A Kennewick insurance agent was fined $4,000 and had his license suspended six months after a client lost thousands of dollars after mishandling two policies.
Thomas J. Foreman advised his client to replace a $925,000 life insurance policy with a $1 million policy from another company, a release from the state insurance commissioner said. The canceled policy provided a cash value of $7,400 but also came with a $22,000 penalty for cashing it out early that Foreman failed to inform his client about.
In a separate incident with the same client, Foreman liquidated an annuity for his client but filed the wrong forms for the transaction. That led to a $16,000 tax expense to the client when it should have been $5,400. The company that provided the annuity refunded about half the amount, leaving the rest up to the client.
“Ultimately, it was my responsibility to catch it and I didn’t,” Foreman told the Herald of the error.
Foreman will be able to advise clients he currently holds policies for, he said, but will not be able to bring on new clients or create new business until his license is restored.