A Fort Dodge insurance agent who has worked with Webster County and the regional waste agency has received a two-month suspension of his license from state regulators.

John Dencklau, of Dencklau Insurance Services, had his license suspended and was ordered to pay more than $11,000 by the Iowa Insurance Division.

The enforcement order from the division, released May 23, said Dencklau charged a client more than $8,000 which was not owed, and did not pass the sum on to State Auto Insurance Co. in 2011.

The order also said Dencklau led the client to believe it had coverage when it did not, and told the client any cancellation notices it would receive were errors.

The order prohibits Dencklau from transacting insurance business from July 1 to July 15, and suspends his license from July 16 to Sept. 7.

Dencklau manages Webster County’s liability insurance, which is through Iowa Communities Assurance Pool, and has been involved with county workers’ compensation through Iowa Municipalities Workers’ Compensation Association, according to Amy Porter, Webster County human resources director.

He also has been involved with workers’ comp at the North Central Iowa Regional Solid Waste Agency.

“Like a lot of businesses we had some financial difficulties after 2008 related to some real estate investments,” Dencklau said in a written statement, “and we have been working our way through that for the last eight years.

“This consent order is the last part of that work-out and I look forward to continuing to provide great services to my customers once it is completed. In the meantime, Jan Tepfer is servicing our customers and they should notice no changes in their coverage.

“I regret that this happened but I am pleased to live and work in a community of great people, good friends and loyal customers,” he said.

Porter said questions about the county’s insurance should go through the auditor’s office.

Carol Messerly, Webster County auditor, was unavailable Wednesday.

Webster County has not had any problems with its insurance coverage, said County Supervisor Bob Singer.

In regards to Dencklau, Singer said, “If we’ve had a claim, he handled the claim. If we’ve had questions about making a change – let’s say we add a building, add a vehicle, he has answered the questions satisfactorily.”

The county’s insurance is still in effect regardless, according to Singer.

“I’m sure the coverage is in effect. I’m sure the ICAP would address various claims – that’s the important part,” Singer said.

Singer said the board will likely discuss the issue in the future, but didn’t know what, if anything, would come of it.

He added that he doesn’t speak for the board, and referred to board chair Mark Campbell.

A call to the waste agency was also referred to Campbell, who is chair of the agency’s executive board.

Attempts to reach Campbell were unsuccessful Wednesday.

Dencklau, called the “respondent” in the order, allowed coverage to lapse several times when dealing with an unidentified client called “Client A” from 2011 to 2013, according to the order.

No issues after 2013 were listed in the order.

“Respondent has deposited checks for premiums from clients, including Client A, into the (business) checking account,” the order stated. “Respondent failed to timely remit premium payments to the proper insurance companies that he received from his clients, including Client A.”

State Auto cancelled the client’s policies four times in 2011, but reinstated them when Dencklau said the problems were with Client A’s new comptroller, the order said. The client had paid in full at the beginning of the year.

State Auto then declined to renew the client’s policies due, in part, to payment history, according to the order.

After policy termination, Dencklau sent a bill for $9,416.50 to the client, even though only $2,008 was owed by the client to State Auto, the order said.

“Respondent billed and collected payment from Client A for over $8,000 that Client A did not owe and that was never paid to State Auto,” the order states.

Dencklau told The Messenger that this $8,000 was due to a billing error. He said he offered to reimburse it back in January, and did in fact reimburse it as soon as the order was signed.

In 2012, the client paid a full year premium of about $52,000 to Dencklau’s office, which was not timely paid to Travelers Insurance, according to the order.

When Travelers sent a cancellation notice in February 2012 because it hadn’t received the full premium, the client had no worker’s compensation coverage for about a month, the order said.

Dencklau told The Messenger no one had any lapses in coverage, from what his office was told, and a broker agency had taken care of that account.

Later Dencklau issued a certificate to provide proof of insurance to Koch Nitrogen LLC., in September 2012, even though he knew insurance had been cancelled for non-payment, the order said.

Dencklau said the certificate was issued because they thought it was in place, through the broker.

Without the client’s knowledge, Dencklau arranged to have any cancellation notices from Traveler’s sent to him and not the client, the order said.

“Respondent instructed Client A to discard any letters or cancellation notices it may receive from Travelers, explaining that there was nothing to worry about, but simply confusion in the billing process and that large companies are difficult to work with,” it said.

With other clients, at least four accounts with German Mutual Insurance Association were flagged for having outstanding or overdue balances, from December 2010 through early 2013.

“Respondent typically held the premium payment he received from his customers for three months before remitting it to the insurer,” the order said.

In January 2013, IMT Insurance took away Dencklau’s ability to charge the agency for IMT business, “due to continued problems,” according to the order. That state of affairs has continued to this day.

Dencklau said he hasn’t had any issues with IMT in the last three or four years, and it’s all been taken care of.

The order requires Dencklau to pay $8,122.50 for restitution, and $3,000 as civil penalties.

The document also includes a consent to the order, signed by Dencklau.

Dencklau has been licensed as an insurance producer for 36 years, according to the order.