Chaney said in a news release Friday that the action was taken against Indiana-based agent Timothy Allen Craig, who is licensed to do business in Mississippi.
The refund will go to 500 insured farmers. It was for inspections of poultry facilities that were never performed.
Inspections of poultry facilities are generally required before insurance coverage is issued.
Chaney says Craig has also paid a $1,000 fine to the MID and his Mississippi license is on probation for 1 year.