Agent who Accepted a Loan from Client served with a C&D
BISMARCK, N.D.—North Dakota Insurance Commissioner Adam Hamm served a cease and desist order today against Brent Kitzan, a Bismarck insurance agent, and Kitzan & Associates for allegedly accepting a loan from a client and misappropriating client money for personal use. Kitzan & Associates is the name by which Kitzan conducts some or all of his insurance business. The order bars Kitzan as well as Kitzan & Associates from engaging in the business of insurance.
The cease and desist order alleges that Kitzan accepted premium payments from a client but failed to pay the premium to the company. As a result, the client’s policy was cancelled but Kitzan allegedly continued to accept premium payments totaling more than $5,000.
Kitzan is also alleged to have borrowed approximately $48,000 from an insurance client. State law prohibits a licensed insurance agent from soliciting or accepting a loan from any person with whom the agent has had an insurance relationship within the last 10 years.
“We have quickly opened an investigation to uncover any fraudulent or illegal transactions that may have been done by Mr. Kitzan,” Hamm said. “Anyone that has done business with Mr. Kitzan and has questions or concerns is encouraged to contact the Insurance Department at 1-800-247-0560 immediately.”
Kitzan has a right to request an administrative hearing within 30 days.