly receiving premiums from customers and not forwarding them to the insurance company in a timely manner, Louisiana Insurance Commissioner Robert Wooley announced.

Department of Insurance Fraud Unit investigators were accompanied by representatives of the Bastrop Police Department and the State Police Fraud Unit when they served Ray Austin Yarbrough, Jr., 49, business address 206 West Madison, Bastrop, with the C&D and summary suspension.

The Department of Insurance order states that Yarbrough is prohibited from engaging in any activity relating to the business of insurance, effective immediately. In addition, he is subject to fines and other penalties for the activities outlined in the order.

Insurance Department records show that Ray Austin Yarbrough was issued a property and casualty insurance license in 1978 and a life, health and accident insurance license in 2003. The P/C license remained in effect until the suspension of the license was served. The life, health and accident license expired May 1, 2004.

Consumers who bought policies or conducted other insurance business, such as paying premiums, with Yarbrough, should call the insurance company to verify that they have the coverage they paid for. If they have trouble reaching the insurance company, they can call the Louisiana Department of Insurance at (225) 342-4956, or, toll-free statewide, (800) 259-5300, for assistance.

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