A Metairie bond producer and its agency have been ordered to repay more than $1.2 million to customers and pay a $250,000 civil fine after state regulators said the firm charged unlawful fees on commercial surety bonds. The action targets bond producer Alexander Ellsworth and Ellsworth Corporation, a long-running local surety and insurance broker that works with construction firms across the metro. The settlement wraps up administrative action that began with a 2023 cease-and-desist order and an accompanying notice of revocation and fine.
In coverage of the announcement, WDSU quoted Insurance Commissioner Tim Temple saying, "For an agent to profit from breaking Louisiana’s insurance laws violates that trust and will not be tolerated. I appreciate the good work of the Louisiana Department of Insurance Office of Insurance Fraud in investigating this matter." The department’s Office of Insurance Fraud led the investigation and urged anyone who believes they were overcharged to speak up.
According to a press release from the Louisiana Department of Insurance, Ellsworth and his agency will refund more than $1.2 million in premium payments and pay a $250,000 fine. The department said the parties reached a regulatory agreement on Wednesday last week that resolves earlier administrative notices and appeals. Regulators also pointed out that the $250,000 penalty is the maximum allowed under state law.
Ellsworth's Metairie operation
Ellsworth Corporation has operated in Metairie for decades and, according to public company listings, became a division of World Insurance Associates in 2023. The firm focuses on surety and construction bonds, positioning itself between insurers and contractors on large local projects. Regulators say that middleman role means any improper fee practices can ripple into construction costs and project timelines.
What contractors and customers should do
Contractors who bought commercial surety bonds through Ellsworth are being urged to pull their paperwork and take a hard look at the numbers. Compare invoices and contracts to the insurer-quoted premium and keep copies of any checks and supporting documents. If you suspect an overcharge, contact your insurer to verify the quoted rate and report the matter to the Louisiana Department of Insurance’s Office of Insurance Fraud at 225-342-4956 or online, as WDSU noted. LDI investigators can help determine whether extra producer fees were permissible under state law.
Regulators' 2023 findings
Louisiana Department of Insurance’s June 14, 2023 cease-and-desist order alleged that Ellsworth created inflated and fictitious surety rates and presented customers with invoices that exceeded the insurer-quoted premium for Arch Insurance bonds. Investigators reviewed Ellsworth’s operating account records, bond invoices, checks and sworn affidavits that supported the complaint. Those findings formed the basis for notices of revocation and fines that the department says have now been resolved through the recent agreement.
State regulators framed the resolution as a win for consumers and for contractors who depend on transparent bond pricing. Because appeals and administrative processes were part of the case, LDI’s enforcement files remain the primary record for anyone seeking details, and affected businesses are being advised to preserve their paperwork while they follow up with insurers or legal counsel.
