Tennessee Insurance Dept. Wraps Up 2016 With Disciplinary Actions Against 5 Agents

The Tennessee Department of Commerce & Insurance (TDCI) has taken disciplinary actions including fines totaling more than $77,000, license revocation and other punishments against five Tennessee insurance licensees for numerous violations of state law.

The punishments came after investigations by TDCI’s Insurance Fraud Investigations and Legal teams.

Details of the cases include:

• An Initial Order issued by an administrative law judge (ALJ) against Darius Marquette Jones of Tipton County became final on Dec. 30, 2016, revoking Jones’ Tennessee insurance producer license and assessing a $3,000 penalty along with court reporter costs. The violations stemmed from the discovery of Jones’ misappropriation of $4,070.86 in premiums he had collected as an appointed Farmers’ agent. An administrative hearing was initiated by TDCI and held on Aug. 15, 2016, which Jones did not to attend. As a result of evidence introduced at the hearing the ALJ found three violations of Tennessee insurance law related to the misappropriation of premiums, violation of laws, and a demonstration of untrustworthiness and financial irresponsibility.
• An Agreed Final Order between TDCI and Larry P. Chinn of Shelby County became effective Nov. 26, 2016, assessing $7,500 in civil penalties and suspending his insurance producer license for six months. The Agreed Final Order was a result of a TDCI investigation that determined Chinn had failed to report an action taken against his license by the Minnesota Department of Insurance, as required by law. The underlying Minnesota action, occurring in Aug. 26, 2014, determined that Chinn had failed to adequately supervise employees that issued misleading policy information and recommended to clients a host of unsuitable premium financed life insurance policies. The Agreed Final Order finds Chinn in violation of three separate insurance laws related to violating a law of the commissioner, committing an unfair trade practice by way of misrepresentations, and demonstrating untrustworthiness and dishonest conduct.
• Two Initial Orders issued against Johnny R. Jackson of Sumner County & Forrest J. McDole of Robertson County became a Final Order effective Nov. 10, 2016. One order was issued against McDole revoking his insurance producer license and assessing a $22,200 civil penalty. The other issued a civil penalty against Jackson for $44,400. The pair worked together as owners of insurance agency Senior Security, LLC, organized and operated in Franklin, Ky. The penalties stem from a TDCI investigation finding that McDole and Jackson both participated in the sale of a life insurance policy to Sparta consumers riddled with misrepresentations as to the terms of the product. In addition, Jackson facilitated the sale as an unlicensed insurance producer, of which McDole knowingly accepted business from Jackson as an unlicensed insurance producer. The ALJ found the two violated several insurance laws including engaging in dishonest conduct and demonstrating untrustworthiness, and allowing an unlicensed person to engage in the sale of insurance. The Final Order issued against
• A Final Agreed Order was entered between TDCI and Doris Elfriede Karras of Orange County, Calif. effective Oct. 19, 2016, revoking her license and assessing a $500 civil penalty. An investigation by TDCI found that Karras provided false information to TDCI on her Nov., 2014, nonresident insurance producer application by answering that she had not been named as a party to a civil suit when in fact she was currently named as a defendant to a civil suit brought by Transamerica alleging fraud and racketeering. In addition, Karras made the same misrepresentations to the Minnesota Department of Insurance and Transamerica when seeking an appointment with the Company. The Final Agreed Order finds Karras in violation of several insurance laws related to submitting false information in a license application, attempting to obtain a license through misrepresentation, having a license revoked in another state, and failing to update the Department of administrative actions within 30 days of the action.

“The Department will not tolerate those who break the law,” said TDCI Assistant Commissioner for Insurance Michael Humphreys. “The Department protects the public by ensuring those who sell policies to Tennessee consumers are honest and trustworthy individuals. Those who choose to flaunt the law have no place working in Tennessee.”

Source: Tennessee Department of Commerce & Insurance

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