Texas Continues Crack Down on Late Surplus Line Filings

Among the enforcement actions for March 2011 announced by the Texas Department of Insurance are a number of fines imposed on surplus lines wholesalers for failing to report surplus line premium in a timely manner.

Enforcement orders issued by Commissioner Mike Geeslin include one certificate of authority revocation and fines and restitution totaling $350,715.

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.

Final Disciplinary Orders for March 2011

Amwins Brokerage of Texas, Inc. of Dallas
Order Number: 110219
Date of Order: 3/8/2011
Order Final In: March
Action Taken: Fined $4,905
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Amwins Insurance Brokerage of California, LLC of Chatsworth, Calif.
Order Number: 110220
Date of Order: 3/8/2011
Order Final In: March
Action Taken: Fined $22,460
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Anderson, Carola Kay of Houston
Order Number: 110261
Date of Order: 3/28/2011
Order Final In: March
Action Taken: Fined $2,000; Escrow Officer License revoked; Must complete four hours of continuing education
Violation: Failed to complete continuing education requirements

Appalachian Underwriters Inc. of Oak Ridge, Tenn.
Order Number: 110257
Date of Order: 3/28/2011
Order Final In: March
Action Taken: Fined $3,750; Must pay restitution of $3,701 plus interest
Violation: Failed to timely return all gross unearned premiums to insurance premium finance company

Colemont Insurance Brokers of Georgia LLC of Atlanta, Ga.
Order Number: 110222
Date of Order: 3/8/2011
Order Final In: March
Action Taken: Fined $1,204
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Colemont Insurance Brokers of Texas LP of Dallas
Order Number: 110221
Date of Order: 3/8/2011
Order Final In: March
Action Taken: Fined $3,281
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Connecture, Inc. (F/K/A SimplyHealth.com, Inc.) of Atlanta, Ga.
Order Number: 110208
Date of Order: 3/3/2011
Order Final In: March
Action Taken: Fined $2,000
Violation: Failed to timely file annual report; Failed to timely pay annual report filing fees

CorVel Healthcare Corporation of Irvine, Calif.
Order Number: 110258
Date of Order: 3/28/2011
Order Final In: March
Action Taken: Fined $3,000
Violation: Failed to timely file annual report; Failed to timely pay annual report filing fees

Cravens Dargan Insurance Group L.P. of Houston
Order Number: 110210
Date of Order: 3/3/2011
Order Final In: March
Action Taken: Fined $12,805
Violation: Failed to timely file new or renewal surplus lines policies and related documents

CRC Insurance Services Inc. of Birmingham, Ala.
Order Number: 110250
Date of Order: 3/24/2011
Order Final In: March
Action Taken: Fined $16,700
Violation: Failed to file Annual Agent Report for Risk Retention and Purchasing Groups (PG3 report)

Dearman, Brad of Pearl, Miss.
Order Number: 110259
Date of Order: 3/28/2011
Order Final In: March
Action Taken: General Life, Accident and Health License revoked; Must pay restitution of $135,176
Violation: Misappropriated or converted money belonging to an insurer or insured

Eligibility Services Inc. of Dallas
Order Number: 110274
Date of Order: 3/31/2011
Order Final In: March
Action Taken: Fined $3,000
Violation: Failed to timely file annual report; Failed to pay annual report filing fees

Green, Sharon Ann of Houston
Order Number: 110255
Date of Order: 3/28/2011
Order Final In: March
Action Taken: Fined $1,000; Must complete two hours of continuing education
Violation: Failed to comply with continuing education requirement

Huron, Geraldine R. of San Antonio
Order Number: 110209
Date of Order: 3/3/2011
Order Final In: March
Action Taken: General Property and Casualty License revoked
Violation: Misappropriated or converted money belonging to an insurer or insured

Litzman, Jennifer Marie of Katy
Order Number: 110276
Date of Order: 3/31/2011
Order Final In: March
Action Taken: Fined $1,000; Must complete two hours of continuing education
Violation: Failed to comply with continuing education requirement

Lopez, Angel R.of Pharr
Order Number: 110242
Date of Order: 3/22/2011
Order Final In: March
Action Taken: General Life, Accident and Health License revoked; Must pay restitution of $29,006
Violation: Misappropriated or converted money belonging to an insurer or insured

NGM Insurance Company of Jacksonville, Fla.
Order Number: 110211
Date of Order: 3/3/2011
Order Final In: March
Action Taken: Fined $25,000
Violation: Failed to provide applicant with notice of adverse effect of credit score on insurance premium amount

North Texas Title of Hunt Inc. D/B/A North Texas Title of Greenville of Greenville
Order Number: 110277
Date of Order: 3/31/2011
Order Final In: March
Action Taken: Fined $5,400
Violation: Failed to timely provide an annual trust fund account audit report / annual statistical report

Pacific Northwest Title Insurance Company Inc. of Seattle, Wash.
Order Number: 110251
Date of Order: 3/24/2011
Order Final In: March
Action Taken: Fined $4,000
Violation: Failed to timely file Certificate of Compliance Advertising form; Failed to timely respond to Department request for information

Powter, John James of McKinney
Order Number: 110252
Date of Order: 3/24/2011
Order Final In: March
Action Taken: Fined $11,200
Violation: Failed to file Annual Agent Report for Risk Retention and Purchasing Groups (PG3 report)

Rigg Insurance Managers Inc. of Dallas
Order Number: 110256
Date of Order: 3/28/2011
Order Final In: March
Action Taken: Fined $35,027
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Schleicher County Abstract Company Inc. of Eldorado
Order Number: 110253
Date of Order: 3/24/2011
Order Final In: March
Action Taken: Fined $1,600
Violation: Failed to timely remit guaranty fees

Texas Imperial Life Insurance Company of Springfield, Ill.
Order Number: 110267
Date of Order: 3/31/2011
Order Final In: March
Action Taken: Must pay claims based on agreed increase in coverage for four years
Violation: Race-based pricing of life insurance policies

TraffiCare International, LLC; and Simpson, Troy of Dallas and DeSoto
Order Number: 110278
Date of Order: 3/31/2011
Order Final In: March
Action Taken: Fined $10,000
Violation: Unauthorized insurance

United Benefits, Inc.of Ormond Beach, Fla.
Order Number: 110260
Date of Order: 3/28/2011
Order Final In: March
Action Taken: Fined $12,000; Third-Party Administrator Certificate of Authority revoked
Violation: Failed to timely file annual report

Universal Health Care Insurance Company Inc. of St. Petersburg, Fla.
Order Number: 110212
Date of Order: 3/3/2011
Order Final In: March
Action Taken: Fined $1,500
Violation: Failed to timely file Certificate of Compliance Advertising form

License Applications Actions

Forbus, David of Sumner
Order Number: 110275
Date of Order: 3/31/2011
Order Final In: March
Action Taken: General Life, Accident, and Health License issued; two-year license suspension probated
Violation: Criminal offense

Source: Texas Department of Insurance

Topics Carriers Texas Agencies Excess Surplus Training Development