The Colorado Division of Insurance fined Pioneer General Insurance Co. $533,000 for violations of insurance law related to the Colorado bail bond business.
Pioneer General is licensed to provide a range of surety bonds in Colorado, but the recent market conduct examination focused on its bail bond business. According to figures reported to the division, Pioneer General had more than $4.2 million in total taxable bail premiums during 2008.
According to the market conduct exam, the company was fined for failing to handle funds in a fiduciary capacity, failing to register the use of any assumed, trade or fictitious name prior to using the name, failing to require agents to complete required documentation and failing to property document deviations from filed rates.
Colorado-based Pioneer General is a subsidiary of HCC Insurance Holdings, a publicly traded insurance holding company focused on specialty property and casualty business, including surety bond coverage.
Pioneer General disputed the findings in the report and in the Final Agency Order issued in Denver District Court.