DCBS Media Release
February 6, 1998
Insurance Division revokes licenses of Eugene agent and agency
The Oregon Insurance Division has revoked the licenses of Carl D. Ishaq and Independent Insurance Associates of Eugene for illegally withholding commissions from Equitable Life and Casualty Co. As a result, he is prohibited from selling insurance in Oregon.
Ishaq (pronounced E-shack) operated his own agency, Independent Insurance Associates, in Eugene, representing Equitable Life and Casualty Co. and other companies. Equitable gave him "netting authority," which allowed him to retain commissions on insurance policies he sold before the company approved the applications. He sent insurance premiums, minus the unearned commissions, to Equitable.
From June 1994 to September 1995, Ishaq solicited applications for 11 health and life insurance policies from two senior citizens. Equitable rejected all the applications for medical reasons and refunded the premiums to the two women. It directed Ishaq to return more than $19,000 in commissions he had withheld.
Because Ishaq didn't return funds belonging to Equitable, the Insurance Division ordered revocation of his agent's license effective Jan. 28, 1998. Since Ishaq had the power to directly control activities of his agency, the license for Independent Insurance Associates also was revoked.