Kingsport Agent’s License Revoked and $2,500 Civil Penalty Imposed
NASHVILLE – The Tennessee Department of Commerce & Insurance (TDCI) announces a disciplinary action recently taken against former Tennessee licensed insurance producer, Lisa M. Bott of Kingsport.
An Agreed Final Order, effective June 15, 2016, revokes Bott’s insurance producer license and imposes a $2,500 civil penalty. TDCI’s investigation revealed that Bott misappropriated a total of approximately $1,529.59 in cash premiums paid by insureds, and fraudulently deleted the records of her collections to conceal her misconduct. The misappropriation took place over twelve (12) separate transactions between August 2014 and February 2015, during which Bott operated as a State Farm insurance agent. The payments were ultimately repaid by Bott following State Farm’s discovery of the misappropriation and termination of her employment.
“The Department takes misappropriation cases very seriously because of the potential implications for insurance consumers and agent deceit in these areas will not be tolerated.” said TDCI Assistant Commissioner for Insurance Michael Humphreys. “Tennessee insurance policyholders spend their hard-earned money on insurance premiums to protect their families, homes, vehicles, and other valuables. The last thing a policyholder should have to worry about is whether their premium payments are making it to their insurance company.”
Humphreys continued: “It is our sincere hope that education providers, companies, and agent associations review their training materials to make very clear to new agents the seriousness of the proper handling of policyholder payments and funds. The Department gets too many complaints related to misappropriation of premiums. We appreciate the efforts of insurance companies, in this case State Farm, for working so closely with Department investigators when such cases arise.”
Tennesseans are encouraged to visit the Department’s website where they can review disciplinary actions and access license verification.
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