GEICO TO PAY $20,000 IN OHIO TO SETTLE COMPLAINT OVER AGENTS

GEICO, the Maryland-based direct motor writing unit of the Berkshire Hathaway group, is to pay $20,000 to Ohio regulators to settle complaints that the company permitted unlicensed telesales agents to do business in the state. The complaint had originally been levelled by the Ohio affiliate of the National Association of Professional Insurance Agents (PIA), one of whose members claimed to have received a quote over the phone from a GEICO agent in a Virginia call centre who was not licensed in Ohio. The PIA withdrew its complaint earlier this week, saying that it lacked proof to support the accusation. However, state regulators pressed forward, asserting that GEICO had “repeatedly” used unlicensed agents to sell policies in the state. With GEICO’s payment of the fine the Ohio insurance department agreed to take no further action against the company for past violations and will conduct a review of the company’s licensing practices within three to six months. GEICO had faced the loss of its operating licence in the state.