Texas Enforcement Actions Result in $4.5M in Fines, Restitution

Enforcement actions taken by Texas Insurance Commissioner Mike Geeslin that became final during November include three license revocations, two license denials, and fines and restitution totaling $4,495,150, the Texas Department of Insurance announced. Monetary assessments include a $4.4 million fine against United Healthcare Insurance Company for prompt payment violations.

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’s disciplinary orders for November 2007 are:

A-G Administrators, Inc. of Valley Forge, PA
Order Number: 071054
Date of Order: 11/21/2007
Order Final In: November
Action Taken: $20,000 fine; Third Party Administrator License issued
Violation: Acted as a third party administrator without authorization

Allen, Stephen M.; S Allen and Associates, Inc.; S Allen and Associates; Urban Insurance Managers Inc.; S Allen and Allen Insurance Services Inc.; Trevino, Elvia; Masters Insurance Underwriters LLC; Ventura, Veronica; Lewis, Candice and Allen, Terri Cathron of Houston
Order Number: 071022
Date of Order: 11/13/2007
Order Final In: November
Action Taken: Emergency Cease and Desist
Violation: Unauthorized insurance; Engaged in unfair and deceptive acts or practices

Cary, Shon Devlon of Arlington
Order Number: 071039
Date of Order: 11/15/2007
Order Final In: November
Action Taken: $3,000 fine; Must complete 30 hours of continuing education; One year suspension of General Life, Accident and Health License
Violation: Failed to comply with continuing education requirements

Driegert, Robert Stephen; Driegert & Associates, LLC; Chan, Anson; Global A C Investment, Inc. of Garland
Order Number: 070986
Date of Order: 11/2/2007
Order Final In: November
Action Taken: $35,000 fine; Cease and Desist Order
Violation: Operated a fee attorney office and failed to use bona fide employees to transact title insurance business

Elliott & Waldron/Shelby County Title of Center
Order Number: 070990
Date of Order: 11/7/2007
Order Final In: November
Action Taken: $12,400 fine
Violation: Failed to timely provide an annual trust fund account audit report and annual statistical report

Garza, Roger Elias III of San Antonio
Order Number: 071037
Date of Order: 11/15/2007
Order Final In: November
Action Taken: $1,500 fine
Violation: Failed to comply with continuing education requirements

Garza, Thelma Sylvestra of San Antonio
Order Number: 070991
Date of Order: 11/7/2007
Order Final In: November
Action Taken: $1,500 fine; Must complete 30 hours of continuing education
Violation: Failed to comply with continuing education requirements

Kennedy, Paul David Jr. of Katy
Order Number: 070995
Date of Order: 11/7/2007
Order Final In: November
Action Taken: $1,500 fine; Must complete 30 hours of continuing education; General Property and Casualty License and General Life, Accident and Health License suspended for one year
Violation: Failed to comply with continuing education requirements

Kenyon, Tracy McMahon of Arlington
Order Number: 071055
Date of Order: 11/21/2007
Order Final In: November
Action Taken: $1,500 fine; Must complete 30 hours of continuing education
Violation: Failed to comply with continuing education requirements

Langston, Deanna Jo of Sumner
Order Number: 070984
Date of Order: 11/2/2007
Order Final In: November
Action Taken: General Property and Casualty License issued and placed on probation for two years
Violation: Deferred adjudication for felony offenses

Martinez, Jorge S. of Houston
Order Number: 071035
Date of Order: 11/15/2007
Order Final In: November
Action Taken: General Life, Accident and Health License revoked
Violation: Engaged in fraudulent or dishonest acts or practices

Martinez, Juan J. of San Antonio
Order Number: 070987
Date of Order: 11/2/2007
Order Final In: November
Action Taken: General Property and Casualty License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Obtained a license by fraud or misrepresentation

Medina, Erica Anne of Katy
Order Number: 071034
Date of Order: 11/15/2007
Order Final In: November
Action Taken: General Property and Casualty License application denied
Violation: Engaged in fraudulent or dishonest acts or practices; Engaged in criminal conduct related to the business of insurance

Pequeno, Anthony C. of Austin
Order Number: 070992
Date of Order: 11/7/2007
Order Final In: November
Action Taken: General Life, Accident and Health License revoked
Violation: Failed to comply with continuing education requirements

Rodriguez, Richard Robert of Harlingen
Order Number: 071056
Date of Order: 11/21/2007
Order Final In: November
Action Taken: $16,000 fine
Violation: Alleged P-22 violation; Allegedly closed a transaction for which an insured closing and settlement letter was issued without a Title Insurance Agent License

Sierra, Miriam Silvia of DeSoto
Order Number: 071036
Date of Order: 11/15/2007
Order Final In: November
Action Taken: $750 fine
Violation: Allegedly failed to use bona fide employees as escrow officers

Solis, Diana Marie of La Villa
Order Number: 070993
Date of Order: 11/7/2007
Order Final In: November
Action Taken: $500 fine; Must complete 10 hours of continuing education
Violation: Failed to comply with continuing education requirements

United Healthcare Insurance Company; United Healthcare of Texas, Inc. of Hartford, CT; Plano
Order Number: 070994
Date of Order: 11/7/2007
Order Final In: November
Action Taken: $4,400,000 fine
Violation: Prompt payment violations

Vara, Manuel Albert of Corpus Christi
Order Number: 071032
Date of Order: 11/15/2007
Order Final In: November
Action Taken: Adjuster-All Lines License application denied
Violation: Engaged in fraudulent or dishonest acts or practices; Felony conviction directly related to the business of insurance

Williams, Stanley Cobb of El Lago
Order Number: 071038
Date of Order: 11/15/2007
Order Final In: November
Action Taken: Insurance Adjuster License surrendered and canceled and waived right to reapply for 5 years
Violation: Engaged in fraudulent or dishonest acts or practices; Felony conviction directly related to the business of insurance

Young, Katherine Hughes of Arlington
Order Number: 070985
Date of Order: 11/2/2007
Order Final In: November
Action Taken: $1,500 fine; Must complete 30 hours of continuing education
Violation: Failed to comply with continuing education requirements

Source: Texas Department of Insurance