Texas’ September Enforcements Bring Nearly $734K in Fines, Restitution

The Texas Department of Insurance enforcement actions that became final during September 2010 include seven license revocations, and fines and restitution totaling $733,514.

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.

TDI Final Disciplinary Orders for September

Aranda, Kristy Shenista of Wichita Falls
Order Number: 100832
Date of Order: 9/17/2010
Order Final In: September
Action Taken: General Property and Casualty License and General Life, Accident and Health License revoked
Violation: Criminal offense – theft

Citizens National Life Insurance Company of Austin
Order Number: 100814
Date of Order: 9/14/2010
Order Final In: September
Action Taken: Must increase face value of eligible, in force polices by 23 percent and increase amount to death benefits previously paid by likely amount
Violation: Sold certain life insurance policies to non-white persons at higher premiums or with lesser benefits than policies sold to white persons.

Combined Independent Agencies Inc. of Dallas
Order Number: 100843
Date of Order: 9/22/2010
Order Final In: September
Action Taken: Fined $1,245
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Delos Insurance Company of New York, NY
Order Number: 100844
Date of Order: 9/22/2010
Order Final In: September
Action Taken: Fined $50,000
Violation: Failed to timely file 2008 annual declination report; Failed to submit timely and accurate quarterly claims payment information

DF Institute Inc. D/B/A Kaplan Financial of La Crosse, WI
Order Number: 100853
Date of Order: 9/27/2010
Order Final In: September
Action Taken: Fined $12,200
Violation: Taught continuing education course prior to course certification

Easterling, James Lorenzo of Arlington
Order Number: 100845
Date of Order: 9/22/2010
Order Final In: September
Action Taken: Life Agent License revoked
Violation: Felony criminal offense – theft

Frank Crystal & Company Inc. of Houston
Order Number: 100828
Date of Order: 9/16/2010
Order Final In: September
Action Taken: Fined $5,060
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Garza, Gabriel of Round Rock
Order Number: 100803
Date of Order: 9/7/2010
Order Final In: September
Action Taken: Escrow Officer License revoked; Must pay restitution of $105,571
Violation: Misappropriated or converted money belonging to an insurer or insured

Hsi, Chao A. of Bellaire
Order Number: 100457
Date of Order: 5/21/2010
Order Final In: September
Action Taken: General Life, Accident and Health License and General Property and Casualty License revoked; Must pay restitution of $291,892
Violation: Misappropriated or converted money belonging to an insurer or insured

John L. Wortham & Son L.P. of Houston
Order Number: 100831
Date of Order: 9/16/2010
Order Final In: September
Action Taken: Fined $11,657
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Jones, Dorothy W. of Texarkana
Order Number: 100801
Date of Order: 9/7/2010
Order Final In: September
Action Taken: General Life, Accident and Health License revoked and Funeral Prearrangement Life License revoked; Must pay restitution of $18,323
Violation: Misappropriated or converted money belonging to an insurer or insured; Failed to respond to requests for information

London American Risk Specialists Inc. of Houston
Order Number: 100863
Date of Order: 9/29/2010
Order Final In: September
Action Taken: Fined $1,382
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Milton Scott & Associates Insurance Agency Inc. of San Antonio
Order Number: 100862
Date of Order: 9/29/2010
Order Final In: September
Action Taken: Fined $5,359
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Osterman, David Robert of Crystal Beach
Order Number: 100793
Date of Order: 9/1/2010
Order Final In: September
Action Taken: General Life, Accident and Health License and General Property and Casualty License revoked; Must pay restitution of $218,790
Violation: Misappropriated or converted money belonging to an insurer or insured

Sheridan, Thomas E of Houston
Order Number: 100829
Date of Order: 9/16/2010
Order Final In: September
Action Taken: Fined $7,000
Violation: Failed to timely file Annual Agent Reports for Risk Retention and Purchasing Groups

Stewart Title Company D/B/A Stewart Title Rockport Division of Rockport
Order Number: 100830
Date of Order: 9/16/2010
Order Final In: September
Action Taken: Fined $7,400
Violation: Failed to timely send a copy of annual trust fund account audit report to Department

Vicencio, Rogelio of El Paso
Order Number: 100815
Date of Order: 9/14/2010
Order Final In: September
Action Taken: General Life, Accident and Health License revoked
Violation: Made misrepresentations regarding terms and conditions of insurance annuity contracts

Source: Texas Department of Insurance