FOR IMMEDIATE RELEASE

October 25, 2022

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

Investigators from the Office of Insurance Fraud at the Louisiana Department of Insurance (LDI) 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 received information from an insurer indicating that 14 prospective policyholders made payments to Houston Thomas or Thomas Mutual Insurance Group that were not then remitted to the insurer, which caused the policies to be canceled for non-payment. The LDI also received three complaints from consumers related to the cancellation of their insurance coverages through Houston Thomas and Thomas Mutual Insurance Group.

A copy of the Cease-and-Desist and Summary Suspension Order is available here.

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

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

LDI Insurance Fraud investigators conducted a site check of Thomas Mutual Insurance Group on October 24 and found the summary suspension order was being properly followed.

Anyone who has conducted insurance business with Houston Thomas or Thomas Mutual Insurance Group is encouraged to contact their insurance carrier to ensure they have legitimate coverages in place. Those policyholders whose insurance policy has been canceled for non-payment should contact the LDI Office of Insurance Fraud by calling 225-342-4956. Anyone who believes they have been defrauded or witnessed insurance fraud can report their suspicions by phone or online at www.ldi.la.gov/reportfraud.

About the Louisiana Department of Insurance: The Louisiana Department of Insurance works to improve competition in the state’s insurance market while assisting individuals and businesses with the information and resources they need to be informed consumers of insurance. As a regulator, the LDI enforces the laws that provide a fair and stable marketplace and makes certain that insurers comply with the laws in place to protect policyholders. You can contact the LDI by calling 1-800-259-5300 or visiting www.ldi.la.gov.