Louisiana insurance coverage agent and company suspended in emergency fraud motion

Louisiana Insurance coverage Commissioner Jim Donelon has taken emergency motion to droop a New Orleans space insurance coverage agent and company following a fraud investigation that discovered the enterprise left clients uncovered throughout components of hurricane season.

A Louisiana Division of Insurance coverage (LDI) Workplace of Insurance coverage Fraud investigation discovered that the insurance coverage agent, named as Syed Azizuddin Baghdadi, and his company Gator Insured had falsified info and misappropriated premiums “in a number of situations”, in keeping with a information launch shared by the LDI.

Louisiana insurance coverage division obtained alleged fraud tip off and complaints

LDI investigators had been tipped off to suspected fraudulent exercise at Gator Insured by Residents Property Insurance coverage Company, which alleged that the company had issued two letter with falsified info on insurance policies and properties, the LDI stated within the information launch.

The LDI additionally obtained complaints and proof that alleged that on “a number of events”, Baghdadi collected premium from title corporations within the closing section of actual property transactions however didn’t remit else delayed remittance of premiums to an insurer.

Baghdadi admitted to failing to remit well timed premiums, in keeping with the LDI information launch.

Gator Insured was licensed as a producer company in October 2020, with Baghdadi listed because the designated accountable licensed producer for the enterprise.

The LDI abstract suspension turned efficient October 31, with Baghdadi having 30 days from that date to lodge an enchantment in opposition to the motion.

“Louisiana residents depend on our licensed brokers to truthfully conduct their coverage transactions and remit their premiums to safe protection on their properties,” stated Donelon. “For an agent to falsify coverage info and fail to remit premiums places residents in grave hazard of dropping their properties and different property, particularly throughout hurricane season.”

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