Texas Enforcement Actions in November Bring $31K in Fines

The Texas Department of Insurance enforcement actions became final during November 2009 include three license revocations and fines and restitution totaling $31,126.

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 for November 2009:

American Casualty Insurance Company of Reading, Pennsylvania of Chicago, IL
Order Number: 090938
Date of Order: 11/19/2009
Order Final In: November
Action Taken: Fined $10,000; Must create and maintain claims handling policies related to Independent Review Organizations
Violation: Failed to provide correct facsimile number for purposes of receiving written invoices for IRO services

American National Title Company of Houston
Order Number: 090925
Date of Order: 11/16/2009
Order Final In: November
Action Taken: Title Insurance Agent License revoked
Violation: Failed to comply with Commissioner’s Order; Misappropriated or converted money belonging to an insurer or insured; Found to be in hazardous condition

Brown, Clinton Sloane of Kirbyville
Order Number: 090900
Date of Order: 11/6/2009
Order Final In: November
Action Taken: Fined $1,500; Insurance Adjuster License revoked
Violation: Failed to comply with Commissioner’s Order

Cuellar, Michael M. of Amarillo
Order Number: 090623
Date of Order: 8/5/2009
Order Final In: November
Action Taken: $1,500 fine; General Property and Casualty License suspended for one year; Must complete 30 hours continuing education
Violation: Failed to comply with continuing education requirements

Donegan Insurance Agency, Inc. of Seguin
Order Number: 090918
Date of Order: 11/13/2009
Order Final In: November
Action Taken: Fined $8,826; Prohibited from selling viatical or life settlements
Violation: Engaged in unfair and deceptive acts or practices; Sold life settlements bonded by an unlicensed and/or ineligible insurer

Duvalliere, Candi of Arlington
Order Number: 090947
Date of Order: 11/24/2009
Order Final In: November
Action Taken: General Property and Casualty License issued and placed on probation for 2 years.
Violation: Felony criminal offense

Independence Land Title Company, LLC D/B/A Classic Title Company of Carrollton
Order Number: 090923
Date of Order: 11/13/2009
Order Final In: November
Action Taken: Fined $4,300
Violation: Failed to timely provide an annual trust fund account audit report

Smith, Whitney T. D/B/A Madison County Title Company of Madisonville
Order Number: 090922
Date of Order: 11/13/2009
Order Final In: November
Action Taken: Fined $5,000; Title Insurance Agent License revoked
Violation: Failed to timely remit title insurance policy guaranty fees

Source: Texas Department of Insurance