Newsbriefs

ARK. AGENT ARRESTED:


Arkansas Insurance Commissioner Mike Pickens announced that Steven Edward Gwin was arrested and charged with a class D felony count of Fraudulent Insurance Act. According to investigators with the Arkansas Insurance Department's Fraud Investigation Division, Gwin falsely indicated he had not been convicted of a crime when he applied for a license to sell insurance in the state. The department later determined that Gwin had been convicted of fraud in federal court in Ohio in 1991, for which he served 20 months in jail and was placed on three years probation. Gwin submitted his license application on or about Sept. 19, 2000. His license has since been revoked. Comments or questions concerning Gwin may be directed to Fraud Investigator Jacquie Harper at (800) 660-0888 or (501) 371-2790. Gwin was booked into the Pulaski County jail on Dec. 9, 2003 and released on a $25,000 bond, pending a January court date.

TEXAS WC COMMITTEE CHOSEN:


Texas Lt. Governor David Dewhurst has formed the Senate Select Committee on Workers' Compensation to work on solutions to what he called a developing crisis in workers' comp. Senator Todd Staples was appointed chairman of the committee, and Sen. John Carona (R-Dallas), Sen. Robert Duncan (R-Lubbock), Sen. Craig Estes (R-Wichita Falls), Sen. Juan Hinojosa (D-McAllen), Sen. Kyle Janek (R-Houston), Sen. Frank Madla (D-San Antonio), Sen. Jane Nelson (R-Flower Mound) and Sen. Royce West (D-Dallas) were appointed as committee members. Citing a lack of cost controls in the workers' compensation system, Dewhurst said Texas needs to look at what other states do to manage their costs while providing quality care for injured workers. Among the committee's charges are: Examining the status of the Health Care Network Advisory Committee's (HNAC) and the Texas Workers' Compensation Commission's implementation of the regional workers' compensation healthcare delivery networks outlined in Article 2 of HB 2600 (77th Legislature, 2001); Studying the potential impact of networks on the workers' compensation health care delivery system; Studying the impact of the Texas Workers' Compensation Commission's 2002 Medical Fee Guideline on access to quality medical care for injured workers and medical costs; Surveying the costs and benefits of other health system cost-containment strategies as they relate to medical, therapeutic and pharmaceutical care; Conducting a cost-benefit analysis which compares the Texas workers' compensation system to systems operating in other states and making recommendations to improve the quality of care for injured workers, reduce fraud and inefficiencies, reduce overall claim costs, and streamline the administration of the system; and Studying the efficiency and effectiveness of the state workers' compensation system.

LDI EMPLOYEES FACE CHARGES:


The Louisiana Department of Insurance announced that two department employees were arrested for Public Bribery and Conspiracy to Commit Public Bribery. In February 2001 the Louisiana State Police Insurance Fraud Unit received information from the LDI Fraud Unit and the Arkansas Department of Insurance concerning the sale of Louisiana insurance agent licenses. An investigation confirmed the original complaint and discovered additional evidence that agents were illegally obtaining continuing education credits needed for license renewal. As of mid-December 2003 nine individuals had been identified as having illegally purchased licenses to sell insurance in Louisiana. An additional eight legally licensed Louisiana agents had been arrested for their participation in the scheme to obtain licenses and/or continuing education credits. Two employees of the LDI Licensing Division, Regina Duncan of Baton Rouge and Lylia Jackson of Baton Rouge, were charged with facilitating the sale of insurance licenses. The Insurance Fraud Task Force is continuing its investigation into agents who have illegally obtained continuing education credits and have filed documents with LDI for license renewal.

JOE VINCENT SEMINAR ON HORIZON:


The Independent Insurance Agents of Texas announced that more than 350 of the state's most progressive and influential agency principals and managers will gather for its Joe Vincent Management Seminar Jan. 25 - 27, 2004, at the Renaissance Austin Hotel. The seminar, named in honor of longtime IIAT member and past president Joe E. Vincent, will feature workshops on various managment topics, including agency perpetuation. Call IIAT at (800) 880-7428 to register or look under Member Activities at www.iiat.org for complete details, online registration and a list of attendees.