A former Idaho insurance agent has been convicted of felony insurance fraud after investigators determined he backdated an insurance policy to obtain coverage for a snowmobile that had already been damaged in an accident.
The Idaho Department of Insurance said Stetzen Bailey, of Heyburn, pleaded guilty on Feb. 23 to one felony count of insurance fraud. Bailey previously worked as an agent for Farm Bureau Insurance.
According to the department’s Fraud Unit, Bailey created an insurance policy for a family member’s 2018 Bombardier snowmobile after the vehicle had already been involved in a collision. Investigators found the policy was intentionally backdated to make it appear the damage occurred during the coverage period, resulting in Farm Bureau Insurance paying more than $7,000 on the claim before the fraud was uncovered.
State investigators confirmed the snowmobile had been damaged before the policy’s false effective date, leading to the criminal investigation.
On May 11, Bailey was sentenced in Cassia County District Court to a five-year unified sentence, consisting of two years fixed and three years indeterminate. The prison sentence was suspended in favor of three years of supervised probation. The court also ordered him to complete 10 days of sheriff’s work detail, perform 40 hours of community service, and pay fines and restitution.
“Insurance agents are entrusted to act honestly on behalf of consumers and insurers alike,” Idaho Department of Insurance Director Dean Cameron said in a statement. He added that the department will continue pursuing enforcement actions against licensed professionals who abuse that trust through fraudulent conduct.
Information for this article was provided by Idaho Department of Insurance. Views and claims expressed in this article are those of the source company and do not necessarily reflect the views of AgencyEquity.com. This article may have been edited with the help of AI.
