The Hawaii Insurance Division has levied a $150,000 fine against Terry T. Seguritan and revoked his insurance producer’s license for reportedly defrauding the public by collecting money and issuing identification cards for motor vehicle policies that did not exist, Hawaii Insurance Commissioner J.P. Schmidt announced. Criminal charges are pending.
Commissioner Schmidt also confirmed that based on the findings of an investigation conducted by the Insurance Fraud Investigation Branch, an Oahu Grand Jury panel indicted Seguritan on 12 counts of Theft in the Second Degree, nine counts of Theft in the Third Degree, 15 counts of Unlawful Use of Motor Vehicle Insurance Identification Cards, and one count of Ownership or Operation of Business by Certain Persons Prohibited.
In 2002, Seguritan issued quotes for motor vehicle insurance policies to individuals who purchased new vehicles. He asked the individuals to complete an insurance application, collected the initial premium installment, and issued either a faxed copy or original motor vehicle insurance card. Seguritan reportedly kept the money he collected and did not submit the insurance application to the insurance company, leaving the individuals without valid insurance policies.
There are over 26 known victims of Seguritan’s alleged scheme, but there may be more individuals who have not discovered that they do not have a valid insurance policy. Several victims discovered that their policies were not valid when they filed a claim after an accident, tried to obtain a permanent ID card, or tried to obtain a copy of their policy and were told that their policy did exist.
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