DCBS Media Release

March 5, 2001
For More Information:
John Piper, 503-947-7213

State suspends Grants Pass insurance agent's licenses

SALEM – The Department of Consumer and Business Services (DCBS) has suspended the insurance agent’s license of a Grants Pass man, David W. Holmes, and fined him $2,000 for violating the Oregon Insurance Code. DCBS also suspended the insurance license of Holmes’ agency, Three Rivers Financial Group (TRFG).

The suspensions run from Feb. 1 to April 30, 2001. Holmes and TRFG are prohibited from selling or servicing insurance policies while suspended.

An investigation by the Insurance Division of DCBS found that Holmes had violated state laws by:

• Illegally withholding insurance premiums from an insurer. Holmes received an application from a Eugene woman for a long-term care policy. However, he did not send her application or any of her annual premium payment to the insurer. The woman learned that Holmes had not submitted her application when she contacted the company.
• Failing to deposit the woman’s insurance premiums in his premium trust account. Instead, he deposited the funds into TRFG’s operating account. Holmes repaid the woman after she requested a refund.

The agency’s license was suspended because Holmes was the sole proprietor and was employed as an individual licensee of the firm.

Final Order