OTHER NEWS - June 12, 1992
From Times Staff and Wire Reports
Unlicensed Auto Insurer Pays $100,000 Fine: Admitting that it sold auto policies in California without a license, Phoenix-based American Equity Insurance Co. has paid a $100,000 fine and guaranteed that its California customers will not be financially harmed, Insurance Commissioner John Garamendi announced. Garamendi said the company sold nearly 8,000 auto liability policies in California in only four months without using a specially licensed “surplus lines” broker, as unlicensed insurers are required to do. American Equity misrepresented the extent of coverage provided by the policies, but has agreed to cover any claims arising from them, a Department of Insurance spokeswoman said.
