Unlicensed agent near Detroit sold fraudulent policies through unlicensed agency
San Francisco, CA -- (SBWIRE) -- 01/04/2013 -- The Detroit Free Press reports that Michigan officials are warning drivers in the state about fraudulent auto insurance policies sold by an unlicensed agent using an unlicensed insurance agency. As a result, drivers who purchased a bogus policy do not have insurance coverage and need to obtain a genuine policy immediately.
According to a warning issued by the Michigan Office of Financial and Insurance Regulation, Detroit-area drivers may have unwittingly bought a fake automobile insurance policy from unlicensed insurance agent Shaker Uddin Sadeak, working out of an unlicensed insurance agency called Al Baraka Enterprise. The business is based in Southfield, a southern suburb of Detroit.
In a press release, the state agency reported its investigation has discovered the unlicensed agent Sadeak, was selling bogus certificates claiming to deliver coverage from a legitimate insurance company. One customer reported to the state agency the certificate he received from Sadeak contained misspellings and other irregularities.
The state insurance regulator served Sadeak and Al Baraka with a cease-and-desist order, ordering them to end unlicensed and fraudulent insurance activity. The order notes Sadeak and Al Baraka, “offered, sold and negotiated” auto insurance in the state without lisence. They also “gave advice on the purchase of insurance products, solicited customers for the purchase of insurance, discussed rates, and accepted premium money from consumers.”
The results of the state insurance agency investigation have also been given to Michigan state police, according to the release.
The OFIR commissioner cautioned any driver who had bought an auto insurance certificate from Sadeak and Al Baraka Enterprise. The commissioner noted that they are without insurance coverage and so need to get legitimate coverage at once. He also requested that any driver who had purchased a bogus policy get in touch with the agency toll-free at 877-999-6442. Officials have not yet determined how many consumers may have been victimized by the phony policies.
Michigan law requires all insurance agents and agencies in the state to display their license in their office. The regulatory agency urged consumers to check the license of any agent or agency before doing business with them. The agency’s website also contains information on state business licenses.
Michigan’s auto insurance law requires drivers to have no-fault personal injury and property protection coverage, and residual bodily and property damage liability insurance at a minimum $20,000 for one individual injured in an accident, and $40,000 for all persons injured in a single accident, plus $10,000 coverage for property damage in another state. In 2009, Michigan was listed by the Insurance Information Institute as the state with the seventh-highest rate of uninsured drivers, comprising 19.5% of all motorists.
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