Kelsey Ketron serves on the Tennessee Republican Party State Executive Committee for District 13..

She's the daughter of Rutherford County Mayor Bill Ketron.

Kelsey Ketron was not a licensed insurance agent while updating a home owner policy, state reports.

Ketron's family insurance agency faces lawsuit for leaving homeowners uninsured for damages.

Kelsey Ketron, a Tennessee Republican Party official, committed "fraudulent" insurance agent practices, a state order contends, and she's been ordered to stop selling insurance.

Ketron "intentionally provided incorrect insurance information to a consumer's bank for the sole purpose of personal financial gain, effectively canceled the consumer's homeowners insurance policy without the consumer's authorization, and lied to the consumer about the existence of the homeowners insurance policy," states a May 29 cease and desist order from the Tennessee Commission of Commerce and Insurance.

A license revocation hearing will be held at 10 a.m. Wednesday in Room 1B on the first floor of the Davy Crockett Tower in Nashville.

The state order focuses on Ketron's work as an agent serving Susan Calvin an insurance policy for a home in Shelbyville. Calvin said she thought her home was insured in 2018 but learned the policy she purchased in 2015 from Ketron's Universal International Insurance agency was no longer valid. The agency also faces a breach of contract lawsuit from Calvin and her husband because the couple were unable to file a claim to cover $127,230 in damages from a frozen pipe that burst January 2018.

"It’s been devastating," Calvin said during a Tuesday phone interview. "I just feel so violated."

Ketron won election August 2018 on a Rutherford County ballot to serve on the Tennessee Republican Party Executive Committee as a representative for District 13. That's the district her father, Bill Ketron, represented as a state senator before becoming Rutherford County mayor. He won a four-year term on the same Election Day his daughter won her party seat.

Phone messages left for Kelsey Ketron and her father on Monday afternoon were not returned. Both are part of their family business, Universal International Insurance in Murfreesboro.

Insurance agents must be licensed

Kelsey Ketron had been a licensed insurance agent from Feb. 16, 2012, through Aug. 31, 2016, but her involvement with the Calvins as an unlicensed insurance representative continued in 2017 and 2018, according to the state order.

Insurance companies and providers are required to be licensed by the state in order to conduct business, said Kevin Walters, a spokesman for the Tennessee Department of Commerce & Insurance.

The Murfreesboro Police Department also has investigated the fraud accusations, spokesman Larry Flowers confirmed.

"The case is part of an ongoing investigation and therefore, we are not able to comment at this time," Flowers said.

What happened while not licensed

By Sept. 8, 2017, when Kelsey Ketron was no longer a licensed insurance agent, she "intentionally misled" Calvin's mortgage holder, Wells Fargo, "stating that the policy the bank had on file was no longer accurate," according to the order.

"She also told the bank the annual premium for the upcoming year was going to be ($1,608), the check should be made out to Appalachian Underwriters and the check needed to be mailed to (her) business address," the order states.

The check arrived Sept. 12, 2017, and Kelsey Ketron signed for the check at her family business, according to the order.

Calvin, meanwhile, questions why her home wasn't insured.

"That check was cashed," Calvin said.

By early 2018, Calvin's home suffered water damage due to a frozen pipe bursting, the order states.

"Calvin contacted (Kelsey Ketron), who initially appeared to begin the claims process and even sent workers to Calvin's home to conduct an inspection," the order states. "However, (Kelsey Ketron) soon stopped providing updates on the claim and then ceased communications with Calvin altogether."

Calvin then contacted Well Fargo, and the bank referred her to Appalachian.

"Appalachian notified Calvin that the company had no record of any policy for Calvin or for her property address," the order states.

Since then, Calvin said she and her husband have been unable to get traditional homeowners insurance. She'd had to accept "forced-place insurance" through her mortgage company, and this policy covers less than traditional insurance. She's also had to take out a separate policy on her home furnishings and other personal property. The total she spends now for insurance for her home is about $500 more than what a traditional policy would cover, Calvin said.

"This is something that we’ll be paying for the rest of our lives," Calvin said. "It’s just a horror story from beginning to end."

Ketron insurance agency faces lawsuit

Susan Calvin and Charles Daniel Calvin filed their lawsuit against Universal International Insurance Agency on Aug. 30, 2018. The agency failed to supplement the Calvins' insurance policy application and "never forwarded their payment to any insurance company, causing Calvins' home to be uninsured," states the lawsuit filed by Murfreesboro attorney Heather Parker with Bulloch, Fly, Hornsby & Evans.

The Calvins are demanding a jury trial and a judgement of $500,000, plus legal costs, according to their lawsuit.

Universal International Insurance is represented by Knoxville attorney Broderick L. Young. The lawyer has requested that this case be dismissed and filed a motion seeking a court order to quash "certain defective subpoenas issued."

All Rutherford County judges recused themselves from hearing the lawsuit, so Judge Brody Kane in Lebanon is presiding over the case.

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GOP choose Ketron to be nominee:Bill Ketron captures Republican primary for Rutherford County mayor's race

Ketron seeks to be Rutherford mayor:State Sen. Bill Ketron announces bid for Rutherford County mayor

What should the government do to regulate the insurance industry? Reach Scott Broden at sbroden@dnj.com or 615-278-5158, and follow him on Twitter @ScottBroden.