Tennessee Issues $12K in Fines, Revokes Licenses of 3 Insurance Producers

By | April 11, 2018

Three former Tennessee insurance producers who violated provisions of Tennessee’s insurance law have been hit with civil penalties totaling $12,000 and forced to surrender or have revoked their insurance licenses, according to a statement from the Tennessee Department of Commerce and Insurance (TDCI).

As a result of the TDCI investigations, former insurance producers Dallas Edwin Love, Charles Holman Phelps, and Orvil E. Hendrix must pay civil penalties and are no longer allowed to sell insurance in the State of Tennessee. The sanctions were the result of the work of TDCI’s Insurance Fraud Investigations team and the Office of General Counsel who ensure the protection of Tennesseans by holding accountable insurance producers who are engaged in unlawful activity, TDCI said in a statement.

Details of the cases include:

  • Dallas Edwin Love of Knoxville, Tenn., was found to be in violation of numerous insurance laws, including failing to inform the TDCI’s Insurance Division of his felony conviction, according to a final order issued by an Administrative Law Judge (ALJ), effective April 4, 2018. The violations stemmed from Love’s felony aggravated assault conviction issued by the Knox County, Tenn., Criminal Court in May 2015. As a result of Love’s wrongdoing, the ALJ revoked Love’s insurance producer license and imposed a $4,000 civil penalty.
  • Charles Holman Phelps of Oviedo, Fla., was found to be in violation of several insurance laws including forging the signatures of others to insurance applications, according to a final order, effective April 2, 2018. In the action brought by the TDCI Insurance Division, the ALJ revoked Phelps’ Tennessee insurance producer license and imposed a $3,000 civil penalty.
  • Orvil E. Hendrix of Dowelltown, Tenn., was found to be in violation of several insurance laws, including forging another’s name to a document related to an insurance transaction and intentionally misrepresenting the terms of an insurance contract, according to a consent order, effective March 28, 2018. Hendrix agreed to the surrender of his insurance producer license and the payment of a civil penalty in the amount of $5,000.

“I congratulate the fine work of our team who has helped stop three bad actors from preying upon unassuming Tennessee consumers any further,” said TDCI Assistant Commissioner for Insurance Michael Humphreys. “The conclusion of these cases once again demonstrates the importance of upholding the law in order to protect consumers from wrongdoing. Our team will continue to work diligently to investigate and bring to justice those who would seek to line their pockets at the expense of consumers.”

Source: Tennessee Department of Commerce & Insurance

About Amy O'Connor

O'Connor is the Southeast editor for Insurance Journal and associate editor of MyNewMarkets.com. More from Amy O'Connor

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