Texas’ April Enforcement Actions Result in $771K in Fines, Restitution

Enforcement actions taken by Texas Insurance Commissioner Mike Geeslin that became final during April 2008 include nine license revocations, two license denials and fines and restitution totaling $771,165. The today announced

Copies of Geeslin’s orders may be obtained by contacting the Texas Department of Insurance’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.

Final disciplinary orders April 2008:

Adair, Macclellen, Allexandria and Associates LLC d/b/a AMA & Associates; Heritage Insurance Managers Inc. of San Antonio
Order Number: 080331
Date of Order: 4/17/2008
Order Final In: April
Action Taken: $10,000 fine
Violation: Failed to notify TDI of an administrative action taken by another state insurance regulator; Failed to timely file a TPA annual report; Acted as a TPA without a certificate of authority

Apache Title Company Incorporated of Gonzales
Order Number: 080362
Date of Order: 4/23/2008
Order Final In: April
Action Taken: $5,200 fine
Violation: Failed to timely provide an annual trust fund account audit report

Ayanbule, Bolajoko Adeniran of Irving
Order Number: 080396
Date of Order: 4/30/2008
Order Final In: April
Action Taken: $2,632 restitution; General Property and Casualty License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Misappropriated or converted money belonging to an insurer or insured

Barmore, James David of Houston
Order Number: 080374
Date of Order: 4/25/2008
Order Final In: April
Action Taken: General Lines, Property and Casualty License denied; General Life, Accident and Health License revoked
Violation: Criminal and dishonest conduct

Braddick, Melissa Ann of Houston
Order Number: 080315
Date of Order: 4/14/2008
Order Final In: April
Action Taken: $950 fine; Must complete 15 hours of continuing education
Violation: Failed to comply with continuing education requirements

Carrie, Jeff R. of Rockwall
Order Number: 080276
Date of Order: 4/1/2008
Order Final In: April
Action Taken: $1,500 fine; Must complete 15 hours of continuing education
Violation: Failed to comply with continuing education requirements

Church Mutual Insurance Company of Merrill, Wisconsin
Order Number: 080316
Date of Order: 4/14/2008
Order Final In: April
Action Taken: $581,609 restitution plus interest
Violation: Overcharged policyholders for liability coverage

Elliott & Waldron Abstract Company of Plains
Order Number: 080397
Date of Order: 4/30/2008
Order Final In: April
Action Taken: $2,700 fine
Violation: Failed to timely provide an annual trust fund account audit report

Evans, Traceye of Dallas
Order Number: 080280
Date of Order: 4/1/2008
Order Final In: April
Action Taken: General Life Accident and Health License application denied
Violation: Engaged in fraudulent or dishonest acts or practices; Attempted to obtain a license by fraud or misrepresentation; Felony offense

Garza, Alberto Maurice of Corpus Christi
Order Number: 080366
Date of Order: 4/23/2008
Order Final In: April
Action Taken: $1,024 restitution; 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

Gloyna, Alvin Robert, III of Irving
Order Number: 080324
Date of Order: 4/15/2008
Order Final In: April
Action Taken: Escrow Officer License revoked
Violation: Allegedly allowed employee to act as an escrow officer without a license

Great-West Life & Annuity Insurance Company of Greenwood Village, Colorado
Order Number: 080363
Date of Order: 4/23/2008
Order Final In: April
Action Taken: $8,000 fine
Violation: Applied discounts to out of network claims when not contractually entitled to do so

Guardian Fidelity Title CLR, LLP of Friendswood
Order Number: 080399
Date of Order: 4/30/2008
Order Final In: April
Action Taken: $10,000 fine; Surrender title insurance agent license
Violation: Charged consumers a separate fee for mortgage lien release services; Failed to meet minimum standards

Guardian Fidelity Title NWR LLP of The Woodlands
Order Number: 080400
Date of Order: 4/30/2008
Order Final In: April
Action Taken: $6,250 fine; Surrender title insurance agent license
Violation: Made false statements on a license application; Maintained an office where it was not licensed to do so; Failed to timely provide an annual trust fund account audit report

Hernandez, Esperanza B. of Pflugerville
Order Number: 080277
Date of Order: 4/1/2008
Order Final In: April
Action Taken: $1,500 fine; Must complete 15 hours of continuing education
Violation: Failed to comply with continuing education requirements

Huffer, Hillary Denae of Arlington
Order Number: 080367
Date of Order: 4/23/2008
Order Final In: April
Action Taken: $2,000 fine
Violation: Allegedly failed to maintain adequate records to support dibursement of funds

Huggins, Martha Eleanor of Texarkana
Order Number: 080279
Date of Order: 4/1/2008
Order Final In: April
Action Taken: $1,500 fine; General Life, Accident and Health License suspended for 1 year; Must complete 30 hours of continuing education
Violation: Failed to comply with continuing education requirements

Jackson, James Robert of College Station
Order Number: 080281
Date of Order: 4/1/2008
Order Final In: April
Action Taken: $1,500 fine; General Life, Accident and Health License suspended for 1 year; Must complete 30 hours of continuing education
Violation: Failed to comply with continuing education requirements

Johannsen, Ronald Louis of Victoria
Order Number: 080317
Date of Order: 4/14/2008
Order Final In: April
Action Taken: General Property and Casualty License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Misappropriated or converted money belonging to an insurer or insured

Johnson, Shirley Vernell of Dallas
Order Number: 080278
Date of Order: 4/1/2008
Order Final In: April
Action Taken: General Life, Accident, and Health License revoked
Violation: Allegedly failed to remit collected insurance premiums; Allegedly failed to properly credit consumer accounts

Lilly, Larry Dean of Dallas
Order Number: 080319
Date of Order: 4/14/2008
Order Final In: April
Action Taken: $1,500 fine; General Life, Accident and Health License suspended for 1 year; Must complete 15 hours of continuing education
Violation: Failed to comply with continuing education requirements

Mujanovic, Nurija of Garland
Order Number: 080393
Date of Order: 4/30/2008
Order Final In: April
Action Taken: $7,240 restitution; General Property and Casualty License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Misappropriated or converted money belonging to an insurer or insured

Northwest Title Agency Incorporated of Mason
Order Number: 080398
Date of Order: 4/30/2008
Order Final In: April
Action Taken: $4,300 fine
Violation: Failed to timely remit title insurance policy guaranty fees; Failed to timely provide an annual trust fund account audit report

Pritchett, Wilburn O., Jr. of Duncanville
Order Number: 080318
Date of Order: 4/14/2008
Order Final In: April
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

Southern American Title Company Inc of Houston; American Home Title Company, LLC of Dallas
Order Number: 080364
Date of Order: 4/23/2008
Order Final In: April
Action Taken: $22,500 fine; Surrender Title Insurance Agent’s License
Violation: Allegedly failed to timely remit title insurance policy guaranty fees; Allegedly failed to timely provide an annual trust fund account audit report; Allegedly failed to meet minimum escrow accounting standards

Suarez, Albert M. of Keller
Order Number: 080368
Date of Order: 4/23/2008
Order Final In: April
Action Taken: $95,000 restitution
Violation: Allegedly engaged in conduct that constitutes grounds for imposition of sanctions

Thompson, Bobbie J; Lehmann, Valerie Leigh; Ranch & Equine Insurance Agency LLC of Arcadia
Order Number: 080401
Date of Order: 4/30/2008
Order Final In: April
Action Taken: $10,000 fine
Violation: Alleged unauthorized insurance

Villa, Thelma G of Weslaco
Order Number: 080330
Date of Order: 4/16/2008
Order Final In: April
Action Taken: General Life, Accident and Health License, and General property and Casualty License revoked
Violation: Allegedly engaged in fraudulent or dishonest acts or practices; Allegedly misappropriated or converted money belonging to an insurer or insured

Walston, Diane Butler of Denton
Order Number: 080395
Date of Order: 4/30/2008
Order Final In: April
Action Taken: $1,500
Violation: Failed to comply with continuing education requirements

Williams, Merrell W. of Allen
Order Number: 080394
Date of Order: 4/30/2008
Order Final In: April
Action Taken: General Life, Accident and Health License and the Limited Lines license cancelled
Violation: Allegedly engaged in fraudulent or dishonest acts or practices; Allegedly misappropriated or converted money belonging to an insurer or insured

Source: Texas Department of Insurance