New York State
Insurance Department
 

DISCIPLINARY ACTIONS


New York, August 25, 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
Bankers Life Insurance Company of New York 65 Froehlich Farm Blvd.
Woodbury, NY
$95,000 fine
The company violated the Insurance Law and Department regulations when, between 1993 and 1994, it used policy forms in an unapproved manner and paid commissions to unappointed agents. In addition, advertisements that Bankers Life used between 1992 and 1994 were misleading with regard to the benefits of the advertised product or stressed certain investment advantages while minimizing the insurance features. In addition, some advertisements compared the risk-based capital levels of Bankers Life Insurance Company to industry averages.

 

LICENSEE ADDRESS PENALTY
Metropolitan Life Insurance Co. One Madison Ave.
New York, NY
$25,000 fine
The insurance company violated the Insurance Law when, in connection with certain life insurance policies issued between 1989 and 1996, it failed to provide prospective purchasers with preliminary disclosure information.

 

LICENSEE ADDRESS PENALTY
Gerber Life Insurance Company 66 Church St.
White Plains, NY
$20,000 fine
The insurance company violated the Insurance Law when, between January 1, 1993 and December 31, 1995, it used policy application forms that had not been filed with the Department.

 

LICENSEE ADDRESS PENALTY
Lumbermans Mutual Casualty Insurance Company

American Motorists Insurance
Co.

American Protection Insurance
Co.

1 Kemper Dr.
Long Grove, IL

same as above


same as above

$13,750 fine


$13,550 fine


$ 3,200 fine

A market conduct investigation revealed that the companies, members of the Kemper Group, violated the Insurance Law in connection with certain commercial multiple peril insurance policies issued or renewed between August 1, 1994 and July 31, 1995. The companies used unfiled rates. In addition, Lumbermans Mutual and American Motorists failed to furnish specific reasons on nonrenewal notices, failed to place Free Trade Zone disclosure notices on the front page of all policy forms, and failed to furnish anti-arson applications to insureds when the risk was accepted.

Lumbermans Mutual also wrote policies that did not meet specified conditions for a coverage period of less than a year and failed to document in its files the circumstances for credits or debits used to rate special risks.

 

LICENSEE ADDRESS PENALTY
The Prudential Insurance Company of America 751 Broad St.
Newark, NJ
$1,500 fine
The insurance company violated the Insurance Law when it improperly used the HIV-positive test results of one spouse as the basis for rejecting the life insurance application of the other spouse. This also violated the terms of the written consent to HIV testing obtained from the HIV-positive applicant.

 

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
Gilot, Josue
(broker)
417 E. 52nd St.
Brooklyn, NY
License revoked
Gilot was decertified from the New York Automobile Insurance Plan for various violations of Plan rules. In addition, Gilot gave false information to the New York State Department of Motor Vehicles about the effective date of an insured's automobile insurance policy. He also conducted insurance business using an unlicensed trade name.

  

LICENSEE ADDRESS PENALTY
Simons, Joel P.
(agent)
7 Willow Rd.
Woodsburgh, NY
License revoked
Pled guilty to one count of insurance fraud in the fifth degree for submitting fraudulent pharmaceutical claims to his own insurer.

 

STIPULATIONS

Disciplinary actions as a result of stipulations have been agreed to by the licensees.

 

LICENSEE ADDRESS PENALTY
A & H Independent Insurance Brokerage Services, Inc.
(broker)

Hernandez, Horacio
(agent, broker & sublicensee)

97-09 Roosevelt Ave. Corona, NY


62-07 84th St.
Middle Village, NY

$2,500 fine
Submitted Driver Verification Forms that were incorrectly completed. Subsequently, the listed operators denied knowing the automobile insurance applicants.

 

LICENSEE ADDRESS PENALTY
Andrew & Arthur Ltd.
(broker)

Arthur, Floyd L.
(agent, broker & sublicensee)

306 Fulton Ave.
Hempstead, NY

14 Parkwood Rd.
Westbury, NY

$1,000 fine
Failed to forward the total premium payment to the appropriate insurer in a timely manner.

  

LICENSEE ADDRESS PENALTY
Caravan Associates, Ltd.
(broker)

Crump Sr., Stanley E.
(broker & sublicensee)

239- B E. 149th St.
Bronx, NY

same as above
License revoked


Licenses revoked
Permitted an individual whose licenses had been revoked by the Insurance Department to conduct insurance business on his behalf.

  

LICENSEE ADDRESS PENALTY
Colon, Gerard
(agent)
227 Columbus Ave.
Buffalo, NY
License revoked
Endorsed and kept the money from a policy loan check intended for an insured. He has since made restitution.

  

LICENSEE ADDRESS PENALTY
D'Angelo, Mary Jane
(broker)
30 Fairview St.
Yonkers, NY
$1,000 fine
Attempted to collect a towing contract fee by claiming that towing coverage was required and was part of her broker's fee. In addition, D'Angelo quoted an insured an automobile insurance premium $200 less than the actual premium. This practice, referred to as lowballing, occurs when an agent or broker intentionally misquotes premium information in order to undercut the competition. Although the insured's deposit reflects the quoted lower premium, the policyholder is eventually billed by the insurer for the difference.

  

LICENSEE ADDRESS PENALTY
Dioguardi, Brian K.
(agent)
9099 Shepard Rd.
Batavia, NY
License revoked
Violated the Insurance Law when he falsely reported to an insurer that he sold 22 life insurance policies and received commissions he did not earn.

  

LICENSEE ADDRESS PENALTY
Evangelista, Maria C.
(broker)
572 S. Broadway
Yonkers, NY
$2,000 fine
Evangelista was decertified from the new York Automobile Insurance Plan for various violations of Plan rules. In addition, she failed to submit a signed Driver Verification Form with an application for automobile insurance.

 

LICENSEE ADDRESS PENALTY
Garcia, Susana
t/b/a Garcia Brokerage
(broker)
3668 Broadway
New York, NY
$1,000 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced.

  

LICENSEE ADDRESS PENALTY
Goldman, Richard J.
(broker)
80 East Main St.
Port Jervis, NY
$1,000 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced. In addition, Goldman commingled premiums with other funds and transacted business under an unlicensed name.

  

LICENSEE ADDRESS PENALTY
Graham, Vilma M.
t/b/a Family Brokerage
(broker)
260-16 145th Ave.
Rosedale, NY
$500 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced.

  

LICENSEE ADDRESS PENALTY
Graziano, J. Michael
(agent)
387 Bonnie Brae Ave.
Rochester, NY
$1,500 fine
Violated the Insurance Law and Department Regulation 60* when he placed a life insurance policy with Prudential Insurance Company of America. In addition, Graziano failed to provide a copy of the policy to the insured and processed several disbursement request forms without the insured's knowledge.

  

LICENSEE ADDRESS PENALTY
James Thomas Agency, Inc. (broker)

Rienzo, Theresa
(broker & sublicensee)

1699 D. Rte. 112
Medford, NY

same as above

$750 fine
Advertised insurance rates without listing the name and address of the insurance company as required.

  

LICENSEE ADDRESS PENALTY
Karp Insurance Agency, Inc.
(broker)

J & F Insurance Agency, Inc.
(agent)

Karp, Jerry S.
(agent, broker & sublicensee)

76-04 Main St.
Flushing, NY

same as above


same as above

$1,000 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced. In addition a separate premium account was not established.

  

LICENSEE ADDRESS PENALTY
Maher, Brian P.
(agent & broker)
10 Oceanview Ave.
Long Beach, NY
$500 fine
Failed to respond on numerous occasions to Department inquiries concerning his renewal license application. He has since responded.

  

LICENSEE ADDRESS PENALTY
Mason Claim Service, Inc. (independent adjuster)

Mason, Charles H
(independent adjuster & sublicensee)

Goodman Rd.
Malone, NY

P.O. Box 212
Malone, NY

$500 fine
Continued to act as independent adjusters after their licenses had expired.

  

LICENSEE ADDRESS PENALTY
Mobley, Carolyn
(agent)
721 Tinton Ave.
Bronx, NY
License revoked
Mobley had a shortage in her premium account, indicated she had received payments from insureds when those payments were not made, and used premium payments from some insureds to offset nonpayments of other insureds.

  

LICENSEE ADDRESS PENALTY
Moran, Alexander
(broker)
159 44 Harlem River Dr.
New York, NY
$2,500 fine
Submitted change of broker request forms on behalf of insureds without their knowledge.

 

LICENSEE ADDRESS PENALTY
Nassau Insurance Brokerage, Inc. (broker)

Vastano, Valerie
(broker & sublicensee)
1716 Sunrise Highway
Bayshore, NY

1224A Suffolk Ave.
Brentwood, NY

$2,000 fine
Failed to forward in a timely manner premium payments and insurance applications to the appropriate insurer. In addition, they failed to process cancellation requests from insureds in a timely manner and collected service fees without obtaining signed service fee agreements.

  

LICENSEE ADDRESS PENALTY
NBS Brokerage, Inc.
(broker)

Wechsler, Melvin
(broker & sublicensee)

2201 Grand Concourse
Bronx, NY

same as above

$500 fine
Failed to submit a signed Driver Verification Form with an application for automobile insurance.

  

LICENSEE ADDRESS PENALTY
Peoples Brokerage Bureau, Inc (broker)

Pinto, Domenico
(sublicensee)

32-32 Steinway St.
Astoria, NY
$2,500 fine
Permitted an unlicensed individual to conduct its insurance business. In addition, Peoples Brokerage was decertified from the New York Automobile Insurance Plan for various violations of Plan rules.

  

LICENSEE ADDRESS PENALTY
Rosen, Robert D.
(agent)
105 Meadow Spring La.
East Amherst, NY
$1,162 fine
Violated the Insurance Law and Department Regulation 60* when he placed a life insurance policy with American General Life Insurance Company.

  

LICENSEE ADDRESS PENALTY
Senegomreh Brokerage, Inc. (broker)

Manrique, Hermogenes
(broker & sublicensee)

306 East 116th St.
New York, NY

same as above

$2,000 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced. In addition, personal and operating expenses were paid out of the premium account.

  

LICENSEE ADDRESS PENALTY
Spruill, Henry
(savings bank certificate)
41-60 Main St.
Flushing, NY
License revoked
Failed to forward a premium to the appropriate insurer. In addition, Spruill kept for his personal use at least two cash premium payments.

  

LICENSEE ADDRESS PENALTY
Wynne-Evans, Patricia A. (agent & broker) 395 Smith St.
Brooklyn, NY
$1,000 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced.

 

* 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.