Facts: Our client, VR, hired the firm to defend against a complaint filed by a former employee to the Texas Department of Insurance (“TDI”). Allegations included firing Complainant, harassing employees for sex; firing people without reason; not hiring licensed agents so that he can pay minimum wage to non-licensed agents; aggressively seeking Google reviews from employees through fake accounts and bribery; targeting Latinos as customers because they are less likely to file claims; and discriminating against African-Americans by quoting higher rates so he doesn’t get their business.
Outcome: The firm submitted a thorough written response addressing the allegations and pointing out that it was not a “consumer” complaint to TDI because nowhere in the complaint is there any issues with Complainant’s auto insurance policy or client’s failure to comply with the Insurance Code regarding a policy. Instead, it was a retaliatory complaint by a disgruntled former employee who was fired for cause for threatening a customer. Secondly, TDI is in the business of investigating consumer complaints for violations of the Insurance Code, such as fraud or dishonesty, not settling an insurance agency employment dispute. It was obvious that TDI has no jurisdiction to investigate a non-insurance related matter such as this employment retaliation case. After the response was received and investigated, TDI’s complaint investigation was closed, and the case dismissed without any action against our client’s license.
