New York State
Insurance Department
DISCIPLINARY ACTIONS
New York, July 8, 1997
The following tables show the Licensee in Column One, Address in Column Two, and the Penalty in Column Three. The bottom row of each table describes the circumstances.
Insurance Companies
STIPULATIONS
Disciplinary actions as a result of stipulations have been agreed to by the licensees.
| LICENSEE | ADDRESS | PENALTY |
| United States
Fire Insurance Co. The North River Insurance Co. |
6 Sylvan Way Parsippany, NJ same as above |
$26,950 fine $15,950 fine |
| A market conduct
investigation revealed that the companies, members of the Crum & Forster Insurance
Group, violated the Insurance Law and Insurance Department Regulations in connection with
certain commercial multiple peril insurance policies issued or renewed between September
1, 1994 and August 31, 1995. The companies used rates that had not been filed with the
Department. The companies also wrote policies that did not meet specified conditions for a
coverage period of less than a year. In addition, the companies failed to maintain in
their files the premium charged for each special risk and the basis for that premium. The
two companies also failed to advise insureds of the availability of loss information, and
properly terminate coverage for insureds who did not complete anti-arson applications. In addition, United States Fire failed to provide insureds with written notice detailing changes in policy conditions upon renewal and failed to report property losses to the Property Insurance Loss Register in a timely manner. The companies have agreed to review and rerate all commercial multiple peril policies in force as of October 1, 1997 as they come up for renewal and refund any overcharges of more than $15. |
||
| LICENSEE | ADDRESS | PENALTY |
| Atlantic Mutual Insurance Co. | 100 Wall St. New York, NY |
$12,500 fine |
| A market conduct investigation revealed that the insurance company violated the Insurance Law and Insurance Department Regulations when it used rates that had not been filed with the Superintendent. In addition, Atlantic Mutual failed to properly document expense reductions on certain risks. | ||
| LICENSEE | ADDRESS | PENALTY |
| J.C. Penney Life Insurance Co. | P.O. Box 179 Dallas, TX |
$5,000 fine |
| The insurance company violated the Insurance Law when it used a group accident and health insurance enrollment form that had not been filed with the Superintendent. J.C. Penney Life also failed to file with the Superintendent compensation schedules and premium rates for certain policies issued outside New York State. In addition, the company failed to include its total liabilities and surplus in advertisements that mentioned its total assets. | ||
| LICENSEE | ADDRESS | PENALTY |
| TIG Insurance Company | 5205 O'Connor
Blvd. Irving, TX |
$5,000 fine |
| A market conduct investigation revealed that, in connection with certain fire insurance policies issued or renewed between January 1, 1995 and April 30, 1995, the company paid commissions to unlicensed individuals. In addition, TIG gave impermissible reimbursements for certain noninsurance-related expenses. | ||
Agents, Brokers, Adjusters, Consultants and Others
HEARINGS
Disciplinary actions as a result of Department hearings are subject to judicial review and possible stay of enforcement.
| LICENSEE | ADDRESS | PENALTY |
| Alafriz IV,
Arthur A. (agent) |
301 E. 79th St. New York, NY |
License revoked |
| On his licensing application, Alafriz falsely denied any prior criminal prosecution when he had, in fact, twice been convicted and imprisoned for bank fraud and a third charge was pending. | ||
| LICENSEE | ADDRESS | PENALTY |
| Atehortua, Ben (agent & broker) |
3111 Brighton
Place Brooklyn, NY |
Licenses revoked |
| Collected an insurance premium and issued an automobile insurance identification card but never forwarded the premium to the appropriate insurer. | ||
| LICENSEE | ADDRESS | PENALTY |
| College
Insurance Brokerage (broker) Redlitz, Harry D. (broker & sublicensee) |
1836 Flatbush
Ave. Brooklyn, NY 5916 Avenue T Brooklyn, NY |
License revoked Licenses revoked |
| Failed to pay a $500 fine to the Insurance Department for issuing a temporary automobile insurance identification card without following through on procuring the coverage. | ||
| LICENSEE | ADDRESS | PENALTY |
| Finnegan, Daniel
M. (broker) |
3000 Marcus Ave. Lake Success, NY |
License revoked |
| Finnegan furnished a fraudulent insurance license to his brokerage employer. | ||
| LICENSEE | ADDRESS | PENALTY |
| Fortunato,
Emiliano (broker) |
278 Broadway Brooklyn, NY |
License revoked |
| Fortunato was decertified from the New York Automobile Insurance Plan for various violations of Plan rules. In addition, he permitted an unlicensed individual to prepare and submit insurance applications and issue automobile insurance identification cards. | ||
| LICENSEE | ADDRESS | PENALTY |
| Frederick, Keith
G. (broker) |
63 E. Tremont
Ave. Bronx, NY |
License revoked |
| Submitted an application to the New York Automobile Insurance Plan without obtaining the required driver verification form. | ||
| LICENSEE | ADDRESS | PENALTY |
| Kim, Jerry T. (broker) |
148-09 Northern
Blvd. Flushing, NY |
License revoked |
| Kim was decertified from the New York Automobile Insurance Plan for various violations of Plan rules, including issuing dishonored checks and underestimating premium deposits. | ||
| LICENSEE | ADDRESS | PENALTY |
| Lee, Kyong H. (broker) t/b/a Star Insurance Brokerage |
40-25 155th St. Flushing, NY |
License revoked |
| Collected an insurance premium and failed to forward it in its entirety to the appropriate insurer. In addition, Lee failed to obtain a signed service fee agreement from her client for charging a broker's and binding fee. | ||
| LICENSEE | ADDRESS | PENALTY |
| Martinez, Angie (broker) |
One Audubon Ave. New York, NY |
License revoked |
| Issued premium checks that were dishonored by the bank and used her premium account for unauthorized purposes. In addition, Martinez issued New York Automobile Insurance Plan temporary insurance identification cards without submitting the follow-up applications. | ||
| LICENSEE | ADDRESS | PENALTY |
| Piechocki,
Suzzanne F. (savings bank certified) |
1356 Broadway New York, NY |
License revoked |
| Failed to supply the Insurance Department with requested information after indicating on her certification renewal application that she had filed for bankruptcy. | ||
| LICENSEE | ADDRESS | PENALTY |
| Sal Brokerage,
Inc. (broker) Selden Insurance Agency, Inc. (broker) Lefler, Sanford (broker & sublicensee) |
1793 Deer Park
Ave. Deer Park, NY 1116 Middle Country Rd. Selden, NY 1793 Deer Park Ave. Deer Park, NY |
License revoked License revoked Licenses revoked |
| Issued premium checks that were dishonored by the bank and failed to forward premiums to the appropriate insurers. In addition, Lefler, Sal Brokerage and Selden Insurance were decertified from the New York Automobile Insurance Plan for various violations of Plan rules. | ||
| LICENSEE | ADDRESS | PENALTY |
| V.P. Management
Corp. (agent, broker & excess line broker) Handy, Joan Ann B. (broker & sublicensee) |
71 Murray St. New York, NY same as above |
Licenses revoked Licenses revoked |
| Failed to pay $176,019 in taxes and penalties to the New York State Insurance Department after they were disciplined for not keeping an affidavit register for their excess line business and for not properly calculating the amount of premium tax that they owed. The Superintendent's decision has been suspended pending the outcome of an Article 78 proceeding. | ||
| LICENSEE | ADDRESS | PENALTY |
| White, Maureen
A. (agent) |
4250 Van
Cortlandt Park East Bronx, NY |
License revoked |
| Sold to three New York State residents health insurance policies from an insurer not licensed in New York. | ||
STIPULATIONS
Disciplinary actions as a result of stipulations have been agreed to by the licensees.
| LICENSEE | ADDRESS | PENALTY |
| Asch, Samuel E. (agent) |
401 N. Michigan Chicago, IL |
License revoked |
| Falsely stated on his licensing application that he had never been fined or had his license application refused by any state or government agency. In fact, Asch had been fined by the Illinois and Indiana Insurance Departments and had his application refused by the Wisconsin Insurance Department. | ||
| LICENSEE | ADDRESS | PENALTY |
| Bauer, Grace T. (agent & broker) |
117 Montauk
Highway Westhampton, NY |
$3,500 fine |
| Bauer, as a sublicensee of William G. Hentschel Agency, failed in her duty to safeguard premium monies by giving blank signed checks to one of her employees. | ||
| LICENSEE | ADDRESS | PENALTY |
| C & R
Associates, Inc. (agent & broker) Smith, Randall F. (agent, broker & sublicensee) Wood Jr., Harold D. (agent & sublicensee) |
22 Ohio St. Oswego, NY 5 Phinney Rd. Fulton, NY 4606 County Route 4 Oswego, NY |
$1,000 fine |
| Issued premium checks that were dishonored by the bank, but subsequently replaced. In addition, premium checks were written on an account that was not designated as such. | ||
| LICENSEE | ADDRESS | PENALTY |
| Colocousis, John
C. (agent) |
4282 Connection
Dr. Williamsville, NY |
$750 fine |
| Violated the Insurance Law and Department Regulation 60* when he placed an annuity with Executive Life Insurance Company (now Metropolitan Life Insurance Company). | ||
| LICENSEE | ADDRESS | PENALTY |
| Doria, Ronald W. (agent) |
One Liberty
Plaza New York, NY |
License Suspended |
| Doria, a resident of Florida, has had his insurance agent's license suspended until such time as the Insurance Department commences disciplinary action with regard to a charge of untrustworthiness. | ||
| LICENSEE | ADDRESS | PENALTY |
| Elliott, Edwin
W. (broker) |
618 South
Wellwood Ave. Lindenhurst, NY |
$500 fine |
| Violated the Insurance Law when he placed an insurance policy with an unlicensed insurer. | ||
| LICENSEE | ADDRESS | PENALTY |
| The Fromer
Corporation, Inc. (agent & broker) Fromer, Jeffrey A. (sublicensee) |
237 Main St. Tannersville, NY |
$1,250 fine |
| Issued an automobile insurance identification card without securing the requested coverage. In addition, the premium account was not properly designated as such and was overdrawn. | ||
| LICENSEE | ADDRESS | PENALTY |
| O'Connor Sr.,
John M. (agent) |
14 Second St. Troy, NY |
License revoked |
| O'Connor signed the names of at least 16 insureds to change-of-agent letters without the knowledge of those insureds. As a result of his actions, he pled guilty to attempted scheme to defraud in the first degree. O'Connor also failed to file disclosure statements with either the Insurance Department or the appropriate municipality for insurance business he brokered on behalf of the municipality. | ||
| LICENSEE | ADDRESS | PENALTY |
| Polaniecki, Fred
S. (agent) |
660 Wildwood Rd. W. Hempstead, NY |
$1,136.72 fine |
| Violated the Insurance Law and Department Regulation 60* when he placed a life insurance policy with Prudential Insurance Company of America. | ||
| LICENSEE | ADDRESS | PENALTY |
| Reeves, John M. (agent) |
9 Stradford Dr. LaGrange, NY |
License revoked |
| Collected over $49,000 in premiums and failed to forward them to the appropriate insurer. | ||
| LICENSEE | ADDRESS | PENALTY |
| Robbins, Samuel
E. (agent) |
200 E. 27th St. New York, NY |
$500 fine |
| Sold an insurance policy from an unlicensed insurer to a New York State resident in New York State. | ||
| LICENSEE | ADDRESS | PENALTY |
| Stiehler,
Richard H. (agent) |
39 Laser St. Rochester, NY |
$1,240 fine |
| Bound insurance coverage for two insureds but failed to submit the applications to the appropriate insurer until after the insureds had suffered losses. | ||
| LICENSEE | ADDRESS | PENALTY |
| Vincent S.
Piazza Agency (broker) Piazza, Vincent S. (agent, broker, sublicensee) t/b/a Vincent Piazza Agency and V.S. P. Insurance Service |
900 Allerton
Ave. Bronx, NY 1 Buckley Place Hartsdale, NY |
$500 fine |
| Allowed unlicensed individuals to complete automobile insurance applications and issue automobile insurance identification cards. | ||
| LICENSEE | ADDRESS | PENALTY |
| Wilbur II,
Rodney G. (agent) |
2025 New
Michigan Rd. Canandaigua, NY |
License revoked |
| Wilbur was convicted of grand larceny in the fourth degree for issuing fraudulent Certificate of Insurance forms and wrongfully depositing a premium check into his own account. | ||
* Regulation 60 requires agents to provide prospective life insurance purchasers with pertinent facts when that purchase will cause the buyer to surrender, lapse, or in any way change the status of an existing life insurance policy. The agent must provide the purchaser with a disclosure statement and a notice regarding replacement of life insurance.