Texas November Enforcements Result in Nearly $215K in Fines, Restitution

Enforcement actions taken by the Texas Department of Insurance that became final during November 2010 include 10 license revocations, and fines and restitution totaling $214,632.

Copies of Insurance Commissioner Mike Geeslin’s orders may be obtained by contacting TDI’s Public Information Office.

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

Banks, Melinda Sue of Arlington
Order Number: 100982
Date of Order: 11/12/2010
Order Final In: November
Action Taken: Fined $1,500; General Property and Casualty License revoked.
Violation: Failed to comply with Commissioner’s order

City of San Antonio of San Antonio
Order Number: 100963
Date of Order: 11/5/2010
Order Final In: November
Action Taken: Fined $25,000
Violation: Failed to timely pay independent review fee; Failed to timely forward in excess of five independent review requests

Cormier, John A. of League City
Order Number: 101001
Date of Order: 11/17/2010
Order Final In: November
Action Taken: Qualified Inspector Appointment canceled
Violation: No longer meets requirements to hold an appointment as a qualified inspector; Failed to respond to request for information from Department

Cortez, Ana Maribel of Houston
Order Number: 100998
Date of Order: 11/17/2010
Order Final In: November
Action Taken: General Property and Casualty License revoked
Violation: Felony criminal offense — insurance fraud

Deases, David Roy, Jr. of Sinton
Order Number: 101002
Date of Order: 11/17/2010
Order Final In: November
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; Failed to respond to official inquiries issued by Department

Frost Insurance Agency Inc. of San Antonio
Order Number: 100964
Date of Order: 11/5/2010
Order Final In: November
Action Taken: Fined $1,000
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Galeotti, Gary Wayne of Puyallup, Wash.
Order Number: 100957
Date of Order: 11/2/2010
Order Final In: November
Action Taken: Fined $2,000
Violation: Failed to file PG3 reports with Department

Goff, Larry Wilton of D’Hanis
Order Number: 100979
Date of Order: 11/12/2010
Order Final In: November
Action Taken: General Property and Casualty License revoked; Must pay restitution of $3,550
Violation: Misappropriated or converted money belonging to an insurer or insured

Halsell, James Donald of Comfort
Order Number: 100997
Date of Order: 11/17/2010
Order Final In: November
Action Taken: General Life, Accident and Health License revoked
Violation: Unauthorized insurance; Improperly withheld monies owed to an insurer

Hardy, Cereta of Houston
Order Number: 100981
Date of Order: 11/12/2010
Order Final In: November
Action Taken: General Life, Accident and Health License revoked
Violation: Felony criminal offense — theft; Misappropriated or converted money belonging to an insurer or insured

Henry Freudenburg Insurance Agency Inc.; Freudenburg, Henry Charles III; Mlcak, Randy F. of Galveston
Order Number: 100978
Date of Order: 11/12/2010
Order Final In: November
Action Taken: Fined $10,000; Must pay restitution of $17,867
Violation: Improperly withheld money belonging to insureds or beneficiaries

Khan, Rahat Y. of San Bernardino, Calif.
Order Number: 101000
Date of Order: 11/17/2010
Order Final In: November
Action Taken: Qualified Inspector Appointment canceled
Violation: No longer meets requirements to hold an appointment as a qualified inspector; Failed to respond to request for information from Department

Matagorda County Title Company LLC of Bay City
Order Number: 100955
Date of Order: 11/2/2010
Order Final In: November
Action Taken: Fined $7,000
Violation: Failed to timely provide an annual trust fund account audit report

National General Insurance Company of Winston-Salem, NC
Order Number: 100980
Date of Order: 11/12/2010
Order Final In: November
Action Taken: Fined $25,000; Must pay refunds to policyholders
Violation: Used prohibited rate plan for auto insurance

Nationalway Healthcare Association, Execu-Health Management Group, Inc. of Houston
Order Number: 101013
Date of Order: 11/19/2010
Order Final In: November
Action Taken: Pay restitution of $5,566
Violation: Unauthorized insurance; Advertising violations

Ross, Lisa Carol of Missouri City
Order Number: 100958
Date of Order: 11/2/2010
Order Final In: November
Action Taken: Escrow Officer License revoked; Must pay restitution of $56,687
Violation: Unauthorized insurance

Saffe Premium Finance Inc. of Arlington
Order Number: 101014
Date of Order: 11/19/2010
Order Final In: November
Action Taken: Fined $9,000; Premium Finance Company License revoked
Violation: Failed to timely remit an annual operations report and assessment fee

Stafford, Kenny Fred of Bluff Dale
Order Number: 100984
Date of Order: 11/12/2010
Order Final In: November
Action Taken: Insurance Adjuster License revoked
Violation: Failed to comply with Commissioner’s Order

State Farm General Insurance Company of Bloomington, Ill.
Order Number: 100956
Date of Order: 11/2/2010
Order Final In: November
Action Taken: Fined $40,000
Violation: Improperly issued nonrenewal notices to policyholders before filing Withdrawal Plan with Commissioner

Vanriper, Edwin D. of Dallas
Order Number: 100999
Date of Order: 11/17/2010
Order Final In: November
Action Taken: Qualified Inspector Appointment canceled
Violation: No longer meets requirements to hold an appointment as a qualified inspector; Failed to respond to request for information from Department

Willis of Texas Inc. of Addison
Order Number: 100996
Date of Order: 11/17/2010
Order Final In: November
Action Taken: Fined $6,729
Violation: Failed to timely file new or renewal surplus lines policies and related documents

Willis, Gary Jonathan of Alto
Order Number: 100985
Date of Order: 11/12/2010
Order Final In: November
Action Taken: General Life, Accident and Health License and the County Mutual License revoked; Must pay restitution of $3,733
Violation: Misappropriated or converted money belonging to an insurer or insured

Source: Texas Department of Insurance