New York State
Insurance Department


ISSUED 6/18/2003

FOR IMMEDIATE RELEASE

 NEW YORK STATE INSURANCE DEPARTMENT TAKES DISCIPLINARY ACTIONS AGAINST COMPANIES, 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 actions that result from Department hearings are subject to judicial review and possible stay of enforcement.

INSURANCE COMPANIES

LICENSEE ADDRESS PENALTY
Allstate Indemnity Company One Allstate Drive
Farmingville, NY
$33,700 fine
Respondent violated the Insurance Law and Department Regulations which require the following: that payment or denial of a claim be made within 30 days; overdue PIP benefits must have a 2% interest rate compounded on a 30 day pro-rata basis; that claimant is entitled to 80% of lost wages; and that claim files must be maintained so all events relating to a claim can be reconstructed.

 

LICENSEE ADDRESS PENALTY
Allstate Insurance Company One Allstate Drive
Farmingville, NY
$15,625 fine
Respondent violated the Insurance Law and Department Regulations which require the following: that payment or denial of a claim be made within 30 days; that claimant is entitled to 80% of lost wages; and that claim files must be maintained so all events relating to a claim can be reconstructed.

 

LICENSEE ADDRESS PENALTY
Amalgamated Life Insurance Company 730 Broadway
New York, NY
$5,000 fine
Respondent violated the Insurance Law when it charged premium rates, other than those on file with the Superintendent, in connection with the issuance of group disability policies with 50 or more employees.

 

LICENSEE ADDRESS PENALTY
American Progressive Life and Health Insurance Company of New York 6 International Drive, Suite 190
Rye Brook, NY
$10,000 fine
Respondent violated the Insurance Law by failing to notify the Superintendent of its participation in the Service Expense Reimbursement and Cost Sharing Agreement with its affiliates; failing to notify the Superintendent of its agreement with Capitated Health Care Services of Florida, Inc. whereby Capitated Health Care Services of Florida, Inc. renders services on behalf of the Respondent on a regular basis; and failing to file a copy of its tax allocation agreement with the Department within 30 days of its effective date.

 

LICENSEE ADDRESS PENALTY
Blue Ridge Insurance Company One General Drive
Sun Prarie, WI
$31,270 fine
Respondent violated the Insurance Law and Department Regulations which state the following: that a follow up no-fault application must be sent if original is not returned within 30 calendar days and failed to make payments or issue denials within 30 calendar days of receipt of relevant information or proof of claim. In addition, Respondent failed to include a 2% interest rate compounded and calculated on a 30 day pro-rata basis on all overdue PIP benefits; and failed to inspect damaged vehicles and make a good faith offer within six business days; and failed to provide a certificate of repairs to the insured during negotiations. Respondent also failed to provide the insured with a written explanation about the remaining unresolved claim, failed to report the total theft loss to the National Insurance Crime Bureau, and failed to report all fire losses in excess of $1,000 to the Property Insurance Loss Register.

 

LICENSEE ADDRESS PENALTY
Citizens Insurance Company of America 440 Lincoln Street
Worcester, MA
$11,968 fine
Respondent violated the Insurance Law and Department Regulations as follows: failure to send a follow up no-fault application if original was not returned within 30 calendar days; and failure to send a follow up verification form if original was not returned within 30 calendar days. Respondent also failed to make payments or issue denials within 30 calendar days of receipt of relevant information or proof of claim; failed to include a 2% interest rate compounded and calculated on a 30 day pro-rata basis on all overdue PIP benefits; failed to make a good faith offer of settlement within 25 calendar days on a total unrecovered theft or 11 business days for other total losses; and failed to report all fire losses in excess of $1,000 involving property to Property Insurance Loss Register (PILR) within five business days of receipt of notice of loss.

 

LICENSEE ADDRESS PENALTY
Massachusetts Bay Insurance Company 440 Lincoln Street
Worcester, PA
$34,110 fine
Respondent violated the Insurance Law and Department Regulations as follows: failure to send a follow up no-fault application if original was not returned with 30 calendar days; and failure to make payments or issue denial within 30 calendar days of receipt of relevant information or proof of claim. In addition, Respondent failed to include a 2% interest rate compounded and calculated on a 30 days pro-rata basis on all overdue PIP benefits; and was in violation of a section that states claimant is entitled to 80% of lost wages up to policy limits; and failed to report all fire losses in excess of $1,000 involving applicable property to Property Insurance Loss Register (PILR) within five business days of receipt of notice of loss.

 

LICENSEE ADDRESS PENALTY
Response Indemnity Company 500 South Broad Street
Meriden, CT
$29,826 fine
Respondent violated the Insurance Law and Department Regulations as follows: failure to send a no fault application within five business days after report of loss to claim office and failure to send verification forms within ten business days after receipt of no-fault application. Respondent failed to send follow-up no-fault applications when the original was not returned within 30 calendar days. In addition, Respondent failed to provide payment or denial of claim within 30 calendar days of receipt of proof of claim; failed to require that all overdue PIP benefits must have a 2% interest rate compounded and calculated on a 30 day pro-rata basis; and failed to require that claimant is entitled to 80% of lost wages up to policy limits.

 

LICENSEE ADDRESS PENALTY
Response Insurance Company 500 South Broad Street
Meriden, CT
$39,330
Respondent violated the Insurance Law and Department Regulations as follows: failure to send a no fault application within five business days after report of loss to claim office and failure to send verification forms within ten business days after receipt of no-fault application. Respondent failed to send follow-up no-fault applications if original is not returned within 30 calendar days. In addition, Respondent failed to provide payment or denial of claim within 30 calendar days of receipt of proof of claim; failed to require that all overdue PIP benefits must have a 2% interest rate compounded and calculated on a 30 day pro-rata basis; and failed to require that claimant is entitled to 80% of lost wages up to policy limits. In addition, Respondent failed to inspect and make appropriate good faith offers; failed to provide an estimate of deductions; failed to send a letter explaining an outstanding claim; failed to report appropriate information to the National Insurance Crime Bureau; and failed to provide inspections and photographs for the file.

 

LICENSEE ADDRESS PENALTY
Sentry Life Insurance Company of New York 220 Salina Meadows Parkway
Suite 255
Syracuse, NY
$40,000 fine
Respondent violated the Insurance Law and Department Regulations as follows; by failing to make an initial filing with respect to its existing compensation plans; by investing the assets of the Separate Account contrary to the provisions of its approved plans(s) of operation; failing to notify insureds at least annually of their right to request an updated policy illustration; failing to indicate the manner and extent of distribution for each policy advertised during the examination period; comparing itself and its products and services to what may be found elsewhere in the industry without being able to substantiate such statements; failing to include the policy form or series number of the policy being advertised for a number of Company advertisements; and by calling attention to an unauthorized insurer in a manner that may have the tendency to mislead as to the true identity of the insurer in a number of its advertisements.

 

LICENSEE ADDRESS PENALTY
Sun Life Insurance and Annuity Company of New York 122 East 42nd Street, Suite 1900
New York, NY
$10,000 fine
Respondent violated the Insurance Law by failing to keep and maintain transaction ledgers for both its general and separate accounts at its principal office in this state.

 

LICENSEE ADDRESS PENALTY
Virginia Surety Company (now known as Combined Specialty Insurance Company) 175 W. Jackson Blvd., 11th Floor
Chicago, IL
$84,350 fine
Respondent violated the Insurance Law and the Vehicle and Traffic Law by failing to successfully complete the initial load of automobile liability insurance data to the Department of Motor Vehicles by September 12, 2000, and by failing to commence ongoing reporting of such data by September 13, 2000.

 

AGENTS AND BROKERS HEARINGS

Region: Buffalo

LICENSEE ADDRESS PENALTY
Kathleen M. Dick
(Agent)
12930 RT3 39
Chaffee, NY
License revoked
Respondent failed to cooperate with a Department investigation concerning her being adjudged insolvent or a bankrupt. Respondent did not furnish the required documents or attend the Departmental hearing.

 

LICENSEE ADDRESS PENALTY
Raymond J. Foley
(Agent)
305 Gleed Avenue
East Aurora, NY
$100 fine
Respondent violated the Insurance Law failing to disclose on his renewal application that he had been adjudged a bankrupt. The error was ruled unintentional.

 

Region: Elmira

LICENSEE ADDRESS PENALTY
Michael P. Aulbach

(Public Adjuster)
t/b/a

Central Adjustment Bureau

135 Graham Road
Ithaca, NY


Same as above
$1,000 fine
Respondent demonstrated untrustworthiness and was convicted of Criminal Impersonation, a misdemeanor. Respondent successfully completed his term of probation and paid the fine.

 

Region: Nassau

LICENSEE ADDRESS PENALTY
Metro Coverage Corp.
(Broker)
and

Eric M. Stone
(Sublicensee)

71 Jericho Turnpike
Mineola, NY

Same as above

License revoked


License Revoked
Respondents demonstrated untrustworthiness by failing to remit the total balance or premium monies to the appropriate insurer or to refund it or account for the same.
LICENSEE ADDRESS PENALTY
James A. Wallace
(Broker)
c/o Endorsed Administrators, Inc.
2157 Union Blvd.
PO Box 5671
Bay Shore, NY
$5,000 fine
Respondent operated an insurance business with an entity not licensed or known to the Department. Respondent issued several insurance identification cards on behalf of an insurer without authorization to do so.

 

Region: Suffolk

LICENSEE ADDRESS PENALTY
Raaymond Levan
(Broker)
60 Morton Street
Brentwood, NY
License revoked
Respondent issued eight premium payment checks that were dishonored by the bank upon which drawn, six of which, were not replaced or otherwise properly accounted for. Respondent’s failure to respond to Department letters or to appear as directed hampered and impeded the Department’s investigation.

 

Region: Utica

LICENSEE ADDRESS PENALTY
Frank A. Meola
(Independent Adjuster)
c/o Advanced Auto Appraisers
218 Blandina Street
PO Box 4802
Utica, NY
$2,000 fine
Respondent demonstrated untrustworthiness evidenced by a conviction for the criminal offense of Conspiracy in the Fourth Degree.

 

Region: New York City

LICENSEE ADDRESS PENALTY
Customized Worldwide Weather Insurance Agency, Inc.
(Agent)

and

Harold P. Mollin
(Agent and Sublicensee)
1615 Northern Blvd., Suite 301
Manhasset, NY



Same as above
License revoked




License revoked
Respondents’ insurance licenses were revoked in Connecticut, Iowa and Oregon. Respondents failed to reply to a Department request for an explanation of the license revocations, thereby hampering and impeding the Department’s investigation.

 

LICENSEE ADDRESS PENALTY
Wanda Dickinson
(Agent)
c/o Quick & Reilly
176 Roberts Avenue
Yonkers, NY
$500 fine
Respondent failed to respond to Department communication to provide documents concerning her filing for bankruptcy. Respondent responded only after receipt of a Citation.

 

LICENSEE ADDRESS PENALTY
Carl D. Lightman
(Independent Adjuster)
1125 E 100th Street
Brooklyn, NY
License revoked
Respondent was convicted of Trafficking in Motor Vehicles with knowledge of Tampered Vehicle Identification numbers in violation of 18 U.S.C. Section 2321(a) and failed to secure a Certificate of Relief from Disabilities.

 

LICENSEE ADDRESS PENALTY
Himalya, Inc.
(Broker)

and

Asma Rohail
(Broker and Sublicensee)
171-16 Hillside Avenue
Jamaica, NY


Same as above
License revoked



License revoked
Respondents collected premium monies from their clients for automobile liability insurance policies and failed to remit premium installments to the insurer or its agent or to refund the accounts. Respondents failed to respond to Department letters and failed to appear at the Department for an examination thereby hampering and impeding the Department’s investigation.

 

LICENSEE ADDRESS PENALTY
MBB Consulting, Inc.
(Broker)
35th Avenue
Jackson Heights, NY
License Revoked
Respondent engaged in insurance activity as a broker without having obtained a duly licensed sublicensee.

 

LICENSEE ADDRESS PENALTY
MTM Brokerage Corp.
(Broker)
and

Thomas Martin
(Broker and Sublicensee)
5512 New Utrecht Avenue
Brooklyn, NY

Same as above
License revoked


License revoked
Respondents issued six insurance premium checks that were dishonored by the bank upon drawn, four of which were not replaced or properly accounted for. Respondents also issued two fraudulent temporary ID cards to their client and they did not procure insurance and did not submit the insurance application or remit the premium monies to the New York Automobile Insurance Plan or designated insurer. Respondents failed to respond to Department’s request for information thereby hampering and impeding the Department’s investigation.

 

LICENSEE ADDRESS PENALTY
Jose M. Oliva
(Broker)
c/o Solutions Travel Agency
431 West 160th Street
New York, NY
License revoked
Respondent demonstrated untrustworthy conduct by issuing three checks that were dishonored. Respondent failed to take steps to prevent a recurrence of such violation as agreed in a Department Stipulation. In addition, Respondent failed to respond to Department’s correspondence, thereby hampering and impeding the Department’s investigation.

 

LICENSEE ADDRESS PENALTY
Jorge Peralta
(Broker)
490 West 187th Street
New York, NY
License revoked
The New York Automobile Insurance Plan (NYAIP) decertified Respondent as a producer for at least six months for issuing 37 outstanding ID cards to register motor vehicles without submitting corresponding applications and his submission of numerous deficient applications. In addition, Respondent collected automobile insurance premium installment payments from his client and failed to remit the full payment to the insurer, to refund money to his client, or to otherwise properly account for it. Respondent failed to respond to Department inquiry letters.

 

LICENSEE ADDRESS PENALTY
Traffic Agency Inc.
(Broker)
and

Coleman Elliott
(Broker and Sublicensee)

175-03 Rockaway Blvd.
Springfield Gardens, NY

Same as above
$750 fine
Respondents failed to respond to five Department letters of inquiry thereby hampering and impeding the Department’s investigation of complaints filed against the Respondents.

 

LICENSEE ADDRESS PENALTY
Allen B. Waterhouse
(Agent)
c/o Allstate Insurance Company
2093A Bartow Avenue
Bronx, NY
License revoked
Respondent issued seven premium payments checks that were dishonored by the bank upon which draw and not replaced or otherwise properly accounted for. Respondent failed to produce records requested by the Department, thereby hampering and impeding the Department’s investigation.

 

LICENSEE ADDRESS PENALTY
Donald Williams
(Agent)
9314 Avenue N #BSMT
Brooklyn, NY
$1,000 fine
Respondent failed to disclose a criminal conviction on his license renewal applications.

 

LICENSEE ADDRESS PENALTY
Nina Yakubov
(Broker)
71-36 147th Street
Flushing, NY
License revoked
Respondent issued eleven premium payments checks that were dishonored by the bank upon which drawn but were subsequently replaced. In addition, Respondent issued premium, personal or operating expenses checks from the same checking account, thereby commingling such monies. Respondent permitted an unlicensed person to operate her insurance business. Respondent also failed to appear for an examination under oath at the Department’s request.

 

Region: Out of State

LICENSEE ADDRESS PENALTY
Bernadette D. Abarca
(Agent)
10780 Shedden Dr.
Loma Linda, CA
License revoked
Respondent demonstrated untrustworthy conduct by failing to cooperate with the Department in its investigation of Respondent’s bankruptcy.

 

LICENSEE ADDRESS PENALTY
Laura J. Bowles
(Agent)
4404 Dolphin Drive
Tampa, FL
$250 fine
Respondent demonstrated untrustworthiness with a misstatement on her initial application which she subsequently corrected.

 

LICENSEE ADDRESS PENALTY
Crystal I. Ladd
(Agent)
620 Stewart Street
PO Box 245
Bartley, NE
License revoked
Respondent failed to reply to Department letters or submit any documentation as requested, thereby hampering and impeding the Department’s investigation of Respondent’s criminal conviction.

 

LICENSEE ADDRESS PENALTY
Diane Marion
(Agent)
201 West Sylvania Avenue
Neptune City, NJ
License revoked
Respondent failed to pay a fine of $500 within 20 days as directed by the Department. The fine was initially imposed as a result of Respondent’s tardy submission of required documents in connection with a Department investigation of her bankruptcy.

 

LICENSEE ADDRESS PENALTY
Laura A. Monreal
(Agent)
1130 Mohegan Trail
Willoughby, OH
License revoked
Respondent failed to furnish documents regarding her bankruptcy that were requested by the Department, thereby hampering and impeding the Department’s investigation.

 

LICENSEE ADDRESS PENALTY
J.K. Snoddy
(Agent)
134 Orange Avenue
Browns Mills, NJ
$500 fine
Respondent failed to furnish documents pertaining to his bankruptcy that were requested by the Department in a timely fashion, thereby hampering and impeding the Department’s investigation.

 

LICENSEE ADDRESS PENALTY
Peter H. Wilcox
(Agent)
c/o Prudential Insurance
16430 North Scottsdale Road
Suite 408
Scottsdale, AZ
$300 fine
Respondent failed to include information regarding an Arizona penalty paid on his behalf on his New York license application.

 

AGENTS AND BROKER STIPULATIONS

Region: Elmira

LICENSEE ADDRESS PENALTY
James T. Freiner
(Agent and Broker)
10387 Freiner Road
Canaseranga, NY
License revoked
Respondent misrepresented coverages and rates to three commercial insureds.

 

Region: Nassau County

LICENSEE ADDRESS PENALTY
Jennifer C. Hsu
(Agent)
539 Cedar Street
W. Hempstead, NY
$500 fine
Respondent failed to disclose on her license renewal application that she had been disciplined by an insurer for irregularities.

 

LICENSEE ADDRESS PENALTY
Sydney C. Williams
(Agent)
407 Compass Street
Uniondale, NY
$500 fine
Respondent submitted four premium checks that were dishonored by the bank but were subsequently replaced.

 

Region: New York City

LICENSEE ADDRESS PENALTY
AIM International for Insurance Agency, Inc
(Broker)
and

Zakaria A. Issa
(Broker and Sublicensee)

38-09 Ditmars Blvd.
Astoria, NY


Same as above
$1,000 fine
Respondents issued four insurance premium transmittal checks that were dishonored by the bank upon drawn but were subsequently replaced. In addition, the Respondents commingled their premium account by paying personal and operating expenses using premium monies.

 

LICENSEE ADDRESS PENALTY
CSIR Enterprises, Inc.
(Broker)
and

Judah Feinerman
(Agent, Broker and Sublicensee)
225 West 34th Street, Rm. 1405
New York, NY

Same as above
$2,500 fine
Respondents violated the Insurance Law by placing an advertisement in a magazine that is distributed in the State of New York, that outlined the requirements of the lead paint liability coverage program underwritten by an unauthorized insurer. The advertisement did not show the insurer’s name in full or name of the city, town, or village in which the insurer had its principal office in the United States.

 

LICENSEE ADDRESS PENALTY
Espinal Carmen Brokerage, Inc.
(Broker)
and

Carmen A. Espinal
(Broker and Sublicensee)
40-19 97th Street, 1st Fl
Corona, NY

32-43 83rd Street
Jackson Heights, NY
$2,000 fine
Respondents issued twelve insurance premium transmittal checks that were dishonored by the bank upon which drawn but were subsequently replaced.

 

LICENSEE ADDRESS PENALTY
Stephen Hosannah
(Agent and Broker)
2531 Church Avenue
Brooklyn, NY
$1,500 fine
Respondent issued nine transmittal insurance premium checks which were dishonored by the bank upon which drawn. The checks were subsequently replaced or honored by the bank upon re-deposit.

 

LICENSEE ADDRESS PENALTY
Patrick A Onaphie
(Agent and Broker)
830 Beck Street, Apt. 4S
Bronx, NY
$750 fine
Respondent violated the Insurance Law by commingling insurance premium funds used to pay personal and businesses expenses from his insurance premium account; and operating under the name of a corporation not licensed by the Department.

 

LICENSEE ADDRESS PENALTY
Henry Pauld
(Broker)
226 Street
Laurelton, NY
$500 fine
Respondent submitted an application to an insurer on behalf of his client, wherein the listed driver denied driving the insured vehicle and the Respondent did not obtain a Driver Verification form signed by both the insured and the listed driver.

 

LICENSEE ADDRESS PENALTY
Lionel Rodriguez
(Agent and Broker)
1857 Westchester Avenue
Bronx, NY
$1,000 fine
Respondent issued 17 insurance premium transmittal checks that were dishonored by the bank upon which drawn but were subsequently replaced; and Respondent commingled his premium account by paying DMV fees using premium monies.

 

LICENSEE ADDRESS PENALTY
John A. Talavera
(tba)
New Image Brokerage, Co.
(Broker)
and

Brooklyn Spirit Agency, Inc.
(Broker)
and

John A. Talaverta
(Sublicensee)
96-21 Flatlands Avenue
Brooklyn, NY



Same as above


Same as above
$5,000 Fine
Respondents issued 484 insurance premium checks that were dishonored by the bank upon which drawn but were subsequently replaced. In addition, Respondents accepted payment for an automobile liability policy from a client but failed to process the application in an expeditious manner.

 

LICENSEE ADDRESS PENALTY
Evelyn Villamar
(Broker)
1801 Loring Palce
Bronx, NY
$2,500 fine
Respondent’s authority to write insurance for the New York Automobile Insurance Plan (Plan) was suspended for 60 days for violating Plan rules.

 

Region: Rochester

LICENSEE ADDRESS PENALTY
Costello Dreher Kaiser Insurance Agency Corp.
(Agent and Broker)
and

Paul A. Dreher
(Agent and Sublicensee)
1665 Ridge Road East
Rochester, NY


315 Ivy Ridge
Rochester, NY
$500 fine
Respondents violated the Insurance Law by accepting payments of gift certificates and a gratuitous motor vehicle windshield repair from a motor vehicle repairer for referring motor vehicle repair business to the repairer.

 

LICENSEE ADDRESS PENALTY
Robert R. Melton
(Agent)
9 Tamarron Way
Pittsford, NY
$500 fine
Respondent failed to disclose on his agents renewal application that he had paid a fine for failing to properly secure his medallion signature guarantee stamp.

 

Region: Syracuse

LICENSEE ADDRESS PENALTY
Ralf K. Rigo

t/b/a
Ralf Rigo Agency
(Agent and Broker)
124 Sun Harbor Dr.
Liverpool, NY

Same as above
$350 fine
Respondent violated the Insurance Law by placing an advertisement for the sale of liability insurance on his computer website that called attention to coverage offered by an unauthorized insurer.

 

Region: Westchester

LICENSEE ADDRESS PENALTY
Rodney L. Hampton
(Agent)
15 Fisher Lane
White Plains, NY
$500 fine
Respondent failed to disclose on his renewal license application that he had been fined by a governmental agency.

 

Region: Out of State

LICENSEE ADDRESS PENALTY
William Barrios
(Broker)
82 Fremont Avenue
Park Ridge, NJ
$500 fine
Respondent violated the Insurance Law by issuing an insurance premium transmittal check that was dishonored by the bank upon which drawn but was subsequently replaced; and commingled premium funds by paying personal and operational expenses from his insurance premium account.

 

LICENSEE ADDRESS PENALTY
Insurance Agency Services of First Union
t/b/a
First Union Insurance Agency Inc.
and
William J. Bittner
(Sublicensee)
65 Willowbrook Boulevard
Wayne, NJ




Same as above
$500 fine
Applicant made a material misstatement on its agent license application by failing to disclose a New Jersey Department of Insurance fine previously imposed upon one of Applicant’s directors.

 

LICENSEE ADDRESS PENALTY
Dorothy Jane Ligeza
(Agent)
2495 Amber Lane
Elgin, IL
$1,000 fine
Respondent failed to disclose on her agent’s license application that she had been fined by another State Insurance Department and had an license application denied by another Department.

 

LICENSEE ADDRESS PENALTY
Mark J. Strong
(Agent)
4204 White Eagle Drive
Naperville, IL
$500 fine
Respondent failed to disclose on his application for an agent’s license that he had been fined by another State Insurance Department and that his agent’s license has been revoked by another Department.

 


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