Ohio revokes license of an insurance agent accused of taking money for funerals
The state has revoked the insurance license of an agent accused of stealing hundreds of thousands of dollars in insurance premiums for policies meant to cover the cost of funerals.
Rhonda Chandler, 56, of Columbus, obtained an insurance license in 1988. She operated Senior Marketing Consultants/Gold Cross Funeral Plans.
She assisted funeral directors in placing pre-need funeral funds in an insurance or trust product, and administered what's called the Gold Cross Trust, according to the Ohio Department of Insurance. When a consumer enters into a pre-paid funeral arrangement with a funeral home, the funds are required to be placed in a trust or an insurance product.
After learning of a lawsuit that had been filed against Chandler, Senior Marketing Consultants and Gold Cross Trust for failing to issue trust payments, the department opened an investigation into Chandler’s insurance-related activities. Evidence supported that Chandler deposited pre-need insurance premiums and trust funds into her insurance agency account and used the funds to pay agency-related expenses and incoming trust claims.
The department wouldn't say exactly how much money Chandler is accused of taking. Chandler could not be reached for comment.
The state's investigation revealed multiple cases in 2018 and '19 where Chandler received money for an insurance policy and then didn't turn that money over to the insurance company.
Separately, a lawsuit filed in Franklin County Common Pleas Court in 2019 by a funeral home in Mantua in northeast Ohio, Green Family Funeral Home and Crematory, accused Chandler of not making payments on claims. That included five claims totaling $55,000 in 2019.
Ultimately, the court awarded the funeral home $79,044 in damages and $15,486 in attorney fees.
In August, the department charged Chandler with 25 counts of agent misconduct that included failing to timely submit an application for insurance to an insurer, improperly holding or misappropriating money, and being fraudulent, dishonest or financially irresponsible.
The insurance department urged funeral directors who have reason to believe they have been victimized by Chandler and not reached out to the state to contact the department's fraud and enforcement division at 800-686-1527.
mawilliams@dispatch.com
@BizMarkWilliams
This article originally appeared on The Columbus Dispatch: Ohio takes license of Columbus insurance agent
