Md. shuts down regional auto insurance agency
Posted by IFAwebnews Staff on January 30, 2014.
The owner of the regional auto insurance agencies known for their brash, “Kiss My Bumper!” television commercials, and son of famed Baltimore insurance pitchman Hal Katz who lost his license, has similarly had his right to sell insurance revoked by Maryland insurance regulators.
The producer licenses for Geary Boyd Katz, Senate Insurance and Laurel Insurance Corp. were revoked in December by the Maryland Insurance Administration following an investigation. Katz owned and operated the Senate Insurance, which had 13 locations throughout Maryland, Northern Virginia and Washington, D.C.
The MIA reported in documents that Geary Boyd Katz s agencies “demonstrated that they do not meet the standard of trustworthiness and competence required of an insurance producer.”
Comedian Howard G with moustache starred in Senate Insurance commercials with the phrase, Kiss My Bumper.
The insurance agencies had already been investigated by MIA after making late payments to the Maryland Automobile Insurance Fund, for which Senate is a primary producer. Most recently, MIA says the insurers have continued having difficulty making timely premium payments to MAIF. Senate also acted as an insurance producer for a company in North Carolina but failed to notify the agency, which it is required to do by consent order.
MIA is aware of more than $125,000 premium payments overdue in one instance. Also, a number of checks written by Senate Acceptance Corp. a finance company also owned by Katz, were returned for insufficient funds.
According to state documents, investors in that finance company forced Senate Acceptance into bankruptcy. They also claim that Katz and his companies unlawfully withheld premiums designated for insurers.
Creditors claims that the Senate finance company owes about $50 million to investors, in addition to $900,000 in unpaid insurer premiums.
[Read/download Maryland Insurance Administration consent order on Geary Boyd Katz.]