News Briefs

Louisiana

Producer Arrested, Issued C&D

A Caddo Parish, La., insurance producer was arrested and issued a cease and desist order for allegedly misappropriating insurance funds, according to the Louisiana Depart-ment of Insurance. DOI Fraud Unit investigators served Tammie Barron Thompson with a C&D order at the time she surrendered to the State Police Insurance Fraud Unit in Shreveport. Thompson was arrested on two counts of forgery for allegedly issuing fake automobile insurance ID cards for herself and members of her family. She reportedly worked for insurance agencies in Metairie and Haughton while unlicensed.

Thompson held a property and casualty insurance license from September 1989 until April 2003. However, she continued to work unlicensed for an agency from September until November 2003 when she was terminated for alleged misappropriation of premiums and deposits. Her license was reinstated in November 2004 and remained active until May 2005.

Commissioner Returns Truck to State

Louisiana Insurance Commissioner Robert Wooley returned his special edition pickup truck to the state’s surplus property yard. Although as a state official, Wooley may purchase and drive state-owned vehicles, or receive an allowance for the use of his personal vehicle, his purchase of the truck, which came with a high price tag, provoked criticism of both the purchase and Wooley’s attitude toward the attention it caused, according to the Associated Press.

Wooley has indicated he will drive a vehicle he owns without requesting reimbursement from the state. In a published statement, Wooley offered an apology to the citizens of his state regarding the purchase of the truck and the furor it has caused.

“I am sorry for the truck and how I have handled this entire matter,” Wooley said. “I made a mistake. My biggest regret is that this has taken attention away from all of the good things the employees of the Department of Insurance have done during my tenure.”

The Associated Press reported the truck in question, a $40,000 special Harley-Davidson edition pickup, came loaded with a series of special options like heated seats, a camper package and diesel engine. The truck will likely be auctioned or sold through a sealed bid process. Proceeds will go back to the insurance department, as the truck was purchased with DOI-generated dollars.

The Louisiana State Senate passed a bill prompted by the luxury truck’s purchase. The legislation, introduced by Sen. Art Lentini, R-Kenner, would require elected state officials to get legislative committee approval before buying a luxury vehicle with state funds.

Oklahoma

Ignition Interlock Bill Passes House

The Oklahoma House of Represent-atives approved House Bill 1304, which would require repeat drunken drivers to have alcohol detection devices installed in their vehicles before they could regain their driver’s licenses.

Under the provisions of HB 1304, the vehicle of anyone convicted of a second or subsequent offense of driving under the influence of alcohol would be outfitted with an interlock device for a 12-month period as a condition of reinstatement of a driver’s license.

Ignition interlock devices prevent people who have alcohol in their system from driving a car by linking the vehicle’s ignition to a blood alcohol-measuring device. If there is measurable alcohol in the blood, the vehicle does not start.

According to the National Highway Traffic Safety Administration, about one-third of all drivers arrested or convicted of driving under the influence are repeat offenders. Additionally, the agency reports that drivers with prior DUI or DWI convictions have a greater risk of involvement in a fatal crash.

The cost of installation and maintenance of the device would be borne by the offender, and any person convicted of tampering with the device would be guilty of a misdemeanor. A final provision of HB 1304 would prevent judges from waiving any fines imposed for driving during a period of suspension or revocation of license.

Some legislators expressed concern that it was too restrictive of driver’s rights. HB 1304 passed in the House 69-26 and passed in the Senate 47-0. The bill moved to the governor’s desk for his signature.

Texas

Number One in Q1 Catastrophes

The Insurance Council of Texas reported that a series of thunderstorms that pummeled portions of the Hill Country and central Texas in late March resulted in Texas leading the nation in insured losses during the first quarter of the year. Austin and Travis County caught the brunt of the storms.

According to the Insurance Services Office Property Claims Services unit in Jersey City, N.J., Texas led all other states with $565 million in weather losses from January 1 through the end of March. California’s wet weather season placed it at a distant second in catastrophic losses at $275 million.

On March 25, 2005, a cold front triggered several thunderstorms that packed high winds and large hail striking portions of central and south central Texas. ICT estimates that insured losses in the Austin area will amount to approximately $140 million after all claims have been settled.

Mark Hanna, an ICT spokesman, said the storm resulted in about 40,000 claims.

Lt. Gov. Urged to Back Auto Burglary Bill

The Texas State Vicki Truitt (Keller) joined forces with police chiefs from Texas’ six largest cities to sign a letter imploring Lt. Gov. David Dewhurst to pressure Senate leaders to grant a hearing for Truitt’s House Bill 151 that would enhance the penalty on auto burglary.

HB 151 passed out of the House on March 30, with huge bipartisan support. The bill would reinstate a felony penalty for burglary of a motor vehicle (BMV). Represen-tatives Anchia (Dallas) and Pena (Edinburg) joined Truitt and the chiefs in signing the letter to Dewhurst. HB 151 was jointly authored by Truitt, Pena, and Representatives Dan Branch (Dallas), Linda Harper-Brown (Irving) and Roberto Alonzo (Dallas).

“HB 151 has been ignored in the Senate for exactly one month. We are calling on Lt. Governor Dewhurst to use his influence and clout to give this issue the attention it deserves,” Truitt stated. “The members of the House overwhelmingly supported this bill, and the law enforcement officers and prosecutors of Texas, not to mention the thousands of innocent victims of this crime, are mystified as to why the Senate has apparently decided to do nothing. We have only a couple weeks left in this legislative session, and we can’t afford to stand by and wait any longer.”

Although a majority of crimes have been decreasing over the past few years, car burglaries have been constantly and dramatically increasing. Dollar losses statewide from car burglaries have grown 123 percent in the past 10 years, according to the Department of Public Safety’s Uniform Crime Report statistics. Prior to 1995, when car burglaries were still felony offenses in Texas, the frequency of this crime was declining.

TWCC Fines Carriers After Audits

The Texas Workers’ Compensation Commission completed audits of several insurance carriers for compliance with preauthorization processing requirements and for performance on retrospective review of medical bills for preauthorized services for injured workers. Penalties totaling $399,090 were issued to seven carriers as a result of the audits.

TWCC said the audits, conducted by its Compliance and Practices Division, showed that only one of the audited carriers met or exceeded the compliance standard for processing preauthorization requests. Two carriers met or exceeded the compliance standard for appropriateness of denials and reductions of preauthorized services.

Robert L. Shipe, TWCC executive director, said Commission rules require 95 percent compliance with audit standards. However, TWCC encourages all system participants to strive for 100 percent compliance. On average, the carriers had 86.4 percent compliance with preauthorization processing requirements and 91.9 percent compliance with the standards for reviewing medical bills related to the preauthorized services.

TRCC: Third-Party Warranty Providers Must Register

Third-party warranty companies that provide services for Texas homeowners on behalf of builders/remodelers must now register with the Texas Residential Construction Commission. The companies must adopt the commission’s required warranties and building and performance standards. In in order to register, third-party warranty companies must be at least one of the following: An entity that has operated warranty programs in Texas for at least five (5) years; a company whose performance is insured by an insurance company authorized to engage in the business of insurance in the State of Texas; or an insurer as defined under §4001.003 of the Texas Insurance Code that insures the warranty obligations of a builder under the Act as implemented under Chapter 304 of the commission’s rules.

Effective June 1, all residential builders and remodelers must provide limited warranties and meet adopted building and performance standards for each home construction project. The warranty periods are: One year for workmanship and materials; two years for plumbing, electrical, heating and air-conditioning delivery systems; 10 years for major structural components of the home; and 10 years for the warranty of
habitability.

Commission Executive Director Stephen D. Thomas said builders/remodelers may provide these warranties directly to the homeowners or contracting through third-party warranty company. If the builder or remodeler chooses to contract a third-party warranty company to provide coverage, the builder or remodeler must ensure that the third-party warranty company is registered with the commission. Likewise, it is the responsibility of third-party warranty companies providing coverage and/or repairs for builders/remodelers to make sure they have registered with the commission.

Detailed information on the adopted Limited Warranties and Building and Performance Standards, as well as third-party warranty company rules, registration forms and instructions are available on the commission’s Web site at www.trcc.state.tx.us.

Topics Carriers Texas Auto Louisiana