TX TDI Announces March Enforcement Actions

Dallas, TX (CompNewsNetwork) - The Texas Department of Insurance today announced enforcement actions taken by Commissioner Mike Geeslin that became final during March, 2010.

The actions include three license revocations, four license denials and fines and restitution totaling $866,981.  Copies of 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

BCS Insurance Company of Oakbrook Terrace, Ill
Order Number: 100225
Date of Order:  3/29/2010
Order Final In:   March
Action Taken:  Fined $125,000
Violation:  Failed to pay clean claims in a timely manner

Bunch-Coventry Health Care Network of Lakeland, FL
Order Number: 100185
Date of Order:  3/12/2010
Order Final In:   March
Action Taken:  Fined $2,500
Violation:  Failed to provide a timely and accurate response to a formal request for information

Choleva, Jeffrey of Katy
Order Number: 100189
Date of Order:  3/12/2010
Order Final In:   March
Action Taken:  Fined $2,600
Violation:  Improper sale of unauthorized annuity contracts; Failed to comply with continuing education requirements

Driggs Title Agency, Inc.; Driggs, Adam Howard of Houston; Scottsdale, AZ
Order Number: 100227
Date of Order:  3/29/2010
Order Final In:   March
Action Taken:  Fined $30,000; Must pay restitution
Violation:  Allowed unlicensed employees to act as escrow officers; violated Rate Rule R-1; Failed to meet minimum standards of basic manual for title insurance

Eagle MGA, Inc. of San Antonio
Order Number: 100153
Date of Order:  3/2/2010
Order Final In:   March
Action Taken:  Managing General Agent License revoked; Must pay restitution of $21,582
Violation:  Failed to pay examination expenses

Flores, Agapito B. of Fair Oaks Ranch
Order Number: 100188
Date of Order:  3/12/2010
Order Final In:   March
Action Taken:  Risk Manager License, Surplus Lines License, General Property and Casualty License, and General Life, Accident and Health License suspended for two years
Violation:  Must comply with all license requirements including continuing education and license renewal

Kharrazi, Deborah of Arlington
Order Number: 100152
Date of Order:  3/2/2010
Order Final In:   March
Action Taken:  Fined $1,000
Violation:  Acted as an escrow officer without a license

Lakewood Title, LLC; Wheeler, Dennis Alan of Dallas
Order Number: 100148
Date of Order:  3/2/2010
Order Final In:   March
Action Taken:  Fined $5,000
Violation:  Engaged in unauthorized business of title insurance; Acted as a title agent without a license

Mid Town Consortium Land Group, LLC; Daniels, Charlene Howard; Strickland, Walter Earl; Shackelford, Ray Laverne of Houston
Order Number: 100187
Date of Order:  3/12/2010
Order Final In:   March
Action Taken:  Fined $105,000
Violation:  Engaged in unauthorized business of title insurance; Acted as a title agent without a license

NAFTA General Agency, Inc. of Brownsville
Order Number: 100178
Date of Order:  3/10/2010
Order Final In:   March
Action Taken:  Managing General Agent License revoked; Must pay restitution of $13,287
Violation:  Failed to pay examination expenses

NETCO, Inc. of Arlington
Order Number: 100194
Date of Order:  3/15/2010
Order Final In:   March
Action Taken:  Fined $3,000
Violation:  Issued title insurance policies generally excluding mineral coverage in violation of Rule P-5

Pinnacle Title Company, LP; Pinnacle Title Company, LLC; Pinnacle Title Company/Fort Ben, L.P. of Houston and Sugar Land
Order Number: 100209
Date of Order:  3/23/2010
Order Final In:   March
Action Taken:  Fined $45,712 subject to a dollar-for-dollar reduction by restitution paid up to $30,712
Violation:  Failed to comply with various escrow accounting rules and standards; Failed to comply with Procedural Rule P-53

Southern Title Insurance Corporation of Richmond, VA
Order Number: 100190
Date of Order:  3/12/2010
Order Final In:   March
Action Taken:  $2.5 million fine waived subject to compliance with Commissioner's Order; Must pay restitution of $500,000
Violation:  Failed to notify Department of late receipt of title insurance audit report; Failed to conduct an audit of title insurance agent's unused forms in a timely manner; Failed to audit title insurance agent's trust fund accounts and provide audit to Department

Texas Southern Land Title, LLC of Katy
Order Number: 100186
Date of Order:  3/12/2010
Order Final In:   March
Action Taken:  Fined $2,400
Violation:  Failed to timely remit title insurance policy guaranty fees

Thorburn, Reid Hamilton of New Braunfels

Order Number: 100195
Date of Order:  3/15/2010
Order Final In:   March
Action Taken:  Fined $6,400
Violation:  Committed an unfair or deceptive act by making an untrue statement of material fact regarding bonded life settlements

Wade, James Carter II of Round Rock
Order Number: 100179
Date of Order:  3/11/2010
Order Final In:   March
Action Taken:  Insurance Adjuster License revoked
Violation:  Failed to comply with Commissioner's Order; Failed to comply with continuing education requirements

Zurich Services Corporation/Corvel Health Care Network #6044 of Schaumburg, IL
Order Number: 100149
Date of Order:  3/2/2010
Order Final In:   March
Action Taken:  Fined $3,500
Violation:  Failed to timely and accurately respond to a formal request for information

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