Kansas Insurance Department has imposed a monetary penalty of $9,000 against an Ohio-licensed insurance marketing firm, Lead Generating Systems, for its unlawful insurance marketing practices.
While issuing a cease and desist order, Kansas insurance commissioner Sandy Praeger said that the company was penalized $5,000 in August as part of a judgment by the city insurance department.
In March 2012, the regulators fined the company $4,000, when it was carrying out the business as Unlimited Fulfillment Services.
Managed by Matthew Dilday, the accused company has also used the names, including Smart Leads, UFS Marketing Services, Annuity Leads and Annuity Leads Today.
Commissioner Praeger said, "Deceptive and misleading insurance information sent to Kansas residents on behalf of agents throughout the state will not be tolerated."
Using deceiving and confusing postcards that were mailed to Kansas residents, the marketing company solicited insurance business for Kansas insurance agents, as the legal order of the insurance department.
The postcards confused recipients into believing their financial well-being was at risk as an annuity product they were holding supposedly was at the end of its surrender period.
The company was accused for violating the provisions of the Kansas Unfair Trade Practices Act.
