The Texas Department of Insurance recently announced enforcement actions taken by Commissioner Jos茅 Montemayor that became final during February. The actions include four license revocations, one license denial, and fines and restitution totaling $1,330,673.
Only final orders are listed; commissioner’s orders are subject to appeal to state district court.
Disciplinary Orders for February 2005:
Abrams, Donald A. of Austin; Order Number: 050131; Action Taken: $5,000 fine; Violation: Taught a continuing education course with an expired provider registration.
Amador, Kathleen of Killeen; Order Number: 050163; Action Taken: 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; Materially misrepresented terms and conditions of an insurance policy.
American Capitol Insurance Company of Houston; Order Number: 050187; Action Taken: $5,000 fine; Violation: Failed to provide prior notice to TDI of intercompany settlements.
Blue Cross and Blue Shield of Texas, A Division of Health Care Service Corporation of Chicago Ill; Order Number: 050202; Action Taken: $5,000 fine; Violation: Failed to timely provide fee schedule to providers.
Box, Carl Thomas of Livingston; Order Number: 050176; Action Taken: Probated suspension of General Life, Accident and Health License; Violation: Engaged in fraudulent or dishonest acts; Engaged in unfair and deceptive acts or practices.
Chicago Title Insurance Company – Houston, of Houston; Order Number: 050191; Action Taken: $1,200,000 fine; Violation: Engaged in improper 戮ip transactions; Provided inaccurate settlement statements to lenders and borrowers; Violated numerous provisions of the Texas Title Manual.
Cisneros, Ronald of Boerne; Order Number: 050180; Action Taken: $1,500 fine and 15 hours continuing education; Violation: Failed to comply with continuing education requirements.
Craft, Lynn Dean of Houston; Order Number: 050130; Action Taken: Limited Lines License revoked; Violation: Failed to comply with Commissioner’s Order.
Crooks, Sylvester J. of Robstown; Order Number: 050177; Action Taken: $3,000 fine; Probated suspension of Qualified Inspector appointment; Violation: Knowingly, willfully, fraudulently or with gross negligence signed or prepared an inspection report that contained a false statement.
Dearing, Diana Garza of Houston; Order Number: 050127; Action Taken: $500 fine; 15 hours continuing education; Violation: Failed to comply with continuing education requirements.
Employee Benefit Management Services of Billings, Mont.; Order Number: 050185; Action Taken: $6,000 fine plus restitution; Cease and desist unauthorized activity; Violation: Acted as an agent for unauthorized entities; Acted as a third party administrator without proper certification.
Frick, Jeffrey Edward of Solana Beach, Calif.; Order Number: 050205; Action Taken: $1,500 fine; Violation: Failed to timely file required Annual Agent Reports for Risk Retention and Purchasing Groups (PG3); Failed to timely respond to requests for information from TDI.
Gans & Smith Insurance Agency Inc. of Longview; Order Number: 050206; Action Taken: $2,500 fine; Violation: Failed to timely file required Annual Agent Reports for Risk Retention and Purchasing Groups (PG3); Failed to timely respond to requests for information from TDI.
Haskins, Constance of El Paso; Order Number: 050181; Action Taken: $300 fine and 15 hours of continuing education; Violation: Failed to comply with continuing education requirements;
Hinojosa, John Gerard of Houston; Order Number: 050105; Action Taken: $10,000 fine plus restitution; General Life, Accident and Health License and Limited Lines License revoked; Cease and Desist from engaging in the business of insurance; Violation: Acted as an agent for unauthorized entities; Engaged in fraudulent or dishonest practices.
Jel Institute of Greer, S.C.; Order Number: 050104; Action Taken: $7,500 fine; Cease and Desist; Violation: Taught continuing education courses with an expired certificate; Failed to timely respond to requests for information from TDI.
Lemons, Lori Ann of Wylie; Order Number: 050182; Action Taken: $2,500 fine; Violation: Failed to maintain the qualifications necessary to hold a Surplus Lines License.
Liberty Life Insurance Company of Greenville, S.C.; Order Number: 050189; Action Taken: Mandatorily enjoined to comply with Multi-state Regulatory Settlement Agreement; Violation: Alleged race-based pricing.
Lopez, Cristobal Salas of San Antonio; Order Number: 050111; Action Taken: Limited Lines License application denied; Violation: Attempted to obtain a license by fraud or misrepresentation; Engaged in fraudulent or dishonest acts or prac-tices; Committed a felony involving moral turpitude.
Mega Life Health Insurance Company of North Richland Hills; Order Number: 050132; Action Taken: $5,000 fine; $18,573 in restitution; Violation: Deliver-ing, issuing and using an unapproved major medical policy.
Montgomery, Dougald Prosper of Norcross, Ga.; Order Number: 050207; Action Taken: $1,500 fine; Violation: Failed to timely file required Annual Agent Reports for Risk Retention and Purchasing Groups (PG3); Failed to timely respond to requests for information from TDI.
Pre-Paid Legal Services Inc of Ada, Okla.; Order Number: 050178; Action Taken: $10,000 fine; Cease and Desist from engaging in the business of insurance; Pay unauthorized insurance premium receipts tax, penalties and interest; Violation: Acted as a Surplus Lines Agent without a license.
Rahlfs, John W. of Kingwood; Order Number: 050179; Action Taken: $1,000 fine; Violation: Acted as a life and health insurance counselor without a license.
Realty Title and Abstract Company of Ennis; Order Number: 050208; Action Taken: $4,000 fine; Violation: Employed a person as an escrow officer without a proper license.
Renaissance Title L.L.C. of Allen; Order Number: 050186; Action Taken: $21,000 fine; Violation: Failed to timely file required agent statistical reports and escrow audit reports.
Smith, Christopher Ray of Richland Hills; Order Number: 050183; Action Taken: Adjuster All Lines License revoked; Violation: Felony conviction involving moral turpitude.
Soto, Brenda D. of Fort Worth; Order Number: 050201; Action Taken: Probated suspension of County Mutual License; Violation: Engaged in fraudulent or dishonest acts or practices.
Stewart Title of Midland L.L.C. of Midland; Order Number: 050203; Action Taken: $6,000 fine; Violation: Failed to timely file required annual escrow audit reports.
Texas Imperial Life Insurance Company of Houston; Order Number: 050188; Action Taken: $5,000 fine; Violation: Failed to provide prior notice of intercompany.
Thomas, Billy Charles of Dallas; Order Number: 050126: Probated suspension of Public Insurance Adjuster License; Violation: Made a material misrepresentation on a license application; Failed to notify TDI of a prior administrative action.
Tietz, Daniel Charles of Minneapolis, Minn.; Order Number: 050190; Action Taken: $1,500 fine; Violation: Failed to timely file required Annual Agent Reports for Risk Retention and Purchasing Groups (PG3); Failed to timely respond to requests for information from TDI.
Trans Union Settlement Solutions, Inc. of Houston; Order Number: 050209; Action Taken: $800 fine; Violation: Failed to timely remit title insurance policy guaranty fees.
Waley, Joshua of Leander; Order Number: 050210; Action Taken: Probated suspension of General Property and Casualty License; Violation: Misdemeanor offense directly related to the business of insurance.
Walker, James Randolph of Garland; Order Number: 050184; Action Taken: $5,000 fine; Probated suspension of Adjuster All Lines License; Violation: Misappropriated or converted money belonging to an insurer or insured; Engaged in fraudulent or dishonest acts or practices.
Wood County Title Company of Mineola; Order Number: 050204; Action Taken: $1,000 fine; Violation: Failed to timely file required annual audit report.
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