Former Knoxville Insurance Producer Faces $400,000 Penalty, License Revocation
NASHVILLE – The Tennessee Department of Commerce and Insurance (TDCI) announces disciplinary action against Carey R. Carroll, Jr., a Knoxville-based former Tennessee insurance producer who violated multiple provisions of Tennessee law, resulting in a $400,000 penalty and the revocation of his insurance producer license.
After a hearing on November 14, 2016, an Administrative Law Judge issued an initial order which found that on multiple occasions between late 2010 and early 2013 Carroll improperly withheld and misappropriated over $500,000 in monthly premiums, annual renewal payments, and down payments on new policies he received in the course of performing his insurance business.
The Judge further found that Carroll misrepresented to his client the status of the client’s policy and claims and continuously engaged in fraudulent and dishonest conduct by overbilling. As a result, the issued order revoked Carroll’s license and imposed a $400,000 penalty. The order, which provides further details about the case, became final on May 4, 2017.
“The sheer size of this judgment shows that the Administrative Law Judge fully understood that the actions of Mr. Carroll are fundamentally in conflict with the duties and responsibilities of an insurance producer in this state,” TDCI Assistant Commissioner for Insurance Michael Humphreys said. “Mr. Carroll’s actions have no place in the business of insurance here or anywhere. We are proud of the tireless work of the Department’s Fraud and Legal teams to protect the citizens of Knoxville and all Tennesseans.
The Department encourages prospective insurance consumers to check the Department’s website to verify producer licenses as well as to confirm any disciplinary actions when considering insurance transactions. Tennesseans may also use the website to report potential insurance fraud or to file a complaint and seek assistance in mediating disagreements with insurance agents or companies.