Boise insurance agent has license revoked

The Idaho Department of Insurance revoked the license of Timothy H. Heffner after he mishandled client funds and failed to respond to requests for records.

In two cases, Heffner failed to deposit money paid by customers into a protected account and then forward the money to the insurance company that handled the policies, for health insurance. The insurance companies canceled their policies for failure to pay the premiums.

In one instance, the customer prepaid for coverage, yet Heffner sent only one out of nine monthly payments to the insurance company, according to a Department of Insurance order in the case.

Heffner failed to provide reimbursement to the customers until after they complained to the Department of Insurance. He also ignored multiple requests from the agency for documentation for those clients’ policies.

“Mr. Heffner claims that the ultimate repayment of the funds to the clients, in essence, mitigates against a finding that harm was suffered by these individuals. This argument is unpersuasive. Repayment is not viewed by the hearing officer as exculpatory in these circumstances,” hearing officer David Nielsen wrote.

Heffner was also ordered to pay a $5,000 administrative penalty.

The Department of Insurance suggests that all insurance clients make checks for premiums payable to the insurance carrier rather than the agent.

This story was originally published May 9, 2016 at 12:06 PM with the headline "Boise insurance agent has license revoked."