State Seeks to Revoke License of FGS Agency

The state Department of Insurance disclosed Wednesday that it is seeking to revoke the license of FGS Insurance Agency, one of California’s largest and best-known automobile insurance brokers, because of alleged widespread consumer abuses by the Irvine company.

In an administrative action filed April 9, state officials alleged that FGS violated numerous regulations including selling policies issued by a company not licensed to do business in California and failing to disclose interest rates on financed policies that ranged from 21% to 41%.

Chief investigator Dennis Ward said the insurance department has received more than 250 complaints against FGS within the last year complaining about poor and improper service, including misquoted premiums and failure to provide coverage as requested.

FGS writes about 10,000 new policies a month and is known for its frequent television and radio advertisements, which promise low down payments and low monthly installments.

The state’s accusation is the latest in a string of complaints it has filed against FGS owner Sidney M. Field, who was prohibited from selling insurance in California in 1987. “He is not the kind of person we feel should be in control of an agency,” Ward said.

Field’s attorney, Milford Dahl Jr., denied the accusations Wednesday. “Basically the charges are without legal or factual merit,” he said.

The state claims that Field hid his ownership of FGS by having the company’s license issued in someone else’s name.

“Trickery on the part of Sid Field meant regulators were not told as required by law who owned or controlled the agency,” Ward said.