Local insurance agent loses license for rebating, says it was an honest mistake
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IDAHO FALLS — A local insurance agent can no longer sell policies after a ruling by the Idaho Department of Insurance on Tuesday.
Jordan Tait, an agent with the Farmers Insurance Group, had his insurance license revoked for “unfair trade practices,” according to court documents. He was also issued an administrative penalty of $10,000.
Tait told EastIdahoNews.com on Friday his actions were an honest mistake based on poor advice from a colleague.
“As a newly licensed insurance agent, I unfortunately relied on bad advice from people I trusted and offered to waive certain fees for potential clients in order to assist them in being able to afford sought-after policies,” Tait wrote in an email. “I should have known that doing so was a violation of state regulations, but I didn’t at the time. While I regret and have learned a valuable lesson from my mistakes, I have never had any intention to be dishonest or deceptive to any of my clients, employees or employers.”
Court records show the Department of Insurance found evidence Tait had rebated initial premiums for 10 customers as an incentive for them to enter into life insurance contracts. Rebating is a process where an insurance agents pay a portion of customers’ insurance premiums to get them to buy a certain insurance plan.
Rebating of premiums is a violation of Idaho law. However, as of 2013, insurance rebating was legal in California, Florida and Michigan.
Tait also told investigators that on at least one occasion he rebated premiums in order to meet his quarterly production goals and remain on the agent subsidy loan program through Farmers Insurance Group, according to court documents.
The court ordered Tait to pay $2,000 of the $10,000 fine. The rest of the fine was suspended.
Tait cannot reapply for an insurance license for five years. If he does, he will be required to pay the remaining $8,000 fine.