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PRESS RELEASE

FIFE SYMINGTON
Governor

JOHN A. GREENE
Director

ARIZONA DEPARTMENT OF INSURANCE

2910 North 44th Street, Suite 210, Phoenix, Arizona 85018-7256 · (602) 912-8456 · FAX: (602) 912-8452


Contact: Greg Harris 97-7

Executive Assistant Director FOR IMMEDIATE RELEASE

602/912-8451 May 20, 1997

John A. Greene, the Director of the Arizona Department Of Insurance announced today the issuance of an order summarily suspending the insurance agent license issued to Frank Barraza stemming from allegations of the misappropriation of premium from a policyholder. The Director issued the order on May 16, 1997.

Information leading to this action by the Insurance Director came from the Department's Fraud Unit, assisted by the Casa Grande Police Department. Together, the Fraud Unit and the Casa Grande Police Department executed a search warrant on the insurance office run by Barraza because of allegations of a suspected insurance fraud scheme. The fraud investigation continues.

The investigation to date reveals that Barraza, through his insurance brokerage firm, allegedly sold fictitious insurance policies and collected premiums for this coverage without forwarding the premiums to any insurers. The facts gathered in the investigation suggest the possibility that individuals may be driving commercial and personal trucks and autos thinking they are covered by legitimate policies. Individuals holding insurance policies written by Barraza Insurance Company should call the insurance company shown on the policy or proof of insurance card and ask if the coverage appears on the insurer's records. Individuals who discover that they are not covered or suspect problems with the coverage they purchased may contact the Department's Fraud Unit at 602-912-8418.

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