New York State
Insurance Department


ISSUED 9/20/2005

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

AIU Insurance Company

70 Pine Street

New York, NY

$122,200 fine

Respondent violated the Insurance Law and Department Regulations with respect to the No-Fault requirement that payment or denial of claim must be made within 30 calendar days of receipt of relevant information and/or proof of claim; that all overdue PIP benefits shall bear interest at a rate of 2 percent per month, compounded and calculated on a pro rata basis; that all communications and transactions must be made part of and maintained in the claim file; that after modifications of a loss, the insurer will have six business days to make an inspection of the vehicle and make a good faith offer of settlement; that the insurer must provide a detailed written estimate specifying all appropriate deductions that must be received by the insured’s designated representative; that in the case of an unrecovered theft loss, the insurer shall make a good faith offer of settlement within 25 calendar days following the notice of loss and in the case of all other total loss situations, the insurer shall make a good faith offer of settlement within 11 calendar days following the notice of loss; that if a claim remains outstanding more than 30 calendar days subsequent to the claimant’s notice of loss, the insurer shall send a written explanation of the specific reasons for the delay every 30 calendar days; that all total losses shall be reported to the National Insurance Crime Bureau immediately, but no more than two business days following notice of claim; and that an inspection report must be made part of the claim file.

 

LICENSEE

ADDRESS

PENALTY

The Charter Oak Fire Insurance Company

The Travelers Indemnity Company

The Travelers Indemnity Company of American

One Tower Square, 5GS

Hartford, CT

Same as above

 

Same as above

$75,000 fine

Respondents violated 3426(e) of the Insurance Law in connection with certain commercial insurance policies by issuing conditional renewal notices that did not include the specific reason or reasons for conditional renewal and/or the exact amount of a reasonable estimate of the premium increase as required by the Insurance Law.

 

LICENSEE

ADDRESS

PENALTY

Empire Fidelity Investments Life Insurance Company

200 Liberty Street

One World Financial Center

New York, NY

$10,000 fine

Respondent violated the Insurance Law by receiving services from its ultimate parent without giving prior notification to the Superintendent; and by reinsuring 100% of its whole risk with GE Capital Life Assurance Company of New York without permission of the Superintendent.

 

LICENSEE

ADDRESS

PENALTY

Erie Insurance Company

100 Erie Insurance Place

Erie, PA

$12,650 fine

Respondent violated the Insurance Law and Department Regulations that state that an insurer must send a No-Fault verification form within ten business days of receipt of a no-fault application; that an insurer must send a follow-up no-fault application if the original application is not returned within 30 calendar days; that payment or denial of claim must be made within 30 calendar days of receipt of relevant information and/or proof of claim; that all overdue PIP benefits shall bear interest at a rate of 2 percent per month, compounded and calculated on a pro rata basis; that in determining loss of earnings from work, claimant is entitled to receive 80% of lost wages up to the policy limits; that in the case of an unrecovered theft loss, the insurer shall make a good faith offer of settlement within 25 calendar days following the notice of loss and in the case of all other total loss situations, the insurer shall make a good faith offer of settlement within 11 days following the notice of loss; that a rental letter must be sent to the insured immediately, but no more than two business days after notice of claim, and that an inspection report must be made part of the claim file.

 

LICENSEE

ADDRESS

PENALTY

Greater New York Mutual Insurance Company

200 Madison Avenue

New York, NY

$10,000 fine

Respondent violated 3426(e) of the Insurance Law in connection with certain commercial insurance policies, by failing to issue conditional renewal notices in instances where the notice was required, and by issuing conditional renewal notices that did not specify the specific reason or reasons for conditional renewal and/or the exact amount or a reasonable estimate of the premium increase as required by Law.

 

LICENSEE

ADDRESS

PENALTY

Government Employees Insurance Company

GEICO

1 GEICO Plaza

Washington, DC

$26,100 fine

Respondent violated the Insurance Law and Department Regulations that state that a No-Fault 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 a rate of 2 percent per month.

 

LICENSEE

ADDRESS

PENALTY

Hanover Insurance Company

440 Lincoln Street, Box 5430

Worcester, MA

$25,000 fine

Respondent violated 3426(e) of the Insurance Law in connection with certain commercial insurance polices, by failing to issue conditional renewal notices in instances where the notice was required, and by issuing conditional renewal notices that did not include the specific reason or reasons for conditional renewal and/or the exact amount or a reasonable estimate of the premium increase, as required by the Insurance Law.

 

LICENSEE

ADDRESS

PENALTY

Insurance Company of the State of Pennsylvania

The American International Group

One AIG Center

Wilmington, DE

$18,850 fine

Respondent violated the Insurance Law and Department Regulations that state that payment or denial of a No-Fault claim must be made within 30 calendar days of receipt of relevant information and/or proof of claim; that all overdue PIP benefits shall bear interest at a rate of 2 percent per month; and that all communications and transactions must be made part of and maintained in the claim file.

 

LICENSEE

ADDRESS

PENALTY

Main Street American Assurance Company

4601 Touchton Road

Jacksonville, FL

$7,800 fine

Respondent violated the Insurance Law and Department Regulations that state that payment or denial of a No-Fault claim must be made within 30 calendar days of receipt of relevant information and/or proof of claim; and that a rental letter must be sent to the insured immediately, but no more than two business days, after notice of claim.

 

LICENSEE

ADDRESS

PENALTY

National Grange Mutual Company

4601 Touchton Road

Jacksonville, FL

$15,350 fine

 

Respondent violated the Insurance Law and Department Regulations that state that payment of or denial of a No-Fault claim must be made within 30 calendar days of receipt of relevant information and/or proof of claim; that if a claim remains outstanding more than 30 calendar days subsequent to the claimant’s notice of loss, the insurer shall send a written explanation of the specific reasons for the delay in claim settlement every 30 calendar days; that a rental letter must be sent to the insured immediately, but no more than two business days, after notice of claim; that insurers shall report to the National Insurance Crime Board, all losses over $2,500 no later than five calendar days after the sale of salvage and no later than five calendar days after the date of loss payment; and that an inspection report must be made part of the claim file.

 

 

LICENSEE

ADDRESS

PENALTY

OneBeacon American Insurance Company

One Beacon Street

Boston, MA

$10,000 fine

Respondent violated 3426(e) of the Insurance Law in connection with certain commercial insurance policies, by failing to issue conditional renewal notices in instances where the notice was required and by issuing conditional renewal notices that did not specify the specific reason or reasons for conditional renewal and/or the exact amount or a reasonable estimate of the premium increase, as required by the Insurance Law.

 

LICENSEE

ADDRESS

PENALTY

United States Fire Insurance Company

305 Madison Avenue

Morristown, NJ

$29,400 fine

Respondent violated 3426(e) of the Insurance Law in connection with certain commercial insurance policies, by failing to issue conditional renewal notices in instances where the notice was required or issued conditional renewal notices that did not include the specific reason or reasons for conditional renewal and/or the exact amount or a reasonable estimate of the premium increase, as required by the Insurance Law.

 

AGENT & BROKER HEARINGS

Region: New York City

LICENSEE

ADDRESS

PENALTY

Niama Boularhmane

(Broker)

6922 5th Avenue, 3rd Fl.

Brooklyn, NY

License revoked

Respondent demonstrated untrustworthy conduct by issuing three premium payment checks that were dishonored by the bank upon which drawn and were not replaced. Respondent failed to cooperate with the Department’s investigation thereby hampering and impeding its investigation.

 

LICENSEE

ADDRESS

PENALTY

Eden Damour

(Broker)

541 Hempstead Turnpike

Elmont, NY

$2,500 fine

Respondent demonstrated untrustworthy conduct by issuing five insurance premium checks that were dishonored by the bank upon which drawn, but were subsequently replaced. In addition, Respondent admitted using the same checking account to issue both premium and operating or personal expense checks and conducted insurance activities under the unlicensed name "Dignity Brokerage & Multiservices, Inc."

 

LICENSEE

ADDRESS

PENALTY

Alberto L. Hope

(Broker)

203 Gunther Avenue

Bronx, NY

License revoked

Respondent violated the Insurance Law by issuing four premium checks that were dishonored by the bank upon which drawn, but were subsequently replaced. In addition, the Respondent had an additional insurance license with which he transacted business in the name "All Hope Brokerage." This license had expired a number of years prior to the hearing, yet the Respondent had operated the insurance brokerage in the unlicensed name. The Respondent was fined $2,900 for these infractions, but failed to pay the monetary penalty. As a result, the Respondent’s license was revoked.

 

LICENSEE

ADDRESS

PENALTY

Jenkins J D Agency, Inc.

(Broker)

and

Joseph D. Jenkins

(Sublicensee and Broker)

197 Ralph Avenue

PO Box 330708

Brooklyn, NY

Same as above

License revoked

Respondents violated the Insurance Law by issuing three insurance premium checks that were dishonored by the bank upon which drawn. Respondents paid various bills for personal and business expenses out of the corporate escrow account. The Respondents failed to respond to the Department’s letters, thus hampering and impeding the Department’s investigation. The Respondents were subsequently fined $2,500, contingent on providing evidence that a dishonored check had been replaced. The Respondents failed to pay the monetary penalty or submit evidence of the replaced check and, as a result, the Respondents’ license were revoked.

 

LICENSEE

ADDRESS

PENALTY

Ulric E. Joseph

(Agent)

2106 Bedford Avenue

Brooklyn, NY

License revoked

Respondent demonstrated untrustworthy conduct by wrongfully issuing numerous dishonored premium checks and did not replace a substantial number of them. He commingled premium monies with non-premium monies and failed to respond to the Department’s letters thus hampering and impeding its investigation.

 

LICENSEE

ADDRESS

PENALTY

Valerius M. Michel

(Broker)

545 Decatur Street

Uniondale, NY

License revoked

Respondent violated the Insurance Law by issuing three premium checks that were dishonored by the bank upon which drawn. Two were replaced, but the Respondent was unable to provide documentary evidence that the third had been replaced. The Respondent also failed to open an insurance fiduciary funds bank account and, as a result, commingled his insurance business funds with funds from his other business and from his personal business.

 

Region: Suffolk County

LICENSEE

ADDRESS

PENALTY

David M. Silver

(Agent)

c/o General Electric

510 Broadhollow Road

Melville, NY

$2,000 fine

Respondent violated the Insurance Law by failing to disclose on his agent’s license renewal application that he had been convicted in a criminal action.

 

Region: Out of State

LICENSEE

ADDRESS

PENALTY

Sarah E. Biasiolli

(Agent)

8703 Wellesley Manor

San Antonio, TX

License revoked

Respondent disclosed on her insurance agent renewal application that a criminal action was currently pending against her. Respondent failed to answer in a timely manner when requested to furnish information concerning such criminal action, thereby hampering and impeding the Department’s investigation. Respondent eventually did furnish requested information and was fined $300. When Respondent failed to pay the $300 fine, her license was revoked.

 

LICENSEE

ADDRESS

PENALTY

Terry O. May

(Agent)

6628 Hidden Lake Trail

Brecksville, OH

License revoked

Respondent failed to disclose on his license renewal application that the South Dakota Division of Insurance had denied him a producer license. Respondent failed to cooperate with Department’s request for information concerning the denial, thereby hampering and impeding its investigation.

 

AGENT AND BROKER STIPULATIONS

Region: Albany

LICENSEE

ADDRESS

PENALTY

Darby C. Wilson

(Independent Adjuster)

73 Meadow Brook Road

Watervliet, NY

$500 fine

Respondent violated the Insurance Law by failing to disclose on his original application for adjuster’s license that he had been convicted in a criminal action.

 

Region: Mid-Hudson

LICENSEE

ADDRESS

PENALTY

Steven P. Phillips

(Agent)

115 Temple Hill Road

Ste. 1600

Vails Gate, NY

$2,500 fine

Respondent demonstrated untrustworthy conduct by issuing seven insurance premium checks that were dishonored by the bank upon which drawn, but were subsequently replaced. In addition, the Respondent initially hampered and impeded the Department’s investigation by failing to provide requested information and documentation. The Respondent subsequently complied with the Department’s request.

 

Region: Nassau County

LICENSEE

ADDRESS

PENALTY

Dias A J Services Corp

(Broker)

and

Antonio J. Dias

(Sublicensee and Agent)

95-31 Sutphin Blvd.

Jamaica, NY

14 Clafford Lane

Melville, NY

$1,500 fine

Respondent violated the Insurance Law by issuing five insurance premium checks that were dishonored by the bank upon which drawn, but were subsequently replaced.

 

LICENSEE

ADDRESS

PENALTY

Jimenco Brokerage, LTD

(Broker)

and

Luis M. Jimenez

(Sublicensee and Broker)

42-18 104th Street

Corona, NY

104-28 43rd Avenue

Corona, NY

$1,500 fine

Respondents violated the Insurance Law by issuing three insurance premium checks that were dishonored by the bank upon which drawn, but were subsequently replaced. In addition, Respondents commingled their premium account by paying personal and operating expenses using premium monies.

 

LICENSEE

ADDRESS

PENALTY

Debra S. Lamon

(Agent)

1606 Lakeview Drive

Hewlett, NY

$500 fine

Respondent violated the Insurance Law by failing to disclose on her original application for an agent’s license that she had been adjudged a bankrupt.

 

LICENSEE

ADDRESS

PENALTY

Carl Rouzier

(Broker)

t/b/a

Rouzier Financial Services

167-16 Hillside Avenue

2nd Fl.

Jamaica, NY

Same as above

$1,000 fine

Respondent demonstrated untrustworthy conduct by issuing 20 premium checks that were dishonored by the bank upon which drawn. In addition, Respondent was placed by the New York Automobile Insurance Plan on the certified check requirement list for issuing checks that were dishonored by the bank upon which drawn. All dishonored checks were subsequently replaced. Respondent also commingled funds in his premium account.

 

Region: New York City

LICENSEE

ADDRESS

PENALTY

Luis A. Bolanos

(Broker)

77-02 Pitkin Avenue

Ozone Park, NY

$2,000 fine

Respondent demonstrated untrustworthy conduct by issuing six insurance premium checks that were dishonored by the bank upon which drawn, but were subsequently replaced. In addition, the Respondent commingled his premium account by paying personal and business expenses from such account.

 

LICENSEE

ADDRESS

PENALTY

Michael D. Brockman Company, Inc.

(Agent)

and

Michael D. Brockman

(Agent and Sublicensee)

405 Park Avenue, Ste. 1704

New York, NY

 

Same as above

$2,500 fine

Respondents violated the Insurance Law by attesting that their continuing education requirements had been completed, when in fact they had not. Respondents have since fulfilled their requirements for licensing.

 

LICENSEE

ADDRESS

PENALTY

Champion Insurance Brokerage, Inc.

(Broker)

and

Robert Chaipeta

(Broker, Agent & Sublicensee)

2701 Williamsbridge Road

Bronx, NY

 

24 Windingbrook Road

New Rochelle, NY

$1,500 fine

Respondent demonstrated untrustworthy conduct by permitting an unlicensed employee to process an insurance transaction for an insured. Respondents also collected an insurance premium deposit and failed to remit a portion of the deposit to the insurer. Respondents had the premium finance company cancel the aforementioned premium finance contract and had the insurer bill the client on an installment basis. Respondents subsequently rescinded the transaction conducted by the unlicensed employee and paid the insurer the amount that had not been remitted.

 

LICENSEE

ADDRESS

PENALTY

Daniel F. Ciminera

(Broker)

116 McKee Street

Floral Park, NY

$1,000 fine

Respondent demonstrated untrustworthy conduct by issuing premium checks that were dishonored by the bank upon which drawn. All dishonored checks were subsequently replaced. The Respondent was previously disciplined by the Department for dishonoring premium checks.

 

LICENSEE

ADDRESS

PENALTY

Salvatore Guttaduaro

(Broker)

2012 Bay Ridge Parkway

Brooklyn, NY

$2,500 fine

Respondent demonstrated untrustworthy conduct by collecting insurance premiums that he failed to remit to the insurer or return to the insured in a timely manner. The payments were subsequently accounted for and returned to the insured. The Department directed the Respondents to provide information concerning the cited premium payments, which the Respondent initially failed to fully provide, thereby hampering and impeding the investigation. The Respondent subsequently provided the requested information.

 

LICENSEE

ADDRESS

PENALTY

Hartan Brokerage, Inc.

(Broker)

and

Edward B. Pray

(Sublicensee and Broker)

33 West 60th Street, 6th FL

New York, NY

6 Brundige Drive

Golden Bridge, NY

$7,100 fine

Respondents violated the Insurance Law by placing excess line terrorism coverage on behalf of an insured with an ineligible excess line insurer. The Respondents also procured seven policies providing excess lines insurance coverage for which they filed late affidavits with the Excess Line Association of New York.

 

LICENSEE

ADDRESS

PENALTY

Herby Joseph

(Broker)

2461 Bragg Street

Brooklyn, NY

$4,000 fine

Respondent demonstrated untrustworthy conduct by issuing eight insurance premium transmittal checks that were dishonored by the bank upon which drawn, but were subsequently replaced and by commingling his premium account by paying personal and operating expenses using premium monies. The Respondent operated an insurance business under the name "Herby’s Insurance," an entity not know to or licensed by the Insurance Department. In addition, the Respondent was previously disciplined by the Department for commingling funds and dishonoring checks and agreed to take all necessary stops to prevent recurrence of similar violations. The Respondent breached those agreements.

 

LICENSEE

ADDRESS

PENALTY

Jean D. Marcellus

(Agent & Broker)

82-12 151 Avenue

Howard Beach, NY

$2,500 fine

Respondent demonstrated untrustworthiness by issuing three insurance premium transmittal payment checks that were dishonored by the bank upon which drawn, but were subsequently replaced. The Respondent also commingled his insurance premium account by paying personal and business expenses using premium funds and operated his insurance business using the name "Encore Services," an entity not known to or licensed by the Department.

 

Region: Rochester

LICENSEE

ADDRESS

PENALTY

Lon T. Horton

(Agent & Broker)

3773 Lake Road

Brockport, NY

License revoked

Respondent demonstrated untrustworthiness by issuing 42 Certificates of Insurance without submitting a corresponding application to an authorized insurer. The Respondent also failed to make his books and records available for a Department audit.

 

Region: Syracuse

LICENSEE

ADDRESS

PENALTY

Katherine D. Howard

(Agent)

273 Rte. 26

Cincinnatus, NY

$500 fine

Respondent violated the Insurance Law by failing to disclose on her original agent’s license application that she had been adjudged a bankrupt.

 

LICENSEE

ADDRESS

PENALTY

John A. Willitts

(Agent)

210 Oneida Street

Fulton, NY

License revoked

The Respondent misrepresented the cost and coverage of policies he sold to his clients. In order to avoid detection, the Respondent diverted notices and changes intended for delivery to his policyholders causing cancellations and other hardships to his clients. He was terminated from his employment for such actions and subsequently misrepresented the cause of such termination to the Department, thereby hampering and impeding the Department’s investigation.

 

Region: Westchester

LICENSEE

ADDRESS

PENALTY

Ralph S. Adorno

(Agent)

Ralph S. Adorno & Associates, Inc.

248 Old Church Road

Putnam, NY

$500 fine

Respondent violated the Insurance Law by failing to disclose on his agent’s renewal application that he had been adjudged a bankrupt.

 

LICENSEE

ADDRESS

PENALTY

Steven J. Schacter

(Agent)

Forest Hills Financial Group, Inc.

118 North Bedford Road

Suite 301

Mount Kisco, NY

$1,000 fine

Respondent violated the Insurance Law by leaving a threatening message on the voice mail of another insurance agent whom Respondent believed had improperly transacted a life insurance business with one of Respondent’s clients.

 

Region: Out of State

LICENSEE

ADDRESS

PENALTY

Lisa A. Chirichillo

(Agent)

1163 Washington Street

Toms River, NJ

$500 fine

Respondent violated the Insurance Law by failing to disclose on her original license application that she had been fined by the New Jersey Banking Department for failing to provide a written notification of a residence change.

 

LICENSEE

ADDRESS

PENALTY

Carl E. Dickerson

(Agent & Broker)

Dickerson Employee Benefits

1918 Riverside Drive

Los Angeles, CA

$500 fine

Respondent violated the Insurance Law by failing to disclose on his original license application that his Alabama insurance license had been suspended for failing to comply with Alabama’s license renewal and continuing education requirements.

 

LICENSEE

ADDRESS

PENALTY

NFC Consulting Group

101 North Wacker Drive

Suite 1500

Chicago, Il

$2,000 fine

Respondent was in non-compliance with continuing education program criteria by failing to display the required provider, instructor and course approval documents at the sites of instruction. The Respondent also utilized the services of an instructor who was not approved by the Department.

 

LICENSEE

ADDRESS

PENALTY

Kelvin L. Thomas

(Agent)

4200 Horizon N. Pkwy

Apt. 313

Dallas, TX

$1,500 fine

Respondent violated the Insurance Law by failing to disclose on his original insurance agent application that he had been convicted in a criminal action.

 

LICENSEE

ADDRESS

PENALTY

Vericlaim, Inc.

And

Joseph A. Dotoli,

(Sublicensee and Independent Adjuster)

233 S. Wacker Drive

Suite. 2420

Chicago, IL

Same as above

$500 fine

Respondent demonstrated untrustworthiness by allowing an employee to act as an insurance adjuster without being licensed in any capacity by the Department.

 


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