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Have the same issue.  Exact match domain (www.baseplates.com), but single doorway page with links to the owners site, www.adventurerv.net.  What up?

It's about keeping short and making it sound good & trust worthy. A suggestion would be millerinsurance.com   you are selling insurance   or another approach would be some idea that could become a brand ex:  myinsurance.com make a brand out of the domain name. As a guru here at SEOmoz said a domain name is only useful for [exact match] so unless you have floridainsurance.com you have to think the other way what people are searching make a brand out of that and work out seo to reach 1st position for optimized keywords. millerbenefits.com  - are people searching exactly that? if yes you're going to have a slight advantage but if no it would be the same as   millerinsurance.com where people can remember your site from the first 5 sec on it.

I agree that californiahealthinsurance-quotes.com looks the most spammy. .Net is also often associated with spam. I would probably go with taylorbenefitsinsurance.com because that looks the most like a legitimate business.

Do not request for Google to remove the URL. It would mean the page would be de-indexed for 90 days. The cleanup will depend on the root cause. If there is an issue on the site right now then you cannot resolve the problem until it is fixed. Report the issue to your host and ask they run a security scan. Meanwhile run your own scans and upgrade the site to 1.7. Change all passwords then check the site again.

Does this provide any SEO value to the receiving site? No Has anyone  experienced problems doing this? There are not any problems that can arise from this issue unless the target site which belongs to the SEO receives a penalty. If you stick with SEOs whom use only white hat techniques this should never be a problem. Does this negatively impact the site with the links? No. If you want to really look at this topic under a microscope then a very small amount of PR would flow from your site to the SEO's site. How small? If your site had 100 links per page and the PR flowed evenly to all links then we are talking about 1%. Google has inferred they devalue footer links so most likely it is a fraction of one percent. If the SEO is doing their job well and you are pleased with their performance, I would suggest leaving the link. If you are unhappy with the SEO's performance and would not recommend their services, remove the link. Personally, the link is something I discuss with clients upfront. I inform them exactly the words I shared in the above paragraph. If you are happy with me, leave the link and otherwise remove it.