Trucking Insurance 101 – Chadwick Of Kelt Found Fraudulently Financing Commercial Trucking Premiums From Tepco
Trucking Insurance – Insurance Premium Financing Fraud:
In Spokane County Superior Court this week, Edward J. Chadwick, of Yakima, Wash., was charged with first-degree theft.
Chadwick was an insurance producer, and owned a trucking insurance agency called Kelt, selling trucking insurance primarily to transport companies. He was indicted after an investigation by the Criminal Investigations Unit of Washington Insurance Commissioner Mike Kreidler
He is accused of acquiring dishonestly from Tepco, a premium finance company headquartered in Spokane, 24 insurance premium finance loans totaling $2.8 million from April 2016 to July 2018. He is accused of securing loans for commercial coverage that did not exist on account of several bogus transport companies. He also received loans on behalf of an ex-customer, also a transport company, without the consent of the client.
An insurance premium finance loan helps businesses pay in installments for property / casualty insurance, rather than paying full a year’s premium. The premium finance company pays the insurance company an annual premium, and the policy holder pays, including interest.
In December 2018 Tepco reported Chadwick’s loans to Kreidler’s office. Chadwick has repaid $1.9 million, plus interest. The loan balance is $898,662 not including interest and costs.
In February 2019 Kreidler revoked Chadwick’s license for sale of insurance. Chadwick opposed the termination but Kreidler’s office prevailed and in September 2019 his license was formally terminated.
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