Lexington National Insurance Corp. was fined $332,000 by the Colorado Division of Insurance for violations of Colorado law related to their bail bond business.
The company is licensed to provide surety bonds in the state, but the division’s market conduct exam focused on its bail bond figures. Based upon figures reported to the division of insurance, Lexington National had more than $2.4 million in total taxable bail premiums during 2008.
The issues found during the review included: failure to require bail bond agents to complete required documentation; failure to include all required information on documentation related to the issuance of bail bonds; failure to property document deviations from filed notes and failure to require that a timely list of collateral be provided by their agents.
Lexington National has disputed the findings in Denver Distinct Court and has disputed the civil penalty in the Colorado Court of Appeals.
To review the complete report, go to www.dora.state.co.us/insurance/mcexam/MarketRegChron.htm.