Fines Imposed For Selling Unauthorized Workers' Comp Policies
By Associated Press - February 1, 2005SACRAMENTO (AP) _ Insurance Commissioner John Garamendi announced $19,000 in fines and reimbursements Tuesday against insurance agents who marketed unauthorized workers' compensation policies sold by a company owned by an Indian rancheria.
Garamendi also restricted the license of one insurance agent, John David Evans of Camarillo. Evans' employer, Hall-Schenk Inc., will pay a $4,000 fine and $6,000 in cost reimbursements.
Another agent, Christian Oliver Muller of Woodland Hills, will pay a $4,000 fine and his employer, Barlocker Insurance Agency of Salinas, will pay $5,000 in reimbursements, Garamendi added.
The agents also agreed not to sell unauthorized policies.
State law requires employers to buy workers' comp policies through an authorized insurer or demonstrate to Garamendi's department that they have enough assets to cover workers' comp claims.
The penalties were imposed because the agents were selling a workers' comp policy offered by Mainstay Business Solutions, which is owned by the Blue Lake Rancheria, which is 12 miles north of Eureka.
Mainstay is not authorized to sell workers' comp policies in California, Garamendi said.
He said the Mainstay policy wouldn't fully protect employees who suffer job-related injuries. Employers who buy it could be hit with lawsuits, fines of up to $100,000 and criminal charges, he added. | 
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