GEICO ADMITS OHIO VIOLATIONS

Maryland-based GEICO Corp. has admitted to violating Ohio’s consumer protection laws by allowing unlicensed agents to quote rates and discuss coverage information with consumers. The auto insurer agreed to pay the state $20,000 in exchange for a promise that the Ohio Department of Insurance would not take further action for past violations. The Ohio insurance department was prompted to investigate GEICO based on a complaint filed by the Professional Insurance Agents Association of Ohio last month alleging GEICO had used agents not licensed in Ohio to sell property and casualty insurance from at least December 1998 to July 2000.The association later retracted its complaint, saying it lacked proof to back the allegations. But the department of insurance had already begun its examination which, according to department spokespeople, showed GEICO repeatedly violated the law by using unlicensed personnel to sell insurance.