Texas’ April Enforcement Actions Result in Nearly $1M in Fines, Restitution

The Texas Department of Insurance recently announced enforcement actions taken by Commissioner Mike Geeslin that became final during April. The actions include six license revocations, a license denial and fines and restitution totaling more than $993,000.

Only final orders are listed. 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 April 2007:

Alegnani, Joshua of Plano
Order Number: 070288
Date of Order: 4/20/2007
Order Final In: April
Action Taken: General Life, Accident, and Health Insurance Agent License denied
Violation: Felony offense

Barrera, Catherine Cecilia of Corpust Christi
Order Number: 070289
Date of Order: 4/20/2007
Order Final In: April
Action Taken: General Life, Accident and Health License and County Mutual License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Misappropriated or converted money belonging to an insurer or insured

Blanc, Heidi of El Paso
Order Number: 070276
Date of Order: 4/17/2007
Order Final In: April
Action Taken: $28,310 Restitution; Limited Lines License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Misappropriated or converted money belonging to an insurer or insured

Edwards, Lloyd Jason Reid of Rockwall
Order Number: 070317
Date of Order: 4/27/2007
Order Final In: April
Action Taken: General Life, Accident and Health License and General Property and Casualty License revoked
Violation: Engaged in fraudulent or dishonest acts or practices

Employers Direct Health Inc., North Carolina Mutual Life Insurance Company of Dallas; Durham, NC
Order Number: 070287
Date of Order: 4/20/2007
Order Final In: April
Action Taken: $150,000 fine
Violation: Allegedly engaged in fraudulent or dishonest acts or practices; Allegedly engaged in unfair settlement practices

Fussell, David Lee of Dallas
Order Number: 070275
Date of Order: 4/17/2007
Order Final In: April
Action Taken: $15,000 fine
Violation: Allegedly acted as an agent for unauthorized entities

Galaxy Industries Inc. D/B/A Galaxy Title Services; Caldwell, Michael D/B/A Galaxy Title Services of Arlington, Dallas
Order Number: 070293
Date of Order: 4/25/2007
Order Final In: April
Action Taken: $500,000 fine; Cease and Desist Order
Violation: Unauthorized title insurance; Engaged in unfair and deceptive acts or practices

Hart, Monica Patricia of Pearland
Order Number: 070292
Date of Order: 4/25/2007
Order Final In: April
Action Taken: General Life, Accident and Health License revoked
Violation: Made a material misrepresentation on a license application

Hirsch, Clouse Dunn, LLP of Dallas
Order Number: 070318
Date of Order: 4/27/2007
Order Final In: April
Action Taken: $1,200 fine
Violation: Allegedly taught continuing education courses without valid course certifications

Imbert, Richard C of Amityville, NY
Order Number: 070284
Date of Order: 4/20/2007
Order Final In: April
Action Taken: $7,000 fine
Violation: Failed to timely file Annual Agent Reports for Risk retention and Purchasing Groups

John, James Neal of Denton
Order Number: 070290
Date of Order: 4/20/2007
Order Final In: April
Action Taken: $261,778 restitution; General Life, Accident and Health License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Misappropriated or converted money belonging to an insurer or insured

Johnson, Adrew P., D/B/A Dimmit County Land Title Company of Carrizo Springs
Order Number: 070277
Date of Order: 4/17/2007
Order Final In: April
Action Taken: $5,500 fine
Violation: Failed to timely provide an annual trust fund account audit report; Failed to timely remit title insurance policy guaranty fees

Reliable Title Company of Houston
Order Number: 070319
Date of Order: 4/27/2007
Order Final In: April
Action Taken: Title Insurance Agent License revoked
Violation: Failed to timely provide an annual trust fund account audit report

St. Paul Travelers of Hartford, CT
Order Number: 070285
Date of Order: 4/20/2007
Order Final In: April
Action Taken: $25,000 fine
Violation: Used credit scoring model before filing it with TDI

Vail, Samuel John of San Antonio
Order Number: 070265
Date of Order: 4/9/2007
Order Final In: April
Action Taken: General Life, Accident and Health License placed on probation for two years
Violation: Engaged in fraudulent or dishonest acts or practices

For more information contact: PIO@tdi.state.tx.us

Source: Texas Department of Insurance