For Immediate Release: January 7, 2011

Lumberton Couple Arrested on Charges of Insurance Fraud

RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the arrests of Randy King, 53, and Carolyn Killens King, 55, both of 904 Spruce St., Lumberton.

Both are charged with one count each of willfully failing to pay group insurance premiums and failing to give proper notice to those insured of intent to stop payment of premiums, in violation of North Carolina General Statutes, section 58-50-40.

Department of Insurance criminal investigators allege that between April 1 and July 8, 2010, Randy and Carolyn King, owners and managers of Unique Family Services, did not pay the premiums for the company's group health insurance policy, resulting in the insurance company cancelling the policy. The approximately 10 employees on the plan were allegedly not given 45 days written notice that the group health insurance was to be terminated, as is required by law.

The Kings were arrested on Jan. 6. Each was placed under a $5,000 unsecured bond and scheduled to appear in Robeson County District Court on Jan. 7.

The Department of Insurance employs 20 sworn law enforcement officers dedicated to investigating claims of insurance fraud. In 2010, these criminal investigators have seen more than 402 cases successfully closed with more than $21.1 million in restitution and recoveries, 88 criminal convictions and 126 arrests.

An estimated 10 cents of every dollar paid in premiums goes toward the payment of fraudulent claims. To report suspected fraud, contact the Department of Insurance Criminal Investigations Division at 919-807-6840. Callers may remain anonymous. Information is also available at www.ncdoi.com.

--NCDOI--