This Boise insurance agent faked applications to collect bigger commissions, state says
The Idaho Department of Insurance revoked the license of a Boise insurance provider for submitting falsified information on payroll account forms.
Kelly D. Foster, a licensed agent in Idaho, admitted to the department’s allegations that he violated Title 41, Chapter 10 of Idaho Code on insurance producer licensing 54 times by falsifying his applications, according to a news release from the Idaho Department of Insurance.
“Insurance agents hold a position of trust in Idaho, and we expect them to work with integrity and conduct themselves ethically,” Dean Cameron, director of the Idaho Department of Insurance, said in the news release. “Agents should become familiar with their clients’ needs and verify that statements on the application are true and accurate so the company can properly underwrite the risk.”
Foster sold insurance with Aflac Inc., where he allegedly created non-payroll accounts for Rocky Mountain Surrogacy LLC, claiming the company had more employees than it did. That resulted in higher commissions for Foster.
From March 2011 to April 2017, Foster allegedly transmitted policy applications and claims for 10 people who were ineligible for insurance benefits.
A total of 147 policies were written on the same group of policyholders, who were unaware that they were being listed as employees of the company, the department said.
According to an order issued by the department, the company should not have been identified as a payroll account name, because Rocky Mountain Surrogacy LLC was an unqualified business.
Foster claims that he did not know his signed insurance applications and/or transmitted policy applications contained false information, the department said.
The department imposed a penalty of $1,000 per violation on Foster in addition to revoking his license, adding up to $54,000 for 54 violations.
The department’s final order also states Foster may not be reconsidered for licensure until the end of a five-year revocation period, with the condition that the penalty balance has been paid in full.
