PA Insurance Department Shuts Operations of Pittsburgh-Based Agency

Morry Hoffman Agency, Inc. Allegedly Misappropriated $1 Million in Premiums

HARRISBURG, Pa., Feb. 18, 2011 /PRNewswire-USNewswire/ -- The Pennsylvania Insurance Department has shut down Pittsburgh-based Morry Hoffman Agency, Inc. for allegedly misappropriating $1 million in premiums.

The agency wrote commercial policies for restaurants including liquor liability coverage. Within a two-year timeframe, the department discovered that the agency failed to forward more than $1 million in premiums on behalf of their clients to numerous insurance companies and agencies.

"These actions jeopardized customers who purchased insurance through Morry Hoffman in good faith. Consumers who used this agency should contact their insurance companies immediately to verify that their policies are current and in effect," said Ron Gallagher, Deputy Insurance Commissioner for the Office of Market Regulation.

As part of a settlement agreement, the department revoked the agency's insurance license. The department had previously revoked the license of Marjorie Dee Rothrauff, the agency's designated licensee. The agency president, Carol Hughes, is unlicensed and cannot legally transact the business of insurance.

In addition, the department referred the case to the Pennsylvania Office of Attorney General for a possible criminal investigation.

Before purchasing any insurance coverage, consumers should stop, call or click and confirm that they are dealing with a licensed insurance agency, individual or company.

To verify if a company or individual is licensed, visit www.insurance.pa.gov and click the online resources tab, call the department's toll-free, consumer hotline at (877) 881-6388, or either of the department's Bureau of Consumer Services regional offices: Harrisburg at (717) 787-2317; or Philadelphia at (215) 560-2630.

Media contact: Rosanne Placey or Melissa Fox, 717-787-3289

SOURCE Pennsylvania Department of Insurance

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