OTHER NEWS - May 13, 1992
From Times Staff and Wire Reports
Firms Ordered Closed in Alleged Insurance Scams: Insurance Commissioner John Garamendi acted to shut down two firms that he said were selling worthless insurance. A Los Angeles Superior Court judge issued a temporary restraining order prohibiting Physicians Benefit Plan of Simi Valley from selling policies. Garamendi tried to close the firm in January, but it reopened with a slightly changed name and has sold more than 3,000 policies in California since, a spokeswoman said. Garamendi issued a cease-and-desist order against the other firm, American Auto Plan of Riverside, the subject of more than 100 complaints for shoddy repair work and delays in paying insurance claims.
