Two Ferriday, La., area insurance agents recently were arrested and issued cease and desist orders, summary suspensions and fine notices for violating various provisions of Louisiana’s insurance code.
The Louisiana Department of Insurance reported that Gerald Shane Smith, 35, was arrested by Louisiana State Police on three counts of Unfair Trade Practices and Producer Fraud. He was also served with a cease and desist order, summary suspension of his license and a $5,000 fine notice by Department of Insurance Fraud Section Investigators for allegedly doing business without a license, forgery, misappropriation and misrepresentation.
Joe Richard Davis, 62, was also arrested by the LSP on three counts of Unfair Trade Practices and Producer Fraud. He was served with a cease and desist order, summary suspension of his license and a $5,000 fine notice for allegedly accepting business with an unlicensed person and misrepresentation.
Smith is alleged to have made applications for life insurance policies without holding a life insurance license and to have forged Davis’ name on the applications. He is also alleged to have misrepresented information on an insurance application and to have converted premiums to his own account before remitting them to the insurance company.
Davis is alleged to have knowingly allowed Smith, who does not hold a life insurance license, to make life insurance applications with misrepresented information and forge his name to the documents. He is also alleged to have executed a power of attorney to Smith for the purpose of allowing him to execute life insurance applications without a license.
Department records show that Smith was issued a property and casualty license in May 2008. Davis was issued a property and casualty license in May 1973 and an annuity and health license in August 1973. All licenses were valid until the current action.
Source: Louisiana Department of Insurance
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