State strips local insurance agent’s license, slaps him with $30,000 fine

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The Colorado Department of Regulatory Agencies has revoked Colorado Springs insurance agent Jan M. Siroky’s insurance license and fined him $30,500. DORA officials said he defrauded consumers by selling long-term care, accident and health insurance policies and then diverting premiums for his own use.

After the Division began to suspect fraud, Siroky’s license was suspended last year pending outcome of the Division of Insurance investigation, but he continued to sell or insurance anyway.

“We have revoked the insurance producer license of, and issued an invoice to him,” said Commissioner Marcy Morrison. “It is our job to protect consumers from insurance producers who are not honoring Colorado law. Consumers who paid their premiums should not experience any interruption in benefits from the insurance provider.”

The Division’s investigation Siroky between 2006 and 2008. Investigators found that he asked some of his clients to write checks payable to him, rather than the insurer, and after cashing premium checks, he did not forward the funds to the insurance company.

Several customers discovered Siroky’s actions when they were notified that their insurance policies had lapsed due to non-payment.

Other charges included in the final agency order against Siroky include:

  • commingling premiums belonging to insurers with the licensee’s personal funds
  • unfair trade practice or fraud, including false representation of material fact or reckless disregard for the truth; and
  • issuing “refund” checks on a bank account that held insufficient funds.

The full text of the Final Agency Order can be found on the Division of Insurance website at http://www.dora.state.co.us/insurance/enforcement/enforcement.htm

Consumers who have conducted business with Jan M. Siroky are encouraged to contact their insurance company to verify coverage. If there is a problem consumers may file a written complaint with the Division of Insurance.