TYLER MAN INDICTED

John William Tesseyman III of Tyler, Texas was indicted by a Travis County grand jury for activities that possibly left dozens of petroleum product truckers and fireworks display companies without the automobile, liability and property coverage they bought. According to the Texas Department of Insurance many individuals, agents and other entities in Texas and other states have sustained financial losses and incurred claims for which they may never be compensated as a result of Tesseyman’s alleged unauthorized conduct. The six-count indictment lists premium payments totaling more than $1.8 million from 35 different customers. Several of the premium payments were in six figures, including one for $655, 858. The premiums were deposited into the bank account of the Tesher Corp. of Tyler, owned by Tesseyman. His unauthorized insurance activities allegedly occurred from Oct.1, 2001 to June 5, 2002, when a warrant was issued for his arrest. Tesseyman was ordered by Insurance Commissioner Jose Montemayor to stop those activities. Travis County District Attorney Ronald Earle’s office obtained the indictment following a joint investigation with TDI’s Insurance Fraud Unit. Under Texas law, the Travis County district attorney has statewide jurisdiction in insurance fraud cases. Tesher Corp. was licensed in 2001 as an insurance agency. The corporation’s license permitted it to sell only life and health insurance, and not property and casualty insurance, such as liability coverage. TDI denied Tesher Corp.’s application for a property and casualty insurance agent’s license. The property and casualty policies in question were allegedly illegally sold or marketed by the corporation. In a separate administrative action, TDI attorneys are seeking the revocation of Tesseyman’s individual licenses as an insurance agent. The Tesher Corp. has been placed in state receivership. TDI staff allege that Tesseyman and the incorporated agency failed to provide actual policies to customers, misrepresented policy terms or failed to secure the coverages that policyholders had been promised. They contend that Tesseyman and Tesher Corp. collected premiums for policies with companies that Tesseyman no longer represented. TDI staff further allege that Tesseyman failed to remit premiums to insurers and failed to refund premiums collected for insurance that was not procured.

Topics Texas Property Casualty