New York State
Insurance Department 

DISCIPLINARY ACTIONS

New York, September 30,1998

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
Continental Casualty Company CNA Plaza
Chicago, IL		 $125,000 fine
The company violated the Insurance Law when it issued unapproved policy forms and certificate forms to unauthorized "groups" of insureds. In addition, Continental Casualty used rates that did not comply with Insurance Department Regulations.

  

LICENSEE ADDRESS PENALTY
State Farm Mutual Automobile Insurance Co

State Farm Fire and Casualty Company

 One State Farm Plaza
Bloomington, IL

112 E. Washington St.
Bloomington, IL

 $97,965 fine


$38,525 fine
Market conduct investigations revealed that the companies, members of the State Farm Group, violated the Insurance Law and Department regulations when, in connection with certain automobile insurance policies issued or renewed between March 1, 1995 and February 29, 1996, they failed to pay or deny claims within 30 days, failed to send out no-fault applications 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, failed to send follow-up Certificate of Repair forms to insureds in a timely manner, failed to send written explanations to insureds for delays in payment and failed to use auto inspection reports to document previous damage or prior condition.

In addition, State Farm Mutual failed to send follow-up no-fault applications and follow-up verification forms in a timely manner, and failed to provide insureds with a prescribed Notice of Repair letter or a Certificate of Repair form. State Farm Mutual also failed to report losses to the National Insurance Crime Bureau or the Property Insurance Loss Register in a timely manner.

State Farm Mutual will review certain no-fault payments made between January 1, 1997 and July 6, 1998 and remit any interest in excess of $5.00.

 

LICENSEE ADDRESS PENALTY
Maryland Casualty Company


Assurance Company of America

 3901 Keswick Rd.
Baltimore, MD

same as above

 $43,025 fine


$13,400 fine
Market conduct examinations revealed that the companies, members of the Zurich-American Insurance Companies, violated the Insurance Law and Department regulations when they did not adequately comply with the terms of a 1994 Department stipulation. In addition, Maryland Casualty, during the period March 1, 1996 to February 28, 1997 did not pay or deny claims in a timely manner and failed to properly calculate the interest due on overdue benefits. Maryland Casualty also did not adequately pay a claimant for lost wages and failed to use auto inspection reports to document previous damage or prior condition.

Maryland Casualty will review all no fault payments made between March 1, 1997 through July 14, 1998 and remit any interest in excess of $5.00.

  

LICENSEE ADDRESS PENALTY
National Benefit Life Insurance Company 333 W. 34th St.
New York, NY		 $20,000 fine
The company violated Department regulations when it improperly used the term "low cost" in an advertisement. In addition, the company failed to date stamp all correspondence relating to certain claims.

  

LICENSEE ADDRESS PENALTY
Assurance Company of America 3901 Keswick Rd
Baltimore, MD		 $8,000 fine
A market conduct investigation revealed that the company violated the Insurance Law when, in 1996, 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. Assurance has agreed to restrict specific 1998 nonrenewals to make up for the excessive 1996 nonrenewals.

  

LICENSEE ADDRESS PENALTY
First American Title Insurance Company of New York 333 Earle Ovington Blvd.
Uniondale, NY		 $5,300 fine
The company violated the Insurance Law when it entered into a Cost Allocation Agreement with two affiliated companies without notifying the Superintendent in writing.

  

LICENSEE ADDRESS PENALTY
Worcester Insurance Company 355 Maple St.
Harleysville, PA		 $3,250 fine
A market conduct investigation revealed that the company violated the Insurance Law when, in 1996, 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.

  

LICENSEE ADDRESS PENALTY
Pennsylvania General Insurance Company 436 Walnut St.
Philadelphia, PA		 $2,250 fine
A market conduct investigation revealed that the company violated the Insurance Law when, in 1996, 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. Pennsylvania General has agreed to restrict specific 1998 nonrenewals to make up for the excessive 1996 nonrenewals.

 

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
Alakozai, Mohamed S.
(agent & broker)		 3 Twilight Ct.
Melville, NY		 License revoked
Collected a premium payment from a client but failed to obtain the insurance coverage.

  

LICENSEE ADDRESS PENALTY
Americas Choice Insurance Brokerage, Inc.
(broker)

Hassan, Mostafa M.
(broker & sublicensee)

 1682 86th St.
Brooklyn, NY


same as above

 License revoked



License revoked
Placed automobile insurance coverage for a client by substituting as the insured the name of a stranger without that person’s knowledge.

  

LICENSEE ADDRESS PENALTY
Ceballos, Sonia
(broker)		 131 Wyckoff Ave.
Brooklyn, NY		 License revoked
Ceballos was decertified from the New York Automobile Insurance Plan for issuing premium checks that were dishonored by the bank and for submitting deficient applications.

  

LICENSEE ADDRESS PENALTY
Chase Brokerage, Inc.
(broker)

Nardone, Joseph E.
(broker & sublicensee)

 1510 86th St.
Brooklyn, NY

same as above

 $500 fine


Licenses revoked
Nardone, as sublicensee of Chase Brokerage, failed to properly supervise its insurance operations. He was away for extended periods of time and had no knowledge or involvement in the brokerage’s insurance activities while he was away. Chase Brokerage is prohibited from conducting new or renewal business until a replacement sublicensee is found.

  

LICENSEE ADDRESS PENALTY
Ezzat, Magdy M.
(agent & broker)		 1740 East 52nd St.
Brooklyn, NY		 $1,500 fine
Ezzat exacted service fees without obtaining the signed service fee agreements and allowed an unlicensed person to conduct insurance business. In addition, he used an unlicensed brokerage name.

  

LICENSEE ADDRESS PENALTY
Family Tree Brokerage, Inc.
(broker)

Boston Road Brokerage, Inc
(broker)

Rivera, John
(broker & sublicensee)

 2576 Boston Rd.
Bronx, NY

same as above


same as above

 $250 fine
Submitted an insurance application to the New York Automobile Insurance Plan without completing the mandated Driver Verification Form.

 

LICENSEE ADDRESS PENALTY
Gillespie, Bob
(agent)		 MD 56 West Ave.
Chester, NY		 License revoked
Issued premium checks that were dishonored by the bank.

  

LICENSEE ADDRESS PENALTY
J. Morel Brokerage, Inc.
(broker)

Morel, Jose M.
(broker & sublicensee)

 2236-4 Amsterdam Ave.
New York, NY

same as above

 License revoked


Licenses revoked
Decertified from the New York Automobile Insurance Plan for various violations of Plan rules including issuing dishonored checks and submitting deficient applications.

  

LICENSEE ADDRESS PENALTY
Jimenez, Pedro R.
(broker)		 108-25 Roosevelt Ave.
Corona, NY		 License revoked
Jimenez was decertified from the New York Automobile Insurance Plan for various violations of Plan rules including issuing automobile insurance identification cards without submitting the corresponding applications.

  

LICENSEE ADDRESS PENALTY
Las Tucker Brokerage, Inc.
(broker)

Tucker, Lascelles B.
(broker & sublicensee)

 117-23 196th St.
St. Albans, NY

Same as above		 $2,000 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced.

  

LICENSEE ADDRESS PENALTY
McAllister and Johnson, Inc.
(agent)


Edward-Holder Agency, Inc.
(broker)

John D. McAllister, Inc.
(broker)

McAllister, John D.
(broker & sublicensee)

 Brooklyn Navy Yard
Building No. 58
Brooklyn, NY

same as above


same as above


same as above

 License revoked



License revoked


License revoked


Licenses revoked
On his licensing application, McAllister denied having a license suspended or being fined by any state or governmental agency. In fact, McAllister was both fined and suspended by the New Jersey Insurance Department.

  

LICENSEE ADDRESS PENALTY
Newman, Mitchell L.
(agent)		 89 W. South Blvd.
Troy, MI		 License revoked
On his licensing application, Newman denied having a license suspended or being fined by any state or governmental agency. In fact, Newman was fined by the Louisiana Insurance Department and had his license revoked by the New Jersey Insurance Department.

  

LICENSEE ADDRESS PENALTY
Potomac Basin Group Assocs.
(agent)

Crockett, Brian E.
(sublicensee)

 4740 Corridor Pl.
Beltsville, MD		 License revoked
On a licensing renewal application, Crockett denied having a license suspended or being fined by any state or governmental agency. In fact, Crockett’s license was revoked by the Florida Insurance Department.

 

LICENSEE ADDRESS PENALTY
Saint-Preux, Jacquelin
(broker)		 359 Euclid Ave.
Brooklyn, NY		 License revoked
Saint-Preux was decertified from the New York Automobile Insurance Plan for various violations of Plan rules.

  

LICENSEE ADDRESS PENALTY
Somwaru, Michael
(agent & broker)		 106-03 Liberty Ave.
Ozone Park, NY		 Licenses revoked
Somwaru altered a Banking Department certificate to falsely show that he was licensed to sell mortgages.

  

LICENSEE ADDRESS PENALTY
Volcy, Witnez
(agent)		 3275 Steinway St.
Long Island City, NY		 License revoked
Issued premium checks that were dishonored by the bank, only some of which were subsequently replaced. In addition, Volcy commingled premiums with other funds and used an unlicensed business name.

  

LICENSEE ADDRESS PENALTY
Y.K. Omni Enterprises, Inc.
(broker)

Cheung, Yuk Kuen
(broker & sublicensee)

 17-23 E. Broadway
New York, NY

same as above

 License revoked


Licenses revoked
Issued premium checks that were dishonored by the bank. In addition, Y.K. Omni Enterprises and Cheung were decertified from 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
Alpiar & Papa Ins. Agency, Inc.
(agent & broker)

Alpiar, Richard P.
(agent, broker & sublicensee)

Papa-Alpiar, Ann
(agent, broker & sublicensee)

 20 Chatsworth Ave.
Larchmont, NY


85 Hillside Ave.
New Rochelle, NY

85 Hillside Ave.
New Rochelle, NY

 $500 fine
Failed to complete a Driver Verification Form as required by New York Automobile Insurance Plan rules.

  

LICENSEE ADDRESS PENALTY
Avery, J. Jason
(agent & broker) 		174 Old Route 9
Fishkill, NY		 $2,500 fine
Collected premiums and failed to forward them to the appropriate insurer, submitted 14 new applications for insurance without the insureds’ knowledge, and failed to report his termination as an agent by an insurer on his licensing application.

  

LICENSEE ADDRESS PENALTY
Barreto, Palbo J.
(agent)		 249 Woodlawn Rd.
West Hempstead, NY		 $500 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced.

  

LICENSEE ADDRESS PENALTY
Bernagene, Reginald
(broker)		 2014 Church Ave.
Brooklyn, NY		 $500 fine
Issued a premium check that was dishonored by the bank, but subsequently replaced. In addition, Bernagene commingled premiums with other funds.

  

LICENSEE ADDRESS PENALTY
Carll, Phyllis J.
(agent)		 106 Columbia Gardens
Cohoes, NY		 License revoked
Collected premiums and failed to forward them to the appropriate insurer.

  

LICENSEE ADDRESS PENALTY
Camp, Gary L.
(agent)		 5281 Burke La.
Fayetteville, NY		 License revoked
Camp pled guilty in court in connection with misappropriating premium funds.

  

LICENSEE ADDRESS PENALTY
Campos, Nancy
(broker)		 6 South Kensico Ave.
White Plains, NY		 $5,000 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced.

  

LICENSEE ADDRESS PENALTY
Crosstown Ins. Brokerage, Inc.
(broker)

Mangual, Angel A.
(broker & sublicensee)

 989A Flushing Ave.
Brooklyn, NY


same as above

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

  

LICENSEE ADDRESS PENALTY
Eagle Insurance Agency
(broker)

Binishi, Tomorr
(broker & sublicensee)

Manxhuka, Dukagjin
(broker & sublicensee)

 90 Church Ave.
Brooklyn, NY

465 East 7th St.
Brooklyn, NY

227 Ocean Parkway
Brooklyn, NY

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

  

LICENSEE ADDRESS PENALTY
Filipski, Jerrold M.
(agent)		 C-8 Village Shires Center
Holland, PA		 $2,500 fine
Sold policies to New York State residents on behalf of an insurer that was not authorized to do business in the State. Filipski falsely indicated that the applications were signed in a state other than New York when, in fact, they were not.

 

LICENSEE ADDRESS PENALTY
Focus Insurance Agency, Inc.
(agent)

Allen, Mark
(sublicensee)

 5962 La Place Ct.
Carlsbad, CA		 $19,375 fine
Shared commissions with another agent that was not properly licensed.

  

LICENSEE ADDRESS PENALTY
Four Wheels Agency, Ltd.
(broker)

Gorga, Karin E.
(broker & sublicensee)

 71-32A Main St.
Flushing, NY

138-26 76th Ave.
Flushing, NY

 $500 fine
Failed to complete Driver Verification Forms as mandated by New York Automobile Insurance Plan rules.

  

LICENSEE ADDRESS PENALTY
Garcia, Joseph P.
(agent)		 16 Gateshead Rd.
New Hartford, NY		 $750 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced.

  

LICENSEE ADDRESS PENALTY
Gomez, Hecsa
(broker)		 2545 Valentine Ave.
Bronx, NY		 $1,000 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced. In addition, Gomez commingled premiums with other funds.

  

LICENSEE ADDRESS PENALTY
Graham Travel, Inc.
(broker)

Faubla, Maria L.
(broker & sublicensee)

 132 Graham Ave.
Brooklyn, NY

same as above

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

  

LICENSEE ADDRESS PENALTY
Guerra, Luis O.
(agent)		 2694 Farsond Ct.
Yorktown Heights, NY		 $750 fine
Violated Department Regulation 60* when he placed a life insurance policy with John Hancock Mutual Life Insurance Company.

 

LICENSEE ADDRESS PENALTY
K.S. Billing & Associates, Inc.
(broker)

Billing, Kirpal S.
(agent, broker & sublicensee)

 118-12 Atlantic Ave.
Richmond Hill, NY


same as above

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

  

LICENSEE ADDRESS PENALTY
Lopez, Daniel T.
(agent & broker)
t/b/a Philam Brokerage		 82-66 170th St.
Jamaica, NY		 $500 fine
Issued premium checks that were dishonored by the bank, but subsequently replaced.

  

LICENSEE ADDRESS PENALTY
Newell, William T.
(agent)		 260 Daniel Dr.
Webster, NY		 $19,375 fine
Maintained a nonresident insurance agent license even though he had a residence and office in New York.

  

LICENSEE ADDRESS PENALTY
Nisonoff, Robert
(agent)		 81-10 Cherry St.
Jamaica Estates, NY		 $2,500 fine
Gave a client false information when selling a life insurance policy.

  

LICENSEE ADDRESS PENALTY
O’Connell, Frank B.
(agent)		 103 Benson Ave.
Sayville, NY		 $8,000 fine
Violated Department Regulation 60* when he placed life insurance policies with Equitable Variable Life Insurance Company.

 

LICENSEE ADDRESS PENALTY
Regan, Lynda L.
(agent)		 1179 N. McDowell Blvd.
Petaluma, CA		 $500 fine
Falsely indicated on her licensing application that she had never been an officer or director of a company that had gone bankrupt when, in fact, she had.

  

LICENSEE ADDRESS PENALTY
S.C.S. Agency Inc.
(agent & broker)

Charles, Anthony W.
(sublicensee)

Schmer, Arthur
(sublicensee)

Smith, Daniel I.
(sublicensee)

Smith, Gary M.
(sublicensee)

 11 Grace Ave.
Great Neck, NY		 $2,500 fine
Charged service fees without obtaining signed service fee agreements.

  

LICENSEE ADDRESS PENALTY
Simonds, Martin R.
(agent)		 37 Scarborough La.
Wappingers Falls, NY		 $1,000 fine
Collected premium payments and failed to procure the life insurance policy his clients requested. In addition, Simonds defaulted under a promissory note agreement to repay these clients.

  

LICENSEE ADDRESS PENALTY
Spallone, Vincent J.
(agent)		 504 Underwood Ave.
Elmira, NY		 $500 fine
Indicated on a license form that he was qualified to write accident and health insurance when, in fact, he was not.

 

LICENSEE ADDRESS PENALTY
Strange, John C.
(agent)		 2400 Louisiana Blvd.
Albuquerque, NM		 $750 fine
Violated Department Regulation 60* when he placed a life insurance policy with Metropolitan Life Insurance Company.

 

LICENSEE ADDRESS PENALTY
Taylor, Elizabeth G.
(agent & broker)		 63-06 138th St.
Flushing, NY		 $750 fine
Violated Department Regulation 60* when she placed a life insurance policy with The Prudential Insurance Company of America.

  

LICENSEE ADDRESS PENALTY
Thorp, Geoffrey J.
(agent)		 186 Townview Dr.
Wappingers Falls, NY		 License revoked
Collected premiums and failed to forward them to the appropriate insurer. The funds have subsequently been remitted.

 

* 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.