Five Tennessee Insurance Agents Face Over $77K in Fines, License Revocation
NASHVILLE – The Tennessee Department of Commerce & Insurance (TDCI) today announces disciplinary actions including fines totaling over $77,000, license revocation and other punishments against five Tennessee insurance licensees for numerous violations of state law.
The punishments were the result of months of work by TDCI’s Insurance Fraud Investigations and Legal teams who ensure the protection of Tennesseans by holding accountable individuals who are engaged in unlawful activity.
“The Department will not tolerate those who break the law,” said TDCI Assistant Commissioner for Insurance Michael Humphreys. “The Department protects the public by ensuring those who sell policies to Tennessee consumers are honest and trustworthy individuals. Those who choose to flaunt the law have no place working in Tennessee.”
Details of the cases include:
Darius Marquette Jones (Tipton County) An Initial Order issued by an Administrative Law Judge (ALJ) became Final on December 30, 2016, revoking Mr. Jones’ Tennessee insurance producer license and assessing a $3,000 penalty along with court reporter costs. The violations stemmed from the discovery of Mr. Jones’ misappropriation of $4,070.86 in premiums he had collected as an appointed Farmers’ agent. An administrative hearing was initiated by the Department and held on August 15, 2016, which Mr. Jones decided not to attend. As a result of evidence introduced at the hearing the ALJ found three (3) violations of Tennessee insurance law related to the misappropriation of premiums, violation of laws, and a demonstration of untrustworthiness and financial irresponsibility. The Final Order is located here.
Larry P. Chinn: (Shelby County) An Agreed Final Order, effective November 26, 2016, between the Department and Mr. Chinn assessing $7,500 in civil penalties and suspending his insurance producer license for six (6) months. The Agreed Final Order was a result of a Department Investigation that determined Mr. Chinn had failed to report an action taken against his license by the Minnesota Department of Insurance, as required by law. The underlying Minnesota action, occurring in August 26, 2014, determined that Mr. Chinn had failed to adequately supervise employees that issued misleading policy information and recommended to clients a host of unsuitable premium financed life insurance policies. The Agreed Final Order finds Mr. Chinn in violation of three (3) separate insurance laws related to violating a law of the Commissioner, committing an unfair trade practice by way of misrepresentations, and demonstrating untrustworthiness and dishonest conduct. The Agreed Final Order is located here.
Johnny R. Jackson & Forrest J. McDole: (Sumner County/Robertson County) Two (2) Initial Orders that were issued by an ALJ became a Final Order effective November 10, 2016. One Order was issued against Mr. McDole revoking his insurance producer license and assessing a $22,200 civil penalty. The other issued a civil penalty against Mr. Jackson for $44,400. The pair worked together as owners of insurance agency Senior Security, LLC, organized and operated in Franklin, Kentucky. The penalties stem from a Department investigation finding that Mr. McDole and Mr. Jackson both participated in the sale of a life insurance policy to Sparta consumers riddled with misrepresentations as to the terms of the product. In addition, Mr. Jackson facilitated the sale as an unlicensed insurance producer, of which Mr. McDole knowingly accepted business from Mr. Jackson as an unlicensed insurance producer. The ALJ found the two (2) to have violated several insurance laws including engaging in dishonest conduct and demonstrating untrustworthiness, and allowing an unlicensed person to engage in the sale of insurance. The Final Order issued against Mr. McDole may be located here and the Final Order against Mr. Jackson may be located here, on the Department’s website.
Doris Elfriede Karras: (Orange County, Calif.), A Final Agreed Order was entered between the Department and Ms. Karras, effective October 19, 2016, revoking her license and assessing a $500 civil penalty. An investigation by the Department found that Ms. Karras provided false information to the Department on her November, 2014, nonresident insurance producer application by answering that she had not been named as a party to a civil suit when in fact she was currently named as a defendant to a civil suit brought by Transamerica alleging fraud and racketeering. In addition, Ms. Karras made the same misrepresentations to the Minnesota Department of Insurance and Transamerica when seeking an appointment with the Company. The Final Agreed Order finds Ms. Karras in violation of several insurance laws related to submitting false information in a license application, attempting to obtain a license through misrepresentation, having a license revoked in another state, and failing to update the Department of administrative actions within 30 days of the action. The disciplinary action issued against Ms. Karras may be found here on the Department’s website.
Tennesseans are encouraged to visit the Department’s website where they can review their insurance contracts and agent relationships as well as inspect disciplinary actions and license verification.
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