The Colorado Division of Insurance has ordered Minnesota Surety and Trust to halt operations in Colorado for what authorities characterize as the company’s “flagrant disregard of Colorado insurance law.”
Minnesota Surety was licensed as a casualty company, authorized to write bail bonds and fidelity and surety bonds, including immigration bonds.
Minnesota Surety has been fined $1.2 million, which includes a civil penalty of $200,000 within 14 days. The additional $1 million is stayed but is payable if the company does not pay the $200,000 within the timeline.
The Division of Insurance said the $1 million also becomes due immediately if Minnesota Surety, or company president Pete Plunkett, is involved in any insurance-related business in Colorado or apply apply for a certificate of authority in Colorado within the next five years.
John Postolowski, interim insurance commissioner, said despite repeated demands, Minnesota Surety failed to provide data and information requested by insurance division investigators.
Further, Postolowski said there was “credible evidence” that company employees were ordered to alter files, including forms and statutorily required data.
Howard Pankratz: 303-954-1939 or hpankratz@denverpost.com.
