Problem with Insurance Agent - Theft of insurance premiums?

[nick71]

What is the name of your state (only U.S. law)? California

I recently purchased a home. The escrow company paid the insurance agent a full year's premium. The agent was supposed to send the this money to the insurance company but he didn't. This guy is an absolute sleazebag. I'm convinced that the reason he didn't transfer the money to the insurance company was because he was hoping I would pay the premium without noticing that the escrow had already been paid.

Anyway, after I received a "Notice of Cancellation" letter from the insurance company I immediately contacted the agent. He made up some excuses and eventually paid only the minimum required, a three months of coverage. Now he is not returning my phone calls, emails when trying to find out why he didn't pay the full amount.

What recourse do I have? How do I force him to transfer the money to the insurance company? I called the insurance company and was told there is nothing they can do. Is this true?
If he doesn't pay the balance owed (due in early February) would this be considered a theft of premiums, therefore a criminal charge?

Any advice would be appreciated.

 

[You Are Guilty]

Before resorting to a lawsuit, why not avail yourself of the fine administrative machinery that your taxes are already paying for?

In other words, try here first:
http://www.insurance.ca.gov/contact-us/0200-file-complaint/index.cfm

 

[tammy8]

Talk to your closing attorney and make sure they sent the check and find out who cashed the check. If the agent cashed the check, call your insurance commissoner's office.

 

[LdiJ]

Talk to your closing attorney and make sure they sent the check and find out who cashed the check. If the agent cashed the check, call your insurance commissoner's office.

That may or may not be helpful. Most insurance agents are issued endorsement stamps so that they can endorse checks on behalf of the insurance company.

 

[You Are Guilty]

The policyholder is under no requirement to become an investigator or a forensic accountant. The OP did the right thing here by trying to resolve the issue with the broker and the carrier first, and, not having any success with that route, the only thing they need to do now is file the formal complaint.

 

[HomeGuru]

The insurance company that the agent works for has say in the latter. Escrow also made an error as the check should have been paid to the insurance company and not the agent.
In addition to the regulatory complaint against the insurance agent, you have one against the escrow company.