GEICO Admits Ohio Violations

Maryland-based GEICO Corp. said on Thursday it violated 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 earlier this month alleging GEICO had used agents not licensed in Ohio to sell property and casualty insurance from at least December 1998 to July. On Monday the association retracted its complaint, saying it lacked proof to back the allegations.

But department of insurance’s had already begun its examination which, according to department spokespeople, showed GEICO repeatedly violated the law by using Unlicensed personnel to sell insurance. GEICO has since committed to full compliance with Ohio’s agent licensing laws.