Press Release 9/17/2004 - New York State Insurance Department Takes Disciplinary Actions Against Companies, Agents, Brokers & Adjusters

New York State
Insurance Department

ISSUED 9/17/2004

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.

COMPANY STIPULATIONS

LICENSEE	ADDRESS	PENALTY
Blue Ridge Indemnity Company	One General Drive Sun Pairie, WI	$1,500 fine
Respondent violated the Insurance Law by exceeding the maximum number of Private Passenger automobile non-renewals permitted for a calendar year.

LICENSEE	ADDRESS	PENALTY
Coregis Insurance Company	c/o Strook, Stroock & Lavan 180 Maiden Lane New York, NY	$36,325 fine
Respondent violated various provisions of the Insurance Law and Department regulations during the period October 1, 2000 through September 30, 2002 in connection with the underwriting and rating of its Commercial Multi-Peril and other liability business. Respondent also failed to adequately comply with the provisions of a stipulation entered into between the Department and Respondent dated January 28, 2001, in that while the Respondent conducted the rerating specified in the stipulation, a Department review revealed an error ratio of 50% indicating that the Respondent’s internal controls and rate verification procedures were not adequate.

LICENSEE	ADDRESS	PENALTY
Federal Insurance Company	C/o Chubb & Son 15 Mountain View Road Warren, NJ	$76,825 fine
Respondent violated several provisions of the Insurance Law and Department Regulations during the period July 1, 2000 through June 30, 2001 in connection with the underwriting and rating of its Commercial Multi-Peril business. In addition, Respondent failed to adequately comply with the provisions of an earlier stipulation between the Department and Respondent which required Respondent to re-rate CMP policies as they came up for renewal.

LICENSEE	ADDRESS	PENALTY
Granite State Insurance Company	4501 North Point Parkway Suite 500 Alpharetta, GA	$13,500 fine
Respondent violated the Insurance Law by exceeding the maximum number of Private Passenger automobile non-renewals permitted for a calendar year.

LICENSEE	ADDRESS	PENALTY
Great Northern Insurance Company	c/o Chubb & Son 15 Mountain View Road Warren, NJ	$9,000 fine
Respondent violated the Insurance Law and Department Regulations which state that insurers must charge filed rates and shall maintain adequate procedures to minimize the occurrence of improperly charged rates and shall in fact pursue such procedures.

LICENSEE	ADDRESS	PENALTY
Interboro Mutual Indemnity Insurance Company	155 Mineola Blvd. Mineola, NY	$32,250 fine
Respondent violated the Insurance Law by exceeding the maximum number of Private Passenger automobile non-renewals permitted for a calendar year.

LICENSEE	ADDRESS	PENALTY
Leader Insurance Company	11700 Great Oaks Way Alpharetta, GA	$14,250 fine
Respondent violated the Insurance Law by exceeding the maximum number of Private Passenger automobile non-renewals permitted for a calendar year.

LICENSEE	ADDRESS	PENALTY
Liberty Mutual Fire Insurance Company	175 Berkely Street Boston, MA	$65,000 fine
Respondent violated the Insurance Law and Department Regulation which state that payment or denial of claim must be made within 30 calendar days of receipt of relevant information and/or proof of claim.

LICENSEE	ADDRESS	PENALTY
Liberty Mutual Insurance Company	175 Berkely Street Boston, MA	$60,000 fine
Respondent violated the Insurance Law and Department Regulations which state that payment or denial of claim must be made within 30 calendar days of receipt of relevant information and/or proof of claim; and that all overdue PIP benefits shall bear interest at rate of 2 percent per month, compounded and calculated on a pro rata basis using a 30 day month.

LICENSEE	ADDRESS	PENALTY
Manhattan Life Insurance Company	225 Community Drive, Suite 11 Great Neck, NY	$25,000 fine
Respondent violated the Insurance Law and Department Regulations by failing to keep and maintain its charter and by-laws, board minutes and books of account at it principal office in this state; by failing to maintain electronic access to its books of account at its principal office in New York; allocating general insurance expenses on the basis of net investment income; and failing to maintain records with sufficient detail to show the allocation method used for expenses in 2000 and the re-allocation of surplus in its 2001 annual statement.

LICENSEE	ADDRESS	PENALTY
Merchants & Business Men’s Mutual Insurance Company	100 Corporate Center Drive Camp Hill, PA	$5,250 fine
Respondent violated the Insurance Law by exceeding the maximum number of Private Passenger automobile non-renewals permitted for a calendar year.

LICENSEE	ADDRESS	PENALTY
Metropolitan General Insurance Company	700 Quaker Lane Warwick, RI	$32,500 fine
Respondent violated the Insurance Law by exceeding the maximum number of Private Passenger automobile non-renewals permitted for a calendar year.

LICENSEE	ADDRESS	PENALTY
New Hampshire Indemnity Company	4501 North Point Parkway Suite 500 Alpharetta, GA	$71,750 fine
Respondent violated the Insurance Law by exceeding the maximum number of Private Passenger automobile non-renewals permitted for a calendar year.

LICENSEE	ADDRESS	PENALTY
Northern Assurance Company	One Beacon Street Boston, MA	$2,250 fine
Respondent violated the Insurance Law by exceeding the maximum number of Private Passenger automobile non-renewals permitted for a calendar year.

LICENSEE	ADDRESS	PENALTY
Royal Indemnity Company	9300 Arrowpoint Blvd. Charlotte, NC	$3,150 fine
Respondent violated Department Regulation which require that a rental letter must be sent to the insured immediately, but no more than 2 business days after notice of claim; that all total theft losses shall be reported to the National Insurance Crime Bureau immediately, but no more than 2 business days after notice of claim; that all first and third-party losses, however sustained, where damage to the claimant’s vehicle exceeds $2,500 shall be reported to the NICB no later than five calendar days after the sale of salvage, or, if the insured or claimant is permitted to retain the vehicle, no later than five calendar days after the date of loss payment; and that the insurers shall report to the NICB, all losses over $2,500 no later than five calendar days after the sale of salvage or no later than five calendar days after the date of loss payment.

LICENSEE	ADDRESS	PENALTY
Safeguard Insurance Company	9300 Arrowpoint Blvd. Charlotte, NC	$2,850 fine
Respondent violated Department Regulation which require that a rental letter must be sent to the insured immediately, but no more than 2 business days after notice of claim; that all total theft losses shall be reported to the National Insurance Crime Bureau immediately, but no more than 2 business days after notice of claim; that all first and third-party losses, however sustained, where damage to the claimant’s vehicle exceeds $2,500 shall be reported to the NICB no later than five calendar days after the sale of salvage, or, if the insured or claimant is permitted to retain the vehicle, no later than five calendar days after the date of loss payment; and that the insurers shall report to the NICB, all losses over $2,500 no later than five calendar days after the sale of salvage or no later than five calendar days after the date of loss payment.

LICENSEE	ADDRESS	PENALTY
TICO Insurance Company	11700 Great Oaks Way Alpharetta, GA	$1,750 fine
Respondent violated the Insurance Law by exceeding the maximum number of Private Passenger automobile non-renewals permitted for a calendar year.

LICENSEE	ADDRESS	PENALTY
William Penn Life Insurance Company of New York	100 Quentin Roosevelt Blvd. Garden City, NY	$25,000 fine
Respondents violated the Insurance Law and Department Regulations by not having an independent committee nominate candidates for director for election by shareholders and recommend to the board of directors the selection and compensation of officers; by offering bonuses and a pension plan to officers and senior staff without such bonuses or pension plan being submitted to and approved by the board of directors; and by failing to fully implement procedures to ensure compliance with the requirements of the regulation pertaining to the replacement of life insurance.

AGENT AND BROKER HEARINGS

Region: Albany

LICENSEE	ADDRESS	PENALTY
Steven J. DiPietro (Agent)	c/o Combined Life 11 British American Blvd. Latham, NY	License revoked
Respondent demonstrated untrustworthiness by submitting an application for a life insurance policy life on which he had materially altered the response to questions regarding the medical condition of the applicant.

LICENSEE	ADDRESS	PENALTY
John E. Eubanks (Agent)	11 British American Blvd. Latham, NY	License revoked
Respondent demonstrated untrustworthiness by failing to remit to the insurer or property account for premiums he collected from various insureds. Respondent did not cooperate with the Department thereby hampering and impeding its investigation.

Region: Nassau County

LICENSEE	ADDRESS	PENALTY
Jose Cepeda, Jr. (Agent)	34-18 Linneus Place Flushing, NY	License revoked
Respondent demonstrated untrustworthiness by failing to disclose on his insurance agent’s license that he had been convicted of a crime.

LICENSEE	ADDRESS	PENALTY
Azmat N. Cheema (Broker)	350 41st Street Brooklyn, NY	$1,200 fine
Respondent demonstrated untrustworthiness by issuing four insurance premium checks that were dishonored by the bank upon which drawn, but were subsequently replaced. Respondent also commingled insurance fiduciary funds with his own funds and did not respond to Department correspondence requesting an explanation thereby hampering and impeding its investigation.

LICENSEE	ADDRESS	PENALTY
Annie Fang Chien Cheng (Broker)	66-20 Wetherole Street, Apt. 1A Rego Park, NY	License revoked
Respondent demonstrated untrustworthy conduct by issuing seventeen premium payment checks that were dishonored by the bank upon which drawn; issuing a fraudulent automobile insurance identification card to her client. Respondent also failed to cooperate with the Department’s investigation.

LICENSEE	ADDRESS	PENALTY
Yale M. Fishman (Agent)	445 Central Avenue, Suite 201 Cedarhurst, NY	$1,000 fine
Respondent, an attorney, was convicted of Misprision of a Felony for failing to disclose illegal activities of his former clients.

LICENSEE	ADDRESS	PENALTY
Richard I. Mendelson (Agent)	C/o Prudential Ins. Co. of America 1200 South Avenue, Ste. 202 Staten Island, NY	License revoked
Respondent demonstrated untrustworthiness when he failed to disclose on his original life and health insurance agent’s license that he had been convicted of a crime. Respondent did not respond to Department’s request for information concerning his termination as an agent by Prudential and why he failed to reveal his criminal conviction on his license applications. The Respondent also failed to appear at the offices of the Department as directed.

LICENSEE	ADDRESS	PENALTY
Aida Jeanneth Tellez (Broker)	85-49 96^th Street Suite 2C Woodhaven, NY	License revoked
Respondent demonstrated untrustworthy conduct by issuing 42 premium payment checks which were dishonored by the bank upon which drawn, 39 of which have not been replaced. In addition, Respondent was decertified by the New York Automobile Plan for issuing dishonored premium checks, numerous deficient applications, and four producer performance standards violations. Respondent failed to cooperate with the Department’s investigation.

LICENSEE	ADDRESS	PENALTY
Raul Vazquez (Agent)	2309 Holland Avenue, #5B Bronx, NY	License revoked
Respondent demonstrated untrustworthy conduct by issuing eleven premium payments checks that were dishonored by the bank upon which drawn, only three of which were replaced. Respondent was decertified by the New York Automobile Insurance Plan (NYAIP) as producer for two years based upon his issuance of dishonored premium checks and producer performance standard violations. Respondent failed to cooperate with Department request to appear for an audit, thereby hampering and impeding its investigation.

LICENSEE	ADDRESS	PENALTY
Rowena S. West (Agent)	2757 Claflin Avenue Apt. 21 Bronx, NY	License revoked
Respondent was convicted of the felony crime of Grand Larceny in the 3^rd Degree relating to her fraudulently obtaining World Trade Center disaster relief funds from two charitable organizations. The Respondent failed to cooperate with the Department’s investigation.

Region: Suffolk

LICENSEE	ADDRESS	PENALTY
William Keenan (Agent)	49 Hileen Drive Kings Park, NY	$1,500 fine
Respondent demonstrated untrustworthiness by failing to disclose criminal convictions on his license applications.

Region: Westchester

LICENSEE	ADDRESS	PENALTY
Frederick Hachtel (Agent)	Citibank 250 Route 59 Suffern, NY	$250 fine
Respondent failed to disclose on his application for an insurance agent’s license that he had been adjudged a bankrupt.

LICENSEE	ADDRESS	PENALTY
Lillie N. Spruill (Agent)	Northwestern Mutual Life 15 Fisher Lane White Plains, NY	License revoked
Respondent demonstrated untrustworthiness by failing to furnish documentation concerning her bankruptcy thereby hampering and impeding the Department’s investigation.

Region: Out of State

LICENSEE	ADDRESS	PENALTY
Jerome L. Edmond (Agent)	21 Apache Park Forest, IL	License revoked
Respondent made material misstatements on his license application and failed to cooperate with the Department’s investigation.

LICENSEE	ADDRESS	PENALTY
Della A. Ware-Remert (Agent)	Progressive Casualty Insurance Company 6300 Wilson Mills Road E4G Mayfield Village, OH	Licensed revoked
Respondent failed to cooperate with a Department investigation of her bankruptcy. Respondent’s license was revoked when she failed to pay a fine of $400 ordered by the Department.

AGENTS AND BROKERS STIPULATIONS

Region: Albany

LICENSEE	ADDRESS	PENALTY
Susan N. Baker (Agent)	73 Fleetwood Avenue Albany, NY	$1,500 fine
Respondent violated the Insurance Law by acting as a third party administrator for Millenieum, an entity not licensed or authorized to do an insurance business in the State of New York. Respondent adjusted claims on behalf of Millenieum without having authority to do so by virtue of an independent adjuster’s license and transacted insurance business in the names of Baker & Haynes Associates, Inc. and National Administrative Services, entities which are not licensed by the Department.

Region: Mid-Hudson

LICENSEE	ADDRESS	PENALTY
John Defreitas (Independent Adjuster)	27 Holmes Road Holmes, NY	$500 fine
Respondent failed to disclose a criminal conviction on his original license application.

LICENSEE	ADDRESS	PENALTY
Luis J. Diplan (Agent)	226 First Street Newburgh, NY	$1,0000 fine
Respondent demonstrated untrustworthy conduct by failing to disclose on his original license application that he had been disqualified from participating in State and Federal food stamp programs.

Region: Nassau

LICENSEE	ADDRESS	PENALTY
Aurora Caceda (Broker) T/b/a Arcusa Insurance Brokerage & Services	8 Comber Street Valley Stream, NY	$1,000 fine
Respondent demonstrated untrustworthy conduct by issuing five insurance premium transmittal checks that were dishonored by the bank upon which drawn, but were subsequently replaced. Respondent commingled her premium account by paying personal and business expenses using premium monies.

LICENSEE	ADDRESS	PENALTY
Joseph Kirby, Jr. (Agent)	192 Cleveland Avenue Mineola, NY	$7,000 fine
Respondent violated the Insurance Law by soliciting, negotiating and/or effectuating health insurance contracts on behalf of Millennium, an entity which is not licensed or authorized to do an insurance business in this state.

LICENSEE

ADDRESS

PENALTY

One Stop Multiservice, Inc.
And
Raymond N. Rivera
(Broker and Sublicensee)

54-08 Flushing Avenue, 1^st Fl.
Maspeth, NY
Same as above

$500 fine

Respondent demonstrated untrustworthy conduct by issuing 18 insurance premium transmittal checks that were dishonored by the bank upon which drawn, but were subsequently replaced.

LICENSEE	ADDRESS	PENALTY
Leslie Riopedre (Broker)	32-30 70^th Street, Apt. 4M Jackson Heights, NY	$1,000 fine
Respondent demonstrated untrustworthy conduct by issuing six insurance premium checks that were dishonored by the bank upon which drawn, but were subsequently replaced. Respondent commingled her premium account by purchasing business supplies using premium monies.

Region: New York City

LICENSEE	ADDRESS	PENALTY
John J. Cacchioli Agency, Inc. And John J. Cacchioli (Sublicensee and Broker)	99 Tulip Avenue, Suite 108 Floral Park, NY 3613 Bunker Avenue Wantagh, NY	$10,000 fine
Respondents demonstrated untrustworthiness by mischaracterizing a client’s automobile risk by falsely stating that the insured vehicle was used outside of New York City, when in fact, the vehicle was used almost exclusively in New York City thus depriving the insurer of a higher insurance premium rate. Respondent Cacchioli was also convicted of "Falsifying business records in the second degree".

LICENSEE	ADDRESS	PENALTY
Mario M. Rosario (Broker)	77 Varet Street, Apt. 22 Brooklyn, NY	$500 fine
Respondent demonstrated untrustworthy conduct by issuing four insurance premium transmittal checks that were dishonored by the bank upon which drawn, but were subsequently replaced.

LICENSEE	ADDRESS	PENALTY
Paul Winter (Broker)	C/o Wassserman Wexler DBA IJB 45 West 45^th Street New York, NY	$1,500 fine
Respondent failed to properly exercise his oversight responsibilities as a director and sublicensee of IJB Jewelers Block & Fine Arts, Inc. (IJB) on its broker and excess line broker licensees. In connection with the failure of IJB to remit or otherwise properly account for premium funds collected from insureds, and its failure to pay premium taxes and stamping fees owed to the State of New York.

Region: Rochester

LICENSEE

ADDRESS

PENALTY

Alan R. Tiberio, Inc.
And
Alan R. Tiberio
(Agent and Sublicensee)

523 South Main Street
Canandaigua, NY
Same as above

$1,000 fine

Respondents demonstrated untrustworthy conduct by issuing three insurance premium transmittal checks that were dishonored by the bank upon which drawn, but were subsequently replaced; and by issuing insurance premium transmittal checks from a bank account that was not designated as a premium account.

Region: Suffolk

LICENSEE	ADDRESS	PENALTY
John J. Casare (Agent)	Mass Mutual Life Insurance Co. 1000 Woodbury Road, Ste. 400 Woodbury, NY	$2,500 fine
Respondent falsely indicated on a policy loan request form that he had witnessed the policyholder’s signature when he had not done so, and the policyholder’s signature was in fact a forgery.

LICENSEE	ADDRESS	PENALTY
Colletta Ned Agency, Inc. And Ignatzio T. Colletta (Sublicensee and Agent)	105 Sterling Ct. Muttontown, NY 133 Main Street Port Washington, NY	License revoked
Respondent demonstrated untrustworthy conduct by adding coverage to the automobile insurance policies of 389 insureds without the knowledge, permission or consent of the insureds.

Region: Westchester

LICENSEE	ADDRESS	PENALTY
Henry Gonzalez (Broker)	32 Elinor Place PO Box 305 Yonkers, NY	$1,500 fine
Respondent demonstrated untrustworthy conduct by issuing four insurance premium transmittal checks that were dishonored by the bank upon which drawn, but were subsequently replaced. In addition, Respondent failed to disclose on his broker’s renewal application that he had been convicted in a criminal action.

LICENSEE

ADDRESS

PENALTY

The Rose Walter Aency, Inc.
(Agent and Broker)
and
Kevin M. McDonough
(Sublicensee, Agent and Broker)

8 Stage Road
Monroe, NY

Same as above

$1,000 fine

Respondents demonstrated untrustworthy conduct by failing to obtain commercial liability insurance coverage on behalf of a client after receiving a premium down payment check for such coverage. Respondent’s employee submitted an altered Broker’s Confirmation of Placement of Coverage form to an insurer’s agent. in an attempt to obtain renewal commercial liability insurance coverage.. In addition, Respondents failed to timely obtain Business Owners Insurance Coverage and Workers’ Compensation insurance coverage on behalf of a client, notwithstanding that Respondents had received an application and premium downpayment check for such coverage.

Region: Out of State

LICENSEE	ADDRESS	PENALTY
David N. Brechbuhl (Agent)	8846 Doral East Drive, Apt. D Indianapolis, IN	$250 fine
Respondent demonstrated untrustworthy conduct by failing to provide documentation to the Department after three requests. Respondent eventually furnished the Department with the requested documentation.

LICENSEE	ADDRESS	PENALTY
Sheila H. Hartman (Agent)	C/o Sheila Hartman Ins. Services Inc. 21300 Victory Blvd. #215 Woodland Hills, CA	$500 fine
Respondent demonstrated untrustworthy conduct by failing to disclose on her original license application that she had been adjudged a bankrupt.

LICENSEE	ADDRESS	PENALTY
Joseph J. Knott, Jr. (Agent)	C/o RMH 29 Beekman Street Wilkes Barre, PA	License revoked
Respondent demonstrated untrustworthy conduct by failing to disclose on his individual life/accident & health agent renewal application that the State of California, Department of Insurance, denied his application for a license based upon the fact that he was convicted in Pennsylvania of giving a false report to law enforcement authorities.

LICENSEE

ADDRESS

PENALTY

LIG Insurance Agency, Inc.
(Agent and Broker)
And
James G. Barrett
(Sublicensee)

Raritan Plaza II
Edison, NJ

Same as above

$500 fine

Respondents failed to disclose on their license applications that they had been fined by the State of Kansas and the Commonwealth of Virginia.

LICENSEE

ADDRESS

PENALTY

Personalized Brokerage Services, Inc.
(Agent)

and

Charles E. Lucius
(Agent and Sublicensee)

Topeka Air Industrial Park
Forbes Field
Building 283 J Street
PO Box 1940
Topeka, KS

3905 SW Clarion Place
Topeka, KS

$2,500 fine

Respondents demonstrated untrustworthy conduct by failing to disclose a criminal conviction on their agent’s renewal application.

LICENSEE	ADDRESS	PENALTY
Timothy P. Stapleton (Agent)	2967 Pacific #2 Omaha, NE	License revoked
Respondent demonstrated untrustworthy conduct by failing to disclose on his original application that he had been adjudged a bankrupt.

LATE FILINGS

The following health maintenance organization (HMO has been fined for late submissions of their annual statement and Section 307 filing:

LICENSEE	ADDRESS	PENALTY
American Independent Network Insurance Company of New York	110A Walnut Street Elmira, NY	$6,500 fine