Texas’ February Enforcements Bring Nearly $1M in Fines, Restitution

Enforcement actions taken by Texas Insurance Commissioner Mike Geeslin that became final during February 2011 resulted in fines and restitution totaling $920,170. The Texas Department of Insurance announced that the actions included six license revocations and three license denials.

Numerous enforcements involved third party administrators. Surplus lines agents were also hit with high fines, including one for nearly $72,000, for failing to file new or renewal surplus lines policies and related documents in a timely manner.

An order imposing disciplinary measures becomes final 20 days after the agent or insurance company has received notice of the order unless a motion for rehearing is filed within that period. A motion for rehearing stays the finality of an order until the Commissioner of Insurance acts upon the motion or upon the operation of law. Commissioner’s orders are subject to appeal to state district court.

TDI Final Disciplinary Orders for February 2011

Administrative Management Services Inc. of Dallas
Order Number: 110150
Date of Order: 2/14/2011
Order Final In: February
Action Taken: Fined $12,000; Third Party Administrator certificate of authority revoked.
Violation: Failed to file annual report; Failed to pay annual report filing fees.

Allen, Elgin B. Jr. of Dallas
Order Number: 110108
Date of Order: 2/8/2011
Order Final In: February
Action Taken: Fined $4,200.
Violation: Failed to file Annual Agent Report for Risk Retention and Purchasing Groups (PG3 report).

Allied Claims Solutions LLC of Dallas
Order Number: 110203
Date of Order: 2/28/2011
Order Final In: February
Action Taken: Fined $12,000; Third Party Administrator certificate of authority revoked.
Violation: Failed to file annual report; Failed to pay annual report filing fees.

American National Property and Casualty Co. of Springfield, Mo.
Order Number: 110182
Date of Order: 2/28/2011
Order Final In: February
Action Taken: Must pay restitution to policyholders.
Violation: Charged and received premium on insurance policy not in accordance with applicable rate filing.

Anco Insurance Services of Houston Inc. of Houston
Order Number: 110176
Date of Order: 2/25/2011
Order Final In: February
Action Taken: Fined $38,480.
Violation: Failed to timely file new or renewal surplus lines policies and related documents.

Brewer, Kimberly Reed of Austin
Order Number: 110109
Date of Order: 2/8/2011
Order Final In: February
Action Taken: Fined $2,000.
Violation: Acted as an Escrow Officer without a license.

Brownhill, James Steven of Katy
Order Number: 110115
Date of Order: 2/8/2011
Order Final In: February
Action Taken: General Lines, Life, Accident, Health and HMO Agent’s License revoked.
Violation: Engaged in fraudulent or dishonest practices.

Christini, Carol Lee of Windsor, Colo.
Order Number: 110177
Date of Order: 2/25/2011
Order Final In: February
Action Taken: Fined $10,750.
Violation: Failed to file Annual Agent Report for Risk Retention and Purchasing Groups (PG3 report).

Contemporary Solutions-USA Inc. d/b/a, Texas Pioneer Title Agency of Allen
Order Number: 110113
Date of Order: 2/8/2011
Order Final In: February
Action Taken: Fined $4,400.
Violation: Failed to timely provide an annual trust fund account audit report / annual statistical report.

Crump Insurance Services Inc. of Dallas
Order Number: 110171
Date of Order: 2/24/2011
Order Final In: February
Action Taken: Fined $71,980.
Violation: Failed to timely file new or renewal surplus lines policies and related documents.

Dial & Flowers Ltd. d/b/a Lone Star Title of Hunt County of Greenville
Order Number: 110151
Date of Order: 2/14/2011
Order Final In: February
Action Taken: Title Insurance Agent License revoked.
Violation: Failed to timely provide an annual trust fund account audit report / annual statistical report.

El Dorado Insurance Agency Inc. of Houston
Order Number: 110179
Date of Order: 2/25/2011
Order Final In: February
Action Taken: Fined $24,358.
Violation: Failed to timely file new or renewal surplus lines policies and related documents.

Fast, David E., P.E.of Corpus Christi
Order Number: 110095
Date of Order: 2/1/2011
Order Final In: February
Action Taken: Qualified Inspector Appointment revoked.
Violation: Failed to timely respond to a TDI request for information; Failed to provide substantiating information after submitting an inspection certification.

Flowers Land & Title Company L.P. d/b/a Lone Star Title of Cass County of Linden
Order Number: 110152
Date of Order: 2/14/2011
Order Final In: February
Action Taken: Fined $20,000.
Violation: Failed to timely provide an annual trust fund account audit report / annual statistical report.

Forte’ Information Services Inc. of Anaheim, Calif.
Order Number: 110197
Date of Order: 2/28/2011
Order Final In: February
Action Taken: Fined $12,000; Third Party Administrator Certificate of Authority revoked.
Violation: Failed to file annual report; Failed to pay annual report filing fees.

Garner, Lon L., II of McKinney
Order Number: 110110
Date of Order: 2/8/2011
Order Final In: February
Action Taken: Escrow Officer License revoked.
Violation: Made a material misrepresentation on a license application.

Glass Insurance Administrators Inc. of Houston
Order Number: 110198
Date of Order: 2/28/2011
Order Final In: February
Action Taken: Fined $12,000; Third Party Administrator Certificate of Authority revoked.
Violation: Failed to file annual report; Failed to pay annual report filing fees.

Gordon, Fred Smith Jr. of Katy
Order Number: 110172
Date of Order: 2/24/2011
Order Final In: February
Action Taken: Fined $1,500; Must complete three hours of continuing education.
Violation: Failed to complete continuing education requirements.

Group Management Services Inc. of Omaha, Neb.
Order Number: 110192
Date of Order: 2/28/2011
Order Final In: February
Action Taken: Fined $12,000; Third Party Administrator Certificate of Authority revoked.
Violation: Failed to file annual report; Failed to pay annual report filing fees.

Hochman, Elias Henry of Houston
Order Number: 110131
Date of Order: 2/11/2011
Order Final In: February
Action Taken: Fined $6,313.
Violation: Failed to timely file new or renewal surplus lines policies and related documents.

Howard, Kelly Lee Ann of McKinney
Order Number: 110183
Date of Order: 2/28/2011
Order Final In: February
Action Taken: Fined $1,000.
Violation: Acted as an Escrow Officer without a proper license.

Integrated Benefit Management Services LLC of Gladstone, Ore.
Order Number: 110194
Date of Order: 2/28/2011
Order Final In: February
Action Taken: Fined $11,000; Third Party Administrator Certificate of Authority revoked.
Violation: Failed to file annual report; Failed to pay annual report filing fees.

J.H. Blades & Company Inc. of Houston
Order Number: 110130
Date of Order: 2/11/2011
Order Final In: February
Action Taken: Fined $1,000.
Violation: Failed to timely file new or renewal surplus lines policies and related documents.

Landa Insurance of Dallas and Abilene
Order Number: 110190
Date of Order: 2/28/2011
Order Final In: February
Action Taken: Fined $50,000; Cease and Desist Order.
Violation: Unauthorized insurance.

Langford, John Frank of Amarillo
Order Number: 110119
Date of Order: 2/8/2011
Order Final In: February
Action Taken: General Life, Accident and Health License revoked; Must provide proof of payment of court-ordered restitution.
Violation: Misappropriated or converted money belonging to an insurer or insured

Managed Pharmacy Benefits Inc of Earth City, Mo.
Order Number: 110195
Date of Order: 2/28/2011
Order Final In: February
Action Taken: Fined $12,000; Third Party Administrator Certificate of Authority revoked.
Violation: Failed to file annual report; Failed to pay annual report filing fees.

Marinaccio, Louis Edward Jr. of Lakewood Ranch, Fla.
Order Number: 110185
Date of Order: 2/28/2011
Order Final In: February
Action Taken: Fined $4,100.
Violation: Failed to file Annual Agent Report for Risk Retention and Purchasing Groups (PG3 report).

Marsh USA Inc. of New York, N.Y.
Order Number: 110174
Date of Order: 2/24/2011
Order Final In: February
Action Taken: Fined $121,189.
Violation: Failed to timely file new or renewal surplus lines policies and related documents.

MCS Administrative Services Inc. of Houston
Order Number: 110204
Date of Order: 2/28/2011
Order Final In: February
Action Taken: Fined $12,000; Third Party Administrator Certificate of Authority revoked.
Violation: Failed to file annual report; Failed to pay annual report filing fees.

MEDCA$H.COM, Inc. of Odessa
Order Number: 110193
Date of Order: 2/28/2011
Order Final In: February
Action Taken: Fined $12,000; Third Party Administrator Certificate of Authority revoked.
Violation: Failed to file annual report; Failed to pay annual report filing fees.

National Association of Employers Inc. of Ball, La.
Order Number: 110199
Date of Order: 2/28/2011
Order Final In: February
Action Taken: Fined $9,000; Third Party Administrator Certificate of Authority revoked.
Violation: Failed to file annual report; Failed to pay annual report filing fees.

NIA Corporation of Lakewood, Colo.
Order Number: 110201
Date of Order: 2/28/2011
Order Final In: February
Action Taken: Fined $10,000; Third Party Administrator certificate of authority revoked.
Violation: Failed to file annual report; Failed to pay annual report filing fee.

Preferred Administrative Services Inc. of Kansas City, Mo.
Order Number: 110200
Date of Order: 2/28/2011
Order Final In: February
Action Taken: Fined $12,000; Third Party Administrator Certificate of Authority revoked.
Violation: Failed to file annual report; Failed to pay annual report filing fees.

Robles, Maria Monreal of El Paso
Order Number: 110133
Date of Order: 2/11/2011
Order Final In: February
Action Taken: All Lines Insurance Adjuster License revoked.
Violation: Misappropriated or converted money belonging to an insurer or insured.

Schumann, Donna Davis of San Antonio
Order Number: 110186
Date of Order: 2/28/2011
Order Final In: February
Action Taken: Fined $2,000; Must complete four hours of continuing education.
Violation: Failed to comply with continuing education requirement.

Slade, Gene Davis, II of Cedar Hill
Order Number: 110191
Date of Order: 2/28/2011
Order Final In: February
Action Taken: General Life, Accident and Health License and General Property and Casualty License revoked; Must pay restitution.
Violation: Misappropriated or converted money belonging to an insurer or insured.

St. Louis, Patricia Slimak of The Woodlands
Order Number: 110153
Date of Order: 2/14/2011
Order Final In: February
Action Taken: Fined $4,000.
Violation: Acted as a Escrow Officer without a license.

Standard Life and Casualty Insurance Co. of Salt Lake City, Utah
Order Number: 110111
Date of Order: 2/8/2011
Order Final In: February
Action Taken: Fined $100,000
Violation: Failed to timely pay clean claims; Failed to submit quarterly claims payment information to TDI.

Stump, Philip Christopher of Santa Ana, Calif.
Order Number: 110112
Date of Order: 2/8/2011
Order Final In: February
Action Taken: Fined $9,600.
Violation: Failed to file Annual Agent Report for Risk Retention and Purchasing Groups (PG3 report).

Superior Risk Administrators Inc. of Dallas
Order Number: 110202
Date of Order: 2/28/2011
Order Final In: February
Action Taken: Fined $12,000; Third Party Administrator Certificate of Authority revoked.
Violation: Failed to file annual reports; Failed to pay annual report filing fees.

The EyePA Inc. of Dallas
Order Number: 110196
Date of Order: 2/28/2011
Order Final In: February
Action Taken: Fined $12,000; Third Party Administrator Certificate of Authority revoked.
Violation: Failed to file annual reports; Failed to pay annual report filing fees.

USA Benefits Group Inc.of Ft. Lauderdale, Fla.
Order Number: 110135
Date of Order: 2/11/2011
Order Final In: February
Action Taken: Fined $20,000; Third-Party Administrator Certificate of Authority revoked.
Violation: Failed to file annual report; Failed to pay annual report filing fees.

USA Services Group Inc. of Ft. Lauderdale, Fla.
Order Number: 110134
Date of Order: 2/11/2011
Order Final In: February
Action Taken: Fined $40,000; Third Party Administrator Certificate of Authority revoked.
Violation: Failed to file annual report; Failed to pay annual report filing fees.

Virginia Surety Company Inc. of Chicago, Ill.
Order Number: 110114
Date of Order: 2/8/2011
Order Final In: February
Action Taken: Fined $200,000; Must pay premium and maintenance taxes owed.
Violation: Unauthorized insurance.

Willis of New Hampshire Inc. of Portsmouth, N.H.
Order Number: 110178
Date of Order: 2/25/2011
Order Final In: February
Action Taken: Fined $21,300.
Violation: Failed to file Annual Agent Report for Risk Retention and Purchasing Groups (PG3 report).

Source: Texas Department of Insurance

Topics Texas Agencies Excess Surplus Training Development