MO Insurance Department to Investigate Brooke
The Missouri Department of Insurance will be launching an investigation into Brooke Corp., which filed for bankruptcy last Tuesday.
“Recent questions surrounding the financial stability of the insurance entity have triggered the department to open a formal investigation,” the department said in a release.
Brooke Corp. is an Overland, Kansas-based insurance operation that had between 40 and 50 offices in Missouri, mostly in St. Louis and Kansas City. It’s estimated there are about 250 Brooke Insurance franchisees, including 29 in the St. Louis area. Many franchisees went out of business or were granted a release from Brooke in the past few weeks. Other St. Louis-area franchisees are working to end their franchise contracts with the company.
Several financial institutions filed lawsuits against Brooke, alleging the company defaulted in making scheduled loan payments.
"Our department takes very seriously any concern regarding the financial condition of entities conducting insurance business in Missouri," said Linda Bohrer, acting director of the insurance department, in a statement. " We will continue to keep abreast of events surrounding these insurance agencies and take appropriate steps as needed to ensure, as much as our authority allows, that Missouri consumers receive the coverage for which they have paid."
Source: Source: St. Louis Business Journal | Published on November 4, 2008
Are you a retail Agent Looking for a Quote?