“Laissez faire” insurance company, homebuyers agency in Kentucky fined for selling ‘non-essential’ insurance
KY Homeowners Insurance Agency, which sold “non-necessary” insurance to its customers in Kentucky, was fined $500,000 by the state’s Department of Insurance.
In a letter sent Tuesday, the department said the insurer violated the Kentucky Insurance Code, which states that insurance coverage must be non-essential.
KY HOIA said it is “committed to maintaining a high standard of service, and we have already implemented several corrective actions to address the deficiencies identified.”
“We will continue to be vigilant in ensuring our customers are receiving the highest level of coverage,” said Katie B. O’Brien, vice president of communications for KY HOI, in a statement.
The company did not immediately respond to a request for comment.
KY Homeowner Insurance Agency’s license was revoked by the Department of Financial Regulation on Nov. 27, 2016.
It has been charged with failing to provide an adequate level of non-mandatory coverage to consumers who are not insured through a Kentucky homeowner insurance company.
In 2015, KY HOIP was fined more than $500 for its failure to comply with the insurance code.
The Kentucky Insurance Department has said that it is working to ensure KY HOIR has the right level of services for its customers.