New York State
Insurance Department
 

DISCIPLINARY ACTIONS


New York, March 9, 1998

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
Wellcare of New York, Inc. 130 Meadow Ave.
Newburgh, NY
$91,000 fine
The HMO violated the Insurance Law when in connection with certain commercial group contracts issued or renewed during 1995 and 1996, it charged unapproved rates and failed to make adjustments within specified time periods between guaranteed rates and approved rates. In addition, the HMO issued an unapproved rider.

Wellcare is also expected to make every endeavor to recoup the full amount of all undercharges from the groups that were charged an incorrect rate during 1995 and 1996 and make reports to the Department every six months on the results of their efforts. An additional penalty of $66,000 may be assessed against Wellcare if the Department determines a lack of good faith on the part of the HMO to recoup the undercharges.

  

LICENSEE ADDRESS PENALTY
Colonial Penn Insurance Co. P.O. Box 1990
Valley Forge, PA
$50,300 fine
A market conduct investigation revealed that the company violated the Insurance Law and Department regulations when, in connection with certain automobile insurance policies issued or renewed between July 1, 1996 and December 31, 1996, it failed to pay or deny claims in a timely manner. In addition, Colonial Penn failed to properly calculate overdue interest, failed to inspect damaged vehicles and make good faith offers in a timely manner, and failed to give Certificate-of-Repair forms to insureds during the negotiations. The company also failed to send out letters of explanation every 30 days for outstanding claims, failed to properly calculate the value of stolen or totaled vehicles, and failed to report all total theft losses to the National Insurance Crime Bureau in a timely manner.


LICENSEE ADDRESS PENALTY
Metropolitan Property and Casualty Insurance Company 700 Quaker Rd.
Warwick, RI
$21,530 fine

A market conduct investigation revealed that the company violated the Insurance Law and Department regulations when, in connection with certain automobile insurance policies issued or renewed between September 1, 1995 and August 30, 1996, it failed to send out follow-up no-fault applications and follow-up verification forms in a timely manner. Metropolitan also failed to pay or deny claims in a timely manner, and failed to send out letters explaining the delays to insureds within specified time frames. It also failed to inspect or reinspect damaged vehicles in a timely manner and failed to properly calculate the value of stolen or totaled vehicles. In addition, the company failed to pay proper interest on overdue benefits and failed to send follow-up Certification-Of-Repair forms in a timely manner. The company also failed to make reports to the National Insurance Crime Bureau in a timely manner.

 

LICENSEE ADDRESS PENALTY
Farmers and Traders Life Insurance Company 960 James St.
Syracuse, NY
$20,000 fine
The company violated the Insurance Law and Department Regulation 60 when in connection with certain life insurance policies issued between January 1, 1993 and December 31, 1995, it failed to notify other insurers that their policies were being replaced. In addition, the company exceeded the statutory limit on the number of juvenile policies it could issue. Farmers and Traders Life also failed to obtain approval for a policy amendment that changed the amount of the death benefit if the insured died before reaching 14 1/2 years of age.

  

LICENSEE ADDRESS PENALTY
United States Fidelity & Guaranty Co.

Fidelity & Guaranty Ins. Co.

6225 Smith St.
Baltimore, MD

same as above

$13,225 fine


$9,625 fine

The companies, part of the U.S. Fidelity & Guaranty Group, violated the Insurance Law and Department regulations when in connection with certain commercial multiple peril and general liability insurance policies issued or renewed between January 1, 1996 and December 31, 1996, they used unfiled rates. In addition, United States Fidelity & Guaranty failed to place appropriate classification codes and disclosure notices on certain policies written in the Free Trade Zone and failed to report fire losses to the Property Insurance Loss Register in a timely manner. Both companies failed to terminate the policies of insureds who failed to return anti-arson applications. Fidelity & Guaranty failed to apply its experience rating plans in a uniform manner and failed to document in its files the particular circumstances supporting each debit or credit on individual risks.

 

 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
Brewi, Judy A.
   (broker)
54 Windmill Dr.
Huntington, NY
License revoked
Brewi pled guilty to attempted petit larceny in connection with her role in an embezzlement scheme perpetrated on her employer, an insurance agency.

  

LICENSEE ADDRESS PENALTY
Brown, Thomas J.
   (agent)
51 Dykes Park Rd.
Nanuet, NY
License revoked
Collected premium payments but failed to forward the entire amount to the appropriate insurer.

  

LICENSEE ADDRESS PENALTY
Brown Sr., Bruce B.
   (agent)
1701 W. Sunshine
Springfield, MO
License revoked
Brown falsely responded when asked on his licensing applications whether he had ever been convicted of a criminal action. In fact, Brown had been convicted of burglary and battery.

 

LICENSEE ADDRESS PENALTY
Camp, Ricky R.
   (agent & broker)
505 South 8th Ave.
Mt. Vernon, NY
$1,250 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced. In addition Camp commingled premiums with other funds and used an unlicensed name.

  

LICENSEE ADDRESS PENALTY
Campbell, Raymond P.
   (agent)
11 1/2 Gillis St.
Fredonia, NY
License revoked
Forged insureds’ signatures on forms in order to receive renewal commissions from clients’ pre-existing policies at the next renewal period.


LICENSEE ADDRESS PENALTY
Cavooris, Shirley F.
   (agent)
550 North Country Rd.
St. James, NY
License revoked
Cavooris pled guilty to the crime of petit larceny in connection with misappropriating monies that were collected for investment.

  

LICENSEE ADDRESS PENALTY
Cueva, Carlos
   (agent)
38-08 Bell Blvd.
Bayside, NY
License revoked
Cueva misappropriated a premium payment.

  

LICENSEE ADDRESS PENALTY
David W. Jackson Ins. Agency
   (agent & broker)

Gerringer, Waymon
   (agent, broker & sublicensee)

61 New St.
Staten Island, NY

same as above

Licenses revoked and $1,000 fine

Licenses revoked

Collected premium payments and failed to forward them in a timely manner, or at all, to the appropriate insurers. In addition, they submitted false letters to the New York State Department of Motor Vehicles stating that their clients had coverage in effect during a certain time period when, in fact, they did not. They also issued forged automobile insurance identification cards for insurance companies they were not authorized to represent.

  

LICENSEE ADDRESS PENALTY
Dowell, Robert L.
   (agent)
293 Independence Blvd.
Virginia Beach, VA
License revoked
Dowell falsely responded when asked on his licensing application whether he had ever been convicted of a criminal action. In fact, Dowell had been convicted of conspiracy to possess with intent to distribute marijuana.

  

LICENSEE ADDRESS PENALTY
Empire Travel, Inc.
   (broker)

Collado-Vazquez, Miriam
   (sublicensee)

98 Clinton St.
New York, NY
$2,500 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced. In addition, Collado-Vazquez commingled premiums with other funds and allowed a broker who had been decertified by the New York Automobile Insurance Plan to act on her behalf with the Plan.

  

LICENSEE ADDRESS PENALTY
Fidelity Insurance Brokerage & Travel, Inc.
   (broker)

Ahmed, Abdelhamid O.
   (broker & sublicensee)

7108 20th Ave.
Brooklyn, NY


same as above

License revoked



Licenses revoked

Issued an insurance identification card in the name of a client’s wife to hide the fact that the client was actually the driver. In addition, insufficient premium deposits were routinely submitted to the New York Automobile Insurance Plan.*

  

LICENSEE ADDRESS PENALTY
Hassell, Frank T.
   (agent & broker)
67-38 80th St.
Middle Village, NY
Licenses revoked

Hassell pled guilty to a scheme to defraud an insurer for the alleged theft of two valuable paintings he neither owned nor possessed.

 

LICENSEE ADDRESS PENALTY
Johnson, Robert D.
   (agent)
180 E. 17th St.
Brooklyn, NY
License revoked and $1,000 fine
Collected a premium payment and failed to forward it to the appropriate insurer and gave the client a forged automobile insurance identification card.

  

LICENSEE ADDRESS PENALTY
Jordan, Gloria A.
   (agent)
182 Irish La.
Islip Terrace, NY
License revoked
Collected premium payments and failed to forward them to the appropriate insurer.

  

LICENSEE ADDRESS PENALTY
Kelly, Frank J.
   (agent)
77 Newell St.
Brooklyn, NY
License revoked
Issued premium checks that were dishonored by the bank. Kelly also submitted fraudulent life insurance applications to an insurer in order to obtain advanced commissions and conducted insurance business using an unlicensed name.

  

LICENSEE ADDRESS PENALTY
Kirst, Kevin D.
   (agent)
1125 Northwood Dr.
Williamsville, NY
License revoked
Kirst pled guilty to grand larceny in connection with collecting premium payments and failing to forward them to the appropriate insurers.

  

LICENSEE ADDRESS PENALTY
Labuz, Joseph J.
   (agent)
2144 Bay Ridge Parkway
Brooklyn, NY
License revoked
Labuz misappropriated a client’s money. The money was repaid a year later.

  

LICENSEE ADDRESS PENALTY
Lopez, Jose L.
   (broker)
700 River Ave.
Bronx, NY
$2,500 fine
Submitted automobile insurance applications in which the listed operators denied knowing the insurance applicant. In addition, Lopez submitted applications to the New York Automobile Insurance Plan that underestimated the premium amount.*

  

LICENSEE ADDRESS PENALTY
McCambridge, Mary M.
   (agent)
85-15 Main St.
Briarwood, NY
License revoked
Failed to furnish the Department with an explanation after indicating on her licensing renewal application that she had declared personal bankruptcy.

  

LICENSEE ADDRESS PENALTY
Murphy, Richard C.
   (agent & broker)
Rte. 41A, RD 2 New Hope
Moravia, NY
Licenses revoked
Misappropriated premium payments which were eventually repaid and commingled premiums with other funds.

  

LICENSEE ADDRESS PENALTY
Perez, Leah Carmen G.
   (agent)
81-05 262nd St.
Floral Park, NY
License revoked
Failed to respond to Department inquiries concerning a consumer’s complaint against her.

  

LICENSEE ADDRESS PENALTY
Premier Agency, Inc.
   (agent & broker)

Premier Plus Agency, Inc.
   (agent) & broker)

Sarner, Donald M.
   (agent, broker & sublicensee)

1905 Hempstead Tpke.
East Meadow, NY

805 Merrick Ave.
East Meadow, NY

805 Merrick Ave.
East Meadow, NY

Licenses revoked


Licenses revoked


Licenses revoked

Issued premium checks that were dishonored by the bank, only some of which were subsequently replaced. In addition, misappropriated the proceeds of 13 two-party checks and financed automobile liability policies through a funding corporation without his clients’ consent. They also defrauded the funding corporation by taking money and failing to forward it to the appropriate insurer or taking money for policies that were not in effect.

  

LICENSEE ADDRESS PENALTY
Roman International Corp.
   (broker)

Depena, Roman
   (broker & sublicensee)

314 West 231st St.
Riverdale, NY

same as above

$7,500 fine
Submitted applications to the New York Automobile Insurance Plan that listed operators that denied knowing the applicants. In addition, they produced false Driver Verification forms.

  

LICENSEE ADDRESS PENALTY
Rosen, David
   (agent, broker & excess line      broker)
2665 Homecrest Ave.
Brooklyn, NY
$7,500 fine
Commingled premiums with other funds, failed to keep proper records, and placed business for brokers that were not licensed as excess line brokers. The Department’s decision has been stayed pending the outcome of an Article 78 proceeding.

  

LICENSEE ADDRESS PENALTY
Schultz, Gustavo A.
   (agent)
148 Whitman Dr.
Brooklyn, NY
License revoked
Failed to respond to Department inquiries for information concerning several consumer complaints filed against him.

  

LICENSEE ADDRESS PENALTY
Sethi, Sanjeet
   (agent)
61-17 Clover Dale Blvd.
Bayside, NY
License revoked
Issued premium checks that were dishonored by the bank.

  

LICENSEE ADDRESS PENALTY
Stabile, Robert A.
   (agent)
63 33rd St.
Copiague, NY
$1,500 fine
Borrowed money from a policyholder which was against the insurance company’s policy. In addition, Stabile failed to furnish a policyholder with a life insurance policy for the mandatory ten-day review and delayed cancellation of the policyholder’s policy to prevent loss of commission.

  

LICENSEE ADDRESS PENALTY
Staubitzer, William
   (insurance adjuster)
599 Old Country Rd.
Dix Hills, NY
License revoked
Pled guilty to taking bribes, intended to influence his judgment as a claims adjuster.

  

LICENSEE ADDRESS PENALTY
Swanson, Robert W.
   (agent & broker)
13500 Broadway
Alden, NY
License revoked
Pled guilty to three counts of grand larceny, two counts of petit larceny and the felony crime of grand larceny in connection with collecting premium payments and failing to forward them to the appropriate insurer, altering the declaration page of insurance policies, and issuing false automobile insurance identification cards.

  

LICENSEE ADDRESS PENALTY
Thompson, Dorene E.
   (agent & broker)
9 Creekside Circle
Spring Valley, NY
$750 fine
Violated Department Regulation 60** when she placed a life insurance policy with Prudential Insurance Company of America.

  

LICENSEE ADDRESS PENALTY
Zaveri, Salil A.
   (agent)
75-20 Astoria Blvd.
Jackson Heights, NY
License revoked
Failed to respond to Department requests for information after indicating on his license renewal application that he had filed for bankruptcy.

  

 STIPULATIONS

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

  

LICENSEE ADDRESS PENALTY
Alvarez, Edwin R.
   (broker)
t/b/a Edal General Brokerage
5203 Fourth Ave.
Brooklyn, NY
$5,000 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced. In addition, Alvarez commingled premiums with other funds.

  

LICENSEE ADDRESS PENALTY
Bahman Brokerage, Inc.
   (agent & broker)

Soltanian, Bahman
   (agent, broker & sublicensee)

84-50 Grand Ave.
Elmhurst, NY

same as above

$1,500 fine
Submitted a letter to the Department of Motor Vehicles falsely stating that a client had automobile insurance coverage in effect as of a certain date when, in fact, he did not.

  

LICENSEE ADDRESS PENALTY
Bhagan, Sharmila B.
   (broker)
t/b/a Pax Insurance Agency
4727 Richardson Ave.
Bronx, NY
$1,000 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced.

  

LICENSEE ADDRESS PENALTY
Borukhov, Tamara B.
   (broker)
63-67 108th St.
Forest Hills, NY
$2,000 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced. In addition, Borukhov commingled premiums with other funds and conducted insurance business under an unlicensed name.

  

LICENSEE ADDRESS PENALTY
Cammuso, Patrick J.
   (agent)
2 Wycliffe Rd.
Waterloo, NY
$1,284 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
Cicero, Robert J.
   (pending independent adjuster      license)
100 Rockinchair Rd.
White Plains, NY
$6,600 fine

Adjusted losses for an insurance company without being licensed.

  

LICENSEE ADDRESS PENALTY
Congdon, Mark J.
   (agent)
628 Conklin Rd.
Binghamton, NY
$750 fine
Sold a client Medicare supplement insurance that duplicated an existing policy and incorrectly listed the reasons for the replacement on the application.

  

LICENSEE ADDRESS PENALTY
Countrywide Insurance Agency
   (broker)

Jean, Gerald
   (agent, broker & sublicensee)

1811 Fifth Ave.
Bayshore, NY

121 Sherman St.
Brentwood, NY

$1,000 fine
Failed to complete a Driver Verification Form as required by New York Automobile Insurance Plan rules. In addition, collected premiums were not forwarded in a timely manner to the appropriate insurer.

  

LICENSEE ADDRESS PENALTY
Dabrowny, Edward
   (agent & broker)
639 Dewitt Rd.
Webster, NY
$500 fine
Submitted an application to an insurer that was not signed by the applicant, but was instead signed by the applicant’s son.

  

LICENSEE ADDRESS PENALTY
DeJesus, Maria
   (broker)
t/b/a Sunny Brokerage
58 E. 181st St.
Bronx, NY
$500 fine
Submitted an application to the New York Automobile Insurance Plan that listed an operator that denied knowing the applicant. In addition, DeJesus did not complete the Driver Verification Form as required.

  

LICENSEE ADDRESS PENALTY
DeRose, Joseph A.
   (agent)
118 W. Lakeshore Dr.
Rockaway, NJ
$500 fine

Sold a policy on behalf of Equitable of Colorado to a New York resident in New York. The insurer is not licensed in New York.

 

LICENSEE ADDRESS PENALTY
Elnabli, Tarek A.
   (agent & broker)
1446 White Hill Rd.
Yorktown Heights, NY
$750 fine
Violated the Insurance Law and Department Regulation 60** when he placed an annuity policy with New York Life Insurance Company.

  

LICENSEE ADDRESS PENALTY
Forte, Myra
   (agent)
20 Locust La.
Eatons Neck, NY
$750 fine
Violated the Insurance Law and Department Regulation 60** when she placed a life insurance policy with New York Life Insurance Company.

  

LICENSEE ADDRESS PENALTY
Franki Jr., Nicholas M.
   (agent)
86 Van Sicklen St.
Brooklyn, NY
License revoked
Submitted fictitious life insurance applications to an insurer.

  

LICENSEE ADDRESS PENALTY
Garcia, Angela
   (broker)
t/b/a Angela Garcia Brokerage
and Caonabo-General
Insurance Brokerage
456 Beach 63rd St.
Arverne, NY
$1,000 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced.

  

LICENSEE ADDRESS PENALTY
Garcia, Francisco J.
   (broker)
2807 Claslin Ave.
Bronx, NY
$3,000 fine
Issued a premium check that was dishonored by the bank, but subsequently replaced. In addition, Garcia commingled premiums with other funds and falsely informed the Department of Motor Vehicles that a client had automobile insurance coverage in effect as of a certain date when, in fact, the coverage had lapsed. Garcia also allowed an unlicensed person to issue a letter of coverage and a Driver Verification Form.

  

LICENSEE ADDRESS PENALTY
Griffin, Mitchell R.
   (agent & broker)
19 Forest Rd.
Delmar, NY
$3,500 fine

Issued bonds on behalf of a surety company without proper authority.

 

LICENSEE ADDRESS PENALTY
Hewett, Michaela H.
   (agent)
130 W. 82nd St.
New York, NY
$250 fine
Sold two policies on behalf of Equitable of Colorado to New York residents in New York. The insurer is not licensed in New York.

  

LICENSEE ADDRESS PENALTY
Island Wide Insurance
 Brokerage, Inc.
   (broker)

Javino, Dale R
   (agent, broker & sublicensee).

4230 Merrick Rd.
Massapequa, NY


111 Yuma La. South
East Islip, NY

$500 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced.

  

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

Kulchitskaya, Lyubov
   (broker & sublicensee)

2481 65th St.
Brooklyn, NY

same as above

$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
Karp, Stanley M.
   (agent)
333 Sunset Ave.
Palm Beach, FL
$500 fine
Sold a policy on behalf of Equitable of Colorado to a New York resident in New York. The insurer is not licensed in New York.

  

LICENSEE ADDRESS PENALTY
L & G Brokerage, Inc.
   (broker)

Agramonte, Lucy
   (agent, broker & sublicensee)

131 Essex St.
New York, NY

784 N. William St.
Baldwin, NY

$500 fine
Submitted an automobile insurance application that listed an operator that denied knowing the applicant. In addition, the Driver Verification Form was not completed as required.

  

LICENSEE ADDRESS PENALTY
LeMay, Lawrence
   (agent & broker)
t/b/a LeMay’s Ins. Services
3823 Boston Rd.
Bronx, NY
$500 fine
Issued two premium checks that were dishonored by the bank, but subsequently replaced.

  

LICENSEE ADDRESS PENALTY
Levine, Seth
   (broker)
1673 E. 1G St.
Brooklyn, NY
$1,500 fine
Submitted two change-of-broker requests to insurance companies without approval from the insureds.

  

LICENSEE ADDRESS PENALTY
Lilly, Frederick, T.
(agent)
5 W. State St.
Binghamton, NY
License revoked
Violated Department Regulation 60** when he placed a life insurance policy with Prudential Insurance Company of America.

  

LICENSEE ADDRESS PENALTY
Marchese, Joseph
   (agent & broker)
700 School Dr.
Baldwin, NY
$4,000 fine

Issued bonds on behalf of a surety company without proper authority.

 

LICENSEE ADDRESS PENALTY
Maria Brokerage, Inc.
   (broker)

Moulton, Antonio C.
   (broker & sublicensee)

294 Audubon Ave.
New York, NY

same as above

$1,500 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced and allowed an unlicensed person to conduct insurance business.

  

LICENSEE ADDRESS PENALTY
Messina, James A.
   (agent & broker)
t/b/a J.A. Messina Insurance
29 W. Bayberry Rd.
Glenmont, NY
$5,000 fine
Violated New York Automobile Insurance Plan rules by charging excess service fees and by collecting service fees without an agreement signed by the insured.

  

LICENSEE ADDRESS PENALTY
Molnar, Margaret A.
   (broker)
12 East Post Rd.
White Plains, NY
$3,050 fine
Molnar submitted applications to the New York Automobile Insurance Plan that underestimated the premium amount. In addition, she took low premium deposits.*

  

LICENSEE ADDRESS PENALTY
Morency, Amrswood
   (broker)
t/b/a Tam Tam Creole Travel and Insurance Services
2257 Church Ave.
Brooklyn, NY
$1,500 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced. In addition, Morency commingled premiums with other funds.

  

LICENSEE ADDRESS PENALTY
Newman, Aaron J.
   (agent)
P.O. Box 280
Rosemont, NJ
$500 fine
Sold a policy on behalf of Equitable of Colorado to a New York resident in New York. The insurer is not licensed in New York.

  

LICENSEE ADDRESS PENALTY
Nice, William R.
   (pending broker’s license)
283 North Park Dr.
Levittown, PA
$500 fine
Failed to indicate on his licensing application that he had been fined and his insurance license suspended for six months by the Pennsylvania Insurance Department.

  

LICENSEE ADDRESS PENALTY
Paret, Jean
   (broker)
t/b/a J. Paret Brokerage
4512 Church Ave.
Brooklyn, NY
$500 fine
Paret was decertified by the New York Automobile Insurance Plan for various violations of Plan rules.

  

LICENSEE ADDRESS PENALTY
Pastore, David M.
   (broker)
1717 Military Rd.
Kenmore, NY
$750 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced. In addition, Pastore failed to refund a return premium to a client in a timely manner.

  

LICENSEE ADDRESS PENALTY
Pavelchak, Norbert
   (agent & broker)
266 Millington Rd.
Cortlandt Manor, NY
$1,000 fine
Pavelchak signed a letter requesting cancellation of a cost-of-living rider on an insured’s life insurance policy without the knowledge of the insured. In addition, he changed the premium notice address on the policy to his own.

  

LICENSEE ADDRESS PENALTY
Stubbs, Nancy
   (broker)
35-59 95th St.
Jackson Heights, NY
$5,000 fine
Prepared applications for automobile insurance that contained fraudulent operator information.

  

LICENSEE ADDRESS PENALTY
Supreme Agency, Inc.
   (agent & broker)

Platin, Robert E.
   (broker & sublicensee)

587 E. Jericho Tpke.
St. James, NY

same as above

$500 fine
Used advertisements that failed to list the insurance companies, describe the type of automobile coverage, or indicate the driving record necessary to qualify for the "lowest rates."

  

LICENSEE ADDRESS PENALTY
Toussaint, Wilhem
   (broker)
1863 Flatbush Ave.
Brooklyn, NY
$500 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced.

  

LICENSEE ADDRESS PENALTY
Union Agency, Inc.
   (broker)

Kim, Hyun J.
   (broker & sublicensee)

36-38 Union St.
Flushing, NY

same as above

$1,000 fine
Collected a premium payment and failed to forward it to the appropriate insurer. The money has since been repaid.

  

LICENSEE ADDRESS PENALTY
Victoria, Jimmy
(broker)
80-07 Roosevelt Ave.
Jackson Heights, NY
$2,000 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced. In addition, Victoria commingled premiums with other funds.

  

LICENSEE ADDRESS PENALTY
Viktor Insurance Agency
(agent & broker)

Bujanow, Victor
(agent & sublicensee)

Bujanow, Mary Lou
(sublicensee)

3341 Route 9
Valatie, NY

same as above

$500 fine
Issued an automobile insurance identification card without submitting the corresponding application to the appropriate insurer. In addition, they collected a premium payment and issued an automobile insurance identification card on a policy that had been canceled. The agency failed to apply for the client’s reinstatement.

 

* 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.

 

** 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.