New York State
Insurance Department


ISSUED: 9/29/99

FOR IMMEDIATE RELEASE

 
NEW YORK STATE INSURANCE DEPARTMENT TAKES DISCIPLINARY ACTIONS AGAINST AGENTS, BROKERS & ADJUSTERS

        The New York State Insurance Department has taken disciplinary action against the following licensees. Those categorized as stipulations have been agreed to by the licensee. Department hearings are subject to judicial review and possible stay of enforcement.

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

 

LICENSEE

ADDRESS

PENALTY

Amerisure Insurance Company

2677 Halsted Road
Farmington Hills, MI

$33,750 fine

During 1997 and 1998 calendar years, the company violated insurance Law by exceeding the maximum number of private passenger automobile non-renewals permitted for those calendar years.

 

LICENSEE

ADDRESS

PENALTY

Clarendon National Insurance Company

1177 Avenue of the Americas
New York, NY

$387,150 fine

A market conduct investigation of the above company’s public automobile (livery) business conducted by the Department revealed various violations of the Insurance Law and/or Department Regulations.

 

LICENSEE

ADDRESS

PENALTY

Legion Insurance Company

1 Logan Square
Philadelphia, PA

$4,000 fine

A market conduct claims investigation of automobile insurance business conducted by the Department revealed violations of the Insurance law and/or Department regulations.

 

LICENSEE

ADDRESS

PENALTY

MONY Life Insurance Company

1740 Broadway
New York, NY 10019

$150,000 fine

Company used life insurance policies as funding vehicles for the Moser Farm Distributor Financial Security Plan or Producers Financial Security Plan. Company will offer payment options to participants that return to each participant his or her contribution plus interest.

 

LICENSEE

ADDRESS

PENALTY

Monitor Life Ins. Co. of NY

70 Genesee Street
Utica, NY

$10,000 fine

Failed to provide upon request adequate documentation to support statements made in several of its advertisements concerning the costs of products advertised. Violated Regulation 34-A when it made references in advertisements to its parent company in a manner which created the impression that its parent company has responsibility for the financial obligations under a policy issued by the Company and also failed to maintain its advertising files in a manner consistent within the requirements set forth in the regulation.

 

LICENSEE

ADDRESS

PENALTY

Tri-State Consumers Ins. Co.

2 Robbins Lane
Jericho, NY

$38,100 fine

Company violated Regulation 68 which requires that payment or denial of a claim must be made within 30 days of receipt of relevant information and/or proof of claim.

 

LICENSEE

ADDRESS

PENALTY

Valley Forge Insurance Company

C.N.A. Plaza
Chicago, IL

$9,750 fine

A market conduct investigation revealed that in 1997 the Company violated the Insurance Law by exceeding the maximum number of private passengers automobile non-renewals permitted for that calendar year.

 


STIPULATIONS

BUFFALO REGION

LICENSEE

ADDRESS

PENALTY

Krieger, Jennifer L.
(agent)

6677 Power Road
Orchard Park, NY

$750.00 fine

In 1993, Ms. Krieger violated Regulation 60* when she failed to obtain a complete list of all the applicant’s existing life insurance.

 

LICENSEE

ADDRESS

PENALTY

Setter, James M.
(agent)

571 Seneca Creek Road
W. Seneca, NY

$500.00 fine

During 1995, Mr. Setter received three premium policy payments totaling $132.40 from a client for Prudential life insurance policy and failed to remit premium payments to the insurer, resulting in lapsed insurance coverage. Mr. Setter subsequently remitted the payments to the insurer.

 

LICENSEE

ADDRESS

PENALTY

Post, Lowell, N.
(agent)

3767 Hardscrabble Road
Randolph, NY

Licensed Revoked

In July of 1978, Mr. Post violated Regulation 60* when he placed a life policy with Prudential Insurance Company on behalf of an insured. He also submitted a signed statement to the insurer on which he incorrectly indicated that the transaction did not involve replacements; failed to present to the insured a complete disclosure statement and a notice of replacement of life insurance. He also failed to submit a complete disclosure statement.

 


STIPULATIONS

NASSAU COUNTY REGION

LICENSEE

ADDRESS

PENALTY

Ross, Solomon B.
(agent & broker)

76 South Central Avenue
Valley Stream, NY

$2,500 fine

Mr. Ross pled guilty to mail fraud in connection with the submission of an insurance claim alleging water damage suffered at his own home. He was sentenced to five years probation without incarceration or a fine. Respondent was released early on January 1, 1999 from probationary supervision.

 

LICENSEE

ADDRESS

PENALTY

Herb Albernas Agency, Inc

Herb J. Albernas
(sublicensee)

225 E. Beverly Pkwy
Valley Stream, NY

$500 file

In and between approximately August 1996 and January 1998, Mr. Albernas sent letters to insureds informing them that, absent a response from the insured, endorsements for additional coverage would be added to a policy on renewal, resulting in an increased premium.

 


STIPULATIONS

NEW YORK CITY REGION

LICENSEE

ADDRESS

PENALTY

Ronald A. Bartlett
(Sublicensee)

Ronald A. Bartlett & Associates, Ltd.

82-45 135th Street
Kew Gardens, NY

$2,000 fine

Solicited and/or sold four polices for Beneficial Standard Life Insurance Company of NY to residents in New York. Beneficial Standard Life Insurance Company of New York is not licensed in New York.

 

LICENSEE

ADDRESS

PENALTY

Carlin, Montgomery R.
(bail bond agent)

c/o Montgomery R. Carlin
Bail Bond Agency

910 Fifth Avenue
New York, NY

License Revoked

Mr. Carlin acknowledges that during the years 1997 and 1998 the Department received numerous complaints concerning the charging of service fees and renewal premiums and the return of collateral. Mr. Carlin’s failure to maintain records prevented him from responding to those complaints in a manner and time frame satisfactory to the Department.

 

LICENSEE

ADDRESS

PENALTY

Espinal, Carmen A.
(broker)

40-19 97th Street
Corona, NY

$500 fine

Ms. Espinal failed to cooperate with a Department investigation into her insurance practices and had not responded to Department letters dated November 7 and December 8, 1998. She has now provided the required documentation and has complied with the Department’s request.

 

LICENSEE

ADDRESS

PENALTY

Gonzalez, Ogilda C.
(broker)

361 Clinton Street
Hempstead, NY

$500 file

Ms. Gonzalez was placed on the Certified Check Requirement List by the New York Automobile Insurance Plan for issuing three dishonored checks totaling $869.00. All checks were subsequently replaced.

 

LICENSEE

ADDRESS

PENALTY

Israel, Amrom
(broker)

54th Street
Brooklyn, NY

License Revoked

In February 1999, following a hearing, the Respondent’s certification to produce for the New York Automobile Plan was revoked for two years for various Plan violations.

 

LICENSEE

ADDRESS

PENALTY

Naser, Mohamed
(broker)

c/o Naser Agency

102 Foster Agency
Brooklyn, NY

$500 fine

Mr. Naser submitted an application to the New York Automobile Plan wherein the listed operator was not the owner/applicant. He also failed to complete a "Driver Verification Form" as required by Plan rules.

 

LICENSEE

ADDRESS

PENALTY

Oviedo, Ledwin E.
c/o Ledwin Enterprises, Inc.

(broker)

3462 Irwin Avenue
Bronx, NY

$1,500 fine

On May 20, 1998, Mr. Oviedo submitted an application to the New York Automobile Insurance Plan wherein the listed operator denied knowing the named insured and failed to complete a "Driver Verification Form" as required by the Plan. Further, an audit of the licensee’s books and records for the period of March 1, 1998 to August 31, 1998 disclosed that 11 insurance premium transmittal checks, totaling $2,390.80 were issued when there were insufficient funds in the premium account to cover the payments. All checks were subsequently replaced or paid by the bank using the Respondent’s overdraft privilege.

 

LICENSEE

ADDRESS

PENALTY

Pena, Irineo
(broker)

266 Jamaica Ave.
Brooklyn, NY

$2,000 fine

An audit of the licensee’s books and records for the period October, 1997 to December, 1998 disclosed that 271 insurance premium transmittal checks, totaling $73,432.50, were issued when there were insufficient funds in his premium account to cover the payments. All checks were subsequently replaced or paid by the bank using the Respondent’s overdraft privilege.

 

LICENSEE

ADDRESS

PENALTY

Rodriquez, Nubi
(agent)

831 Kinsella Street
Bronx, NY

License Revoked

Between December 30, 1997 and February 17, 1998, Ms. Rodriquez collected $3,840.00 in premiums from her client, but failed to remit $1,968.00 of said premium to the insurer or otherwise properly account for the funds.

 

LICENSEE

ADDRESS

PENALTY

Sultan, Shoaib
(broker)

30-87 42nd Street
Astoria, NY

$1,000 fine

In and between August, 1997 and September, 1998, Mr. Sultan issued 10 insurance premium transmittal checks that were dishonored by the bank and subsequently replaced. For the same period, he commingled premium funds by paying operational expenses from his premium account.

 

LICENSEE

ADDRESS

PENALTY

Zenith American Securities
Corporation

Hector J. Varona
Sublicensee

5041 Broadway,
New York, NY

5037-41 Broadway
New York, NY

Licenses Revoked

Mr. Varona commingled premiums funds and failed to properly maintain their premium trust account.

 


STIPULATIONS

OUT OF STATE

LICENSEE

ADDRESS

PENALTY

Giaquinto, Vincent
 
C/o American Exp Financial Advisor
(agent)

3530 Post Road
Southport, CT

License Revoked

Mr. Giaquinto pled guilty in the United States District Court, District of Connecticut, to "Embezzlement from an Employee Benefit Plan" and "Willfully Subscribing a False Tax Return". The Respondent was sentenced to 30 months imprisonment, restitution of $2,251,740.85 and three years parole supervision subsequent to release.

 


FINES FOR LATE FINANCIAL STATEMENTS

The following health maintenance organizations (HMOs) and other insurers have been fined for late submissions of the quarterly and annual statements:

LICENSEE

ADDRESS

PENALTY

MDNY Healthcare, Inc.

One Huntington Quadrangle
Melville, NY

$12,750 fine

 

LICENSEE

ADDRESS

PENALTY

Managed Health Inc.

EAB Plaza West Tower
Uniondale, NY

$8,750 fine

 

LICENSEE

ADDRESS

PENALTY

Healthsource HMO of NY

PO Box 1498
Syracuse, NY

$1,000 fine

 


HEARINGS

ROCHESTER REGION

LICENSEE

ADDRESS

PENALTY

Bartholomay, Maurice C.
(agent)

42 Constitution circle
Rochester, NY

License Revoked

Mr. Bartholomay submitted his renewal statement agent’s application wherein he wrongly gave negative answers to question 8.

 


NASSAU COUNTY REGION

 

 

LICENSEE

ADDRESS

PENALTY

Gonzalez, Otto, H.
(agent)

96 Friendly Court
Babylon, NY

License Revoked

Mr. Gonzalez violations included a violation of New York Automobile Insurance Plan "NYAIP" rules by having issued dishonored premium checks, most of which were not replaced, issued ID cards without submitting corresponding applications, submitted deficient applications, and violated producer performance standards. Mr. Gonzalez appeared at the NYAIP hearing on April 22, 1998, and he was decertified on May 19, 1998. Said violations remain unresolved.

 

LICENSEE

ADDRESS

PENALTY

Thompson, Noel
(agent)

186 Jerusalem Avenue
Garden City, NY

License Revoked

Between September 8, 1997 and March 2, 1998, at a time he was licensed as an insurance broker, Mr. Thompson submitted five checks in the name of Genesis Insurance totaling $1,827 to the New York Automobile Plan (NYAIP) in conjunction with applications submitted to the Plan that were dishonored by the bank. As a result, the NYAIP required him to submit certified checks with future applications. On August 12, 1998 he submitted a check in the name of Genesis Insurance in the amount of $427 to Davis Agency which was dishonored by the bank. By letters of March 30, April 27, May 4 and August 31, 1998, Mr. Thompson was directed to furnish an explanation of the dishonored checks. The letters, sent to the addresses on file with the Department were returned by the United States Postal Services as being unforwardable. Mr. Thompson did not also notify the Department that he intended to utilize a trade name.

 


SUFFOLK COUNTY REGION

 

LICENSEE

ADDRESS

PENALTY

Cangiano, Vincent
(agent)

11A Riverside Avenue
Mastic Beach, NY

License Revoked

Mr. Cangiano filed a voluntary petition for personal bankruptcy in March, 1998 which was discharged by order of the U.S. Bankruptcy Court on July, 1, 1998. On Schedule E of said petition, he listed as unsecured debts obligations to the New York State Department of Labor, Unemployment Insurance Division and to the New York State Department of Taxaition and Finance. Mr. Cangiano indicated his bankruptcy filing on his next application for an insurance license. The Department’s Consumer Services Bureau commenced an investigation to learn the nature of the taxes owed and to obtain documentation that same have been paid or that there is an agreement to pay same. Following an exchange of letters, the last being Mr. Cangiano’s letter of December 21, 1998, the Department wrote a letter to him on December 31, 1998 seeking more particular information and documentation relating to said taxes due. Mr. Cangiano failed to reply at all to this Department directive. The Department advised him that he had not replied and that he must make a meaningful reply or else his license might be subject to revocation and his pending application rejected following an administrative hearing. Respondent failed to issue a meaningful reply to his letter or to submit any documentation as requested, thereby hampering and impeding the Department’s investigation.

 

LICENSEE

ADDRESS

PENALTY

Insurenet Insurance
Brokerage, LTD

Thomas Nolan
sublicensee

289 E. Main Street
Smithtown, NY

46 Upper Sheep Pasture Road
East Setauket, NY

License Revoked
 

License Revoked

Commingled funds and failed to respond to Department inquiry.

 


WESTCHESTER COUNTY REGION

 

LICENSEE

ADDRESS

PENALTY

Berardi, Joseph
(agent)

26 Monroe Street
Franklin Square, NY

License revoked

Mr. Berardi was an agent for Combined Life Insurance Company of New York. Between December 23, 1997 and March 18, 1998, he collected premiums from insureds aggregating $703 and converted the funds to his own use. On or about May 1, 1998, Mr. Berardi admitted to representatives of Combined that he had converted the premiums to his own use. Combined credited the insureds with the amounts paid to him and terminated Mr. Berardi as an agent. Combined notified the Department of Mr. Berardi’s termination as agent. By Department correspondences, he was directed to furnish an explanation of the circumstances for which he was terminated as an insurance agent by Combined. He failed to respond to the Department correspondence.

 

LICENSEE

ADDRESS

PENALTY

Rivera, John E.
 

T/b/a New York Asset Protection
(agent)

48 Eden Burgh Drive
Peekskill, NY

Same as above

License Revoked

Was decertified by New York Automobile Insurance Plan following a hearing at which he blamed non-licensee employees in his office for various NYAIP violations. Mr. Rivera was held responsible for issuing 24 dishonored premium checks, seven outstanding ID cards without corresponding applications, and other violations, all of which have now been resolved. During October 1996 though December 1997, he issued another 17 insurance premium checks which were dishonored by the bank. Of these, he failed to replace 11 checks totaling $2,465.92 plus $110 in bank charges. Department wrote letters to Mr. Rivera requesting information and proof that the checks were replaced. He failed to reply to said letters, thereby hampering and impeding the Department investigation.

*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.

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