Boise insurance producer falsified applications

Tuesday May 10, 2022

Contact: Julie Robinson, 208-334-4312
julie.robinson@doi.idaho.gov

On May 24, 2022, the Idaho Department of Insurance amended its original May 10, 2022 press release, as follows.

BOISE, ID (May 10, 2022) – Effective April 18, 2022, the Idaho Department of Insurance revoked the insurance producer license of Kelly D. Foster for 54 violations of the Idaho Insurance Code.

Mr. Foster, a licensed agent in Idaho who sold insurance with AFLAC, established an unqualified business account to obtain payroll rates for a client—despite the business not having the required three employees to do so. He wrote policies on this same group from 2011-2015 for policyholders that were not employees of this company.

Mr. Foster admitted to the Department’s allegations that he violated Idaho Code § 41-1016(1)(h) a combined total of 54 times. He did so by signing insurance applications and/or transmitting policy applications and claims forms that he should have known (but claims he did not know) to contain false or incorrect information.

“Insurance agents hold a position of trust in Idaho, and we expect them to work with integrity and conduct themselves ethically,” said Dean Cameron, Director of the Idaho Department of Insurance. “Agents should become familiar with their clients’ needs and verify that statements on the application are true and accurate so the company can property underwrite the risk.”

In addition to Mr. Foster’s insurance producer license being revoked, an administrative penalty of $54,000 – representing $1,000 per violation – was imposed on him by the Idaho Department of Insurance. This order can be read in its entirety on the Department website.

About the Department of Insurance

The Idaho Department of Insurance has been regulating the business of insurance in Idaho since 1901. The mission of the Department is to serve and protect Idahoans by equitably, effectively and efficiently administering the Idaho Insurance Code and the International Fire Code. For more information, please visit us at doi.idaho.gov or email us at consumeraffairs@doi.idaho.gov.

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