State files complaint against West Plains insurer

The complaint states that David W. LaFevers accepted customer money but never purchased the policies the money was intended to buy.

According to a news release from MDI, LaFevers accepted more than $16,000 in 2005 from a client looking to purchase workers’ compensation and general liability insurance for his business.

The state alleges that the funds were deposited in LaFevers’ checking account and proof-of-insurance cards were given to the customer. An MDI investigation indicates that no money was ever forwarded to any insurance company to obtain coverage for the customer.

A second count in the complaint says that a customer was forced to pay more than $1,400 out of pocket for medical visits after being told by LaFevers that the health care provider she had visited was in her network of providers.

“Misappropriating customer funds is a very serious violation of Missouri insurance laws,” said MDI Director Dale Finke in the release. “Customers deserve to have the peace of mind that comes with the insurance coverage that they paid for.”

The complaint was filed before the Administrative Hearing Commission, which will determine if the department has grounds for discipline. If discipline is deemed appropriate, LaFevers’ license could be suspended or revoked.

Dan Jordan, legal counsel for the commission, said it’s unclear how long the process will take. State statute says LaFevers has 30 days from the time he receives formal notification of the complaint to file an answer; Jordan added that official notification has not yet been sent.