TEXAS AGENCY FINED $250K:

The Texas Department of Insurance (TDI) fined a Houston insurance agency $250,000 for marketing and selling workers’ compensation insurance policies in violation of state insurance rules. TDI filed the disciplinary action against Brown & Brown Insurance Services of Texas Inc., which signed a consent order and agreed to a settlement. TDI said that in violation of insurance rules, Brown & Brown communicated quotes, issued certificates and collected premium for unlicensed entities and individuals. In addition, Brown & Brown acted as an agent for an authorized insurance company before being appointed by the company to serve as an agent. Brown & Brown has agreed to cease these practices, compensate any injured workers for valid unpaid claims for benefits covered under the insurance policies in question, and pay the administrative fine. In addition and as part of the agreement, Brown & Brown will file regular reports documenting any written or verbal complaints and the amounts paid on each valid workplace injury claim. TDI reported that Brown & Brown cooperated with regulators during the investigation. In addition, Brown & Brown directly incurred payments, costs and expenses well in excess of any fees or commissions earned as a result of the alleged conduct.