Agents in Louisiana should be aware of a potential insurance scam related to habitation risks, according to the state’s top insurance regulator.
Louisiana Commissioner of Insurance Jim Donelon issued an alert to all licensed insurance producers, warning them of an alleged scam he is currently investigating. Donelon said the probe involves possible fraudulent insurance covering habitation risks including homeowners associations, hotels, condominium developments and apartment buildings.
According to Donelon, possible invalid coverage, binders and or/policies have been placed through an unlicensed individual named Michael A. “Mike” Ward of Illinois and his related entity, JRSO Inc.
Donelon said the department was alerted to the scam by the National Association of Insurance Commissioners.
“We immediately notified those entities identified as having potentially fraudulent coverage through either Michael A. “Mike” Ward or JRSO Inc. We have since been contacted by a representative of one of those entities who appears to have fallen victim to this alleged scam,” Donelon stated in a departmental release.
Donelon added that for any coverage that is unauthorized, legitimate coverage should be immediately obtained. In his producer alert, Donelon also asked that any producer who conducted business with Michael A. “Mike” Ward or JRSO Inc. call the Fraud Section of the Louisiana Department of Insurance at 1-800-259-5300.
Source: Louisiana Department of Insurance
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