OFIR Issues Order Against Agency for Unlicensed Activity

FOR IMMEDIATE RELEASE 
April 16, 2009 
Contact: Jason Moon 517-335-1700

LANSING - The Office of Financial and Insurance Regulation (OFIR) has ordered Wisconsin–based insurance agency, Vanguard Insurance Placement Inc., to immediately cease and desist from the sale, solicitation, or negotiation of any line of insurance in Michigan. The company violated the Michigan Insurance Code by selling insurance without a license.

“Michigan law requires the licensing of all insurance agencies in order to protect the state’s consumers against fraud and misrepresentations,” said OFIR Commissioner Ken Ross. “Consumers should not hesitate to contact our office if they have a complaint against an insurance company, agency or agent.”

Consumers can contact OFIR to find out if an agency is licensed to sell insurance in Michigan. OFIR can be contacted by calling (877) 999-6442 or through its website www.michigan.gov/ofir.

Failure to comply with OFIR’s order will subject Vanguard to one or more of the following:

• A civil penalty of not more than $1,000 for each violation, not to exceed a total of $30,000.
• A civil penalty of not more than $25,000 for each knowing violation, not to exceed an aggregate civil fine of $250,000.
• Complete restitution to all persons in the state damaged by the violation.

Vanguard must apply and receive an insurance agency license before it can resume selling, soliciting, or negotiating any line of insurance in Michigan.

A person or entity who is the subject of a cease and desist order may contest the order by requesting a hearing before the Commissioner not later than 30 days after the order is delivered or mailed to the person. 

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