FOR IMMEDIATE RELEASE
NEW YORK STATE INSURANCE DEPARTMENT ISSUES CITATIONS TO UNIVERSAL LIFE RESOURCES, INC., THREE AFFILIATES, AND AN EXECUTIVE AS PART OF ONGOING JOINT INVESTIGATION WITH NEW YORK STATES ATTORNEY GENERAL INTO FEE ARRANGEMENTSSuperintendent of Insurance Gregory V. Serio today announced that the New York State Insurance Department has issued citations to Douglas P. Cox, a New York State licensed insurance agent, Universal Life Resources, Inc. (ULR), ULR Resources, ULR Insurance Services, Inc., and Benefits Commerce as part of the Departments ongoing investigation with New York State Attorney General Eliot Spitzers office into contingent commission fee arrangements.
"The Departments citation alleges that the respondents used fraudulent, coercive and/or dishonest practices, and demonstrated untrustworthiness, in their sales of group life and disability insurance to employers. These inflated costs were unknowingly borne by employees of these corporations," Superintendent Serio stated.
The five respondents have been directed to appear at the Insurance Department on Tuesday, Dec. 14, 2004 at 10 a.m. to respond to the charges.
The respondents sell group life, disability and other insurance coverage to major corporations for their employees and were charged in the Attorney Generals lawsuit with steering business illegally to insurers who paid fees that were not disclosed to the corporations that retained them. Mr. Cox is the President and Chief Executive Officer of Universal Life Resources, Inc. (ULR). ULR is a California corporation that has a New York office. ULR Resources, ULR Insurance Services, Inc. and Benefits Commerce are all affiliated with ULR.
The New York State Insurance Department has the authority to suspend or revoke licenses, seek restitution on behalf of aggrieved parties, and levy monetary penalties against its licensees.