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
(sublicensee)

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,
(sublicensee)
t/b/a Rush Insurance Center

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.