New York State Insurance Department Takes Disciplinary Actions Against Agents, Brokers & Adjusters.

ALBANY, N.Y.--(BUSINESS WIRE)--Sept. 29, 1999--

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 hearings are subject to judicial review and possible stay of enforcement.

INSURANCE COMPANIES

LICENSEE                 ADDRESS                      PENALTY

Amerisure Insurance      2677 Halsted Road            $33,750 fine
Company                  Farmington Hills, MI

     During 1997 and 1998 calendar years, the company violated
insurance Law by exceeding the maximum number of private passenger
automobile non-renewals permitted for those calendar years.

Clarendon National       1177 Avenue of the Americas  $387,150 fine
Insurance Company        New York, NY

     A market conduct investigation of the above company's public
automobile (livery) business conducted by the Department revealed
various violations of the Insurance Law and/or Department Regulations.

Legion Insurance         1 Logan Square               $4,000 fine
Company                  Philadelphia, PA

     A market conduct claims investigation of automobile insurance
business conducted by the Department revealed violations of the
Insurance law and/or Department regulations.

MONY Life Insurance      1740 Broadway                $150,000 fine
Company                  New York, NY 10019

     Company used life insurance policies as funding vehicles for the
Moser Farm Distributor Financial Security Plan or Producers Financial
Security Plan. Company will offer payment options to participants that
return to each participant his or her contribution plus interest.

Monitor Life Ins.        70 Genesee Street            $10,000 fine
Co. of NY                Utica, NY

     Failed to provide upon request adequate documentation to support
statements made in several of its advertisements concerning the costs
of products advertised. Violated Regulation 34-A when it made
references in advertisements to its parent company in a manner which
created the impression that its parent company has responsibility for
the financial obligations under a policy issued by the Company and
also failed to maintain its advertising files in a manner consistent
within the requirements set forth in the regulation.

Tri-State Consumers      2 Robbins Lane               $38,100 fine
Ins. Co.                 Jericho, NY

     Company violated Regulation 68 which requires that payment or
denial of a claim must be made within 30 days of receipt of relevant
information and/or proof of claim.

Valley Forge             C.N.A. Plaza                 $9,750 fine
Insurance Company        Chicago, IL

     A market conduct investigation revealed that in 1997 the Company
violated the Insurance Law by exceeding the maximum number of private
passengers automobile non-renewals permitted for that calendar year.

STIPULATIONS

BUFFALO REGION

Krieger, Jennifer L.     6677 Power Road              $750.00 fine
(agent)                  Orchard Park, NY

     In 1993, Ms. Krieger violated Regulation 60(a) when she failed to
obtain a complete list of all the applicant's existing life insurance.

Setter, James M.         571 Seneca Creek Road        $500.00 fine
(agent)                  W. Seneca, NY

     During 1995, Mr. Setter received three premium policy payments
totaling $132.40 from a client for Prudential life insurance policy
and failed to remit premium payments to the insurer, resulting in
lapsed insurance coverage. Mr. Setter subsequently remitted the
payments to the insurer.

Post, Lowell, N.         3767 Hardscrabble Road       Licensed Revoked
(agent)                  Randolph, NY

     In July of 1978, Mr. Post violated Regulation 60(a) when he
placed a life policy with Prudential Insurance Company on behalf of an
insured. He also submitted a signed statement to the insurer on which
he incorrectly indicated that the transaction did not involve
replacements; failed to present to the insured a complete disclosure
statement and a notice of replacement of life insurance. He also
failed to submit a complete disclosure statement.

STIPULATIONS

NASSAU COUNTY REGION

Ross, Solomon B.         76 South Central Avenue      $2,500 fine
(agent & broker)         Valley Stream, NY

     Mr. Ross pled guilty to mail fraud in connection with the
submission of an insurance claim alleging water damage suffered at his
own home. He was sentenced to five years probation without
incarceration or a fine. Respondent was released early on January ,
1999 from probationary supervision.

Herb Albernas Agency,    225 E. Beverly Pkwy          $500 file
Inc.                     Valley Stream, NY
Herb J. Albernas
(sublicensee)

     In and between approximately August 1996 and January 1998, Mr.
Albernas sent letters to insureds informing them that, absent a
response from the insured, endorsements for additional coverage would
be added to a policy on renewal, resulting in an increase premium.

STIPULATIONS

NEW YORK CITY REGION

Ronald A. Bartlett       82-45 135th Street           $2,000 fine
(Sublicensee)            Kew Gardens, NY
Ronald A. Bartlett
& Associates, Ltd.

     Solicited and/or sold four polices for Beneficial Standard Life
Insurance Company of NY to residents in New York. Beneficial Standard
Life Insurance Company of New York is not licensed in New York.

Carlin, Montgomery R.    910 Fifth Avenue             License Revoked
(broker & agent)         New York, NY
c/o Montgomery R. Carlin
Bail Bond Agency

     Mr. Carlin acknowledges that during the years 1997 and 1998 the
Department received numerous complaints concerning the charging of
service fees and renewal premiums and the return of collateral. Mr.
Carlin's failure to maintain records prevented him fro responding to
those complaints in a manner and time frame satisfactory to the
Department.

Espinal, Carmen A.       40-19 97th                   $500 fine
(broker)                 Street Corona, NY

     Ms. Espinal failed to cooperate with a Department investigation
into her insurance practices and had not responded to Department
letters dated November 7 and December 8, 1998. She has now provided
the required documentation and has complied with the Department's
request.

Gonzalez, Ogilda C.      361 Clinton Street           $500 file
(broker)                 Hempstead, NY

     Ms. Gonzalez was placed on the Certified Check Requirement List
by the New York Automobile Insurance Plan for issuing three dishonored
checks totaling $869.00. All checks were subsequently replaced.

Israel, Amrom (broker)   1520 54th Street             License Revoked
                         Brooklyn, NY

     In February 1999, following a hearing, the Respondent's
certification to produce for the New York Automobile Plan was revoked
for two years for various Plan violations.

Naser, Mohamed (broker)  102 Foster Agency            $500 fine
c/o Naser Agency         Brooklyn, NY

     Mr. Naser submitted an application to the New York Automobile
Plan wherein the listed operator was not the owner/applicant. He also
failed to complete a "Driver Verification Form" as required by Plan
rules.

Oviedo, Ledwin E.Inc.    3462 Irwin Avenue            $1,500 fine
c/o Ledwin Enterprises   Bronx, NY
Inc. (broker)

     On May 20, 1998, Mr. Oviedo submitted an application to the New
York Automobile Insurance Plan wherein the listed operator denied
knowing the named insured and failed to complete a "Driver
Verification Form" as required by the Plan. Further, an audit of the
licensee's books and records for the period of March 1, 1998 to August
31, 1998 disclosed that 11 insurance premium transmittal checks,
totaling $2,390.80 were issued when there were insufficient funds in
the premium account to cover the payments. A l checks were
subsequently replaced or paid by the bank using the Respondent's
overdraft privilege.

Pena, Irineo (broker)    266 Jamaica Ave.             $2,000 fine
                         Brooklyn, NY

     An audit of the licensee's books and records for the period
October, 1997 to December, 1998 disclosed that 271 insurance premium
transmittal checks, totaling $73,432.50, were issued when there were
insufficient funds in his premium account to cover the payments. All
checks were subsequently replaced or paid by the bank using the
Respondent's overdraft privilege.

Rodriquez, Nubi (agent)  831 Kinsella Street          License Revoked
                         Bronx, NY

     Between December 30, 1997 and February 17, 1998, Ms. Rodriquez
collected $3,840.00 in premiums from her client, but failed to remit
$1,968.00 of said premium to the insurer or otherwise properly account
for the funds.

Sultan, Shoaib (broker)  30-87 42nd Street            $1,000 fine
                         Astoria, NY

     In and between August, 1997 and September, 1998, Mr. Sultan
issued 10 insurance premium transmittal checks that were dishonored by
the bank and subsequently replaced. For the same period, he commingled
premium funds by paying operational expenses from has premium account.


Zenith American          5041 Broadway                Licenses Revoked
Securities Corporation   New York, NY
S.S. Ballin Agency, Inc.

Hector J. Varona         5037-41 Broadway             Same as above
Sublicensee              New York, NY

     Mr. Varona commingled premiums funds and failed to properly
maintain their premium trust account.

STIPULATIONS

OUT OF STATE

Giaquinto, Vincent c/o   3530 Post Road               License Revoked
American Exp Financial   Southport, CT
Advisor (agent)

     Mr. Giaquinto pled guilty in the United States District Court,
District of Connecticut, to "Embezzlement from an Employee Benefit
Plan" and "Willfully Subscribing a False Tax Return". The Respondent
was sentenced to 30 months imprisonment, restitution o $2,251,740.85
and three years parole supervision subsequent to release.

FINES FOR LATE FINANCIAL STATEMENTS

     The following health maintenance organizations (HMOs) and other
insurers have been fined for late submissions of the quarterly and
annual statements:

MDNY Healthcare, Inc.    One Huntington Quadrangle    $12,750 fine
                         Melville, NY

Managed Health Inc.      EAB Plaza West Tower         $8,750 fine
                         Uniondale, NY

Healthsource HMO of NY   PO Box 1498                  $1,000 fine
                         Syracuse, NY


HEARINGS

ROCHESTER REGION

Bartholomay, Maurice C.  42 Constitution Circle       License Revoked
(agent)                  Rochester, NY

     Mr. Bartholomay submitted his renewal statement agent's
application wherein he wrongly gave negative answers to question 8.

NASSAU COUNTY REGION

Goldner, Leonard (agent  11 Cedar Street              License Revoked
License and broker)      Lindenhurst, NY
t/b/a
Reuben Edelman
Insurance Agency

     When absent from the office, permitted an unlicensed person to
sign his name to automobile identifications cards and applications for
insurance. Mr. Goldner also paid bonuses and what he termed profit
sharing to his secretaries for bringing clients and or additional
work. Mr. Goldner was charged with "fronting" for a decertified
broker. Mr. Goldner claims he was unaware that the broker was
decertified. Other charges included improper service fee activities,
failing to obtain the agreements, forging a client's signature and
deliberately misleading the Department and some clients regarding
service fees charged. Respondents furnished insurers with improperly
executed financing agreements, in one instance signing the documents
both as broker and as insure ; in another used a non-existent policy
number to qualify as collateral for the financing. Respondent did not
provide copies of service fee agreements to substantiate his testimony
that he always obtained such agreements when appropriate.

Gonzalez, Otto, H.       96 Friendly Court            License Revoked
(agent)                  Babylon, NY

     Mr. Gonzalez violations included a violation of New York
Automobile Insurance Plan "NYAIP" rules by having issued dishonored
premium checks, most of which were not replaced, issued ID cards
without submitting corresponding applications, submitted deficient
applications, and violated producer performance standards. Mr.
Gonzalez appeared at the NYAIP hearing on April 22, 1998, and he was
decertified on May 19, 1998. Said violations remain unresolved.

Thompson, Noel (agent)   186 Jerusalem Avenue         License Revoked
                         Garden City, NY

     Between September 8, 1997 and March 2, 1998, at a time he was
licensed as an insurance broker, Mr. Thompson submitted five checks in
the name of Genesis Insurance totaling $1,827 to the New York
Automobile Plan (NYAIP) in conjunction with applications submitted to
the Plan that were dishonored by the bank. As a result, the NYAIP
required him to submit certified checks with future applications. On
August 12, 1998 he submitted a check in the name of Genesis Insurance
in the amount of $427 to Davis Agency which was dishonored by the bank.
By letters of March 30, April 27, May 4 and August 31, 1998, Mr.
Thompson was directed to furnish an explanation of the dishonored
checks. The letters, sent to the addresses on file with the Department
were returned y the United States Postal Services as being
unforwardable. Mr. Thompson did not also notify the Department that he
intended to utilize a trade name.

SUFFOLK COUNTY REGION

Cangiano, Vincent        11A Riverside Avenue         License Revoked
(agent)                  Mastic Beach, NY

     Mr. Cangiano filed a voluntary petition for personal bankruptcy
in March, 1998 which was discharged by order of the U.S. Bankruptcy
Court on July, 1, 1998. On Schedule E of said petition, he listed as
unsecured debts obligations to the New York State Department of Labor,
Unemployment Insurance Division and to the New York State Department
of Taxation and Finance. Mr. Cangiano indicated his bankruptcy filing
on his next application for an insurance license. The Department's
Consumer Services Bureau commenced an investigation to learn the
nature of the taxes owed and to obtain documentation that same have
been paid or that there is an agreement to pay same. Following an
exchange of letters, the last being Mr. Cangiano's letter of December
21, 1998, t e Department wrote a letter to him on December 31, 1998
seeking more particular information and documentation relating to said
taxes due. Mr. Cangiano failed to reply at all to this Department
directive. The Department advised him that he had not replied and that
he must make a meaningful reply or else his license might be subject
to revocation and his pending application rejected following an
administrative hearing. Respondent failed to issue a meaningful reply
to his letter or to submit any documentation as requested, thereby
hampering and impeding the Department's investigation.

Insurenet Insurance      289 E. Main Street           License Revoked
Brokerage, LTD           Smithtown, NY

Thomas Nolan             46 Upper Sheep Pasture Road  License Revoked
sublicensee              East Setauket, NY

     Commingled funds and failed to respond to Department inquiry.

WESTCHESTER COUNTY REGION

Berardi, Joseph (agent)  26 Monroe Street             License Revoked
                         Franklin Square, NY

     Mr. Berardi was an agent for Combined Life Insurance Company of
New York. Between December 23, 1997 and March 18, 1998, he collected
premiums from insureds aggregating $703 and converted the funds to his
own use. On or about May 1, 1998, Mr. Berardi admitted to
representatives of Combined that he had converted the premiums to his
own use. Combined credited the insureds with the amounts paid to him
and terminated Mr. Berardi as an agent. Combined notified the
Department of Mr. Berardi's termination as gent. By Department
correspondences, he was directed to furnish an explanation of the
circumstances for which he was terminated as an insurance agent by
Combined. He failed to respond to the Department correspondence.

Rivera, John E.          48 Eden Burgh Drive          License Revoked
t/b/a New York Asset     Peekskill, NY
Protection (agent)
48 Eden Burgh Drive
Peekskill, NY

     Was decertified by New York Automobile Insurance Plan following a
hearing at which he blamed non-licensee employees in his office for
various NYAIP violations. Mr. Rivera was held responsible for issuing
24 dishonored premium checks, seven outstanding D cards without
corresponding applications, and other violations, all of which have
now been resolved. During October 1996 though December 1997, he issued
another 17 insurance premium checks which were dishonored by the bank.
Of these, he failed to rep ace 11 checks totaling $2,465.92 plus $110
in bank charges. Department wrote letters to Mr. Rivera requesting
information and proof that the checks were replaced. He failed to
reply to said letters, thereby hampering and impeding the Department
investigation.

     (a) Regulation 60 requires agents to provide prospective life
insurance purchasers with pertinent facts when the purchase will cause
the buyer to surrender, lapse, or in any way change the status of an
existing life insurance policy. The agent must obtain signed statement
from the insured if the purchase will replace an existing policy. The
agent must provide the purchaser with a disclosure statement and a
notice regarding replacement of life insurance.