According to information released by the Louisiana Department of Insurance (LDI), LDI ordered New Orleans insurance agent Vilia Ann Ragas and her company, Citywide Insurance Agency, to stop their insurance business last week after Ragas failed to remit premiums she collected from clients.
LDI officials said at least two customers have been harmed by the scheme and LDI is concerned there may be others. Insurance Commissioner Jim Donelon is urging customers of Ragas and Citywide Insurance Agency to call their insurers directly to verify the coverage they paid for is in place and contact LDI if they see a problem or have experienced anything unusual.
LDI said one Citywide Insurance customer discovered she had no insurance coverage for most of 2021 after filing a complaint about Ragas with the LDI in November. Another customer learned her homeowners insurance had been canceled, they said, for non-payment of premium when she tried to file a claim for damage from Hurricane Ida.
On Dec. 3, LDI fraud investigators served cease and desist orders to Ragas and her agency, suspended their licenses and issued them $5,000 in fines for violating the Louisiana Insurance Code. The license suspensions will become revocations in 30 days.
"It wasn’t the first time Ragas had been sanctioned by the LDI," they said in a prepared statement to media members. "In 2006, Ragas and Citywide Insurance were issued cease and desist orders and summary suspensions for failing to remit premiums they had collected from clients. As a result, Ragas and Citywide Insurance paid fines and lost their licenses for six months. Ragas has been a licensed agent since 1989."
LDI officials said the current cases involve multiple instances of collecting money from clients and failing to purchase the insurance. In one case, Ragas issued a fake certificate of insurance from a company that wasn’t writing policies in the area at the time, LDI added.
For more details about the situation, read the order and notices here.
Ragas has 30 days from the date of notice to file an appeal. Action by the LDI is not stayed by an appeal.
Donelon is urging consumers who feel uneasy about any insurance-related transaction to call the LDI's Insurance Fraud Division 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.
