New York State
Insurance Department


ISSUED 9/19/2005

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

Bankers Life Insurance Company of New York 65 Froelich Farm Blvd.

Woodbury, NY

$10,000 fine
Respondent violated the Insurance Law by paying compensation to its agents on certain universal life insurance policies in excess of limits permitted by the statute.

 

LICENSEE

ADDRESS

PENALTY

Lincoln Life & Annuity Company of New York 100 Madison Street, Suite 1860

Syracuse, NY

$10,000 fine
Respondent failed to reimburse an affiliate for services provided to Respondent on a regular and systematic basis, contrary to the filed administrative service agreement; failed to bill or charge for services that Respondent provided to an affiliate on a regular and systematic basis, contrary to the filed administrative service agreement; and did not maintain its records in a manner that permits ready identification with respect to the allocation of expenses.

 

LICENSEE

ADDRESS

PENALTY

Transamerica Financial Life Insurance Company 4 Manhattanville Road

Purchase, NY

$200,000 fine
Respondent violated the Insurance Law and several Department regulations by failing to facilitate the examination; failing to maintain its books of account at its principal office in a durable medium; failing to provide prior notification to the Superintendent of its intention to enter into transactions with various affiliates in which the transaction amounts exceeded one half of one percent of the Company’s prior year admitted assets; failing to provide prior notification to the Superintendent of its intention to enter into a novation reinsurance agreement with its affiliates; entered into service agreements with various members of its holding company system without the prior approval of the Superintendent; used an unapproved waiver of premium rider and an unapproved policy application form; included an asset of doubtful value in its gross assets on its December 31,2001 Annual Statement; failing to allocate net investment income to major annual statement lines of business in accordance with regulation guidelines; failing to report its expenses on the proper lines in Exhibit 5 of the 2001 annual statement; failing to properly allocate expenses among companies; failing to allocate general expenses and taxes, licenses and fees to reflect the actual incidence of cost by line of business; and by failing to maintain at its home office a complete advertisement file.

 

LICENSEE

ADDRESS

PENALTY

Windsor Insurance Company 11700 Great Oaks Way

Alpharetta, GA

$40,550 fine
Respondent violated the Insurance Law and several Department regulations that require an insurer to send a No-Fault application within five business days after receipt of notice of claim; send a follow up No-Fault application if the original application is not returned within 30 calendar days; send a follow up verification form if the original is not returned within 30 calendar days; pay or deny a claim within 30 calendar days of receipt of relevant information and/or proof of claim; pay interest on overdue PIP benefits at a rate of 2 percent per month; report all total theft losses to the National Insurance Crime Bureau (NICB) immediately, but no later than two business days after notice of claim; report to the NICB all first – and-third party losses, however sustained, where damage to the claimant’s vehicle exceeds $2,500 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; within fifteen days of receipt of notice of claim, send either a written acknowledgment or payment to the claimant. Upon verification of coverage the insurer must acknowledge the claim and provide claimant with required information.

 

AGENT AND BROKER HEARINGS

Region: New York City

LICENSEE

ADDRESS

PENALTY

Future Now Realty, LLC

(Broker)

and

Andrew R. Watson

(Sublicensee and Broker)

1069 Nostrand Avenue

Brooklyn, NY

 

Same as above

$2,500 fine
Respondents violated a previous disciplinary Department action by issuing two premium payment checks that were dishonored by the bank upon which drawn. The checks were subsequently replaced. In addition, Respondents commingled premium monies by paying personal and/or operating expenses out of the premium money bank account and failed to cooperate with the Department’s investigation of the matter.

 

LICENSEE

ADDRESS

PENALTY

Maritza Garcia

(Broker)

270 Prospect Park West

Brooklyn, NY

License revoked
Respondent violated the Insurance Law by issuing four checks for the payment of premium that were dishonored by the bank upon which drawn, but were subsequently replaced. Respondent had been previously disciplined by the Department for engaging in similar activities involving dishonored checks.

 

LICENSEE

ADDRESS

PENALTY

Casey A. Greenfield

(Agent)

67-13 Myrtle Avenue

Glendale, NY

$100 fine
Respondent violated the Insurance Law by failing to disclose on her original license application that she had been adjudged a bankrupt.

 

LICENSEE

ADDRESS

PENALTY

Paula Jones

(Agent)

2175 Cedar Avenue

#4E

Bronx, NY

License revoked
Respondent was employed as the sales manger in the New York City office of SBLI USA Mutual Life Insurance Company. Respondent violated the Insurance Law by making unauthorized changes in the computer data concerning two SBLI insureds in order to convert and misappropriate their insurance monies without the knowledge or permission of the said insureds or SBLI.

 

LICENSEE

ADDRESS

PENALTY

Louis E. Rivadenria

(Agent)

175 West 81st Street, Apt. 3-E

New York, NY

License revoked
Respondent violated the Insurance Law by engaging in a fraudulent scheme to collect unearned commissions from his employer, the MONY Insurance Group. Respondent failed to cooperate with Department request for an explanation thereby hampering and impeding its investigation.

 

Region: Mid-Hudson

LICENSEE

ADDRESS

PENALTY

Bonnie L. Wilson

(Agent)

State Farm

299 North Comrie Avenue

Johnstown, NY

License revoked
Respondent demonstrated untrustworthy conduct by failing to deposit in the account of her employer insurance premiums she had collected. Respondent was convicted of the crime of Grand Larceny and failed to cooperate with the Department concerning her criminal conviction, thereby hampering and impeding its investigation.

 

Region: Westchester

LICENSEE

ADDRESS

PENALTY

Joe Campo

(Agent)

Allstate Insurance

38 South Ridge Street

Rye Brook, NY

License revoked
Respondent was decertified by the New York Automobile Insurance Plan for one year for various alleged violations of Plan rules. The Respondent failed to provide the Department with notarized statements regarding the violations and thereby hampered and impeded its investigation.

 

Region: Out of State

LICENSEE

ADDRESS

PENALTY

Nerissa D. Hudson

(Broker)

4411 Northside Drive

16F

Macon, GA

License revoked
Respondent demonstrated untrustworthy conduct by collecting an automobile insurance deposit from an insured and issuing a fraudulent automobile identification card that did not represent actual insurance coverage. Respondent did not submit the insurance application and premium monies to the New York Automobile Insurance Plan in a timely manner, thereby causing a gap in the insured’s coverage. In addition, the Respondent was decertified by the NYAIP for issuing numerous deficient applications; issuing 13 ID cards without submitting corresponding applications; and for seven producer performance standard violations.

 

LICENSEE

ADDRESS

PENALTY

Dennis Joseph Kyne, Jr.

(Broker)

305 E Empire Street

San Jose, CA

License revoked
Respondent demonstrated untrustworthiness by failing to cooperate with the Department in its investigation into the denial of Respondent’s insurance license application by the Wisconsin Insurance Department. Respondent did not disclose a previous administrative action taken against him by the State of California.

 

LICENSEE

ADDRESS

PENALTY

Smyth Sanford & Gerard, Inc.

(Broker)

and

Thomas C. Chiappa

(Broker and Sublicensee)

5 Hanover Square, 5th Fl

New York, NY

85 Fairmount Avenue

Morristown, NJ

License revoked

 

License revoked

Smyth, Sanford & Gerard (SS&G) engaged in at least 700 reinsurance intermediary transactions in New York although they were not licensed as a reinsurance intermediary; RR&G failed to properly maintain its books and records. The Department, upon examining said books and records, was unable to reasonably ascertain the identity of the principals and to match them with the specific amount of money that belongs to each of them.

 

AGENT AND BROKER STIPULATIONS

Region: Buffalo

LICENSEE

ADDRESS

PENALTY

Jeffrey J. Davis

(Agent)

1 John James Audubon Parkway

Amerst, NY

$1,000 fine
Respondent demonstrated untrustworthiness by issuing an insurance premium transmittal check that was dishonored by the bank upon which drawn, but was subsequently replaced. In addition, Respondent commingled his premium account by paying personal and operating expenses using premium monies.

 

Region: Mid Hudson

LICENSEE

ADDRESS

PENALTY

Patrick J. Torpey

(License Pending)

21 St Century Coll Center, Inc.

25 Blooming Grove Turnpike

New Windsor, NY

$500 fine
Respondent demonstrated untrustworthiness by failing to disclose on his original adjuster’s application that he had been convicted in a criminal action.

 

Region: Nassau

LICENSEE

ADDRESS

PENALTY

Cosmo Insurance Brokerage, Inc.

(Broker/Agent)

and

John W. Papazoglou

(Agent, Broker and Sublicensee)

36-19 30th Avenue

Astoria, NY

 

525 Plainview Road

Plainview, NY

$500 Fine
Respondents demonstrated untrustworthiness by issuing 13 insurance premium transmittal checks that were dishonored by the bank upon which drawn, but were subsequently replaced.

 

Region; New York City

LICENSEE

ADDRESS

PENALTY

Anton Adjustment Company, Inc.

and

Joseph J.Antonakos

(Sublicensee)

97-04 101st Avenue

Ozone Park, NY

Same as above

$1,000 fine
Respondents violated the Insurance Law by using a retainer agreement that failed to conform to Department Regulation and Respondents also failed to provide information requested by the Department in a timely manner thereby hampering and impeding the Department’s investigation.

 

LICENSEE

ADDRESS

PENALTY

Arthur Leone

(Agent)

Countrywide Insurance Company

40 Wall Street

New York, NY

$500 fine
Respondent demonstrated untrustworthiness by failing to disclose on his license renewal application that he had been adjudged a bankrupt.

 

LICENSEE

ADDRESS

PENALTY

Juan A. Talavera

(Broker)

t/b/a

J T Brokerage Co.

1205 East 91 Street

Brooklyn, NY

 

Same as above

$500 fine
Respondent demonstrated untrustworthiness by issuing six insurance premium transmittal checks that were dishonored by the bank upon which drawn, but were subsequently replaced.

 

LICENSEE

ADDRESS

PENALTY

Yuriy Prakhin

(Broker)

3857 Oceanview Avenue

Brooklyn, NY

$1,000 fine
Respondent demonstrated untrustworthiness by issuing three insurance premium transmittal checks that were dishonored by the bank upon which drawn, but were subsequently replaced. In addition, the Respondent commingled his premium account by paying personal and business expenses using premium money.

 

Region: Suffolk County

LICENSEE

ADDRESS

PENALTY

Sterling & Sterling, Inc.

(Broker)

and

David A. Sterling

(Broker, CFO and Sublicensee)

45 Crossway Park Drive

Woodbury, NY

 

Same as above

$4,550 fine
Respondents violated several sections of the Insurance Law and Department regulations by failing to file affidavits with the Excess Line Association of New York (ELANY) in connection with 13 of such policies, and by filing incomplete and/or late affidavits with ELANY in connection with 7 of such policies.

 

Region: Syracuse

LICENSEE

ADDRESS

PENALTY

Donald R. Kotas

(Pending Licensee)

122 Chaffee Avenue

Syracuse, NY

$500 fine
Respondent demonstrated untrustworthiness by failing to disclose on his original adjuster’s application that he had been convicted in a criminal action in 1989.

 

Region: Utica

LICENSEE

ADDRESS

PENALTY

Brian P. Revere

(Agent)

1806 Stone Road

Cassville, NY

$500 fine
Respondent demonstrated untrustworthiness by failing to disclose on his renewal application that he had been adjudged a bankrupt.

 

Region: Westchester

LICENSEE

ADDRESS

PENALTY

HMA Insurance Agency, Inc.

(Broker)

and

Hector Almodovar

(Broker and Sublicensee)

19 Mill Street

Portchester, NY

 

Same as above

$500 fine
Respondents demonstrated untrustworthiness by issuing eight insurance premium transmittal checks that were dishonored by the bank upon which drawn, but were subsequently replaced.

 

Region: Out of State

LICENSEE

ADDRESS

PENALTY

Jon L. Allen

(Agent)

2248 Camino Ramon

San Ramon, CA

$1,889 fine
Respondent violated Department Regulation 60 and several provisions of the Insurance Law in connection with two new life policies that he placed. Respondent failed to obtain with each application and submit to his insurance company along with each application a completed "Definition of Replacement" as required. In addition, Respondent knew that as part of the placement of the two new life policies, two existing life policies were likely to be lapsed and that the transaction therefore constituted a replacement of a life insurance policy within the meaning of Regulation 60, yet Respondent failed to obtain with the application a list of all existing life insurance policies proposed to be replaced, notify the insurance companies of the proposed replacement, and comply with the requirements of Regulation 60 pertaining to the replacement of life insurance.

 

LICENSEE

ADDRESS

PENALTY

Amanda Sue Augustine

(Agent)

c/o Teleperformance USA

12 Northpoint Drive

Streator, IL

License revoked
Respondent demonstrated untrustworthiness by failing to disclose on her original agent’s application that she had been convicted in a criminal action.

 

LICENSEE

ADDRESS

PENALTY

American Guardian Warranty Services, Inc.

(Pending Licensee)

800 Roosevelt Road

E-100

Glen Ellyn, IL

$10,000 fine
Respondent acted as a service contract provider without first obtaining an approval of a registration to do so from the Superintendent as required under the Insurance Law. In addition, Respondent became contractually obligated to provide service under service contracts without complying with one of the financial responsibility requirements set forth in the Insurance Law.

 

LICENSEE

ADDRESS

PENALTY

Michael R. Grasso

(Broker)

71 D Hawthorne Avenue

Park Ridge, NJ

$1,500 fine
Respondent violated the Insurance Law and Department regulations in connection with his activities related to Millennium Business Association of America, Inc., an unlicensed health insurance business operating in the State of New York.

 

LICENSEE

ADDRESS

PENALTY

Raquel C. Hill

(Agent)

The Hartford

101 Civic Center Drive

Santee, CA

$1,500 fine
Respondent demonstrated untrustworthiness by failing to disclose on her original agent’s application that she had been convicted in a criminal action.

 

LICENSEE

ADDRESS

PENALTY

The Meltzer Group, Inc.

(Agent)

and

 

Alan L. Metzer

(Agent and Sublicensee)

6707 Democracy Blvd.

Suite 500

Bethesda, MD

 

Same as above

$500 fine
Respondent demonstrated untrustworthiness by failing to disclose on his Individual Life/Accident & Health Agent renewal application that the Commonwealth of Virginia, State Corporation Commission issued a Settlement Order accepting an offer of settlement made by the Respondent wherein Respondent without admitting any violation of law, tendered to the Commonwealth of Virginia the sum of $1,500.

 

LICENSEE

ADDRESS

PENALTY

Rskco Claims Services, Inc.

(Independent Adjuster)

405 Highway 121 Bypass

Building A, Suite 200

Lewisville, TX

$25,000 fine
Respondent violated the Insurance Law when he acted as an independent adjuster with respect to 682 claims on New York State risks for insurance companies other than parent company, notwithstanding that Respondent was not licensed as an independent adjuster from January 1, 1999 to June 12, 2000.

 

FINES FOR LATE FINANCIAL STATEMENTS

        The following health maintenance organization (HMO) has been fined for late submission of its 2002 annual statements, 2003 Quarterly Statement and 2002 CPA Report:

LICENSEE

ADDRESS

PENALTY

AmeriChoice of New York, Inc. 7 Hanover Square

New York, NY

$2,000 fine

 


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