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Hamm issues cease and desist order against Fargo-area insurance agent and agency
 
BISMARCK, N.D.-North Dakota Insurance Commissioner Adam Hamm recently served a cease and desist order upon Robert Schmitz, a Fargo-area insurance agent, and his agency, Schmitz Insurance Agency, for allegedly failing to pay state and federal taxes and allegedly mishandling premium payments made by clients. The order bars Schmitz and his agency from engaging in the business of insurance until further notice.

Schmitz allegedly accepted premium payments and failed to pay premiums on behalf of clients in a timely fashion resulting in notices of cancellation, and allegedly issued checks with insufficient funds. Also, Schmitz allegedly issued one or more paychecks with insufficient funds to an employee.

In 2008, Schmitz was convicted of issuing a check with insufficient funds in Traill County District Court. In 2010, the Internal Revenue Service filed a tax lien against Schmitz for $371,210; in 2011, the North Dakota Tax Department filed a tax lien against him for $52,808. North Dakota state law prohibits insurance producers from being financially irresponsible.

"I strongly encourage consumers who have done business with Mr. Schmitz or the Schmitz Insurance Agency to call their insurance companies to verify their policies," Hamm said.

Schmitz has the right to request an administrative hearing on the cease and desist order within 30 days. 

Schmitz Insurance Agency has offices in Fargo, Finley and Gardner, N.D. and Stephen, Minn. Consumers with questions or concerns are encouraged to contact the North Dakota Insurance Department at 1-800-247-0560 or insurance@nd.gov.

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Click here to see the order. 

North Dakota Insurance Department
600 E. Boulevard Ave.
Bismarck, ND 58505-0320
Phone 701.328.2440
Toll free 800.247.0560
Fax 701.328.4880

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