Released: March 26, 2010

A Denham Springs agent and her agency were served by Department of Insurance Fraud Section Investigators yesterday with cease and desist orders, license revocations and fine notices for alleged misappropriation, misrepresentation and forgery.

Michelle Schulin Paul (40) and her agency, The Reed Agency, Inc., were both served on March 25 by the Department of Insurance Fraud Section Investigators with cease and desist orders, license revocations and $58,000 fine notices each.

Paul is alleged to have fraudulently signed contracts to obtain premium financing for various companies and submitted those contracts to a premium finance company between October 2008 and July 2009. Using the finance company’s check writing authority, Paul wrote and signed at least 38 different checks payable to The Reed Agency, Inc. for a total amount of approximately $462,453. The checks were written to The Reed Agency, Inc. under the pretext that the agency would then make the various payments to different insurance companies for the policies that were the subject of the premium finance agreements, however neither Paul nor The Reed Agency, Inc. made any payments with the funds to any insurance company.

Department records show that Michelle Schulin Paul was issued an Accident and Health license and a Life Insurance license in May 1996 which expired in April 2004, and a Property and Casualty license in March 1996 which will be revoked 30 days from time of notice. Records show that The Reed Agency, Inc., of which Paul is the sole owner and registered agent, was issued a Property and Casualty license in March 2002, which will also be revoked 30 days from time of notice.

Paul has 30 days from the time of notice to file a written demand for an administrative hearing to contest the regulatory action taken against her and her agency by the Department of Insurance.

Commissioner Donelon urges consumers who feel uneasy about any insurance related transaction to call the Department of Insurance Fraud Section at 225-342-4956 or 1-800-259-5300. If callers do not want their names used, they can request that their involvement be kept confidential.