Texas
Department of Insurance
Summaries of the
News Releases for 2005-2006
TDI Announces
December Enforcement Actions
News Release Date:
1/30/2006
Category: Enforcement
AUSTIN - The Texas
Department of Insurance today announced
enforcement actions taken by Commissioner Mike
Geeslin that became final during December.
The actions
include two license revocations, one license
denial and fines and restitution totaling
$4,228,742. Copies of Geeslin’s orders may be
obtained by contacting TDI’s Public Information
Office.
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.
TEXAS DEPARTMENT
OF INSURANCE
FINAL DISCIPLINARY ORDERS DECEMBER 2005
Advanced Adminstration, Inc. of Orlando, FL
Order Number: 051016
Date of Order: 12/1/2005
Order Final In: December
Action Taken: $113,000 fine subject to a
dollar-for-dollar reduction by restitution to
$1,000; Cease and Desist order
Violation: Acted as third party administrator
without first obtaining a certificate of
authority
Bankers Insurance Company of St. Petersburg, FL
Order Number: 051082
Date of Order: 12/21/2005
Order Final In: December
Action Taken: $8,000 fine
Violation: Allowed unlicensed individuals to act
as insurance agents
Branton, Stephen Foster; Binggeli, Harold Dean
of Midland
Order Number: 051092
Date of Order: 12/22/2005
Order Final In: December
Action Taken: $25,000 fine subject to a
dollar-for-dollar reduction by restitution to
$10,000
Violation: Acted as an agent for unauthorized
entities
Browning, Danny of Dallas
Order Number: 051029
Date of Order: 12/5/2005
Order Final In: December
Action Taken: $5,000 fine subject to a
dollar-for-dollar reduction by restitution to
$1,500
Violation: Acted as an agent for unauthorized
entities
Clarendon National Insurance Company of New
York, NY
Order Number: 051083
Date of Order: 12/21/2005
Order Final In: December
Action Taken: $20,000 fine
Violation: Failed to provide experience rating
data in a timely manner; Failed to timely
respond to requests for information from TDI
Gregory, Rachael A., Gregory Insurance Services,
LLC of Dallas
Order Number: 050964
Date of Order: 11/8/2005
Order Final In: December
Action Taken: Restitution; General Property and
Casualty Licenses held by Rachael A. Gregory and
Gregory Insurance Services, LLC revoked
Violation: Engaged in fraudulent or dishonest
acts or practices; Misappropriated or converted
money belonging to an insurer or insured;
Unauthorized insurance
Matagorda County Title Company, LLC of Bay City
Order Number: 051055
Date of Order: 12/12/2005
Order Final In: December
Action Taken: $2,500 fine
Violation: Placed advertising for title agency
before license issued
Medsolutions, Inc. of Franklin, TN
Order Number: 051051
Date of Order: 12/12/2005
Order Final In: December
Action Taken: $45,000 fine
Violation: Failed to issue adverse
determinations in a timely manner
Progressive County Mutual Insurance Company of
Mayfield Village, OH
Order Number: 051099
Date of Order: 12/23/2005
Order Final In: December
Action Taken: $10,000 fine
Violation: Failed to provide guidelines to its
independent agents to ensure non-discriminatory
application of its variable commission program
Shumate, Cynthia of Mt. Pleasant
Order Number: 051011
Date of Order: 11/29/2005
Order Final In: November
Action Taken: Insurance Service Representative
License application denied
Violation: Engaged in fraudulent or dishonest
acts or practices; Engaged in criminal conduct
involving moral turpitude
Torres, Carlos G. of Brownsville
Order Number: 051084
Date of Order: 12/21/2005
Order Final In: December
Action Taken: Limited Lines License revoked
Violation: Engaged in fraudulent or dishonest
acts or practices; Engaged in criminal conduct
directly related to the business of insurance
Turner, Samuel Gerard of Houston
Order Number: 051052
Date of Order: 12/12/2005
Order Final In: December
Action Taken: $242 restitution
Violation: Engaged in fraudulent or dishonest
acts or practices; Failed to comply with a
previous order
United Healthcare Insurance Company; United
Healthcare Of Texas, Inc. of Hartford, CT
Order Number: 051073
Date of Order: 12/19/2005
Order Final In: December
Action Taken: $4,000,000 penalty within 30 days;
Additional contingent penalties for future
similar violations; Restitution ordered for
failure to properly pay statutory penalties on
late clean claim payments
Violation: Violated Texas prompt pay statutes;
Failed to file complete and accurate provider
claim data reports; Failed to maintain adequate
complaint logs and complaint records.
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