DCBS Media Release
May 31, 2001
State fines Lake Oswego insurance agency $10,000
SALEM – The Department of Consumer and Business Services (DCBS) has fined a Lake Oswego insurance agency $10,000 for misappropriating commissions intended for a former agent.
An investigation by the Insurance Division of DCBS found that Oak Tree Insurance, Inc., violated Oregon law by endorsing seven commission checks made payable to Scot Gelfand, who was an agent with Oak Tree from 1996 through 1999.
Oak Tree and Gelfand had a contract that entitled the agency to a portion of Gelfands commissions for selling or renewing policies through Oak Tree. However, DCBS determined that Oak Tree had no right to any of the commissions Gelfand received for seven flood insurance policies that were not sold or renewed through the agency.