New York State
Insurance Department
DISCIPLINARY ACTIONS
New York, June 18, 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 |
| New York Care Plus Insurance Company and Community Blue | 1901 Main Street Buffalo, NY |
$88,500 fine |
| Community Blue, a line of business of New York Care Plus, violated the Insurance Law and Department regulations and the Public Health Law by undercharging two group policyholders from 1989 through 1993, and by issuing a contract form to them in 1994 after advising the Department that the form had been discontinued. The company also violated Regulation 62 by charging guaranteed level premium rates to 47 group policyholders from 1991 through 1997 without obtaining a guaranteed rate agreement. | ||
| LICENSEE | ADDRESS | PENALTY |
| American Family Life Assurance Company of New York | One Marcus Blvd. Albany, NY |
$20,000 fine |
| An examination covering the years 1992 through 1994 revealed that American Family violated the Insurance Law by entering into arrangements for the rendering of services on a regular or systematic basis with affiliates without first notifying the Superintendent in writing. The company also used application forms that were not filed with or approved by the Superintendent. In addition, the company violated Regulation 64 by failing to inform claimants that it had received notifications of a claim within 15 business days. | ||
| LICENSEE | ADDRESS | PENALTY |
| First Alexander Hamilton Life Insurance Company | 6225 Sheridan Drive Williamsville, NY |
$19,000 fine |
| An examination as of Dec. 31, 1995 revealed that the company violated the Insurance Law and Department regulations by failure to maintain books and records at its principal office in New York, failure to provide documentation in support of the reasonableness of charges by affiliated companies, failure to make a requisite holding company filing, and being unable to provide books and records that were either lost or misplaced during transport to the parent company’s office. The company also used an unapproved policy form, paid override commissions to general agents who wrote most of its general agency’s business, and failed to advise claimants in writing regarding acceptance or rejection of death claims within 15 days. | ||
| LICENSEE | ADDRESS | PENALTY |
| American Centurion Life Assurance Company | 20 Madison Avenue Extension Albany, NY |
$15,000 fine |
| The company violated the Insurance Law during 1994 through 1996 by making reference to its parent, an unauthorized insurer, in advertising used for training agents, and by failing to obtain an order from the Superintendent suspending the limit on its new annuity business for calendar year 1996. In addition, American Centurion violated Department regulations in the period 1994 through 1996 by creating the impression in advertising used for the training of agents that the company’s parent guarantees the financial obligations of American Centurion’s policies and by failing to maintain proofs of receipt by applicants of the required notice regarding replacement of life insurance. | ||
| LICENSEE | ADDRESS | PENALTY |
| Preferred Life Insurance Company of New York | 152 West 57th Street New York, NY |
$5,000 fine |
| The company violated the Insurance Law by failing to notify the Department of a reinsurance agreement where its parent was a participant in a pooled reinsurance treaty. | ||
FINES FOR LATE FINANCIAL STATEMENTS
The following health maintenance organizations (HMOs) and other insurers have been fined for late submissions of their quarterly or annual financial statements.
| LICENSEE | ADDRESS | PENALTY |
| HealthSource HMO of New York, Inc. | P.O. Box 1498 Syracuse, NY |
$750 fine |
| LICENSEE | ADDRESS | PENALTY |
| NYL Care Health Plans of NY | 75-20 Astoria Blvd. Jackson Heights, NY |
$500 fine |
| LICENSEE | ADDRESS | PENALTY |
| Managed Health Inc. | 25 Broadway New York, NY |
$250 fine |
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 |
| Alcantara, Joffre (broker) |
4876 Broadway New York, NY |
License revoked |
| Alcantara issued at least 87 premium checks that were dishonored by the bank, most of which were not replaced, commingled premium with other funds in two bank accounts, and violated a stipulation he had signed on 9/13/95 for similar violations. He was also decertified by the New York Automobile Insurance Plan for numerous violations. | ||
| LICENSEE | ADDRESS | PENALTY |
| Akyeampong, Nana O. (broker) |
580 Flatbush Avenue Brooklyn, NY |
License revoked |
| The State of New Jersey revoked Akyeampong’s producer’s license on 10/9/96, and imposed a civil penalty of $4,500. The offenses committed in New Jersey would, if committed in New York, warrant revocation of his license. Akyeampong subsequently failed to answer letters from the New York Department to explain his activities. | ||
| LICENSEE | ADDRESS | PENALTY |
| Esparra, Serena (broker) |
1826 Second Avenue New York, NY |
License revoked |
| Esparra was decertified by the New York Automobile Insurance Plan for various violations of Plan rules, and failed to respond to requests by the Department to explain her activities. | ||
| LICENSEE | ADDRESS | PENALTY |
| Figueroa, Anthony J. (broker) |
2028 Valentine Avenue Bronx, NY |
License revoked |
| Issued five checks that were dishonored by the bank, none of which were replaced. | ||
| LICENSEE | ADDRESS | PENALTY |
| Gonzalez, Pedro A. (broker) |
1093 St. Nicholas Avenue New York, NY |
License revoked |
| Failed to answer the Department’s requests for his position regarding a client’s complaint that he did not procure collision insurance despite receiving the appropriate premium. Gonzalez was also decertified by the New York Automobile Plan for various violations of Plan rules. | ||
| LICENSEE | ADDRESS | PENALTY |
| Guy, Ruppert D. , III (agent) |
1086 Lyell Avenue Rochester, NY |
License revoked |
| Guy had been convicted of four crimes and offenses which he failed to list on his applications for licensing and renewals. | ||
| LICENSEE | ADDRESS | PENALTY |
| Guzman, Angel R. (agent) |
269 Quincy Avenue Bronx, NY |
License revoked |
| Guzman had pled guilty to embezzlement, and needed permission of the Department to continue in the business of insurance. Permission was denied because of the nature of his crime and the fact that he had falsely denied on a licensing application that he had been convicted of a crime. | ||
| LICENSEE | ADDRESS | PENALTY |
| Jefferson, Beverly (broker) t/b/a Contemporary Property & Casualty Insurance Brokerage, Inc. |
90-07 169th Street Queens Village Station, NY |
License revoked |
| Converted two return premium checks to their own use. | ||
| LICENSEE | ADDRESS | PENALTY |
| Rojas, Jacqueline. (broker) |
1306 St. Nicholas Avenue New York |
License revoked |
| Rojas’ certification to submit applications to the New York Automobile Insurance Plan was revoked for six months for violations of Plan rules. She did not respond to the Department’s requests to furnish an explanation of her activities. | ||
| LICENSEE | ADDRESS | PENALTY |
| St. Cyr, Ronald P. (agent) |
3305 Foster Avenue Brooklyn, NY |
License revoked |
| St. Cyr misappropriated premium payments, signed a note for repayment to his employer and failed to make any payments thereunder. | ||
| LICENSEE | ADDRESS | PENALTY |
| Santana, Hector P. (broker) |
64 Baruch Drive New York, NY |
License revoked |
| Without authorization, submitted two change of broker forms to an insurer. Santana’s certification as a producer was also revoked by the New York Automobile Insurance Plan for various violations of Plan rules. | ||
STIPULATIONS
Disciplinary actions as a result of stipulations have been agreed to by the licensees.
| LICENSEE | ADDRESS | PENALTY |
| Ayala, Jose S. (broker) |
104 N. Franklin Street Hempstead, NY |
$500 fine |
| Issued insurance premium checks which were dishonored by the bank, but subsequently replaced | ||
| LICENSEE | ADDRESS | PENALTY |
| Bruno, Luis R. (broker) |
1735 East 17th Street Bronx, NY |
$500 fine |
| Issued a premium check that was dishonored by the bank, but subsequently replaced. Bruno also commingled funds by paying operational expenses from his premium account. | ||
| LICENSEE | ADDRESS | PENALTY |
| Campo, John G., Jr. (broker, consultant & sublicensee) Phoenix Brokerage, Ltd. (agent & broker); All Cars Coverage Corp. (broker); John G. Campo, Jr., Inc. (broker) Phoenix Subsidiary Corp. (broker); Jon-Ritch Commercial Corp. (broker); Richard S. Glaser, Inc. (broker) |
411 South Broadway Hicksville, NY |
$10,000 fine |
| Licensees improperly withheld an ID card from a client until a service fee was paid, and billed service fees without fully informing clients or keeping adequate records of the transactions. In addition, they submitted an application to the New York Automobile Insurance Plan wherein the listed operator did not know the applicant/insured. They also purged their records in violation of the statutory requirement that records be kept for at least three years, billed a client for fees and motor club payments without fully informing her about either, and advertised insurance without naming the insurers. | ||
| LICENSEE | ADDRESS | PENALTY |
| Chane Brokerage Inc. Jacobowitz, Chanie (broker, excess line broker & sublicensee) |
1473 East 9th Street Brooklyn, NY |
$500 fine |
| Placed five policies with an unauthorized excess line company, and misclassified the policies so that they would not be subject to certain sections of the Insurance Law and certain Department regulations. | ||
| LICENSEE | ADDRESS | PENALTY |
| D & M Insurance Brokerage Inga, Maria E. (sublicensee) |
25-30 Broadway Long Island City, NY |
$1,000 fine |
| Issued insurance premium transmittal checks that were dishonored by the bank and subsequently replaced. Also commingled funds by paying operating expenses from the premium account. | ||
| LICENSEE | ADDRESS | PENALTY |
| Ferdinand, Obanel (broker) |
112-19 203rd Street St. Albans, NY |
$1,000 fine |
| Issued premium transmittal checks that were dishonored by the bank, but subsequently replaced. Ferdinand also commingled funds. | ||
| LICENSEE | ADDRESS | PENALTY |
| Grullon, Marisela (broker) |
P.O. Box 689 North Bergen, NJ |
$1,000 fine |
| Issued premium transmittal checks that were dishonored by the bank, but subsequently replaced. Grullon also commingled funds. | ||
| LICENSEE | ADDRESS | PENALTY |
| King, James E. (broker) |
3539 Decatur Avenue Bronx, NY |
License revoked |
| Permitted an unlicensed individual to distribute temporary auto insurance ID cards in his name. | ||
| LICENSEE | ADDRESS | PENALTY |
| Klein, John S. (public adjuster) |
74 Briar Lane Jericho, NY |
License revoked |
| Klein was convicted of mail fraud. | ||
| LICENSEE | ADDRESS | PENALTY |
| Latreille, Ernest (agent) |
Route 95 Bombay, NY |
$500 fine |
| Issued premium transmittal checks that were dishonored by the bank, but subsequently replaced. Latreille also commingled premiums with other funds. | ||
| LICENSEE | ADDRESS | PENALTY |
| Ledwin Enterprises, Inc. Ledwin E. Oviedo |
2153 Grand Concourse Bronx, NY |
$500 fine |
| Submitted an auto insurance application wherein the listed operator was not the applicant/registrant. Oviedo also failed to complete a "Driver Verification Form" as required. | ||
| LICENSEE | ADDRESS | PENALTY |
| Lefeber Agencies, Inc. (agent & broker) Edward V.
Lefeber, |
5885 Big Tree Road Lakeville, NY |
Licenses Revoked |
| Collected service fees and failed to obtain a signed, written memorandum from insureds, sold insurance on behalf of an unauthorized insurer without being licensed as an excess line broker, and failed to remit premium monies to the appropriate insurer or to properly account therefor. Further, they wrote false coverage letters, issued invalid Certificate of Insurance forms when coverage did not exist, and issued, directly or through an unlicensed secretary, temporary insurance cards without securing coverage. In addition, with another broker, Lefeber submitted a false premium finance contract to a premium finance company. | ||
| LICENSEE | ADDRESS | PENALTY |
| Marte, Oneida A. (broker) |
48-B East 183rd Street Bronx, NY |
$1,000 fine |
| Issued premium transmittal checks that were dishonored by the bank, but subsequently replaced. Marte also commingled by paying operational expense from his premium account. | ||
| LICENSEE | ADDRESS | PENALTY |
| Morgado, Blanca (broker) |
215 Union Avenue New Rochelle, NY |
$500 fine |
| Issued premium transmittal checks that were dishonored by the bank, but subsequently replaced. | ||
| LICENSEE | ADDRESS | PENALTY |
| Onix Brokerage & Travel Inc. (broker) Luis M. Pimental (sublicensee) |
101 East 165th Street Bronx, NY |
$1,000 fine |
| Submitted auto insurance applications in which the listed operators were different from the applicants/registrants and failed to complete Driver Verification Forms. | ||
| LICENSEE | ADDRESS | PENALTY |
| Pelliccio, John R., Jr. (agent) |
121 Anderson Avenue Scarsdale, NY |
$500 fine |
| Failed to respond in a timely manner to Department requests for information or documentation relating to certain insurance transactions. He has since complied. | ||
| LICENSEE | ADDRESS | PENALTY |
| Sarmiento, Alba Silverio (broker) |
660 Ft. Washington Avenue New York, NY |
$500 file |
| Commingled premiums with other funds. | ||
| LICENSEE | ADDRESS | PENALTY |
| Scarpulla, Frederic S. (agent) |
1390 Viking Circle Webster, NY |
$750 fine |
| Signed the name of a fellow agent to a letter to an insurer wherein he disclosed financial information concerning a client that was inaccurate and unauthorized. Scarpulla also signed the name of a client to a lost policy request letter without permission. | ||
| LICENSEE | ADDRESS | PENALTY |
| Schubert, Victoria K. (broker) |
27 Maplewood Avenue Honeoye Falls, NY |
License Revoked |
| Assisted in soliciting insurance placed with unauthorized insurers without being licensed as an excess line broker, and participated in or had knowledge of the collection of a brokerage fee without her employer, LeFeber Agencies, Inc. having obtained a signed written memorandum from the insured. She also signed invalid Certificate of Insurance forms when coverage did not exist, and with another broker signed and misrepresented facts on a premium finance application. Schubert also failed to respond to a Department letter of inquiry. | ||
| LICENSEE | ADDRESS | PENALTY |
| The Severson Agency, Inc. David E. Cowan (sublicensee) |
179 Main Street Altamont, NY |
$1,000 fine |
| Acted outside the scope of its license by accepting a premium deposit and attempting to place coverage through another agency. Provided a coverage letter when no coverage was in place. Was unable to place coverage and delayed informing the potential insured. | ||
| LICENSEE | ADDRESS | PENALTY |
| Signature Agency Inc. | 200 North Martingale Road Shaumburg, IL |
$25,200 fine |
| Though not licensed to sell insurance, Signature solicited and enrolled over 20,000 insureds in a home protection plan which paid insureds if their homes were burglarized. No licensed insurer underwrote the product. | ||
| LICENSEE | ADDRESS | PENALTY |
| Solages, Turgot (broker) t/b/a GET Insurance Brokerage |
1713 Flatbush Avenue Brooklyn, NY |
$1,500 fine |
| Issued insurance transmittal checks that were dishonored by the bank, but were since replaced. Solages also commingled funds by paying personal expenses from a premium account. | ||
| LICENSEE | ADDRESS | PENALTY |
| Solano, Freddy C. (agent) |
2145 Starling Avenue Bronx, NY |
$1,000 fine |
| Solano’s certification to submit applications to the New York Automobile Insurance Plan was revoked for cause. Further, he submitted an application for auto insurance wherein the listed operator was not the applicant/registrant and no Driver Verification Form was obtained. | ||
| LICENSEE | ADDRESS | PENALTY |
| Paul R. Sweeney Agency Inc. Paul J. Sweeney (sublicensee) |
8 Durr Avenue PO Box 135 Camden, NY |
$1,000 fine |
| An insured cancelled a policy and was advised that the premium funds, which had been deposited in the premium account, had been used for the sublicensee’s personal expenses. Insured was later made whole. A negative balance was maintained in the premium account for approximately six months. | ||
| LICENSEE | ADDRESS | PENALTY |
| Velin, Cira A. (broker) t/b/a RDC Insurance Brokerage |
232 N. Washington Street N. Tarrytown, NY |
$1,500 fine |
| Issued premium transmittal checks that were dishonored by the bank, but subsequently replaced. | ||
| LICENSEE | ADDRESS | PENALTY |
| Waheed Brokerage, Inc. Phyllis A. D’Souza (sublicensee) |
1817 Coney Island Avenue Brooklyn, NY |
$1,500 file |
| Waheed was decertified by the New York Automobile Insurance Plan for violations of Plan rules that were subsequently resolved. She also commingled funds, paying personal expenses from her premium account. | ||