Texas Commissioner Orders $551K in Fines and Restitution in June

August 5, 2010

Enforcement actions taken by Texas Insurance Commissioner Mike Geeslin that became final during June 2010 included four license revocations, three license denials, and fines and restitution totaling $551,012. Copies of Geeslin’s orders may be obtained by contacting TDI’s Public Information Office.

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 for June 2010

Alas, Deborah L. of Houston
Order Number: 100596
Date of Order: 6/29/2010
Order Final In: June
Action Taken: General Life, Accident and Health License and General Property and Casualty License revoked; Must pay restitution of $26,479
Violation: Misappropriated or converted money belonging to an insurer or insured

Aon Risk Services Central Inc. of Glenview, Ill.
Order Number: 100547
Date of Order: 6/17/2010
Order Final In: June
Action Taken: Fined $1,000
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Arthur J. Gallagher Risk Management Services Inc. of Itasca, Ill
Order Number: 100538
Date of Order: 6/16/2010
Order Final In: June
Action Taken: Fined $1,547
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Brown & Brown Insurance Services of San Antonio Inc. of San Antonio
Order Number: 100536
Date of Order: 6/16/2010
Order Final In: June
Action Taken: Fined $1,000
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Christian Care Ministry Inc. of Melbourne, FL
Order Number: 100537
Date of Order: 6/16/2010
Order Final In: June
Action Taken: Must provide annual financial reports and records of consumer complaints to TDI
Violation: Alleged unauthorized insurance

Cravens/Warren Insurance Agency Inc. of Houston
Order Number: 100569
Date of Order: 6/25/2010
Order Final In: June
Action Taken: Fined $1,587
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Davis, Amos R. Jr. of Abilene
Order Number: 100509
Date of Order: 6/8/2010
Order Final In: June
Action Taken: General Life, Accident and Health license revoked
Violation: Criminal offense – Issuance of a Bad Check; Engaged in fraudulent or dishonest acts or practices

Ford, Kelly Marie of Cypress
Order Number: 100546
Date of Order: 6/17/2010
Order Final In: June
Action Taken: Fined $1,500
Violation: Failed to comply with continuing education requirements

Garcia, Tommy David of Freeport
Order Number: 100521
Date of Order: 6/11/2010
Order Final In: June
Action Taken: General Property and Casualty License revoked; Must pay restitution of $4,859
Violation: Misappropriated or converted money belonging to an insurer or insured; Materially misrepresented terms and conditions of an insurance policy

Greenberg, Bob of Katy
Order Number: 100548
Date of Order: 6/17/2010
Order Final In: June
Action Taken: Fined $1,000; Must complete 10 hours of continuing education
Violation: Failed to comply with continuing education requirements

Hartford Accident and Indemnity Company of Hartford, Conn.
Order Number: 100575
Date of Order: 6/25/2010
Order Final In: June
Action Taken: Fined $18,000
Violation: Failed to timely provide closed claim reconciliation forms and annual aggregate closed claim reports; Failed to respond to request for information

Hartford Casualty Insurance Company of Hartford, Conn.
Order Number: 100576
Date of Order: 6/25/2010
Order Final In: June
Action Taken: Fined $18,000
Violation: Failed to timely provide closed claim reconciliation forms and annual aggregate closed claim reports; Failed to respond to request for information

Hartford Fire Insurance Company of Hartford, Conn.
Order Number: 100577
Date of Order: 6/25/2010
Order Final In: June
Action Taken: Fined $18,000
Violation: Failed to timely provide closed claim reconciliation forms and annual aggregate closed claim reports; Failed to respond to request for information

Hartford Insurance Company of the Midwest of Hartford, Conn.
Order Number: 100578
Date of Order: 6/25/2010
Order Final In: June
Action Taken: Fined $18,000
Violation: Failed to timely provide closed claim reconciliation forms and annual aggregate closed claim reports; Failed to respond to request for information

Hartford Life Insurance Company of Simsbury, Conn.
Order Number: 100518
Date of Order: 6/11/2010
Order Final In: June
Action Taken: Fined $900
Violation: Failed to comply with continuing education provider requirements

Hartford Lloyd’s Corporation, Attorney in Fact for Hartford Lloyd’s Insurance Company of Houston
Order Number: 100579
Date of Order: 6/25/2010
Order Final In: June
Action Taken: Fined $18,000
Violation: Failed to timely provide closed claim reconciliation forms and annual aggregate closed claim reports; Failed to respond to request for information

Hartford Lloyd’s Insurance Company of Houston
Order Number: 100602
Date of Order: 6/30/2010
Order Final In: June
Action Taken: Reduce rates and provide refunds to affected policyholders
Violation: Charged homeowners insurance rates that were excessive

Hartford Underwriters Insurance Company of Hartford, Conn.
Order Number: 100580
Date of Order: 6/25/2010
Order Final In: June
Action Taken: Fined $18,000
Violation: Failed to timely provide closed claim reconciliation forms and annual aggregate closed claim reports; Failed to respond to request for information

Henry, Oliver Jr. of Dallas
Order Number: 100498
Date of Order: 6/7/2010
Order Final In: June
Action Taken: Fined $177,696 subject to a dollar-for-dollar reduction by restitution paid
Violation: Engaged in dishonest acts or practices by representing vacation time-share “universal leases” to clients as investments

Hudani, Afiz Sadrudin of Colleyville
Order Number: 100552
Date of Order: 6/21/2010
Order Final In: June
Action Taken: General Life, Accident and Health License revoked
Violation: Engaged in fraudulent or dishonest acts

ITCOA, LLC dba Independence Title Company of Austin
Order Number: 100550
Date of Order: 6/17/2010
Order Final In: June
Action Taken: Fined $19,000 subject to reduction by restitution to $15,000
Violation: Accepted payment for services not actually performed; Charged premium for property not insured; Allowed unlicensed person to act as Escrow Officer; violated Procedural Rule P-61 of basic manual

Litchfield Special Risks Inc. of El Paso
Order Number: 100570
Date of Order: 6/25/2010
Order Final In: June
Action Taken: Fined $1,544
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Mercy Health Plans of Missouri Inc. of Chesterfield, Mo.
Order Number: 100571
Date of Order: 6/25/2010
Order Final In: June
Action Taken: Fined $150,000
Violation: Failed to pay clean claims in a timely manner

Middlesex Insurance Company of Stevens Point, Wis.
Order Number: 100549
Date of Order: 6/17/2010
Order Final In: June
Action Taken: Fined $5,000
Violation: Failed to notify Department of a request for an independent review within one working day from date request received

My Closing Space LLC of Staten Island, N.Y.
Order Number: 100520
Date of Order: 6/11/2010
Order Final In: June
Action Taken: Cease and desist order
Violation: Unauthorized insurance

Progressive Casualty Insurance Company of Cleveland, Ohio
Order Number: 100597
Date of Order: 6/29/2010
Order Final In: June
Action Taken: Fined $1,200
Violation: Failed to comply with continuing education provider requirements

Property and Casualty Insurance Company of Hartford of Hartford, Conn.
Order Number: 100603
Date of Order: 6/30/2010
Order Final In: June
Action Taken: Reduce rates and provide refunds to affected policyholders
Violation: Charged homeowners insurance rates that were excessive

Property and Casualty Insurance Company of Hartford of Hartford, Conn.
Order Number: 100581
Date of Order: 6/25/2010
Order Final In: June
Action Taken: Fined $18,000
Violation: Failed to timely provide closed claim reconciliation forms and annual aggregate closed claim reports; Failed to respond to request for information

Sentinel Insurance Company Ltd. of Hartford, Conn.
Order Number: 100582
Date of Order: 6/25/2010
Order Final In: June
Action Taken: Fined $10,000
Violation: Failed to timely provide closed claim reconciliation forms and annual aggregate closed claim reports; Failed to respond to request for information

Sherman Title Company Inc. of Sherman
Order Number: 100598
Date of Order: 6/29/2010
Order Final In: June
Action Taken: Fined $6,700
Violation: Failed to timely submit annual trust fund account audit reports

Trumbull Insurance Company of Hartford, Conn.
Order Number: 100583
Date of Order: 6/25/2010
Order Final In: June
Action Taken: Fined $10,000
Violation: Failed to timely provide closed claim reconciliation forms and annual aggregate closed claim reports; Failed to respond to request for information

Twin City Fire Insurance Company of Hartford, Conn.
Order Number: 100584
Date of Order: 6/25/2010
Order Final In: June
Action Taken: Fined $4,000
Violation: Failed to timely provide closed claim reconciliation forms and annual aggregate closed claim reports; Failed to respond to request for information

License Application Actions

Harvey, Gary Wendell of Lubbock
Order Number: 100560
Date of Order: 6/22/2010
Order Final In: June
Action Taken: Property and Casualty Adjuster License application denied
Reason: Criminal offense- misapplication of fiduciary property

Kizer, Robert Morris of Waco
Order Number: 100519
Date of Order: 6/11/2010
Order Final In: June
Action Taken: Insurance Adjuster License issued and placed on probation for two years
Reason: Criminal offense – delivery of a controlled substance

Long, Donald Buford III of Greenwood, La.
Order Number: 100510
Date of Order: 6/8/2010
Order Final In: June
Action Taken: Insurance Adjuster License denied
Reason: Criminal offense – tax fraud

Source: Texas Department of Insurance

Topics Carriers Texas Excess Surplus Property Property Casualty Training Development Casualty

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