Insurance Fraud Results in License Revocation

Peoria Area Insurance Agent Defrauded Clients

SPRINGFIELD – The Illinois Department of Financial and Professional Regulation (IDFPR) announced today that the Division of Insurance revoked the producer license of Jack D. Frame, of Elmwood.  After learning of complaints about insurance customers who had their annuities cashed without their approval, the Division found that Frame had devised and participated in a scheme to defraud Illinois policyholders out of more than $71,986.82. 

As part of the scheme, the Licensee contacted annuity companies under the pretense that he was the policyholder, requested a change of address and directed the companies to send correspondence and annual annuity payments to his own address.  The Licensee received the annuity checks, forged the policyholder’s signatures and obtained the money for his own personal use without the consent or authorization of the policyholders. 

“There must be a level of trust between a policy holder and a licensed insurance agent.  Mr. Frame has demonstrated through his actions that he is no longer trustworthy and that is why this Order of Revocation has been issued,” said Division of Insurance Director Michael T. McRaith.   

On June 15, 2005 a federal grand jury indicted Frame for using his position as an insurance agent and investment advisor to defraud an elderly Peoria-area woman.  The case is pending at the United States District Court for the Central Division of Illinois in Peoria.  The trial is expected to begin on October 2, 2006.