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.