New York State
Insurance Department
 

DISCIPLINARY ACTIONS


New York, November 17, 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
New England Mutual Life Insurance Company

New England Variable Life Insurance Co.

One Madison Ave.
New York, NY

501 Boylston St.
Boston, MA

$150,000 fine
The companies violated the Insurance Law when they used an unapproved training allowance plan, paid commissions to agents not licensed in New York for policies sold in New York, and used unfiled commission and premium schedules for group life insurance and group accident and health insurance. In addition, the companies made loans to general agents based upon the security of renewal commissions and failed to keep on file fully completed disclosure statements. New England Mutual Life Insurance Company merged with Metropolitan Life Insurance Company on August 30, 1996 and no longer exists as a separate entity. New England Variable Life became a wholly owned subsidiary of Metropolitan and changed its name to New England Life Insurance Company. These violations occurred before these companies became part of Metropolitan Life.

  

LICENSEE ADDRESS PENALTY
Electric Insurance Company 152 Conant St.
Beverly, MA
$145,850 fine
A market conduct investigation revealed that the insurance company violated the Insurance Law when, in connection with certain automobile insurance policies issued or renewed between October 1, 1995 and September 30, 1996, it failed to pay or deny claims within 30 days, failed to send written explanations to insureds explaining reasons for delay in payments, and failed to inspect vehicles and make good faith offers in a timely manner. The company also failed to send out no-fault and follow-up no-fault application forms in a timely manner and failed to properly calculate the interest due on overdue benefits. Electric also failed to use correct Red Book and NADA Valuation Manual figures in calculating the value of stolen or totaled vehicles, failed to report total theft losses to the National Insurance Crime Bureau in a timely manner, and failed to notify insureds of their reimbursement rights for transportation expenses.

Electric Insurance agrees to review all no-fault claim payments from October 1, 1995 through August 22, 1997 and pay any overdue interest of more than $5. The company will also review all total theft loss payments for this same time period and remit any underpayments to insureds.

  

LICENSEE ADDRESS PENALTY
Utica Mutual Insurance Company

Graphic Arts Mutual Insurance Co.

P.O. Box 530
Utica, NY

same as above

$57,415 fine


$15,240 fine

Market conduct investigations revealed that the companies, members of the Utica National Insurance Group, violated the Insurance Law and Department regulations when, in connection with certain automobile insurance policies issued or renewed between September 1, 1994 and August 31, 1995, they failed to pay or deny claims within 30 days. They also failed to send out no-fault and follow-up no-fault application forms in a timely manner and failed to properly calculate the interest due on overdue benefits. The companies also failed to use correct Red Book and NADA Valuation Manual figures in calculating the value of stolen or totaled vehicles and failed to notify insureds of their reimbursement rights for transportation expenses.

Utica Mutual also failed to send out written explanations to insureds explaining delays in payment and failed to report losses to the National Insurance Crime Bureau in a timely manner.

The companies have agreed to review all no-fault payments made between January 1, 1996 and June 30, 1997 and to pay any overdue interest of more than $5. They will also review all total theft book values for the same time period and remit any underpayments to insureds.

  

LICENSEE ADDRESS PENALTY
Sentry Life Insurance Company of New York 251 Salina Meadows Parkway
Syracuse, NY
$15,000 fine
The company violated the Insurance Law when it improperly used the term "low cost" in its advertisements and failed to file with the Insurance Department changes to its plan of operations for separate accounts.

  

LICENSEE ADDRESS PENALTY
Continental Insurance Company CNA Plaza
Chicago, IL
$12,750 fine
A market conduct investigation revealed that the company, a member of the CNA Insurance Group, violated the Insurance Law when, in 1995, it exceeded the maximum permissible number of nonrenewals of private passenger automobile insurance policies. A company is only allowed to nonrenew up to 2% of its business in any given territory. Fidelity & Casualty Insurance Company of New York, the company to which Continental has been transferring its private passenger automobile insurance business, has agreed to restrict specific 1997 nonrenewals to make up for the excessive nonrenewals of Continental.

  

LICENSEE ADDRESS PENALTY
Preferred Mutual Insurance Co. One Preferred Way
New Berlin, NY
$10,500 fine
A market conduct investigation revealed that the company violated the Insurance Law when, in 1995, it exceeded the maximum permissible number of nonrenewals of private passenger automobile insurance policies. A company is only allowed to nonrenew up to 2% of its business in any given territory. Preferred Mutual has agreed to restrict specific 1997 nonrenewals to make up for the excessive nonrenewals.

  

LICENSEE ADDRESS PENALTY
Lincoln Security Life Insurance Co. 100 Executive Dr.
Brewster, NY
$10,000 fine
The company violated the Insurance Law and Department regulations when it failed to state in its advertisements the location of its home office or indicate the policy form number of a specific policy. Also in its advertisements, Lincoln Security called attention to an unauthorized insurer and failed to list its liabilities and reserves when disclosing its financial condition. The company also failed to maintain at its principal office the corporate by-laws and the minutes of meetings held by the board of directors.

  

LICENSEE ADDRESS PENALTY
Reliance Insurance Company 4 Penn Center Plaza
Philadelphia, PA
$10,000 fine
The company violated Insurance Department Regulation 142 when between June 1, 1992 and February 22, 1996, it engaged in hedging transactions without submitting a hedging plan to the Superintendent for approval.

  

LICENSEE ADDRESS PENALTY
United States Fidelity & Guaranty Company 100 Light St.
Baltimore, MD
$8,500 fine
A market conduct investigation revealed that the company violated the Insurance Law when, in 1995, it exceeded the maximum permissible number of nonrenewals of private passenger automobile insurance policies. A company is only allowed to nonrenew up to 2% of its business in any given territory. United States Fidelity & Guaranty has agreed to restrict specific 1997 nonrenewals to make up for the excessive nonrenewals.

  

LICENSEE ADDRESS PENALTY
American & Foreign Insurance Co.

Royal Insurance Co. of America

9300 Arrowpoint Blvd.
Charlotte, NC

same as above

$6,600 fine


$2,400 fine

Market conduct investigations revealed that the companies, members of the Royal Insurance Companies Group, violated the Insurance Law when, in connection with certain commercial multiple peril insurance policies issued or renewed between April 1, 1995 and March 31, 1996, they used rating rules that had not been filed with the Department. In addition, American & Foreign Insurance Company failed to send out conditional renewal and nonrenewal notices in a timely manner and exceeded the flex-rating limitations.

  

LICENSEE ADDRESS PENALTY
Continental Casualty Company


Transcontinental Insurance Co.

Valley Forge Insurance Co.

CNA Plaza
Chicago, IL

same as above

same as above

$5,500 fine


$4,950 fine

$3,300 fine

Market conduct investigations revealed that the companies, members of the CNA Group, violated the Insurance Law when, in connection with certain commercial multiple peril insurance policies issued or renewed between June 1, 1995 and May 31, 1996, they used rating rules that had not been filed with the Department. Continental also used rating classifications that had not been filed. Transcontinental and Valley Forge also failed to furnish specific reasons on nonrenewal and conditional renewal notices.

 

 

  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
Cowden Jr., Harold
  (agent)
2 Merritt La.
Center Moriches, NY
License revoked
Cowden failed to respond to Department inquiries after his employment was terminated by an insurer for cause.

 

 STIPULATIONS

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

LICENSEE ADDRESS PENALTY
Apolito, Mario
t/b/a Mario Apolito Broker
  (broker)
2200 Grand Concourse
New York, NY
$1,000 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced. In addition, Apolito commingled premiums with other funds.
LICENSEE ADDRESS PENALTY
Automax Services, Inc.
  (broker)

Swieboda, Dorota
  (broker & sublicensee)

59 McGuinness Blvd.
Brooklyn, NY

same as above

$500 fine
Issued a premium check that was dishonored by the bank, but subsequently replaced. In addition, premiums were commingled with other funds.

  

LICENSEE ADDRESS PENALTY
Bear Insurance Agency Corp.
   (broker)

Oliver, Tamara
  (sublicensee)

130 Audubon Ave.
New York, NY
$1,500 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced. In addition, premiums were commingled with other funds.

 

LICENSEE ADDRESS PENALTY
Belpi Brokerage Inc.
  (broker)

Pichardo, Ivan M.
  (broker & sublicensee)

Viau, Cynthia
  (broker & sublicensee)

6-B East 183rd St.
Bronx, NY

same as above


same as above

$500 fine
Violated the Insurance Law when they pre-dated a Driver Verification Form and submitted an automobile insurance application where the listed operated denied knowing the insured.

  

LICENSEE ADDRESS PENALTY
Bison Ltd.
  (broker)

Keuker, David C.
  (broker & sublicensee)

8758 Jennings Rd.
Eden, NY

same as above

$1,500 fine
Collected premium payments and failed to forward the entire amount to the appropriate insurer. In addition, Keuker conducted business under an unlicensed name.

  

LICENSEE ADDRESS PENALTY
Campos, Nancy
  (broker)
6 South Kensico Ave.
White Plains, NY
$1,000 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced.

 

LICENSEE ADDRESS PENALTY
Computax Services, Inc.
  (broker)

Sheikh, Sharif A.
  (broker & sublicensee)

40-06A Junction Blvd.
Corona, NY

same as above

$1,000 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced. In addition, premiums were commingled with other funds.

  

LICENSEE ADDRESS PENALTY
Deutsch, Michael C.
  (broker)
854 49th St.
Brooklyn, NY
$2,000 fine
Deutsch was temporarily decertified from the New York Automobile Insurance Plan for various violations of Plan rules including the submission of late or deficient applications.

  

LICENSEE ADDRESS PENALTY
Dixon, Doreen V.
  (broker)
3105 Church Ave.
Brooklyn, NY
$1,500 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced. In addition, Dixon commingled premiums with other funds.

  

LICENSEE ADDRESS PENALTY
Draper, Denis X.
  (agent)
225 N. Springmeadow Dr.
Holbrook, NY
$750 fine
Violated the Insurance Law and Department Regulation 60* when he placed a life insurance policy with Equitable Life Insurance Company.

  

LICENSEE ADDRESS PENALTY
Goble, William L.
  (agent & broker)
57 Farm Rd.
North Wading River, NY
$1,000 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced. In addition, Goble commingled premiums with other funds and falsely stated to the Department of Motor Vehicles that an insured had coverage in effect on a specific date.

  

LICENSEE ADDRESS PENALTY
Gordon, Scott L.
  (agent & broker)
11 Barker St.
Albany, NY
$750 fine
Violated the Insurance Law and Department Regulation 60* when he placed a life insurance policy with Prudential Insurance Company.

 

LICENSEE ADDRESS PENALTY
The Gorsline Company, Inc.
  (agent, broker & excess line    broker)

Gorsline, John C.
  (agent, broker & sublicensee)

2 Eagle St.
Rochester, NY


same as above

$3,750 fine
Violated the Insurance Law by placing accident and health insurance coverage in the excess line market.

 

 

LICENSEE ADDRESS PENALTY
International Jewelers
Underwriters Agency, Ltd.
  (agent, broker & excess line    broker)

Acosta, Antonio J.
  (sublicensee)

25 West 45th St.
New York, NY
$3,000 fine
Collected service fees from clients without obtaining the required written service fee agreements.

  

LICENSEE ADDRESS PENALTY
Jean-Baptiste, Ehmil A.
  (broker)
87-82 Sutphin Blvd.
Jamaica, NY
$1,500 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced. Jean-Baptiste also commingled premiums with other funds and conducted insurance business under an unlicensed name. In addition, he violated the rules of the New York Automobile Insurance Plan by failing to complete Driver Verification Forms.

  

LICENSEE ADDRESS PENALTY
Las Americas Insurance
 Agency, Inc.
  (broker)

Zulkofske, Peter A.
  (broker & sublicensee)

130-E Suffolk Ave.
Central Islip, NY


150 Main St.
East Setauket, NY

$1,000 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced.

  

LICENSEE ADDRESS PENALTY
Lutin, Jeanette D.
  (broker)
88-17 169th St.
Jamaica, NY
$750 fine
Submitted insufficient premium deposits to the New York Automobile Insurance Plan. In addition, Lutin commingled premiums with other funds.

 

LICENSEE ADDRESS PENALTY
Maluf, Olga E.
t/b/a Maluf Brokerage
   (broker)
102-12 65th Ave.
Forest Hills, NY
$1,500 fine
Underestimated premium deposits for the New York Automobile Insurance Plan. This practice, known as lowballing, occurs when an agent or broker intentionally misquotes premium information to a consumer 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. The New York State Insurance Department actively and thoroughly checks all agent and broker complaints for lowballing.

 

LICENSEE ADDRESS PENALTY
Marchese, John G.
  (broker)
2812 Mandalay Beach Rd.
Wantagh, NY
$2,500 fine
Failed to return a premium refund check to an insured until after the Department made inquiries.

  

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

Cortazzo, Minerva
  (agent, broker & sublicensee)

69-10 Roosevelt Ave.
Woodside, NY

same as above

$2,490 fine
Failed to submit a signed Driver Verification Form along with an automobile insurance application and falsely indicated that an insured had made a timely premium payment. In addition, MIA was decertified by the New York Automobile Insurance Plan for various violations of Plan rules.

  

LICENSEE ADDRESS PENALTY
Morales, Crusita I.
t/b/a CIM Brokerage
  (agent & broker)
2787 Webster Ave.
Bronx, NY
$7,500 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced. In addition, Morales was decertified by the New York Automobile Insurance Plan for various violations of Plan rules including issuing checks that were subsequently dishonored.

  

LICENSEE ADDRESS PENALTY
Narain, Shiv S.
(agent & broker)
1444 Shore Dr.
Bronx, NY
$2,500 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced. In addition, Narain commingled premiums with other funds and failed to forward an application and premium to the appropriate insurer.

  

LICENSEE ADDRESS PENALTY
Rameriz, Julio C.
  (agent)
64-10 136th St.
Flushing, NY
$750 fine
Failed to respond in a timely manner to Department inquiries concerning an alleged Regulation 60* violation. In addition, Ramirez commingled premiums with other funds.

  

LICENSEE ADDRESS PENALTY
Rissinger, Charles W.
  (agent & broker)
23 Beechwood Ave.
Castile, NY
$1,000 fine
Violated the Insurance Law when he issued an incorrect Certificate of Insurance for Highway Permits that misrepresented the amount of motor vehicle liability coverage a client had.

  

LICENSEE ADDRESS PENALTY
Sehweil, Yousef
  (broker)
4338 White Plains Rd.
Bronx, NY
$2,500 fine
Sehweil commingled premiums with other funds. In addition, he was decertified by the New York Automobile Insurance Plan for various violations of Plan rules including submitting late applications and issuing a check that was subsequently dishonored.

 

LICENSEE ADDRESS PENALTY
Shave Jr., George F.
  (agent)
204 Main St.
Matawan, NJ
$500 fine
Violated the Insurance Law when he denied on his license application that he had been subject to any disciplinary action by any State agency. He had, in fact, been fined by the New Jersey Insurance Department.

  

LICENSEE ADDRESS PENALTY
Solo Brokerage, Inc.
  (broker)

Melendez, Octavio D.
  (broker & sublicensee)

632 Grand St.
Brooklyn, NY

same as above

$1,500 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced. In addition, premiums were commingled with other funds.

  

LICENSEE ADDRESS PENALTY
Vasquez, Juan R.
(agent & broker)
75-85 Ellwood St.
New York, NY
$1,000 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced. In addition, on four occasions Vasquez listed improper operators on New York Automobile Insurance Plan applications.
LICENSEE ADDRESS PENALTY
Viola, Peter R.
  (agent & broker)
1793 Deer Park Ave.
Deer Park, NY
$500 fine
Violated the Insurance Law when he failed to submit a signed Drivers Verification Form along with an automobile insurance application.

  

LICENSEE ADDRESS PENALTY
Jeffrey S. Weiner
  (agent)
7 Abbey Lane
Plainview, NY
$750 fine
Violated the Insurance Law and Department Regulation 60* when he placed a life insurance policy with Phoenix Home Life Insurance Company.

  

* 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.