MCALISTER, Okla. — Cheri Ellis, an insurance agent in McAlester, has lost her license and been fined following an investigation by the Oklahoma Insurance Department.
The decision came after Ellis was found to have mishandled customer premium payments and issued false insurance documentation.
Investigation Findings
The Oklahoma Insurance Department’s Anti-Fraud Unit launched an investigation after receiving five complaints alleging that Ellis misappropriated over $90,000 in customer premium payments, provided a fraudulent Certificate of Insurance, and misrepresented premium amounts owed.
A show cause hearing was held on November 13, 2025, at the Oklahoma Insurance Department offices before an independent examiner. Ellis failed to appear at the hearing.
Violations Committed by Ellis
The hearing officer determined the following violations:
- Failure to remit premium payments from five customers to the proper insurer, causing policy cancellations.
- Failure to return premium to a customer within 30 days of receipt.
- Issuing false or altered Certificates of Insurance.
- Misleading customers by accepting more than required premiums, altering payment terms, and misrepresenting policy cancellations.
As a result, the Oklahoma Insurance Department revoked Ellis’ license and issued a $12,000 fine.
Agency Affected
Cheri Ellis was the owner of Independent Insurance Agency in McAlester. The department’s action underscores the importance of compliance and honesty in the insurance industry to protect consumers from fraud.
Summary Table of Key Facts
| Item | Details |
|---|---|
| Agent | Cheri Ellis |
| Location | McAlester, Oklahoma |
| Agency | Independent Insurance Agency |
| Investigation | Oklahoma Insurance Department Anti-Fraud Unit |
| Complaints | 5 customers |
| Misappropriated Amount | $90,000+ |
| Violations | Mismanagement of premiums, false insurance documents, misleading customers |
| Action Taken | License revoked, $12,000 fine |
| Hearing Date | November 13, 2025 |
The Oklahoma Insurance Department’s revocation of Cheri Ellis’ license highlights the serious consequences of insurance fraud.
Mishandling premiums and providing false documentation not only harm customers but also undermine trust in the industry.
Regulatory oversight remains crucial to protect consumers and maintain ethical standards in insurance services.
