Louisiana insurance regulators have served a Denham Springs, La., agent and her agency with cease and desist orders, license revocations and fine notices for alleged misappropriation, misrepresentation and forgery.
Michelle Schulin Paul and her agency, The Reed Agency Inc., each face fines of $58,000 as a result of the March 25 action by Department of Insurance Fraud Section Investigators.
Paul is alleged to have fraudulently signed contracts to obtain premium financing for various companies and submitted those contracts to a premium finance company between October 2008 and July 2009.
Using the finance company’s check writing authority, Paul wrote and signed at least 38 different checks payable to The Reed Agency Inc. for a total amount of approximately $462,453, the department alleges.
The checks were written to The Reed Agency Inc. under the pretext that the agency would then make the various payments to different insurance companies for the policies that were the subject of the premium finance agreements, however neither Paul nor The Reed Agency Inc. made any payments with the funds to any insurance company.
Department records show that Michelle Schulin Paul was issued an Accident and Health license and a Life Insurance license in May 1996 which expired in April 2004, and a Property and Casualty license in March 1996 which will be revoked 30 days from time of notice.
Records show that The Reed Agency Inc., of which Paul is the sole owner and registered agent, was issued a Property and Casualty license in March 2002, which will also be revoked 30 days from time of notice.
Paul has 30 days from the time of notice to file a written demand for an administrative hearing to contest the regulatory action taken against her and her agency by the Department of Insurance.
Source: Louisiana Department of Insurance
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