DCBS Media Release
April 21, 2005
State revokes Portland man's insurance license
The Oregon Department of Consumer and Business Services has revoked the insurance license of a Portland man who submitted dozens of phony applications for life insurance and then kept the commissions.
Alan S. Liebenthal waived his rights to a hearing and consented to the revocation of his Oregon insurance producer license.
An investigation by the DCBS Insurance Division found that 65 of the 71 applications Liebenthal sent to Forethought Life Insurance Co. from April 15 to September 28 last year were from persons who didn't exist or who didn't apply for insurance. He used his own money to cover the initial premiums so that the company would issue the policies and pay him commissions.
Forethought Life provides what is known as "pre-need" funeral insurance, which is used to pay future funeral expenses. The company required insurance producers to reimburse their commissions for policies that were terminated within one year. However, investigators found that Liebenthal failed to reimburse Forethought Life for more than $122,000 in commissions for the 71 policies, all of which terminated within a year.
In April 2004, DCBS fined Liebenthal $5,000 for several violations of the Oregon Insurance Code, including making a false statement on an insurance application, misappropriating and withholding insurance premiums, and failing to timely forward funds to an insurer. He also agreed to pay restitution to Mayflower National Life Insurance Co.
Liebenthal had been licensed in Oregon as a resident insurance producer (agent) since November 1987.