“Hole-in-Won” Golf tournament insurer charged with felonies after not paying up

OLYMPIA, Wash. _ A Connecticut businessman who specializes in insurance for golf tournament hole-in-one prizes has been charged with multiple felonies after repeatedly failing to pay up.

Kevin Kolenda, of Norwalk, Conn., was charged Wednesday in King County Superior Court with five counts of transacting insurance without a license, a class B felony. His arraignment is slated for Sept. 5.

Kolenda, 54, ignored a previous cease-and-desist order and a $125,000 fine from state Insurance Commissioner Mike Kreidler.

“We’ve been warning the public about Mr. Kolenda’s scam for years,” said Kreidler, whose Special Investigations Unit did the investigation that led to the charges. “He has a long history of selling illegal insurance, refusing to pay prize winners, and thumbing his nose at regulators.”

In some cases, charities have had to come up with the prize money. In others, the prize winners agreed to forego a prize.

Kolenda in 1995 started a business called Golf Marketing, working out of a home his parents owned in Norwalk. Since then, the business’ name has changed several times, including: Golf Marketing Worldwide LLC, Golf Marketing Inc., Hole-in-Won.com, and currently Hole-in-Won.com Worldwide. The company also has a regional office in Rye, N.Y.

Kolenda has repeatedly failed to pay winning golfers in Washington. Among them:

• In 2003, Kolenda illegally sold insurance for a tournament in Bremerton. But when a golfer got a hole in one and tried to claim the $10,000 prize, Kolenda wouldn’t pay.
• In 2004, Kolenda sold insurance for a Vancouver tournament. Again, a golfer got a hole in one. Kolenda refused to pay the $50,000 prize. After a hearing at which Kolenda failed to appear, he was ordered in 2008 to pay a $125,000 fine. He never did.
• In 2010, Kolenda sold coverage to pay $25,000 for a hole in one during a golf tournament in Snohomish. A player got a hole in one. His golf partners signed notarized forms attesting to the hole in one. The prize remains unpaid, despite numerous calls and emails from the partners and tournament officials.
Similar allegations have been made against Mr. Kolenda and/or his business in numerous other states, including Montana, Ohio, Georgia, California, New York, Hawaii, Alabama, Massachusetts, Florida, Connecticut and North Carolina.

"Auto accidents have decreased. Why did my insurance rates go up?"

Q: I read that auto accidents in Washington state have decreased, as have accident-related deaths. But my insurance premium just went up 15 percent. What's going on?

A: As Washington state's insurance regulator, we do our best to hold down insurance costs. But there are things other than accident rates that can affect your auto insurance premiums. Theft rates, auto glass costs, health care costs (for injuries in a crash) can all play a role. So can the fact that modern vehicles, with more airbags, high-strength steel and sophisticated safety features can be more expensive to repair.

Rates are driven by insurers' actual claim payments, administration costs and the company's cost and loss projections for the near future.

Why it's important to read "whole life" policy annual statements

Q: I just got the annual statement for my "whole life" insurance policy. Should I just toss this, or do I really need to read this thing?

A: You should read it. Here's why: With whole life insurance, the monthly cost of insurance increases as you get older. If you have a loan against your policy, or if you chose a low premium option, then at some point the current level of premiums won't be enough to keep the policy in effect, and it will end.

By reading your policy's annual statement on a regular basis, you'll be able to increase the amount you're paying in premiums so that you can prevent this from happening.

Former state insurance commissioner Dick Marquardt has died

Dick Marquardt Sr., who served as the state's insurance commissioner from 1977 to 1993, died Aug. 9th in Seattle.

Idaho-born Marquardt was the 6th of the eight people who've served as insurance commissioner since 1909. He was a University of Washington graduate, served in the Army during World War II, and worked as a longtime fuel-oil company executive.

He was appointed by then-Gov. Dan Evans to head the state's selective service system, and he also served a term as state senator representing District 45 in King County.

He served four terms as insurance commissioner, and continued to work as a consultant well into his 80s. He was an avid golfer, and loved baseball.

There's a long and touching obituary in the Seattle Times. From it:

Dick was the beloved patriarch of his large family. He was a devoted and proud husband, father, grandfather, great grandfather, and great-great grandfather.

A private service is planned at a later date.

Also from the obituary:

He leaves behind a legacy of integrity, hard work, humor, unconditional love, and pure enjoyment of the good things in life. He will be greatly missed by all who were lucky enough to know him. Dad, you were unforgettable.

Insurance claims help, donations, and other resources re: the Taylor Bridge wildfire

As fire crews work to rein in the Taylor Bridge fire, some families are being allowed back in to check on their homes, dozens of which have been lost in the first this week. Here are some tips and resources for those who lost property in the blaze.

• The state Department of Transportation, which is investigating whether a bridge project contractor caused the fire, is urging anyone who has lost a home or other property to first contact their own insurer.

• Kittitas County Emergency Services is collecting information on the amount of losses in order to determine if federal disaster assistance will be available. Whether insured or not, it's important that the losses be documented. (Note: The website seems to be offline or overwhelmed; we've had a lot of difficulty opening the page this morning.)

• According to the DOT, the contractor on the bridge project has set up a process for claims that potentially would be addressed by the contractor's insurer. The phone number provided by the contractor is 1-800-238-6225 for Travelers Insurance.

• There is also a state claims process for people who feel they were injured by state actions. There is no short-term deadline for filing a claim, according to the DOT. Here's the state's standard tort claim packet, and here's the process for filing it.

• Insurance claims: For those with insurance, we have these tips about how homeowners and others can expedite their insurance claims. It's important to know that many standard homeowners' policies include some coverage for living expenses -- like a motel -- for folks who lose their homes. That's definitely something to check with your insurer or agent right away. And save receipts for everything, including meals and laundry, that might be relevant. If you need help or run into problems with your insurer, call us at 1-800-562-6900 or email us at AskMike@oic.wa.gov and we'll do our best to help.

• For those seeking updates or emergency shelter information, the state Emergency Management Division has information. Governor Gregoire has proclaimed a state of emergency in both Kittitas and Yakima counties to free up additional firefighting resources. 

• If you want to make donations to the many fire victims -- including livestock that had to be evacuated -- please see this donation information from the state Emergency Management Division. It sounds like donation sites have been overwhelmed with stuff; they're now asking that people consider donating money instead. The link above includes numerous local and state organizations trying to help the fire victims.

• More updates: The local Ellensburg Daily Record and Northern Kittitas County Tribune have running fire updates and photos on their websites.

Is it possible to OVER-insure my home?

Yes. If you think your home is over-insured, ask your agent or insurer when they last made a replacement cost calculation specific to your home. These are done by insurers to figure out what it would cost if they had to rebuild your home after a major covered loss. (Like your home burning down.) If the information used in the calculation is wrong, you can end up with an insured value that's too low or too high.

Your tax assessment value, by the way, is not the value used for insurance purposes. The insurer needs to use a value that reflects an actual and realistic rebuild cost.

Also, your home insurance policy should not have the value of the land included as part of the dwelling coverage. Land is not considered to be insurable property on a home policy.

Wildfire near Cle Elum has reportedly burned 60 homes

A wildfire near Cle Elum, Wash. has reportedly burned 60 homes and 26,000 acres, with summer dryness and high winds making firefighters' jobs difficult.

The Seattle Times has posted some pretty scary photos of local homeowners and ranchers watching the wildfire approach. And the North Kittitas County Tribune is posting a running log of fire news, including a phone number for local evacuation information. The state has also activated its emergency operations center.

Our hearts go out to the victims, and we're monitoring the situation closely. Fire victims should contact their insurer or agent as soon as possible to start the claims process. Many policies include some coverage for emergency shelter, such as motels, if a home is uninhabitable. Our consumer advocacy staff (1-800-562-6900) will be available to help fire victims if they have trouble filing insurance claims.

Here are some more tips:

• Cooperate fully with the insurer. Ask what documents forms and data you'll need to file a claim. Keep a journal of all conversations, including who you talked with and when.
• Ask your insurer about additional living expenses if your home is destroyed. Save all relevant receipts.
• Take photos or video of the damage.
• If there's a disagreement about a claim, talk to the insurer. Ask the company to cite specific language in the policy. If you need help, call our office at 1-800-562-6900.
• If the insurer's offer seems too low, be prepared to negotiate to get a fair settlement.

If you're not affected by the blaze but live in a wildfire-prone area -- and much of the eastern part of the state is very dry right now -- here's a list of tips to prepare and protect your home.

And here's a handy pdf document that will help you get started on a home inventory, which can be a big help in filing an insurance claim after a disaster. You can also use a video camera or one of several smartphone apps to do the same thing.