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Forsyth insurance broker loses license following investigation of misappropriations

Insurance commissioner says he obtained court order
Rosebud County Insurance, Forsyth
Posted at 3:40 PM, Jul 19, 2023

A Forsyth insurance broker has permanently lost her license after complaints surfaced that she was accepting premium payments but not purchasing insurance policies.

Montana Insurance Commissioners Troy Downing announced Wednesday that he had secured a court order July 12 permanently barring Kileen Hagadone and her business, Rosebud County Insurance, Inc. from conducting insurance-related business in Montana.

Hagadone's license was suspended in April by Downing.

Related: 'A total shock': Forsyth insurance broker under scrutiny following accusations of questionable practices

Downing's office has alleged that Hagadone forged signatures and misappropriated hundreds of thousands of dollars from clients across Rosebud County, including Chief Dull Knife Community College in Lame Deer.

The college, one of the largest victims, paid around $200,000 in premiums for two years but never received any coverage, Rosebud County Sheriff Allen Fulton told MTN News in April. The sheriff's office is investigating the case for possible criminal violations.

Downing also noted in a news release that attempts to pay premiums through bank accounts controlled by Hagadone and Rosebudy County Insurance were rejected for non-sufficient funds.

"By allegedly accepting premium payments and not purchasing the insurance policies, Hagadone placed her customers at a substantial risk of losing their coverage. Our agency also worked with the involved insurance companies to ensure customers did not see a lapse in coverage and were not double-charged for their policies," Downing said in a statement. "Our agency's first priority is protecting consumers. By revoking Hagadone's license, we prevent this alleged fraud from claiming more victims.”

Downing reminded consumers to always contact insurance companies directly to ensure policies were properly placed by an agent.

If you have questions regarding coverage or to report suspected fraud, contact the Commissioner of Securities and Insurance at 406-444-2040 or go to CSIMT.gov.