Texas Department of Insurance Renews Convicted Felon’s Insurance License

Corrupt insurance agent, Arnulfo C. Olivarez, who pleaded  “HALF GUILTY” to a felony in August (see August archives) has gained the approval of the Texas Department of Insurance in renewing his insurance licenses for two more years. One wonders whats up with that? It has been our understanding that in Texas felons are not eligible for licensure by the Texas Department of Insurance. I guess we are wrong about that. Could it be possible that some sort of “deal” has been cut with the Feds?


Process for revocation of license due to felony conviction:

If the attorney determines that the license should be denied due to the criminal conviction, the attorney, with the assistance of an investigator, secures certified copies of the relevant criminal convictions and any other information deemed necessary. A letter of proposed license denial is then mailed to the applicant. The letter clearly identifies the convictions that form the basis of the proposed denial, cites the statutory authority for the proposed denial, and advises the applicant that a hearing may be requested to challenge the proposed denial.

If an applicant requests a hearing on the proposed license denial, the request is immediately forwarded to the prosecuting attorney. The attorney schedules a hearing on the nearest available date, and issues a Notice of Hearing to the applicant. After a hearing is conducted, the Administrative Law Judge issues a Proposal for Decision for consideration by the Commission of Licensing and Regulation. After considering the Proposal for Decision, the Commission may grant or deny the license.

For individuals who are already licensed when the agency discovers a criminal conviction, the process is essentially the same as that described above. A conviction discovered by Licensing staff, an Enforcement investigator, or any other agency employee is referred to the Enforcement Division. If the Enforcement attorney finds, after investigation, that the conviction warrants license suspension or revocation, a letter of proposed license suspension or revocation is issued to the license holder. If the license holder requests a hearing, a hearing is conducted, a Proposal for Decision is issued for consideration by the Commission, and the Commission ultimately decides whether the license should be suspended or revoked.

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