July 30, 2014
A Closer Look at TDI Enforcement Cases in April - June 2014
Kergin Bedell, Attorney, Burton & Hyde, P.L.L.C.
According to Texas Department of Insurance (TDI) records, the Commissioner of Insurance issued 26 enforcement orders between April and June of this year. The penalties in these orders ranged from the issuance of probationary licenses, administrative penalties as high as $75,000, and the revocation of licenses. Three of these orders dealt directly with the conduct of title insurance agents or escrow officers.
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TDI Quarterly Audit Results Published
The following is a summary of recent TDI audits, violations and enforcement actions from March through May 2014. Read TDI's complete summary of operations for the quarter or read the key statistics below, and be sure to register for today's webinar TDI Audit Violations: A Focus on Overall Compliance & Additional Clarification on Recent Changes, where a panel of experts will discuss much of the information below.
Compliance Audits
TDI's goal is to comprehensively audit agencies at least once every two years. Through May, 530 out of the 563 licensed agents have been audited within the last two years, a 94.1% rate. Fourteen additional agencies have been audited within the last three years, and 19 new agencies are yet to be audited.
Commissioner Orders & Active Cases
From March through May 2014, the commissioner signed three orders resulting in fines or the surrender of escrow officer licenses. Through May, 62 cases remain active, including 27 cases involving the misappropriation of fiduciary funds.
Compliance Audit Results
Below are TDI’s most common audit findings from March through May 2014. The numbers below represent how many agencies had an infraction, not the number of times the infraction occurred.
NUMBER OF AGENCIES
CATEGORY
DESCRIPTION
36
Texas Insurance Code
Actual receipts and/or disbursements not in agreement with settlement statement or premium split not disclosed
31
Escrow Accounting
Outstanding checks not cleared timely.
31
Escrow Accounting
Every disbursement not supported by invoice or sufficient other evidence.
25
Bulletins
All parties receiving portions of the real estate commission not disclosed on settlement statement.
25
Procedural Rules
Schedule D of commitment not in file or premium split not disclosed on commitment.
Upcoming Hot Topic Webinars!
Modern Manufactured & Modular Housing
Tuesday, August 12 | 10:30 - 11:30 a.m. CDT
Presented by:
Doyle Pendleton, Jr., Executive Director, Texas Manufactured Housing Association
Live Version |
On-Demand Version
Avoiding TDI Audit Violations
Wednesday, August 13 | 10:00 - 11:30 a.m. CDT
Presented by:
Robert York, TDIs Manager of Title Examinations, as well as two industry compliance specialists: Brenda Nelson, Old Republic National Title Insurance Company, and Nancy Waggoner, Republic Title of Texas, Inc.
Live Version |
On-Demand Version