February 6, 2025 | JacobiJournal.com — Washington Insurance Agent Accused: A former Seattle insurance agent, Edward Hadley, has been charged with stealing more than $424,000 in insurance premiums from clients. After failing to appear in court, a King County judge issued a bench warrant for his arrest. Hadley faces nine counts of first-degree theft and insurance fraud following an investigation by the Washington Office of the Insurance Commissioner (OIC).
Insurance fraud cases like this raise serious concerns about consumer trust and financial accountability in the industry. Authorities warn that schemes involving misused client premiums not only harm policyholders financially but also undermine confidence in legitimate insurers. Regulators emphasize that vigilance is necessary to protect consumers, urging clients to verify their payments and policies directly with carriers to avoid falling victim to similar misconduct.
How the Fraud Unfolded
Investigators revealed that between December 2020 and November 2021, Hadley diverted 21 checks totaling $424,107 into his personal account instead of the appropriate business account for HUB International Northwest LLC, his employer at the time.
The fraud came to light when one of Hadley’s business clients switched their earthquake insurance provider to Superior Underwriters. When the new insurer requested copies of previous policies, they discovered discrepancies in terms, premiums, and contract dates. Worse, Hadley had reportedly provided falsified proof-of-coverage documents.
Superior Underwriters immediately reported the issue to the OIC, which launched a regulatory investigation.
Deceptive Practices and Misused Funds
Eleven clients confirmed they had made payments to Hadley’s insurance agency, not to him personally. However, Hadley allegedly altered the payee name on the checks to “City B Properties” and deposited them into his personal ATM account.
While Hadley did return $276,387 to HUB International Northwest, it remains unclear whether those funds were reimbursed to affected clients. The remaining $147,719 remains unaccounted for, according to the OIC.
Legal Consequences and Industry Fallout
As a result of the investigation, Hadley was added to Insurance Commissioner Patty Kuderer’s “Most Wanted” insurance fraud list. Additionally, the OIC revoked his insurance producer license in June 2024.
Authorities are urging anyone with information regarding Hadley’s whereabouts to come forward. Cases like this highlight the importance of vigilance in the insurance industry to protect consumers from fraudulent agents.
For consumers, this case serves as a reminder to verify that premium payments are made directly to the insurance company rather than an individual agent. Experts also recommend reviewing policy documents regularly and contacting insurers directly to confirm coverage details. These preventative steps can reduce the risk of falling victim to insurance fraud while reinforcing accountability across the industry.
Read the full report from the Washington Office of the Insurance Commissioner.
New Update: Washington Insurance Agent’s $424,000 Premium Theft Case Remains Unresolved in Public Records
The Washington insurance fraud case involving former Seattle insurance agent Edward Hadley continues to raise concerns about the handling of client premium payments and the verification of insurance coverage. On February 3, 2025, the Washington State Office of the Insurance Commissioner (OIC) announced that Hadley had been charged with nine counts of first-degree theft following an investigation into more than $424,000 in allegedly misappropriated insurance premiums.
A King County judge issued a bench warrant on January 15, 2025, after Hadley failed to appear in court. Investigators alleged that between December 2020 and November 2021, Hadley deposited 21 checks totaling $424,107 into an account under his control rather than directing the payments to his employer, HUB International Northwest LLC.
The OIC had already revoked Hadley’s insurance producer license in June 2024. As of October 2026, the publicly available official announcements reviewed do not establish whether Hadley was subsequently arrested, entered a plea, stood trial, or received a criminal sentence. The original charges therefore remain allegations unless a verified court disposition establishes otherwise.
The investigation also exposed weaknesses that can arise when policyholders rely exclusively on an insurance intermediary to confirm that coverage has been properly arranged. According to the OIC, the alleged misconduct came to light after a commercial client changed earthquake insurance providers and the new company, Superior Underwriters, requested documentation concerning the previous policies.
The documents reportedly contained inconsistencies involving policy terms, premium amounts, and issuance dates, prompting the new provider to report suspected irregularities. Regulators subsequently interviewed 11 customers who confirmed that their premium checks had been made payable to the insurance agency rather than to Hadley personally.
Investigators alleged that Hadley altered the checks by adding the name City B Properties and deposited the funds through an automated teller machine. The OIC reported that $276,387 had been transferred back to HUB International Northwest, although it could not confirm whether affected consumers received reimbursement. An additional $147,719 remained unaccounted for in the agency’s February 2025 announcement. These figures describe the findings available at that time and should not be interpreted as verified balances remaining outstanding in October 2026.
The case remains relevant to Washington’s broader insurance fraud prevention efforts because premium diversion can expose consumers to financial losses and uncertainty about whether their policies provide the coverage they expect. The OIC’s Criminal Investigations Unit continues to investigate suspected insurance fraud and accepts reports involving potentially fraudulent conduct by insurance agents, policyholders, and other participants in insurance transactions.
For businesses purchasing commercial insurance, the Hadley investigation illustrates the importance of independently confirming policy details with the issuing insurer, retaining payment records, and reviewing certificates of insurance and policy documents for discrepancies. A certificate or other document supplied by an intermediary should not be treated as conclusive evidence that a premium was received or that a policy remains in force.
Consumers can also use the Washington insurance regulator’s licensing resources to verify whether an insurance producer is authorized to conduct business. These precautions cannot eliminate every risk, but they can help identify irregularities before they result in significant losses. Until additional verified court records become available, Hadley’s prosecution should be described as an unresolved criminal case rather than a conviction or completed restitution proceeding.
FAQs: Insurance Fraud Cases in Washington
What led to the insurance fraud charges against the Washington agent?
Investigators found he diverted more than $424,000 in client premiums into his personal account and provided falsified coverage documents.
How did insurance fraud in this case come to light?
A client switched providers, and the new insurer uncovered discrepancies in policy records, leading to a formal investigation.
What are the legal consequences for insurance fraud in Washington?
The agent faces nine counts of first-degree theft, a revoked license, and placement on the state’s “Most Wanted” insurance fraud list.
How can consumers protect themselves from insurance fraud by agents?
Clients should verify payments go directly to the insurer, request official policy documents, and confirm coverage with the carrier.
What percentage of insurance premiums go to the agent?
Insurance agents typically earn a commission on premiums, which varies by policy type and company. While agents are entitled to commissions, client premiums are not the agent’s personal funds—Hadley’s case demonstrates the consequences of misappropriating those payments.
What is the B&O tax rate for insurance agents in Washington state?
In Washington, insurance agents pay Business & Occupation (B&O) tax on gross income, which can vary depending on the business classification. Compliance with B&O tax rules is mandatory, and fraudulent handling of premiums, like in Hadley’s case, can trigger additional legal scrutiny.
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