During March, the Louisiana Department of Insurance issued cease-and-desist orders and license suspensions against two insurance producers for violation of the Louisiana Insurance Code.
On March 11, the LDI issued a cease-and-desist order and license suspension to Kim Marie Holmes for alleged insurance fraud. Holmes was issued an arrest warrant in Ascension Parish on March 3 and charged with insurance fraud for attempting to defraud an insurance company of more than $15,900.
An investigation by the Louisiana State Police found Holmes made material misrepresentations on her renters insurance policy following Hurricane Ida by greatly inflating the price of items she claimed as damaged or never purchasing items she claimed as damaged from the places she reported in the claim that she had purchased them. The State Police also noted that the apartment complex where Holmes lived did not report damage to the building in which she lived.
Furthermore, her employment records confirmed that she worked “numerous shifts” throughout the time she claimed to be evacuated in another state, according to the C&D order.
“Providing fictitious information to an insurance company for personal gain is a clear indication that Ms. Holmes cannot be trusted to conduct insurance business,” said Insurance Commissioner Jim Donelon. “I took this action to protect consumers in our state from her participation in the industry,” he added.
Holmes has held a license since Jan. 7, 2022, to sell life policies of insurance. She made the allegedly fraudulent claim on or about Sept. 16, 2021.
On March 21, the LDI issued a cease-and-desist order and license suspension to Andrea R. Ceballos for alleged theft of property. Ceballos was arrested in Arkansas and charged with the theft of approximately $13,000 from the insurance agency where she worked as a producer. Although she is a resident and producer in Arkansas, Ceballos held a non-resident license in Louisiana.
According to the C&D order, on Aug. 16, 2021, an arrest warrant was issued against Ceballos for failure to appear in court on the theft charge. The warrant is still active. Moreover, Ceballos failed to notify the Arkansas Department of Insurance within 30 days that she had been charged with felony theft of property and entered a plea of not guilty. A hearing on these violations was held on March 9, and Ceballos failed to appear.
Holmes and Ceballos have 30 days from the date of service to request an administrative appeal. If they do not, LDI’s actions become final.