Texas Regulators Issue More than $832K in Fines in August

October 5, 2010

The Texas Department of Insurance announced enforcement actions taken by Commissioner Mike Geeslin that became final during August 2010.

The actions include 14 license revocations, four license denials and fines and restitution totaling $832,708. 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

Ameristar Title Company Inc.; Housmans, Errol Vincent of Southlake
Order Number: 100784
Date of Order: 8/30/2010
Order Final In: August
Action Taken: Ordered to cease title insurance business or pay $150,000 fine; Title Insurance Agent License revoked; Escrow Officer License revoked
Violation: Failed to comply with Title Insurance Agent License and Escrow Officer License requirements

Black White and Associates Inc. of Henderson, Nev.
Order Number: 100696
Date of Order: 8/6/2010
Order Final In: August
Action Taken: Fined $1,643
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Bradshaw, William W. and Bradshaw, Mark T., A Texas Partnership D/B/A, First Texas Title Company of Abilene
Order Number: 100712
Date of Order: 8/9/2010
Order Final In: August
Action Taken: Fined $3,000
Violation: Failed to comply with Procedural Rule P-5 of basic manual for title insurance

Cavazos, Isidro III of Harlingen
Order Number: 100702
Date of Order: 8/6/2010
Order Final In: August
Action Taken: Fined $2,200; Must pay restitution of $15,242; General Life, Accident and Health License and General Property and Casualty License revoked;
Violation: Materially misrepresented terms and conditions of an insurance policy

Coker, John Christopher of San Angelo
Order Number: 100697
Date of Order: 8/6/2010
Order Final In: August
Action Taken: Fined $1,000
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Cordero, Patrick Henry Jr. of Midland
Order Number: 100718
Date of Order: 8/9/2010
Order Final In: August
Action Taken: Fined $2,000; Escrow Officer License revoked
Violation: Failed to comply with Escrow Officer License requirements

Dotson, John Lewis of Fort Worth
Order Number: 100759
Date of Order: 8/17/2010
Order Final In: August
Action Taken: Fined $2,629
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Elliot, George Neil of Belton
Order Number: 100709
Date of Order: 8/6/2010
Order Final In: August
Action Taken: General Life, Accident and Health License revoked
Violation: Felony criminal offense — money laundering

Farber, Howard of Melville, N.Y.
Order Number: 100688
Date of Order: 8/3/2010
Order Final In: August
Action Taken: General Life, Accident and Health License revoked
Violation: Made a material misrepresentation on a license application

Fuentes, Patrick of Ingleside
Order Number: 100705
Date of Order: 8/6/2010
Order Final In: August
Action Taken: General Property and Casualty License revoked; must pay restitution of $72,798
Violation: Misappropriated or converted money belonging to an insurer or insured

Handy, Sheneva Marie of Houston
Order Number: 100730
Date of Order: 8/11/2010
Order Final In: August
Action Taken: General Life, Accident and Health License revoked
Violation: Engaged in fraudulent enrollment verification process of marketing Medicare Advantage plans; Failed to timely respond to a Department inquiry

Hemphill, Alicia Marie of Houston
Order Number: 100762
Date of Order: 8/17/2010
Order Final In: August
Action Taken: Funeral Prearrangement Life License revoked
Violation: Felony criminal offense — theft

Hines, Patricia Eileen of Cedar Hill
Order Number: 100708
Date of Order: 8/6/2010
Order Final In: August
Action Taken: Fined $25,000; Escrow Officer License revoked
Violation: Acted in capacity of Escrow Officer without being licensed; Engaged in fraudulent or dishonest practices

M.D. Jensvold & Company Inc. of Houston
Order Number: 100698
Date of Order: 8/6/2010
Order Final In: August
Action Taken: Fined $1,000
Violation: Failed to timely file new or renewal surplus lines policies and related documents

McCauley, James Curtis of Tyler
Order Number: 100694
Date of Order: 8/6/2010
Order Final In: August
Action Taken: General Life, Accident and Health License and General Property and Casualty License revoked
Violation: Conversion of fiduciary funds for personal use

Meacham, John of Longview
Order Number: 100715
Date of Order: 8/9/2010
Order Final In: August
Action Taken: General Life, Accident and Health License revoked
Violation: Misappropriated or converted money belonging to an insurer or insured

Mershon, William L. of Minneapolis, Minn.
Order Number: 100699
Date of Order: 8/6/2010
Order Final In: August
Action Taken: Fined $3,522
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Murphree, Rhonda Sue of Midland
Order Number: 100706
Date of Order: 8/6/2010
Order Final In: August
Action Taken: General Life, Accident and Health License revoked
Violation: Felony criminal offense — theft

Pan-American Life Insurance Co. of New Orleans, La.
Order Number: 100782
Date of Order: 8/30/2010
Order Final In: August
Action Taken: Fined $45,000
Violation: Failed to pay clean claims in a timely manner

Paul Davis Restoration Inc. of Jacksonville, Fla.
Order Number: 100728
Date of Order: 8/11/2010
Order Final In: August
Action Taken: Fined $6,200
Violation: Provided continuing education course to students after course had expired

Rivard, James E of Jarrell
Order Number: 100687
Date of Order: 8/3/2010
Order Final In: August
Action Taken: General Property and Casualty License revoked; Must pay restitution of $30,000
Violation: Misappropriated or converted money belonging to an insurer or insured

Safeco Lloyds Insurance Co.of Boston, Mass.
Order Number: 100713
Date of Order: 8/9/2010
Order Final In: August
Action Taken: Fined $5,000
Violation: Failed to file rates associated with Texas Replacement Cost Coverage A-Dwelling endorsement

Safelite Glass Corp. of Columbus, Ohio
Order Number: 100719
Date of Order: 8/9/2010
Order Final In: August
Action Taken: Fined $52,000
Violation: Provided continuing education course to students after course and provider registration had expired

Sedgwick Claims Management Services Inc. of Irving
Order Number: 100760
Date of Order: 8/17/2010
Order Final In: August
Action Taken: Fined $7,000
Violation: Failed to timely pay independent review fee

Texas Windstorm Insurance Association of Austin
Order Number: 100729
Date of Order: 8/11/2010
Order Final In: August
Action Taken: Ordered to provide Department with complaint logs
Violation: Failed to maintain complete record of all complaints received by the insurer

Torres, Norma Patty of Mission
Order Number: 100783
Date of Order: 8/30/2010
Order Final In: August
Action Taken: General Property and Casualty License revoked; must pay restitution
Violation: Misappropriated or converted money belonging to an insurer or insured; failed to comply with continuing education requirements

Villarreal, Ramon A.; Underwriters MGA Inc. of McAllen and Mission
Order Number: 100716
Date of Order: 8/9/2010
Order Final In: August
Action Taken: $400,000 fine subject to a dollar-for-dollar reduction by restitution paid within 45 days; General Property and Casualty License, Managing General Agent Licenses, and Surplus Lines Licenses revoked; Must pay TDI examination expenses in the amount of $7,474
Violation: Failed to provide requested documents during examination; Engaged in unfair settlement practices; Failed to reimburse Department for examination expenses

ZRC Medical Resolutions Inc. of Kyle
Order Number: 100714
Date of Order: 8/9/2010
Order Final In: August
Action Taken: Certificate of Registration surrendered and cancelled
Violation: Failed to comply with Independent Review Organization requirements

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