Declarations

Dishonesty Disallowed

“Dishonest practices and financial irresponsibility have no part in the Kansas insurance industry.”

—Kansas Commissioner of Insurance Sandy Praeger comments on the sentencing of former Pittsburg, Kan., insurance agent Kregg Muninger. He was sentenced to 32 months’ incarceration on forgery and theft convictions and granted probation for two years. The probation conditions include repayment of $137,664.63 to 14 victims whose premiums were not forwarded to their insurers, and to one victim whose losses were uninsured. Muninger also must complete 360 hours of community service.

Beware Storm Chasers

“The last thing these grieving communities need is additional pain caused by con artists seeking to take financial advantage of this natural disaster. Residents should be on guard for possible scams as they begin cleaning up and piecing their lives back together.”

—Illinois Attorney General Lisa Madigan echoed the sentiments of officials in other Midwest states and urged residents to beware of scammers following the tornadoes and storms that raked the Midwest in late February/early March. Con artists exploit natural disasters for personal profit as victims begin the process of rebuilding. Madigan noted that “storm chasers” try to catch people off guard to pressure them into making a quick, often expensive, decision.

What You Pay For

“If you’re paying for a certain amount of coverage, you should get that amount of coverage. There should be no negotiation when there’s nothing left.”

—Missouri State Sen. Ron Richard, R-Joplin. Insurers must pay the full value of a homeowners insurance policy in Missouri, including for contents, if the home is destroyed by fire. Richard is backing legislation to expand the full payout law to homes that are completely destroyed by anything covered in the policy. After the May 2011 Joplin tornado, some property owners complained that some insurance companies tried to pay less than the full value of their policies and other insurers required an excessive number of forms for details about contents.