Commissioner Donelon Warns of Possible Insurance Scam
Commissioner of Insurance Jim Donelon issued an alert yesterday to all licensed insurance producers, warning them of an alleged scam he is currently investigating. Commissioner Donelon said the probe involves possible fraudulent insurance covering habitation risks including homeowners associations, hotels, condominium developments and apartment buildings. According to Donelon, possible invalid coverage, binders and or/policies have been placed through an unlicensed individual named Michael A. “Mike” Ward of Illinois and his related entity, JRSO, Inc.
“Our Department was alerted to this possible scam last week by the National Association of Insurance Commissioners. We immediately notified those entities identified as having potentially fraudulent coverage through either Michael A. “Mike” Ward or JRSO, Inc. We have since been contacted by a representative of one of those entities who appears to have fallen victim to this alleged scam,” Commissioner Donelon contended.
Commissioner Donelon added that for any coverage that is unauthorized, legitimate coverage should be immediately obtained. In his producer alert, Commissioner Donelon also asked that any producer who conducted business with Michael A. “Mike” Ward or JRSO, Inc. call the Fraud Section of the Louisiana Department of Insurance at 1-800-259-5300.
“Any consumer in Louisiana who feels they have been a victim of insurance fraud should call our toll free number at the Department (1-800-259-5300) or file a complaint online at www.ldi.la.gov,” Commissioner Donelon urged. “The faster we can identify a scam, the faster we can stop it,” he added.