New York State
Insurance Department
DISCIPLINARY ACTIONS
New York, August 6, 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 |
| Commercial Union Insurance
Company Northern Assurance Company of America American Employers Insurance Company |
1 Beacon Street Boston, MA same as above
|
$128,122 fine
|
| The companies, part of Commercial Union Insurance Companies, violated the Insurance Law when, in connection with certain automobile insurance policy terminations submitted to the Department of Motor Vehicles between January 7, 1994 and September 19, 1997, they failed to fully comply with the reporting requirements of Article Six of the Vehicle and Traffic Law. The companies also failed to file notices of termination with the Department of Motor Vehicles within the required 30-day period for policies in effect for six months or less. | ||
| LICENSEE | ADDRESS | PENALTY |
| First Investors Life Insurance Company | 95 Wall St. New York, NY |
$50,000 fine |
| An examination covering the years 1993 through 1995 revealed that First Investors violated the Insurance Law when it exceeded the limitations on underwriting new annuity business without the approval of the Superintendent; and when, in connection with certain policies issued between April 1, 1990 and August 31, 1991, it did not equitably apportion dividend earnings among the policies entitled to share in these earnings. | ||
| LICENSEE | ADDRESS | PENALTY |
| IDS Life Insurance Company of New York | 20 Madison Ave. Extension Albany, NY |
$40,000 fine |
| An examination covering the years 1994 through 1996 revealed that IDS violated the Insurance Law and Department regulations by referring to its parent company, an unauthorized insurer, in two advertisements; distributed six disability income products that did not contain a required descriptive phrase; and distributed a brochure that mentioned the name of its ultimate parent company in a manner that could create the impression that an entity other than IDS had financial responsibility for the product. In addition, it failed to maintain disclosure statements and/or proof that applicants received the required notice regarding replacement of life insurance and annuity contracts. | ||
| LICENSEE | ADDRESS | PENALTY |
| Managed Health, Inc. | 25 Broadway New York, NY |
$25,000 fine |
| An Insurance Department examination revealed that during 1993, before Managed Health became licensed by the Department of Health, it violated the Insurance Law by enrolling 690 members of an organization into a comprehensive hospital and medical care plan at an unapproved premium rate. Substantial premium monies were never paid and became uncollectable. | ||
| LICENSEE | ADDRESS | PENALTY |
| First Citicorp Life Insurance Company | 666 5th Ave. New York, NY |
$22,000 fine |
| An examination covering the years 1993 through 1996 revealed that First Citicorp violated the Insurance Law and Department regulations by entering into two service agreements with its holding company before notifying the Department; using two policy forms that had not been filed for Department approval; and paying its agents based on a noncommission plan without having submitted the plan to the Superintendent for approval. In addition, the company failed to maintain with each claim file required communications, transactions, notes and work papers. | ||
| LICENSEE | ADDRESS | PENALTY |
| Combined Life Insurance Company of New York | 7 Washington Square Albany, NY |
$20,000 fine |
| The company violated Department regulations between 1992 and 1994 by including phrases in its sales manual that could not be substantiated; and by making reference to its parent company, an unauthorized insurer, in training manuals supplied to its agents. | ||
| LICENSEE | ADDRESS | PENALTY |
| First Providian Life and Health Insurance Company | 520 Columbia Drive Johnson City, NY |
$20,000 fine |
| An examination covering the years 1993 through 1996 revealed that First Providian violated the Insurance Law and Department regulations by entering into arrangements with affiliates to provide services on a regular basis without first notifying the Superintendent in writing. The company also created the impression that an affiliate had some responsibility for the financial obligations under a policy being advertised. | ||
| LICENSEE | ADDRESS | PENALTY |
| Life Insurance Company of Boston and New York | 21 East 40th St. New York, NY |
$12,750 fine |
| Life Insurance Company of Boston and New York violated the Insurance Law and Department regulations between 1993 and 1995 by using sales material that may have misled prospective purchasers; not maintaining a complete advertising file at its home office, exaggerating benefits beyond the actual terms of two of its policies, and using in its ads the phrase "lower cost" and similar terms that could not be substantiated by the Department. In addition, the company failed to reply within 30 days to written inquiries by the Superintendent about its filed annual statement; failed to maintain books and records at its main office in New York State; called attention in its ads to an unauthorized insurer, and used an unapproved policy form. The company also did not pay the required interest on death claims on group life policies with accidental death and dismemberment; and paid employees compensation higher than that received by any of its principal officers, without the payment having been authorized by a Board vote. | ||
| LICENSEE | ADDRESS | PENALTY |
| Eveready Insurance Company | 59 Maiden Lane New York, NY |
$4,300 fine |
| A market conduct investigation revealed that between July 1, 1996 and June 30, 1997, Eveready violated Department Regulation 64 in connection with certain auto insurance policies when it failed to provide a detailed written estimate specifying all appropriate deductions to the insured or his designated representative; failed to use the correct Red Book and NADA Valuation Manual figures in calculating the value of a stolen or totaled vehicle; and failed to use a quotation from a Department-approved database to value totaled vehicles. In addition, when a loss occurred within 180 days after a vehicle’s purchase, the company failed to limit the settlement to the purchase price plus the cost of substantiated improvements; and when an insured lost a current-year passenger vehicle, Eveready failed to pay him the reasonable purchase price of an identical new car, less any applicable deductible and the correct depreciation allowance. In an offer to a claimant that was based on the Comparative Negligence Law, Eveready failed to fully explain the basis for assigning blame; and the company failed to send a written notice when a claim was not settled within 60 days. | ||
FINES FOR LATE FINANCIAL STATEMENTS
The following health maintenance organization (HMO) has been fined for late submissions of its quarterly or annual financial statements.
| LICENSEE | ADDRESS | PENALTY |
| Vytra Healthcare of Long Island | 395 North Service Road, Melville, 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 |
| Barrios, Joseph (broker) |
130 Audubon Ave. New York, NY |
License revoked |
| Submitted to an auto insurer an application by a nonlicensed owner falsely listing another person as the driver. Also issued premium checks that were dishonored by the bank. | ||
| LICENSEE | ADDRESS | PENALTY |
| Fermin, Martin Y. (broker) |
127 Elm St. Yonkers, NY |
Licenses revoked |
| Issued premium checks that were dishonored by the bank, only some of which were replaced. | ||
| LICENSEE | ADDRESS | PENALTY |
| Frost, Michael W. (agent & broker) |
1628 N. Thompson Dr. Bayshore, NY |
Licenses revoked |
| Sold two life insurance policies to a client, falsely claiming that the cash value of his three existing policies would support the two new policies without his having to spend additional money. However, the insurer subsequently billed the client for more than $5,800 in additional premiums. In addition, Frost failed to respond to Department inquiries concerning the matter. | ||
| LICENSEE | ADDRESS | PENALTY |
| Gbidi, Jacob (sublicensee) Jacob Gbidi Banks Agency Paragon Agency, Ltd. Carlyle Brokerage Ltd. |
655 New York Ave. Brooklyn, NY 305 Livingston St 305 Livingston St. 305 Livingston St. |
License revoked
|
| Collected funds to purchase excess line insurance on behalf of a client but failed to send the money to the appropriate insurer, and did not refund the money to the client for more than two years. In addition, they collected funds from another client but failed to either obtain insurance or return the premium. | ||
| LICENSEE | ADDRESS | PENALTY |
| Gross, Kenneth (independent adjuster) |
1105 Schrock Rd. Columbus, OH |
License revoked |
| Hid the fact that he had been arrested for felony misuse of credit cards when he applied to the Idaho Insurance Department for an independent adjuster’s license. The Idaho Department subsequently denied Gross’s application and reported the incident to the New York State Insurance Department. | ||
| LICENSEE | ADDRESS | PENALTY |
| Guillermo, Santa V. (broker) |
100 W. 106th St. New York, NY |
License revoked |
| Submitted to an insurer two applications for automobile insurance listing nonowner operators without providing the verification documents required by the New York Automobile Insurance Plan. | ||
| LICENSEE | ADDRESS | PENALTY |
| Kennedy, Jeffrey (broker) |
1300 Iroquois Drive Naperville, IL |
License revoked |
| When applying for a renewal of his New York license, Kennedy answered "no" to the question of whether he had, since his last application, been charged with irregularities by any government agency. In fact, he had been fined and put on probation by the Florida Department of Insurance. | ||
| LICENSEE | ADDRESS | PENALTY |
| Klenert, Joel (broker) |
122 E. 42nd St. New York, NY |
License revoked |
| Surrendered for revocation his New Jersey License for failure to make restitution or otherwise account for insurance deposits he never remitted to an insurer. | ||
| LICENSEE | ADDRESS | PENALTY |
| Manon, Fransia (broker) |
610 Academy St. New York, NY |
License revoked |
| Submitted automobile insurance applications in which the named drivers denied knowing the applicants. Manon did not respond to Department inquiries. | ||
| LICENSEE | ADDRESS | PENALTY |
| Morales, Heriberto (broker) |
56 Poplar St. Brentwood, NY |
License revoked |
| Took a deposit from a client for commercial liability insurance, but failed to obtain this insurance and did not return the premium until the eve of the Department’s hearing. He also continued to use the name "Triple M. Associates" despite the expiration of the license under that name. | ||
| LICENSEE | ADDRESS | PENALTY |
| Olavarria, Pete H. (broker) t/b/a Span-Am Insurance Service Agency |
280 W. Main St. Patchogue, NY |
Licenses revoked |
| Accepted a cash deposit for comprehensive auto insurance from a client. Rather than issue a valid temporary automobile ID card, he gave the client a photocopy of another client’s card, but in the new client’s name. He never ordered insurance for the new client, but kept the cash in his office until he was forced to return it. | ||
| LICENSEE | ADDRESS | PENALTY |
| Paterno, Victor E. (agent) |
1972 Flatbush Ave. Brooklyn, NY |
License revoked |
| Was decertified for six months by the New York Automobile Insurance Plan for numerous violations of Plan rules. In addition, he permitted a nonlicensed person to conduct insurance business in his office without proper supervision; conducted business under nonauthorized names; and commingled premiums with personal funds. He also failed to transmit insurance premiums to the NYAIP or the appropriate insurer or to refund the money; and submitted a fraudulent coverage letter to the Department of Motor Vehicles. | ||
| LICENSEE | ADDRESS | PENALTY |
| Pierre, Francis (broker) |
115-115 220th St. Jamaica, NY |
License revoked |
| Failed to respond to four Department requests for additional information concerning alleged violations of a New York Automobile Insurance Plan rule concerning verification of a nonowner driver. | ||
| LICENSEE | ADDRESS | PENALTY |
| Laufer, Martin L. (broker, sublicensee) Richmar Brokerage |
One DuPont St. Plainview, NY same as above |
Licenses revoked |
| Issued premium checks that were dishonored by the bank, only some of which were replaced. Also failed to remit insurance monies received from clients; failed to remit a return premium payment; and overfinanced premium monies. | ||
| LICENSEE | ADDRESS | PENALTY |
| Rivera, Bernardo (broker) |
1195-97 E. Tremont Ave. Bronx, NY |
License revoked |
| The New York Automobile Insurance Plan reported suspected fraudulent activity by Rivera, such as fraudulent operator information, fraudulent garage location, and fraudulent driver education certificate. Rivera did not respond to Department inquiries. | ||
| LICENSEE | ADDRESS | PENALTY |
| Schachtman, David (public adjuster) t/b/a Alpha USA |
273 Auborn Ave. Shirley, NY |
License revoked |
| Retained a $200 fee to which he was not entitled. Schachtman did not respond to Department inquiries. | ||
| LICENSEE | ADDRESS | PENALTY |
| Seenarine, Ivan B. (broker) |
4351 White Plains Road Bronx, NY |
License revoked |
| Wrote premium checks that were dishonored by the bank, only some of which were replaced. | ||
| LICENSEE | ADDRESS | PENALTY |
| Sperlin, Chanina (broker) |
1873 86th St. Brooklyn, NY |
License revoked |
| Wrote premium checks that were dishonored by the bank. She also was decertified by the New York Automobile Insurance Plan for various violations of Plan rules; remitted to the insurers only part of the money she collected from two clients; and used a company name that was not licensed or registered with the Department. | ||
| LICENSEE | ADDRESS | PENALTY |
| Sorrentino, Bernard J. (agent) |
21 Metcalf Dr. Auburn, NY |
License revoked |
| Was convicted of making false statements in a bankruptcy petition. | ||
| LICENSEE | ADDRESS | PENALTY |
| Tanner, Amalia (sublicensee and agent) Amy Tanner Agency |
24 VanEtten Blvd. New Rochelle, NY 192 North Ave. |
Licenses revoked |
| Was decertified by New York Automobile Plan for various violations of Plan rules. Also did not remit in a timely manner to the insurer a deposit for a client’s comprehensive auto insurance; and financed comprehensive auto insurance for another client without her permission. | ||
| LICENSEE | ADDRESS | PENALTY |
| Tolentino, Domingo A. (broker) |
One Sickles St. New York, NY |
License revoked |
| Submitted 21 applications to New York Automobile Insurance Plan that contained improper driver information and/or other violations of a Plan rule. | ||
| LICENSEE | ADDRESS | PENALTY |
| Umana, Lilian A. (broker) |
200 Branch Ave. Freeport, NY |
License revoked |
| Remitted only part of a client’s premiums to the insurer. Umana also was decertified by the New York Automobile Insurance Plan for various violations of Plan rules. | ||
| LICENSEE | ADDRESS | PENALTY |
| Vera, Maria E. (broker) |
480 59th St. Brooklyn, NY |
License revoked |
| Issued premium checks that were dishonored by the bank, only some of which were replaced. Vera also paid for office expenses from her insurance premium account. | ||
STIPULATIONS
Disciplinary actions as a result of stipulations have been agreed to by the licensees.
| LICENSEE | ADDRESS | PENALTY | |
| Bezuneh, Zemede (agent) |
8 Mitchell St. Rochester, NY |
$500 fine | |
| Issued premium checks that were dishonored by the bank, but subsequently replaced. He also failed to keep a separately designated premium account. | |||
| LICENSEE | ADDRESS | PENALTY |
| Biszick, John H. (agent) |
90 Kenwood Ave. Glenmont, NY |
License revoked |
| Failed to disclose to the Department and his last employer, an insurer, that felony charges against him were pending for misappropriating monies from a previous employer. He later pled guilty. | ||
| LICENSEE | ADDRESS | PENALTY |
| Budhan, Ian A. (broker) t/b/a Andrew’s Brokerage Service |
130-14 Liberty Ave. Richmond Hill, NY |
$1,500 fine |
| Issued at least 18 premium transmittal checks that were dishonored by the bank, but subsequently replaced. He also commingled personal and business funds. | ||
| LICENSEE | ADDRESS | PENALTY |
| Casey, Dorren M. (agent) |
Rockledge Dr. Brewster, NY |
License revoked |
| Sold a life insurance policy using loans from another policy that exceeded 50 percent of the cash value of the earlier policy. In addition, the file did not contain the required replacement declaration, thereby violating Department Regulation No. 60.* | ||
| LICENSEE | ADDRESS | PENALTY |
| Centurion Insurance Agency Inc. (broker) Davidson, Davis S. |
3120 Church Ave. Brooklyn, NY same as above |
$500 fine |
| Collected a $200 service fee from a client without a signed, written agreement. | ||
| LICENSEE | ADDRESS | PENALTY |
| Cuevas, Rico G. (broker) |
1595 Front St. East Meadow, NY |
$750 fine |
| Conducted insurance business without being licensed by the Department; he has since renewed his license. During the period he was unlicensed, he signed insurance documents without the insureds’ consent. | ||
| LICENSEE | ADDRESS | PENALTY |
| DCAP Agency, Inc. (broker) Weinzimer, Abraham W. |
2545 Hempstead Turnpike Hempstead, NY |
$500 fine |
| Employed Rico Cuevas to do insurance business after his license had expired (see previous item). | ||
| LICENSEE | ADDRESS | PENALTY |
| DeJesus, Ramon R. (broker) |
314 Mott Ave. Inwood, NY |
$2,500 fine |
| Was decertified by the New York Automobile Insurance Plan for various violations of Plan rules. | ||
| LICENSEE | ADDRESS | PENALTY |
| De La Cruz, Augusto C. (broker) t/b/a Vision Brokerage |
182 Sherman Ave. New York, NY |
$1,000 fine |
| Issued insurance premium checks that were dishonored by the bank, but subsequently replaced. Bank account often had negative balances. | ||
| LICENSEE | ADDRESS | PENALTY |
| Dils, William R., Jr. (agent) |
1201 Johnson Rd. Churchville, NY |
$890 fine |
| Sold an annuity contract to a client that was funded by taking a loan against a life insurance policy. Falsely answered "no" to the replacement question on the annuity application, in violation of Regulation No. 60.* | ||
| LICENSEE | ADDRESS | PENALTY |
| Erenstoft, Mark J. (broker) |
237 Main St. Buffalo, NY |
$750 fine |
| Altered the date on an agent/broker-of-record letter from an insured to make it seem that it gave authority to the broker to bind coverage for various policies. In fact, the insured had changed brokers. | ||
| LICENSEE | ADDRESS | PENALTY |
| Espinal, Carmen A. (broker) |
40-19 97th St. Corona, NY |
$1,000 fine |
| Submitted two applications where the listed drivers denied knowing the applicants and failed to complete Driver Verification Forms. | ||
| LICENSEE | ADDRESS | PENALTY |
| Foster Niagara Insurance Agency, Inc. (broker) Carl A. Albano |
233 Niagara St. Buffalo, NY
|
License revoked |
| Allowed a person whose license had been revoked by the Department to use his license. Also, an audit indicates that over $67,000 of premium payments remain unaccounted for. | ||
| LICENSEE | ADDRESS | PENALTY |
| Han, Kinam (agent and broker) |
20 Silver St. N. Babylon, NY |
Licenses revoked |
| Submitted automobile applications that contained fraudulent driver information. He had also been decertified by the New York Automobile Insurance Plan for various violations of Plan rules. In addition, Han hired a woman whose license had been revoked to conduct insurance business. | ||
| LICENSEE | ADDRESS | PENALTY |
| Herrera, Eduardo (broker) |
108-69 50th Ave. Corona, NY |
$1,500 fine |
| Had New York Automobile Insurance Plan certification suspended for 30 days for writing checks that were dishonored by the bank, one of which was replaced; having 99 deficient applications; and 16 Producer Performance standard violations. An audit also showed that operating expenses were paid from the premium account. | ||
| LICENSEE | ADDRESS | PENALTY |
| Himmler, Kenneth (agent) |
4910 14th St. West Manatee, FL |
$1,250 fine |
| Sold five annuity contracts from an insurer not licensed in New York State to New York State residents. The contracts were executed in New York State. | ||
| LICENSEE | ADDRESS | PENALTY |
| Loiseau, Gerard (agent) |
188 St. Pauls Road N. Hempstead, NY |
License revoked |
| Pled guilty to grand larceny, 4th degree. Said plea was predicated on a scheme whereby Loiseau deducted a commission from death benefits payable to the listed beneficiaries. Also deposited two insurance checks into his personal account. | ||
| LICENSEE | ADDRESS | PENALTY |
| Massato, Louis L. (agent) |
2281 West St. Brooklyn, NY |
$500 fine |
| Failed to respond to a Departmental inquiry until after a Citation was issued. | ||
| LICENSEE | ADDRESS | PENALTY |
| McLaughlin, Jane Robinson (agent) |
1310 Upper Glencoe Rd. Sparks, MD |
$1,000 fine |
| Was paid more than $14,000 in commissions that she was not authorized to accept. | ||
| LICENSEE | ADDRESS | PENALTY |
| McManus-Peard-Gesl, Inc. (agent and broker) Gesl, Ronald |
237 Main St. Buffalo, NY |
$1,000 fine |
| An employee altered the date of an agent/broker-of-record letter to make it appear that an insured gave authority to the broker to bind coverage for a crime policy. The company failed to hold the premium collected for this policy in a fiduciary account, instead transferring it to a nonfiduciary investment account, and failed to return the premium for the canceled policy until six months after the policy cancellation date. | ||
| LICENSEE | ADDRESS | PENALTY |
| Mondesi, Hector C. (broker) |
90 Ellwood St. New York, NY |
$1,500 fine |
| A New York Automobile Insurance Plan temporary ID card issued to him was used by another broker, in violation of Plan rules. | ||
| LICENSEE | ADDRESS | PENALTY |
| Pierre-Lys, Romel (agent and broker) |
82-12 151st Ave. Howard Beach, NY |
$500 fine |
| Issued premium checks that were dishonored by the bank, but later replaced. | ||
| LICENSEE | ADDRESS | PENALTY |
| Pozo, Gonzalo E. (broker) |
98-15 Roosevelt Ave. Corona, NY |
$1,000 fine |
| Issued premium checks that were dishonored by the bank, but later replaced. Was decertified for six months by the New York Automobile Insurance Plan for various variations of Plan rules. | ||
| LICENSEE | ADDRESS | PENALTY |
| Prockup, Michael J., Jr. (agent) |
4197 Altair Course Liverpool, NY |
License revoked |
| Intentionally delayed a client’s cancellation request on a life insurance policy and forged the signatures of insureds on at least seven insurance contract-related documents. | ||
| LICENSEE | ADDRESS | PENALTY |
| Rivera, Isa J. (broker) |
77 Avenue C New York, NY |
$1,500 fine |
| Issued premium checks that were dishonored by the bank, but subsequently replaced. She also commingled by paying operational expenses from her premium account. | ||
| LICENSEE | ADDRESS | PENALTY |
| Rosa, Susan D. (agent and broker) |
2670 Dewey Ave. Rochester, NY |
$500 fine |
| New York Automobile Insurance Plan certification was revoked after she transmitted messages effectuating immediate coverage without submitting a follow-up application and issued ID cards without submitting corresponding applications. | ||
| LICENSEE | ADDRESS | PENALTY |
| Rubin, Howard (agent) |
1660 Old Walt Whitman Rd. Melville, NY |
License revoked |
| Made application for a policy that was partially funded by a loan made against another policy from the same insurance company. The loan exceeded half the cash value of the first policy, which was not disclosed to the insureds, violating Regulation No. 60.* | ||
| LICENSEE | ADDRESS | PENALTY |
| Seda, Wilson (agent) |
3185 Crescent St. Astoria, NY |
License revoked |
| Responded incorrectly or not at all to inquiries and did not appear at hearings in connection with a Department investigation. He had been fined $1,000 on an earlier occasion. | ||
| LICENSEE | ADDRESS | PENALTY |
| Sinel, George M. (agent) |
420 E. 23rd St. New York, NY |
$750 fine |
| Converted cash surrender value of a policy to purchase another policy from the same insurance company, without marking the second policy as a replacement, in violation of Regulation No. 60.* | ||
| LICENSEE | ADDRESS | PENALTY |
| Stein, Zachary D. (agent) Nadel, Edwin Knox, James W. |
19 Old Colony Dr. Larchmont, NY 10 Stewart Pl. 6 Vauxhall Ct. |
$750 fine |
| Advertised themselves as Nadel, Stein & Knox Agency, a name not declared or licensed with the Department. All are licensed individually. | ||
| LICENSEE | ADDRESS | PENALTY |
| Tuholski, James H. (broker) |
5700 Main St. Williamsville, NY |
$360 fine |
| Worked as an insurance broker after his license had expired. License has now been renewed. | ||
| LICENSEE | ADDRESS | PENALTY |
| Van Grouw, Edward Martin (agent) |
1345 Ave. of the Americas New York, NY |
$500 fine |
| Failed to complete requirements for New York State resident licensing until the Department issued a Citation demanding revocation of his nonresident license. He has now completed requirements. | ||
| LICENSEE | ADDRESS | PENALTY |
| Willie’s Agency Corp. (broker) Milton, Barbara J. |
118 E. Suffolk Central Islip, NY same as above |
$500 fine |
| Issued checks that were dishonored by the bank, but later replaced. | ||
* Regulation 60 requires agents to provide prospective life insurance purchasers with pertinent facts when the purchase will cause the buyer to surrender, lapse, or in any way change the status of an existing life insurance policy. The agent must obtain a signed statement from the insured if the purchase will replace an existing policy. The agent must provide the purchaser with a disclosure statement and a notice regarding replacement of life insurance.