Texas July Enforcements Include $391K in Fines, Restitution

The Texas Department of Insurance enforcement actions that became final during July 2011 include two license revocations, one license denial and fines and restitution totaling $391,308.

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

Bandera Title Co. of Bandera
Order Number: 110628
Date of Order: 7/27/2011
Order Final In: July
Action Taken: Fined $1,600
Violation: Failed to timely remit title insurance policy guaranty fees

Blico Administrators Inc. of Dallas
Order Number: 110577
Date of Order: 7/12/2011
Order Final In: July
Action Taken: Fined $1,000; Third-Party Administrator Certificate of Authority cancelled
Violation: Failed to timely file annual report; Failed to pay annual report filing fees

Clark, Glenn Wesley of West Chester, Pa.
Order Number: 110633
Date of Order: 7/27/2011
Order Final In: July
Action Taken: Fined $4,000
Violation: Failed to file Annual Agent Report for Risk Retention and Purchasing Groups (PG3 report)

Direct Title LLC of Houston
Order Number: 110576
Date of Order: 7/12/2011
Order Final In: July
Action Taken: Texas Title Insurance Agent License revoked; Must pay restitution of $17,708
Violation: Failed to comply with provisions of the title insurance basic manual

Dunn, Milby Dow II, Attorney-In-Fact For Columbia Lloyds Insurance Co. of Houston
Order Number: 110602
Date of Order: 7/18/2011
Order Final In: July
Action Taken: Fined $100,000
Violation: Failed to timely acknowledge receipt of claim; Failed to timely notify claimant of claim acceptance or rejection; Failed to provide complete data to the Department as part of mandatory data call

Great American Assurance Co.; Great American Ins. Co. of New York; Great American Ins. Co.; Great American Alliance Ins. Co. of Cincinnati, Ohio
Order Number: 110632
Date of Order: 7/27/2011
Order Final In: July
Action Taken: Fined $195,000
Violation: Failed to file policy forms and/or endorsements containing property and casualty benefits with Department

Health Plan Administrators Inc. of Wallingford, Conn.
Order Number: 110581
Date of Order: 7/12/2011
Order Final In: July
Action Taken: Fined $17,000; Third-Party Administrator Certificate of Authority revoked
Violation: Failed to timely file annual report

Morales, Amy Brooks of Grandview, Mo.
Order Number: 110575
Date of Order: 7/12/2011
Order Final In: July
Action Taken: Nonresident General Life, Accident and Health License and Life License revoked
Violation: Misappropriated or converted money belonging to an insurer or insured. Engaged in fraudulent or dishonest acts or practices

Oak Tree Title, LLC D/B/A Greene Title & Abstract Co. of Mount Pleasant
Order Number: 110573
Date of Order: 7/12/2011
Order Final In: July
Action Taken: Fined $25,000
Violation: Improperly allowed thing of value to be given to steer business to title agency

Pharmaceutical Technologies Inc. of Boys Town, Neb.
Order Number: 110566
Date of Order: 7/8/2011
Order Final In: July
Action Taken: Fined $30,000; Third Party Administrator Certificate of Authority issued
Violation: Acted as Third Party Administrator without Certificate of Authority

Raisman, Eric Charles of Dedham, Mass.
Order Number: 110567
Date of Order: 7/8/2011
Order Final In: July
Action Taken: Must comply with law for public insurance adjuster contracts
Violation: Improperly received compensation from insurance settlement in excess of total amount allowed for public insurance adjuster

Schatte, Mark Alan of Cypress
Order Number: 110630
Date of Order: 7/27/2011
Order Final In: July
Action Taken: General Property and Casualty License and General Life, Accident and Health License suspended for 6 months; Must comply with continuing education requirements for license renewal
Violation: Engaged in fraudulent and dishonest acts or practices

Texas Windstorm Insurance Association, Texas Fair Plan Association of Austin
Order Number: 110587
Date of Order: 7/15/2011
Order Final In: July
Action Taken: Consent order
Violation: Failed to timely process claims; Failed to pay claims for storm damage that is a covered loss; Failed to pay full amount of policy benefits for contractor expenses

USPA LLC of Hollywood, Fla.
Order Number: 110631
Date of Order: 7/27/2011
Order Final In: July
Action Taken: Must comply with law for public insurance adjuster contracts
Violation: Improperly received compensation from insurance settlement in excess of total amount allowed for public insurance adjuster

Zavala, Marco Antonio of Elsa
Order Number: 110626
Date of Order: 7/26/2011
Order Final In: July
Action Taken: Funeral Prearrangement Life License revoked; Must pay court ordered restitution
Violation: Misappropriated or converted money belonging to an insurer or insured

License Applications Actions

Ashley, Charles Robert III of Austin
Order Number: 110572
Date of Order: 7/12/2011
Order Final In: July
Action Taken: General Life, Accident and Health License issued; Suspension of license probated for two years
Violation: Criminal offense – misdemeanor assault

Chesson, Craig Mitchell of Orange
Order Number: 110627
Date of Order: 7/27/2011
Order Final In: July
Action Taken: Property and Casualty Insurance Adjuster’s License granted; Must meet restrictions including supervision by TDI licensee
Violation: Felony criminal offenses – theft and forgery

McClain, Lannie Earl of Farmers Branch
Order Number: 110574
Date of Order: 7/12/2011
Order Final In: July
Action Taken: General Property and Casualty License issued with restrictions and placed on probation for two years
Violation: Felony criminal offense – theft

Valencia, Michael Angel of Midland
Order Number: 110579
Date of Order: 7/12/2011
Order Final In: July
Action Taken: Insurance Adjuster License application denied
Violation: Criminal offenses

Source: Texas Department of Insurance

Topics Texas Property Casualty