FIs closed: Morry Hoffman Agency, Inc., Pennsylvania, USA
The Pennsylvania Insurance Department has shut down Pittsburgh-based Morry Hoffman Agency, Inc. for allegedly misappropriating USD1 million in premiums. That's code for collecting them from customers and keeping the money.
The company wrote commercial policies for restaurants including liquor liability coverage. Within a two-year time-frame, the department discovered that the agency failed to forward more than USD1 million in premiums on behalf of their clients to numerous insurance companies and agencies.
"These actions jeopardised customers who purchased insurance through Morry Hoffman in good faith. Consumers who used this agency should contact their insurance companies immediately to verify that their policies are current and in effect," said Ron Gallagher, Deputy Insurance Commissioner for the Office of Market Regulation.
As part of a settlement agreement, the department revoked the agency's insurance licence. The department had previously revoked the licence of Marjorie Dee Rothrauff, the agency's designated licensee. The agency president, Carol Hughes, is unlicenced and cannot legally transact the business of insurance.
In addition, the department referred the case to the Pennsylvania Office of Attorney General for a possible criminal investigation.
Download PDF version of this page