Insurance Firm Trying to Regroup

The Des Moines Register

June 7, 1992

The Administrators, a small Sioux City insurance firm worked primarily as a go between, collecting premiums and paying claims for grain dealers and their insurance carrier, Washington National Insurance Co.

After a 14 year relationship Washington National canceled the program, saying "The Administrators had been "delinquent" in forwarding customers' premiums to Washington National.

Because this contract was 95 percent of The Administrator's business they had to close the Sioux City office and lay off 20 of his employees.

The Administrator's owner, Robert Hoefer denied the allegations made by Washington National and stated that Washington National cooked up the story to get out of an unprofitable contract.

A jury in Chicago agreed with Hoefer and ordered Washington National to pay The Administrators nearly $1.7 million for breach of contract and slander

[Summary of the Des Moines Register Article – see Des Moines Register website for complete article]