The state insurance department has filed an 11-count complaint against Hybrid Insurance Group, the company that has defaulted on a state loan and failed to pay $670,000 in insurance premiums for the City of Hartford. Hybrid's CEO Earl O'Garro has 20 days to respond, and must appear at a hearing scheduled for November 21.
According to the complaint, if the allegations against O'Garro are proven true, his license could be revoked or suspended. He could also face fines.
In the first count, the state alleges that Hybrid has "never provided satisfactory explanations" about the missing $670,000 in premiums it was supposed to pay on Hartford's behalf. In a second count, the state says Hybrid bounced a check with funds that were intended to pay another, unrelated policy. That policy was eventually paid, but not soon enough, the state says.
The remainder of the complaint alleges various different policies on which Hybrid has had problems fulfilling its obligations, leaving some policies canceled and not reinstated. But perhaps most striking is this allegation: "On or about Sept. 26, 2013 Associated Industries Insurance Company, Inc...reported to the Department that [Hybrid] attempted to induce Capital Premium Financing, Inc...to finance premiums on four purported insurance policies for Connecticut businesses that exist in name only."
The complaint goes on to say that Associated did not issue policies for any "fake businesses."
Also, the complaint says that O'Garro had his license revoked in Virginia in July for failing to pay fines and penalties from 2012. The state says O'Garro should have informed it of that action.
Finally, the state says O'Garro has not responded to several letters sent out regarding the issues above.
