Texas’ July Enforcement Actions Result in $1.2M in Fines, Restitution

The Texas Department of Insurance announced enforcement actions taken by Commissioner Mike Geeslin that became final during July.

The actions include seven license revocations, a license denial and fines and restitution totaling $1,251,355. 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.

Final disciplinary action for July:

Allen, Stephen M.; Urban Insurance Managers Inc.; S Allen & Allen Insurance Services Inc.; S Allen and Associates Inc. of Houston
Order Number: 070586
Date of Order: 7/6/2007
Order Final In: July
Action Taken: $1,399 restitution; General Property and Casualty License, Managing General Agent License, and Surplus Lines License held by Stephen M. Allen revoked; Additional licenses held by Urban Insurance Managers Inc., S Allen & Allen Insurance Services Inc., and S Allen and Associates Inc. revoked
Violation: Criminal Conduct; Engaged in fraudulent or dishonest acts or practices; Misappropriated or converted money belonging to an insurer or insured

Banuelos, Marcus Ray of Corpus Christi
Order Number: 070620
Date of Order: 7/19/2007
Order Final In: July
Action Taken: $2,013 restitution; 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

Bayh, Lisa J. of Hempstead
Order Number: 070571
Date of Order: 7/2/2007
Order Final In: July
Action Taken: $1,350 fine
Violation: Failed to comply with continuing education requirements

Bravo, Raul of Alamo
Order Number: 070610
Date of Order: 7/17/2007
Order Final In: July
Action Taken: $1,500 fine
Violation: Failed to comply with continuing education requirements

CIS Purchasing Group, Inc. of New York, NY
Order Number: 070572
Date of Order: 7/2/2007
Order Final In: July
Action Taken: $7,000 fine
Violation: Failed to timely file PG3 Form; Failed to timely respond to requests for information from TDI

Duck, Cynthia Jean of Arlington
Order Number: 070603
Date of Order: 7/16/2007
Order Final In: July
Action Taken: $1,500 fine
Violation: Failed to comply with continuing education requirements

Falchetti, Julio Cesar of Houston
Order Number: 070584
Date of Order: 7/6/2007
Order Final In: July
Action Taken: $2,500 fine; $720 Restitution; General Life, Accident and Health License suspended for three months
Violation: Engaged in fraudulent or dishonest acts or practices; Misappropriated or converted money belonging to an insurer or insured

Gomez, Victor Manuel of El Paso
Order Number: 070589
Date of Order: 7/6/2007
Order Final In: July
Action Taken: $750 fine
Violation: Failed to comply with continuing education requirements

Jenkins, Stephen Lawrence Jr. of Austin
Order Number: 070618
Date of Order: 7/19/2007
Order Final In: July
Action Taken: $1,500 fine
Violation: Failed to comply with continuing education requirements

Jones, Shamika Lashae of Stafford
Order Number: 070614
Date of Order: 7/18/2007
Order Final In: July
Action Taken: $31,000 restitution; Escrow Officer’s License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Misappropriated or converted money belonging to an insurer or insured

Kelly, David Eric of The Woodlands
Order Number: 070612
Date of Order: 7/17/2007
Order Final In: July
Action Taken: $1,500 fine; Must complete 14 hours of continuing education
Violation: Failed to comply with continuing education requirements

Laurence, Larry Denny of Point Richmond, CA
Order Number: 070619
Date of Order: 7/19/2007
Order Final In: July
Action Taken: General Life, Accident and Health License revoked
Violation: Failed to comply with Commissioner’s Order

Mi Tierra Title, L.L.C. of Austin
Order Number: 070573
Date of Order: 7/2/2007
Order Final In: July
Action Taken: $1,600 fine
Violation: Failed to timely remit title insurance policy guaranty fees

Mize, Lisa Sue of Summersville, WV
Order Number: 070602
Date of Order: 7/16/2007
Order Final In: July
Action Taken: General Property and Casualty License and General Life, Accident and Health License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Made a material misrepresentation on a license application

Montemayor, Nieves A. Jr. of Austin
Order Number: 070587
Date of Order: 7/6/2007
Order Final In: July
Action Taken: General Life, Accident and Health License application and Temporary General Life, Accident and Health application denied
Violation: Engaged in fraudulent or dishonest acts or practices; Criminal conduct directly related to the business of insurance

Orange Coast Title Company of Texas of Sugar Land
Order Number: 070574
Date of Order: 7/2/2007
Order Final In: July
Action Taken: $4,100 fine
Violation: Failed to timely remit title insurance policy guaranty fees; Failed to timely provide an annual trust fund account audit report

Plan Compliance Group, LTD of Walnut Creek, CA
Order Number: 070588
Date of Order: 7/6/2007
Order Final In: July
Action Taken: $250,000 fine; $748,873 restitution; Certificate of Authority revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Misappropriated or converted money belonging to an insurer or insured

Smyrl, Jason R. of La Porte
Order Number: 070611
Date of Order: 7/17/2007
Order Final In: July
Action Taken: $1,050 fine
Violation: Failed to comply with continuing education requirements

Thompson, Coe, Cousins & Irons LLP of Dallas
Order Number: 070597
Date of Order: 7/11/2007
Order Final In: July
Action Taken: $3,000 fine
Violation: Taught continuing education courses without valid course certifications

United American Insurance Company of McKinney
Order Number: 070569
Date of Order: 7/2/2007
Order Final In: July
Action Taken: $95,000 fine
Violation: Allegedly, through its agents, engaged in unfair and deceptive acts or practices in the marketing of Medicare supplement insurance policies; Allegedly misrepresented terms and conditions of an insurance policy

United American Insurance Company of McKinney
Order Number: 070570
Date of Order: 7/2/2007
Order Final In: July
Action Taken: $95,000 fine
Violation: Allegedly failed to establish required marketing procedures regarding Medicare supplement insurance; Allegedly modified policy form without approval; Allegedly failed to timely respond to requests for information from TDI

Washington, Sandra Gail of Katy
Order Number: 070585
Date of Order: 7/6/2007
Order Final In: July
Action Taken: Insurance Adjuster License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Misappropriated or converted money belonging to an insurer or insured

Source: Texas Department of Insurance