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License of Cloquet Insurance Broker suspended

March 31, 2009

License of Cloquet Insurance Broker suspended 
  

For Immediate Release: March 31, 2009

All Sports Insurance collects money from clients, doesn't pay premiums, bounces checks, forges insurance documents.

(St. Paul, MN) - The Minnesota Department of Commerce has summarily suspended the resident insurance producer license of Robert Pavlatos of Cloquet and the agency insurance license of All Sports Insurance, also of Cloquet based on the charge that All Sports failed to remit insurance premium payments to insurance companies after collecting them from individual clients. Pavlatos is the owner of All Sports Insurance.

The department alleges that All Sports owes Premium Finance Specialists at least $10,077 and American Insurance Alliance at least $107,329 for premium payments on behalf of their insurance customers. The department also charged Pavlatos and All Sports Insurance with allegedly misappropriating at least $64,389 of individual clients' money by failing to refund premiums after the policy was canceled or accepting premium payments and not forwarding the payments to American Insurance Alliance.

When the insurance companies and customers attempted to get their money back from All Sports, the company issued checks that were returned for insufficient funds, also a violation of state insurance law.

The department also charged All Sports with allegedly forging documents including reinstatement notices, insurance binders and declarations pages. This caused numerous clients to operate without insurance, including one who suffered hurricane-related losses of approximately $50,000 because All Sports did not forward their premium payments to the insurance company.

 "There is no room in the marketplace for an agency that takes your money and leaves you without insurance," said Glenn Wilson, Commissioner of the Minnesota Department of Commerce. "We demand a basic level of trust from our licensed professionals and we will continue to take actions like this on behalf of Minnesota consumers if that trust is broken."

The Department's order for summary suspension of Pavlatos' licenses will be considered at a hearing in front of Administrative Law Judge Richard C. Luis on April 20, 2009 at 9:00 am in St. Paul.

You can access public documents related to this action through the Enforcement Action selection with our document lookup tool Commerce Actions and Regulatory Documents (CARDs).