A Kennebunk, Maine, property-casualty insurance agency and its owner have lost their insurance licenses after being accused by the state of misusing money from clients.

Thomas Osborne and his agency, Chapman Associates, had their licenses revoked by the Maine Bureau of Insurance. Osborne must also pay a penalty of $6,000 and an additional $500 to the bureau to reimburse it for the cost of their investigation.

Under terms of an agreement, Osborne admitted to allegations that he misused monies in the agency’s “premium trust fund account” intended for depositing premium payments from customers to pay insurance companies. The premium trust fund account should not be used in any other way, the bureau said.

Maine Superintendent of Insurance Mila Kofman found that Osborne “failed to conform to the standards of professional conduct for insurance producers” by withdrawing funds from the account on numerous occasions to cover business expenses, her office said.

“The misuse of funds that were entrusted to him by his customers, and the resulting failure to make timely payments of collected premiums to insurers, were violations of his fiduciary obligations and therefore warranted the most severe license sanction,” Kofman’s office said in a statement.

Policyholders did not lose coverage through Chapman as a result of the investigation and consent agreement.

“The vast majority Maine’s insurance professionals are honest and reputable,” Kofman said in a statement. “They seek to help consumers and they act in the best interest of Maine families and businesses. When someone deviates from this norm and violates an important trust, the Bureau can and will take strong action.”