Nations Hazard in Pennsylvania is shut down by Commissioner

Originally Posted By: cbutler
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December 28, 2004



FOR IMMEDIATE RELEASE
December 28, 2004
COMMONWEALTH OF PENNSYLVANIA
Insurance Department
Commonwealth News Bureau
Room 308, Main Capitol
Harrisburg, PA 17120

Contact: Rosanne Placey or Melissa Fox
(717) 787-3289



INSURANCE COMMISSIONER SHUTS DOWN UNLICENSED INSURANCE PRODUCER
Encourages consumers to check website to avoid buying from unlicensed entities



HARRISBURG: Pennsylvania Insurance Commissioner Diane Koken today announced that she has shut down the operations of Nation?s Hazard Insurance Agency, which has been doing business as Nation?s Hazard Insurance Company. The company is an illegal insurance entity that sold errors and omissions coverage for home inspectors, using the Internet as his primary means of communicating and soliciting business. None of the ?policies? issued were valid.



Koken has ordered its principal, Michael Francis Napadow, to cease and desist and pay a penalty in the sum of $230,000, as well as pay restitution in full to any and all Pennsylvania residents from whom they solicited and accepted premium payments.



?Mr. Napadow has caused irreparable harm to Pennsylvania consumers by selling fake insurance policies, which may not provide sufficient, if not any coverage,? Commissioner Koken said. ?I urge people shopping for insurance to check with the Insurance Department before they buy to verify they are dealing with a licensed insurance company and a licensed insurance producer.?



Napadow and Nation?s Hazard Insurance Agency has never been licensed or authorized to transact the business of insurance in the Commonwealth of Pennsylvania. Napadow also fraudulently operated under the name ?Hartford Casualty Insurance? which is not affiliated with the legitimate insurance company, The Hartford Group.



?I can?t stress enough that individuals should take the time to be sure they are dealing with a licensed insurance company,? Koken explained. ?Fraudulent companies may have slick marketing materials or websites, but a simple question should be answered before you buy any coverage. That question is ?are you licensed???



Koken said that consumers can verify whether or not an individual or company holds a license to conduct the business of insurance by using the producer, business entity or company search mechanisms on the Insurance Department website. Only those who are licensed by the Department can sell, solicit or negotiate insurance in Pennsylvania. Koken encourages all consumers to use this very valuable resource.



To access the Department?s searchable databases, consumers can log onto the Pennsylvania Insurance Department website www.insurance.state.pa.us and access the search links under the ?quick links? section on the right-hand side of the homepage.



Consumers who do not have access to the internet may contact one of the Department?s Bureau of Consumer Services Regional Offices. Offices are staffed Monday through Friday from 8 a.m. to 4:30 p.m.

Harrisburg Regional Office (717) 787-3217;
Philadelphia Regional Office (215) 560-2630; and
Pittsburgh Regional Office (412) 565-5020.