Woman Convicted of Insurance Fraud

A Redondo Beach woman has been convicted of six felony counts of insurance fraud for issuing more than 1,000 fake errors and omissions insurance policies across the United States, the Insurance Journal reported Monday.

Margaret Murray Manning was sentenced to 90 days in jail, three years probation and 100 hours of community service, the Journal reported.

As part of Manning Riddell Insurance Services Inc., Manning and her partner, Redondo Beach resident Christine Joann Riddell, 68, sold errors and omissions policies to life insurance agents; however, the pair did not actually create the policies or forward premium payments to an insurance company, the California Department of Insurance told the Journal.

Errors and omissions policies cover business professionals, such as life insurance agents, in case of errors that don't physically affect a person or business, such as negligence or misrepresentation.

Riddell pleaded guilty in 2010 to 12 felony counts of insurance fraud. She was sentenced to three years probation, the Journal reported. Both women surrendered their licenses to sell insurance. The judge also ordered the pair to pay $130,000 in restitution to their victims.