ANN News-Spy Tom Johnson sent us a release from the office of the Insurance Commissioner in Oklahoma. The release says that Commissioner Mr. Carroll Fisher (right), last Friday, placed a Bethany (OK) insurance agency into supervision after it was learned its owner may have stolen more than $100,000 from her customers in the form of refunds she hid from them.

Aviation Insurance Group Agency was placed under supervision, and the licenses of its owner, Shirley B. Porter-Hart of Piedmont, and its vice president, Cynthia B. Pennington of Bethany, were suspended, following an investigation into the allegations.

In addition, Fisher appointed a supervisor for the agency to oversee payments to policyholders. It is believed this is the first time an Oklahoma insurance commissioner has placed an agency into supervision, although the practice is common when insurance companies have financial difficulties.

Porter-Hart and Pennington are alleged to have pocketed money refunded by the companies they represented to their customers. In most cases, money was refunded to the agency after policies were cancelled early but the agency did not notify the policyholders, eventually moving the money into its own accounts.

David Meuser, of the Commissioner's office, told ANN that existing policies will remain in force. The agency itself is now under state supervision; "We are not attempting to close the agency at this time. The policies remain in force," he said. "Some of the insureds are likely owed some refunds; the agency's commissions will be used, to cover these refunds. If there isn't enough money to make the required refunds, we may have the insuring companies cover the necessary refunds."

In some cases, we were told, policyholders were aware refunds were due, but agency employees were told to withhold 5 percent. Policyholders were not told money was withheld from their refunds. "This is a case in which I have determined that, since the agency is unable to pay its policyholders what they are owed, the Oklahoma Insurance Department will take all steps possible to make sure they are," Fisher said.

Fisher ordered the insurance companies with which the agency did business to continue paying commissions to the agency but hold any commission payments to Porter-Hart and Pennington until a final determination is made of their license.

Although an investigation is ongoing as to how much money was stolen from policyholders, officials believe the figure ultimately will exceed $100,000.

Aviation Insurance Group Agency specializes in coverage for small, privately owned airplanes. The better-known AIG, meaning American International Group, is not happy with the undeserved confusion, that seemingly always happens. One of their underwriters wrote us, "It's not us! This is an agency in Oklahoma. They insure several clubs through their agency: Cherokee Pilots; the International Cessna 170 Association; Short-Wing Piper club; International Cessna 120-140 Association; Cardinal Club. Rest assured, American International Group, including AIG Aviation, is as strong as ever."

We would urge you: DO NOT confuse Aviation Insurance Group with AIG Aviation. Aviation Insurance Group is only an agency (or broker). They are not a part of American International Group. AIG Aviation is the aviation insurance underwriting division of American International Group.

Porter-Hart and Pennington have 30 days in which to appeal Fisher's order and request a formal hearing in front of hearing officer.

Our underwriting friend advised us: "If their insurance renewal is coming up soon, they need to get busy..."

FMI: www.oid.state.ok.us