January 31, 2021 - ORANGE, Calif. —  Former insurance agent, Karen Marie Dondanville, 53, of Lake Forest, was ordered to pay the California Department of Insurance (CDI) $20,000 in penalties after a judge’s decision that affirms the Cease and Desist Order issued against Dondanville for illegally transacting insurance without a license was adopted.

On January 11, 2021, the Department adopted an Administrative Law Judge’s proposed decision which affirmed the Department’s Cease and Desist Order and ordered Dondanville to pay a penalty of $20,000 within 90 days for her unlawful insurance transactions and fraud.

The Department issued a Cease and Desist Order in March 2020 against Dondanville, doing business as Broadstreet Insurance Services and Streamline Insurance Services, Inc., after a consumer complained to CDI that Dondanville had taken premium money, but failed to place coverage on the consumer’s property. The Department conducted an investigation that discovered that Dondanville continued to sell insurance after her insurance license was revoked on November 6, 2019.

When the investigation uncovered another victim, the Department issued an Amended Cease and Desist Order in September 2020. The investigation revealed that Dondanville collected insurance premiums and provided her customers proof of insurance, however, she failed to secure her customers’ insurance coverage, and the proof of coverage she provided was fraudulent. Dondanville's actions left her customers without coverage, resulting in more than $100,000 in uncovered losses to one victim.

“Dondanville put consumers’ livelihoods at risk when her fraudulent actions left them without insurance coverage,” said Insurance Commissioner Ricardo Lara. “Thanks to the work by our investigators this unlicensed agent has been stopped. My department will continue to aggressively enforce the law to protect California consumers against unscrupulous actors within the industry.”

Investigators believe other California consumers may have also purchased insurance from Dondanville, doing business as Broadstreet, and may be at risk for potential uncovered losses. CDI urges financial institutions, mortgage companies, and consumers who have received certificates of insurance from Dondanville and/or Broadstreet to directly contact the named insurer on their policy to verify it is valid. Anyone with additional information or questions regarding this investigation can contact the Department at (714) 712-7660.

• October 2020 Press Release: Department of Insurance issues Cease and Desist order against Lake Forest unlicensed agent
• Decision and Order Adopting Proposed Decision
• Cease and Desist Order
• Consumers can check the license status of their agent or contact the Department of Insurance at 800-927-4357 if they suspect they are victims of insurance fraud.
Source: CA. Dept. of Insurance