A Metairie surety bond producer has been ordered to refund more than $1.2 million to customers and pay the maximum fine allowed under Louisiana law after regulators found he fraudulently overcharged clients on insurance premiums.
Louisiana Department of Insurance Commissioner Tim Temple announced that Alexander Ellsworth and his agency, Ellsworth Corporation, will repay excess premium payments and pay a $250,000 fine for charging customers fees above the lawful premiums quoted by insurance companies. The $250,000 fine represents the maximum penalty permitted under state law.
The enforcement action follows a cease-and-desist order and notice of revocation and fine issued in June 2023. That action remained under appeal until a settlement agreement was reached Jan. 28, 2026. The department said the violations involved charging customers additional fees beyond the premiums set by insurers, a practice prohibited under Louisiana insurance law. The investigation was conducted by the LDI Office of Insurance Fraud.
“Construction companies require commercial surety bonds before beginning construction projects and rely on licensed agents to lawfully and fairly handle their policy transactions with insurance companies,” Temple said. “For an agent to profit from breaking Louisiana’s insurance laws violates that trust and will not be tolerated.”
Founded in 1973, Ellsworth Corporation is a Metairie-based insurance agency specializing in surety bonds, construction insurance and related risk management services. The firm was acquired in 2023 by World Insurance Associates.
Ellsworth did not immediately respond to a request for comment.
The Louisiana Department of Insurance regulates insurers and insurance professionals statewide and enforces laws designed to protect policyholders and maintain a fair and stable insurance marketplace.