Texas Orders $250K in Fines and Restitution in February

The Texas Department of Insurance announced that enforcement actions taken by Commissioner Mike Geeslin that became final during February include 10 license revocations, a license denial and fines and restitution totaling more than $250,000.

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.

TDI final disciplinary orders for February 2007:

Bodkin, Todd Francis Sr. of San Antonio
Order Number: 070093
Date of Order: 2/2/2007
Order Final In: February
Action Taken: $113,083 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

Choate, Robert Hugh Jr. of Beaumont
Order Number: 070099
Date of Order: 2/7/2007
Order Final In: February
Action Taken: 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

Cortinas, Marie Isabel of Edinburg
Order Number: 070104
Date of Order: 2/8/2007
Order Final In: February
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; Felony

Drews, Herman Edwin of Houston
Order Number: 070160
Date of Order: 2/23/2007
Order Final In: February
Action Taken: General Life, Accident and Health License and General Property and Casualty License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Felony conviction

Estrada, Jaime Enrique of Olmito
Order Number: 070101
Date of Order: 2/7/2007
Order Final In: February
Action Taken: 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

Gray, Bryan Lee of Wichita Falls
Order Number: 070138
Date of Order: 2/16/2007
Order Final In: February
Action Taken: $5,000 fine; Adjuster application denied; General Property and Casualty License and 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

Lewis, Gregory Todd of Austin
Order Number: 070157
Date of Order: 2/23/2007
Order Final In: February
Action Taken: General Property and Casualty License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Engaged in unfair and deceptive acts or practices

Lopez, Jose M. of Premont
Order Number: 070088
Date of Order: 2/1/2007
Order Final In: February
Action Taken: $850 fine
Violation: Failed to comply with continuing education requirements

Mitchell County Abstract Co of Colorado City
Order Number: 070135
Date of Order: 2/16/2007
Order Final In: February
Action Taken: $5,400 fine
Violation: Failed to timely provide an annual trust fund account audit report

Morgan, Karen Sue; C & S Insurance Services, Inc. of Houston
Order Number: 070162
Date of Order: 2/26/2007
Order Final In: February
Action Taken: $5,000 fine; General Property and Casualty License held by C & S Insurance Services Inc. revoked; General Property and Casualty License held by Morgan suspended
Violation: Unauthorized insurance

Murray, Robert Nelson of Houston
Order Number: 070105
Date of Order: 2/8/2007
Order Final In: February
Action Taken: $1,500 fine; Must complete 30 hours of continuing education; General Life, Accident and Health License suspended
Violation: Failed to comply with continuing education requirements

Nuccio, Robert Vincent of Toluca Lake, California
Order Number: 070161
Date of Order: 2/26/2007
Order Final In: February
Action Taken: $2,600 fine
Violation: Failed to timely provide Annual Agent Report for Risk Retention and Purchasing Group

Pearle Vision Managed Care – HMO of Texas, Inc. of Dallas
Order Number: 070094
Date of Order: 2/2/2007
Order Final In: February
Action Taken: $12,000 fine
Violation: Failed to timely file Annual Statement, Management Discussion and Analysis, Actuarial Opinion and Annual Registration Statement

Principal Life Insurance Company of Des Moines, Iowa
Order Number: 070089
Date of Order: 2/1/2007
Order Final In: February
Action Taken: $3,600 fine
Violation: Taught a continuing education course with an expired certificate

Safeland Title Company of Allen
Order Number: 070136
Date of Order: 2/16/2007
Order Final In: February
Action Taken: $1,100 fine
Violation: Failed to timely remit title insurance policy guaranty fees

Smothers, Sheila Lynn of Schertz
Order Number: 070158
Date of Order: 2/23/2007
Order Final In: February
Action Taken: $750 fine; Must complete 30 hours of continuing education
Violation: Failed to comply with continuing education requirements

The Union Labor Life Insurance Company of Washington, DC
Order Number: 070090
Date of Order: 2/1/2007
Order Final In: February
Action Taken: $40,000 fine
Violation: Used forms not filed with or approved by TDI

Triune Resources, Inc.; Management Counsel For Employee Benefits, Inc. (MCEB); Pettigrew, Gregory Howard of Arlington
Order Number: 070142
Date of Order: 2/20/2007
Order Final In: February
Action Taken: $60,000 fine; General Life, Accident and Health License and Limited Lines License held by Pettigrew placed on probated suspension; TPA License held by Triune Resources revoked; General Life, Accident and Health License held by MCEB is suspended, pending revocation upon entry of a final order in civil litigation
Violation: Acted as an agent for unauthorized entities

Valdez, Edmundo M. of San Antonio
Order Number: 070100
Date of Order: 2/7/2007
Order Final In: February
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

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

Source: TDI