Louisiana Insurance Producer Issued Cease-and-Desist Order and Summary Suspension for Endangerment to Louisiana Policyholders

Louisiana - On October 25, 2022, the Louisiana Department of Insurance (LDI) reported that investigators from the Office of Insurance Fraud issued resident producer Houston Thomas and Thomas Mutual Insurance Group a Cease-and-Desist Order and Notice of Summary Suspension on October 10, 2022, for failing to remit premiums and demonstrating incompetence, untrustworthiness, and financial irresponsibility in a manner that might endanger the public.

The LDI obtained information from an insurer that 14 prospective policyholders paid payments to Houston Thomas or Thomas Mutual Insurance Group that were not then remitted to the insurer, resulting in the cancellation of the policies for nonpayment. The LDI also received three consumer complaints over the cancellation of their insurance coverages through Houston Thomas and Thomas Mutual Insurance Group.

The Cease-and-Desist and Summary Suspension Order can be found by following this link.

“Insurance producers who repeatedly endanger Louisiana residents will not be tolerated,” said Louisiana Insurance Commissioner Jim Donelon. "The LDI will continue to collect information and evidence of fraudulent activity and fight to protect Louisiana policyholders."

Houston Thomas received a producer license from LDI on September 27, 2016, and Thomas Mutual Insurance Group received a producer license from LDI on December 7, 2020, for the lines of Life, Accident and Health or Sickness, Property, and Casualty. At the time of the October 10 action, both licenses were active.

On October 24, LDI Insurance Fraud investigators conducted a site inspection at Thomas Mutual Insurance Group and discovered that the summary suspension order was being followed correctly.

Anyone who has done business with Houston Thomas or Thomas Mutual Insurance Group should contact their insurance company to ensure they have adequate coverage. Those whose insurance policies have been terminated due to non-payment should contact the LDI Office of Insurance Fraud at 225-342-4956. Anyone who suspects they have been deceived or has seen insurance fraud can report it by phone or online by following this link.