Autoland Inc. said it discovered an administrative error in a mid-2009 operational audit that prompted it to contact the Oregon Department of Consumer and Business Services Insurance Division about a license lapse.
"While Autoland had previously been licensed with Oregon's insurance division, we were unable to find either a current insurance producer license, record of renewal notice or application in the Oregon office files. We immediately notified the Department of Insurance to correct the issue," said Marcia Francisco, senior vice president, marketing/business development, in a statement to Credit Union Times.
According to the June 7, 2010 order, Autoland was not licensed in Oregon as a business entity insurance producer from Nov. 1, 2004 to March 11, 2010. Autoland was acquired in 2007 by a CUSO owned by the $416 million Telesis Community Credit Union in Chatsworth, Calif.
Francisco said as a result of the Autoland internal audit, the firm completed a business entity application on Aug. 13, 2009. The Oregon Department of Insurance also conducted an audit of Autoland and "it was noted that Autoland fully cooperated," she added.
Autoland said it paid the $50,000 civil penalty assessed by the insurance division and chose to conclude the proceeding without a hearing and to waive all rights relative to an administrative hearing and judicial review, according to the order.
"The fine could have been significantly higher, but we were fined at the lesser rate due to the cooperation of the company," Francisco said. "The fine was assessed in May 2010 for the lapse in the insurance license. Autoland paid the fine, and we are fully compliant. We are duly licensed and in good standing with the Oregon Department of Insurance."
The department confirmed Autoland's standing.
The matter is resolved. Autoland got its agent license, paid the fine by the due date, and did everything else it was supposed to do," said
Cheryl Martinis, a spokesperson with the
Oregon Department of Consumer and Business Services Insurance Division.