Local insurance agent charged with misappropriating more than $300,000 of client’s trust fund

The Tennessee Department of Commerce and Insurance announced disciplinary actions last week against a former Tennessee insurance agent from Oakland who “violated insurance laws and abused insurance consumers.”

Sharon Kaye Anderson of Oakland must pay $5,000 in civil penalties. Additionally, her insurance agent license has been revoked.

The punishment was the result of months of work by TDCI’s Insurance Fraud Investigations and Legal teams who ensure the protection of Tennesseans by holding accountable insurance producers who are engaged in unlawful activity.

Anderson was found to have misappropriated a total of $318,587 from a client trust fund in 2010 for her own personal use and enjoyment. She reportedly used the money to finance a condominium and a waterfront home in Orange Beach, Ala. and Her actions also led to a criminal felony conviction.

“Tennesseans deserve and demand quality service from their insurance producers,” said TDCI Commissioner Julie Mix McPeak. “An insurance producer license is a privilege, and these individuals violated the trust of the Tennessee public and, therefore, have lost that privilege. The Department will continue to enforce our insurance statutes and will not hesitate to remove bad actors from the business of insurance.”

On May 20, the TDCI entered into a Consent Order with Anderson, revoking her insurance producer license and imposing a civil penalty for having been convicted of a felony, using fraudulent and dishonest practices and demonstrating financial irresponsibility in the conduct of business.