TDI Announces February Enforcement Actions

News Release Date: 4/5/2006
Category:   Enforcement
 

AUSTIN - The Texas Department of Insurance today announced enforcement actions taken by Commissioner Mike Geeslin that became final during February.

The actions include five license revocations, two license denials and fines and restitution totaling $281,400. 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 FEBRUARY 2006

Alexander, Bennie Jean of Plano
Order Number: 060169
Date of Order: 2/15/2006
Order Final In: February
Action Taken: Insurance Adjuster License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Felony Insurance Fraud

Allegiance Title Company of Dallas
Order Number: 060145
Date of Order: 2/9/2006
Order Final In: February
Action Taken: $4,500 fine
Violation: Repeatedly failed to timely remit title insurance guaranty fees

American International Companies of New York of New York, NY
Order Number: 060175
Date of Order: 2/16/2006
Order Final In: February
Action Taken: $150,000 fine; Restitution
Violation: Charged excessive TRIA rates to some policyholders; Failed to provide clear and conspicuous disclosure to policyholders of the TRIA charge at time of offer, purchase and/or renewal of the policy

Atkinson-Roach, Linda of Missouri City
Order Number: 060137
Date of Order: 2/6/2006
Order Final In: February
Action Taken: $3,000 fine
Violation: Made a material misrepresentation on a license application; Received title insurance premium without license

Best Life and Health Insurance Company of Austin
Order Number: 060170
Date of Order: 2/15/2006
Order Final In: February
Action Taken: $10,000 fine
Violation: Failed to obtain approval for several Holding Company Act transactions

Cigna Healthcare of Texas of Irving
Order Number: 060220
Date of Order: 2/28/2006
Order Final In: February
Action Taken: $10,000 fine
Violation: Failed to provide timely written notification to the appealing party of the determination of the appeal; Failed to timely notify TDI of request for an independent review

Costello, Martha Estella of San Antonio
Order Number: 060127
Date of Order: 2/3/2006
Order Final In: February
Action Taken: $1,500 fine; One year suspension; Must complete 30 hours of continuing education
Violation: Failed to comply with continuing education requirements

Eaden, Ilene of Nacogdoches
Order Number: 060126
Date of Order: 2/3/2006
Order Final In: February
Action Taken: $1,500 fine; One year suspension; Must complete 30 hours of continuing education
Violation: Failed to comply with continuing education requirements

Electronic Health Plans, Inc. of Farmingdale, NY
Order Number: 060124
Date of Order: 2/3/2006
Order Final In: February
Action Taken: $15,000 fine
Violation: Acted as an unauthorized third party administrator for unauthorized entities

Foard, Joe Lee Jr. of Sherman
Order Number: 060148
Date of Order: 2/9/2006
Order Final In: February
Action Taken: Cease and Desist Order
Violation: Acted as Public Insurance Adjuster without holding a license

Forse Abstract and Title Company, Inc. of Newton
Order Number: 060213
Date of Order: 2/27/2006
Order Final In: February
Action Taken: $3,000 fine
Violation: Failed to timely remit title insurance policy guaranty fees

Fuentes, Valerie of San Antonio
Order Number: 060171
Date of Order: 2/15/2006
Order Final In: February
Action Taken: General Property and Casualty License revoked
Violation: Misappropriated or converted money belonging to an insurer or insured; Engaged in fraudulent or dishonest acts or practices

Gonzalez, Maria of Houston
Order Number: 060125
Date of Order: 2/3/2006
Order Final In: February
Action Taken: Limited Lines License revoked
Violation: Misappropriated or converted money belonging to an insurer or insured; Engaged in fraudulent or dishonest acts or practices

Graham, Cynthia Ann of Austin
Order Number: 060162
Date of Order: 2/14/2006
Order Final In: February
Action Taken: $50,000 fine; General Life, Accident, and Health License revoked
Violation: Misappropriated or converted money belonging to an insurer or insured; Engaged in fraudulent or dishonest acts or practices

Hartford Steam Boiler Inspection & Insurance Co. of Houston
Order Number: 060146
Date of Order: 2/9/2006
Order Final In: February
Action Taken: $1,000 fine
Violation: Taught a continuing education course with an expired provider registration

Heart-Land Title Company of Brownwood
Order Number: 060214
Date of Order: 2/27/2006
Order Final In: February
Action Taken: $2,400 fine
Violation: Failed to timely remit title insurance policy guaranty fees

Hicks, Mary Kathleen of San Angelo
Order Number: 060156
Date of Order: 2/10/2006
Order Final In: February
Action Taken: $15,000 fine subject to a dollar-for-dollar reduction by restitution to $2,000
Violation: Allegedly materially misrepresented terms and conditions of an insurance policy

International Fidelity & Surety, Ltd.; Melanie Grunwald of Hartford, CT
Order Number: 060147
Date of Order: 2/9/2006
Order Final In: February
Action Taken: Emergency Cease and Desist Order
Violation: Engaged in unfair and deceptive acts or practices; Unauthorized insurance

McCleary, Linda Jeane of Cypress
Order Number: 060174
Date of Order: 2/16/2006
Order Final In: February
Action Taken: Group 1, Life, Accident, Health and HMO insurance agent license denied
Violation: Felony conviction

Montoya, Edith Jacqueline of Dallas
Order Number: 060168
Date of Order: 2/15/2006
Order Final In: February
Action Taken: General Property and Casualty License application denied
Violation: Engaged in fraudulent or dishonest acts or practices; Felony offense

Reged Inc of Morrisville, NC
Order Number: 060215
Date of Order: 2/27/2006
Order Final In: February
Action Taken: $7,000 fine
Violation: Taught a continuing education course with an expired provider registration

Scott, James Ammon of San Angelo
Order Number: 060165
Date of Order: 2/15/2006
Order Final In: February
Action Taken: $1,500 fine; Must complete 15 hours of continuing education
Violation: Failed to comply with continuing education requirements

Skill Tech Construction of Houston
Order Number: 060123
Date of Order: 3/3/2006
Order Final In: February
Action Taken: $3,500 fine
Violation: Acted as a Public Insurance Adjuster without a license

Springer, Vera Jo of Dallas
Order Number: 060166
Date of Order: 2/15/2006
Order Final In: February
Action Taken: $1,500 fine; Must complete 30 hours of continuing education
Violation: Failed to comply with continuing education requirements

Sullivan, Jeffrey Michael of Houston
Order Number: 060217
Date of Order: 2/27/2006
Order Final In: February
Action Taken: General Property and Casualty License revoked
Violation: Failed to comply with previous Commissioner's Order

Valdez, Steven Daniel of San Marcos
Order Number: 060157
Date of Order: 2/10/2006
Order Final In: February
Action Taken: Two year probation of General Property and Casualty License and General Life, Accident and Health License
Violation: Felony offense

Williams, Valerie Faye of Austin
Order Number: 060155
Date of Order: 2/10/2006
Order Final In: February
Action Taken: $1,000 fine
Violation: Made a material misrepresentation on a license application