Texas October Enforcement Actions Result in $1M in Fines, Restitution

The Texas Department of Insurance enforcement actions for October 2010 include seven license revocations, and fines and restitution totaling $1,045,697.

An order imposing disciplinary measures becomes final 20 days after the individual or entity 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 Final Disciplinary Orders for October 2010:

Allstate Insurance Company of Northbrook, IL
Order Number: 10-0884
Date of Order: 10/8/2010
Order Final In: October
Action Taken: Ordered to pay $879,510 to State of Texas as part of multistate agreement
Violation: Failed to maintain adequate management oversight of claims adjusting software.

Barrera, Rene P.E. of McAllen
Order Number: 10-0869
Date of Order: 10/1/2010
Order Final In: October
Action Taken: Qualified Inspector Appointment revoked
Violation: Failed to timely respond to Department inquiries

Carothers Abstract & Title Company d/b/a Land Exchange Abstract & Title Company of Killeen
Order Number: 10-0946
Date of Order: 10/29/2010
Order Final In: October
Action Taken: Fined $3,500
Violation: Failed to timely remit guaranty fees

Childs, Eraka Lashawn of Houston
Order Number: 10-0935
Date of Order: 10/22/2010
Order Final In: October
Action Taken: Escrow Officer License revoked
Violation: Failed to properly close a transaction as provided in Basic Manual; Acted as an escrow officer in name of unlicensed agency

Cooley, Shawn Michael of Dallas
Order Number: 10-0885
Date of Order: 10/8/2010
Order Final In: October
Action Taken: General Life, Accident and Health License revoked
Violation: Misappropriated or converted money belonging to an insurer or insured

Copperas Cove Abstract & Title Company d/b/a Land Exchange Abstract & Title Company of Copperas Cove
Order Number: 10-0947
Date of Order: 10/29/2010
Order Final In: October
Action Taken: Fined $2,500
Violation: Failed to timely remit guaranty fees

Fidelity National Title Insurance Co.; Lawyers Title Insurance Corp. now known as Fidelity National Title Insurance Co.; Commonwealth Land Title Insurance Co.; Chicago Title Insurance Co.; Ticor Title Insurance Co. now known as Chicago Title Insurance Co.; Alamo Title Insurance Co. of Jacksonville, FL
Order Number: 10-0931
Date of Order: 11/30/2010
Order Final In: October
Action Taken: Fined $25,000
Violation: Failed to submit statistical report information in the form prescribed by the Department; Failed to timely submit calendar year 2009 statistical data

Koonce, Tracy Gail of Whitewright
Order Number: 10-0937
Date of Order: 10/22/2010
Order Final In: October
Action Taken: Escrow Officer License revoked
Violation: Misappropriated or converted money belonging to an insurer or insured; Made a material misrepresentation on a license application

Lafleur, Tracey Rochelle of Houston
Order Number: 10-0886
Date of Order: 10/8/2010
Order Final In: October
Action Taken: Escrow Officer License revoked; Must pay restitution of $56,687
Violation: Engaged in unauthorized business of insurance

Marriott, Darrell Lynn of Kemp
Order Number: 10-0936
Date of Order: 10/22/2010
Order Final In: October
Action Taken: County Mutual License revoked
Violation: Engaged in fraudulent or dishonest acts or practices

McDowell, William R., P.E. of Corpus Christi
Order Number: 10–0868
Date of Order: 10/1/2010
Order Final In: October
Action Taken: Qualified Inspection Appointment revoked
Violation: Filed inspection reports containing false or ficticious statements

Prominent Title, LLC of Austin
Order Number: 10-0949
Date of Order: 10/29/2010
Order Final In: October
Action Taken: Fined $3,400
Violation: Failed to timely remit guaranty fees

Santiago, Katherine Irene of Round Rock
Order Number: 10-0938
Date of Order: 10/22/2010
Order Final In: October
Action Taken: General Life, Accident and Health License and General Property and Casualty License revoked; Must pay restitution
Violation: Criminal offense – theft

Sha, LLC d/b/a Firstcare of Austin
Order Number: 10-0887
Date of Order: 10/8/2010
Order Final In: October
Action Taken: Fined $70,000
Violation: Improperly tier rated coop employer groups based on claims experience; Improperly allowed employers to limit health care plans offered to employees; Failed to attempt to settle claims resulting in balance billing of plan enrollees

Smiley, Jeffrey Alan Sr. of Brownsboro
Order Number: 10-0878
Date of Order: 10/6/2010
Order Final In: October
Action Taken: General Life, Accident and Health License and the General Property and Casualty License revoked
Violation: Misappropriated or converted money belonging to an insurer or insured

Smith, Don Alan of Bryan
Order Number: 10-0933
Date of Order: 10/22/2010
Order Final In: October
Action Taken: Fined $3,600
Violation: Failed to file PG3 reports with Department

Stell, Richard “Rick”; Contractor’s Advantage Inc.; Stellar Administration Inc.; Contractor’s Consortium, L.L.C. of Spring
Order Number: 10-0950
Date of Order: 10/29/2010
Order Final In: October
Action Taken: Cease and desist from engaging in business of insurance
Violation: Unauthorized insurance

Thomas, Sara Linda of San Antonio
Order Number: 10-0934
Date of Order: 10/22/2010
Order Final In: October
Action Taken: Fined $1,500; General Life, Accident and Health License suspended for one year
Violation: Provided false proof of insurance card