Texas Enforcements for May Include Nearly $218K in Fines, Restitution

Enforcement actions taken by Texas Insurance Commissioner Mike Geeslin that became final during May 2011 include six license revocations, two license denials and fines and restitution totaling $217,756.

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 acts upon the motion or upon the operation of law. Commissioner’s orders are subject to appeal to state district court.

Final Disciplinary Orders:

A.L. Stovall Title Services and Anna Stoval of San Antonio
Order Number: 110400
Date of Order: 5/6/2011
Order Final In: May
Action Taken: Cease and Desist Order
Violation: Unauthorized insurance

Allmendinger, Christian M. of Houston
Order Number: 110451
Date of Order: 5/26/2011
Order Final In: May
Action Taken: General Life, Accident and Health License revoked; Must pay court-ordered restitution
Violation: Felony criminal convictions – mail fraud, conspiracy to commit money laundering, securities fraud

Alpha Dental Programs Inc. of Flower Mound
Order Number: 110452
Date of Order: 5/27/2011
Order Final In: May
Action Taken: Fined $25,000
Violation: Failed to pay clean claims in a timely manner

Flowers Title Companies, LLC d/b/a Arnold Abstract Co.; et al, of Henderson etc. Order Number: 110443
Date of Order: 5/26/2011
Order Final In: May
Action Taken: Cease and desist from offering continuing education seminars at a discounted rate; Cease and desist from offering food and beverages to individuals in a position to steer or refer the business of title insurance
Violation: Failed to comply with provisions of the title insurance basic manual

Griffin, Yvette Michelle of Houston
Order Number: 110399
Date of Order: 5/6/2011
Order Final In: May
Action Taken: Limited Lines License revoked; Must pay restitution of $14,984
Violation: Unauthorized insurance; Misappropriated or converted money belonging to an insurer or insured

Hartford Fire Insurance Company, Southern County Mutual Insurance Company of Hartford, Conn., and Dallas
Order Number: 110454
Date of Order: 5/27/2011
Order Final In: May
Action Taken: Southern County Mutual fined $15,000; Hartford fined $85,000
Violation: Misleading advertising

King, Warren Guy of Houston
Order Number: 110416
Date of Order: 5/12/2011
Order Final In: May
Action Taken: Fined $2,000; Must complete four hours of continuing education
Violation: Failed to comply with continuing education requirements

Martin, Jack Laurel, Jr. of Granbury
Order Number: 110425
Date of Order: 5/16/2011
Order Final In: May
Action Taken: Insurance Adjuster License revoked
Violation: Felony criminal offense – misapplication of fiduciary property

Miller, Robert Glenn of Richmond
Order Number: 110415
Date of Order: 5/12/2011
Order Final In: May
Action Taken: Insurance Adjuster License and General Life, Accident and Health License surrendered
Violation: Unauthorized insurance

National Title Insurance of New York Inc. of Santa Ana, Calif.
Order Number: 110417
Date of Order: 5/12/2011
Order Final In: May
Action Taken: Fined $3,000
Violation: Failed to comply with title insurance basic manual provisions by using non-promulgated form to issue policy and entering agreement not included in policy

Ozuna, George Jr., P.E. of San Antonio
Order Number: 110383
Date of Order: 5/2/2011
Order Final In: May
Action Taken: Qualified Inspector Appointment canceled
Violation: Failed to reply to Department request for information

P.S. Services, Inc. d/b/a Patriot USA Settlement Services of Flower Mound
Order Number: 110457
Date of Order: 5/27/2011
Order Final In: May
Action Taken: Fined $5,900
Violation: Failed to timely provide an annual trust fund account audit report / annual statistical report; Failed to timely remit guaranty fee submissions

Payne, Richard Lemoyne of Highland Village
Order Number: 110439
Date of Order: 5/24/2011
Order Final In: May
Action Taken: Escrow Officer License revoked
Violation: Misappropriated or converted money belonging to an insurer or insured

Permian Basin Abstract Company LLC of Seminole
Order Number: 110456
Date of Order: 5/27/2011
Order Final In: May
Action Taken: Fined $1,400
Violation: Failed to timely remit guarantee fees

RMI International Inc. of San Antonio
Order Number: 110429
Date of Order: 5/19/2011
Order Final In: May
Action Taken: Fined $2,429
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Roanoke Trade Services of Texas Inc. of Houston
Order Number: 110446
Date of Order: 5/26/2011
Order Final In: May
Action Taken: Fined $1,320
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Sanchez, Francisco Javier of McAllen
Order Number: 110450
Date of Order: 5/26/2011
Order Final In: May
Action Taken: General Life, Accident and Health License revoked; Must pay restitution of $16,258
Violation: Engaged in fraudulent and dishonest acts and practices

Seabury & Smith Inc. of New York, N.Y.
Order Number: 110458
Date of Order: 5/27/2011
Order Final In: May
Action Taken: Fined $2,689
Violation: Failed to timely file new or renewal surplus lines policies and related documents

State Farm Mutual Automobile Insurance Company of Bloomington, Ill.
Order Number: 110449
Date of Order: 5/26/2011
Order Final In: May
Action Taken: Must pay full restitution to policyholders denied certain premium discounts due to non-chargeable traffic violations
Violation: Consent order

Wells Fargo Insurance of Texas Inc. of Houston
Order Number: 110447
Date of Order: 5/26/2011
Order Final In: May
Action Taken: Fined $1,481
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Westminster Title Agency Inc. of Grapevine
Order Number: 110418
Date of Order: 5/12/2011
Order Final In: May
Action Taken: Fined $6,000
Violation: Unauthorized insurance; Failed to comply with requirements of title insurance basic manual

Willis of New York Inc. of New York, N.Y.
Order Number: 110459
Date of Order: 5/27/2011
Order Final In: May
Action Taken: Fined $1,822
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Willis of Tennessee Inc. of Nashville, Tenn.
Order Number: 110460
Date of Order: 5/27/2011
Order Final In: May
Action Taken: Fined $7,689
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Wonderly, Elena Veronica of El Paso
Order Number: 110428
Date of Order: 5/16/2011
Order Final In: May
Action Taken: General Property and Casualty License revoked; Must pay restitution of $25,784
Violation: Misappropriated or converted money belonging to an insurer or insured

License Applications Actions

Blankenship, Mark Lynn of Cedar Park
Order Number: 110398
Date of Order: 5/6/2011
Order Final In: May
Action Taken: Insurance Adjuster License issued; Suspension of license probated for two years
Violation: Felony criminal offense – aggravated assault

Carley, Jerry Lavon of LaPorte
Order Number: 110426
Date of Order: 5/16/2011
Order Final In: May
Action Taken: Insurance Adjuster License denied
Violation: Felony criminal offense

Cavazos, Erika Ann of Pharr
Order Number: 110453
Date of Order: 5/27/2011
Order Final In: May
Action Taken: Limited Lines License issued; Suspension of license probated for two years
Violation: Criminal offense – credit card abuse

Hayes, David Adam of San Antonio
Order Number: 110444
Date of Order: 5/26/2011
Order Final In: May
Action Taken: General Property and Casualty License granted; Must comply with legal limits for compensation for Public Insurance Adjuster
Violation: Received total compensation as Public Insurance Adjuster in excess of 10 percent of insurance settlement

Torres, Arthur of Seagoville
Order Number: 110427
Date of Order: 5/16/2011
Order Final In: May
Action Taken: General Life, Accident and Health License application denied
Violation: Failed to comply with Commissioner’s Order

Zanti-Williams, Kristy of Columbia, Mo.
Order Number: 110461
Date of Order: 5/27/2011
Order Final In: May
Action Taken: Insurance Adjuster License issued; Suspension of license probated for two years
Violation: Criminal offenses – theft

Source: Texas Department of Insurance

Topics Carriers Texas New York Excess Surplus Training Development