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2010 Insurance Enforcement Activity

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December


Final Order

Darrell A. Jones, Morrisville, PA
Order # E10-78, December 16, 2010; Respondent’s application for a public adjuster license is denied for failing to disclose that his insurance producer license had been revoked for submitting a life insurance application to an insurer on the life of a person who died prior to the application date, having submitted a life insurance application to an insurer without the consent of the insured, having submitted a dividend withdrawal to an insurer that failed to contain the genuine signature of the insured and having changed residence and business addresses without notification to the Commissioner. 

Orders to Show Cause

John A. Rocco, Bedminster, NJ
Kelly L. Roetto, Bedminster, NJ
John A. Rocco Company, Inc., Florham Park, NJ
Order #E10-75, December 6, 2010; Respondents charged with multiple counts of obtaining premium financing without authorization from actual or prospective insureds, with retaining premium financing for their personal use and not forwarding said funds to either the insurance companies or the actual or prospective insureds, with bouncing checks for premium payments, with bouncing checks for return of premium financing, with obtaining double premium financing on certain policies, with untimely transmission of premium funds, with failing to forward cancellation notices to insureds, with misrepresenting to insureds that coverage was in effect when it had been cancelled for nonpayment of premium and with forging insureds’ names on premium finance applications.

National Benefits, Inc., Parsippany, NJ   
Susan Harrison, Pompton Plains, NJ
Victoria Kuenzler, Rockaway, NJ
John Major, Newton, NJ
Order #E10-76, December 13, 2010; Respondents charged with continuing to operate National  Benefits as a third party administrator following the revocation of National Benefits’ license to operate as a third party administrator and with multiple failures to timely respond to Department requests for information.

Consent Orders

Harry Peters, Mineola, NY
Harry Peters Associates, Inc., Mineola, NY
Order #E10-77, December 16, 2010; Respondents’ contract for public adjuster services did not specify the costs to the insured or the formula for calculation of costs to the insured for public adjuster services as required by N.J.A.C. 11:1-37.13 (b) 5 iii. Sanction: Fine - $250.

Horizon Healthcare Services, Inc.
Horizon Healthcare of New Jersey, Inc.
Consent Order #E10-80, December 30, 2010; limited scope examination indicates certain instances of noncompliance. Sanction: Fine - $500,000.

 
November


Consent Orders

First Indemnity of America Insurance Company, Parsippany, NJ
Order #E10-68; November 9, 2010; Respondent failed to pay claims under surety bonds that guaranteed the return of down payments. Sanctions: Fine - $25,000.

Michael A. Robbins, Montclair, NJ
Order #E10-69; November 21, 2010; Respondent changed an applicant’s selection of primary care physician on a Medicare Advantage enrollment form, after the applicant completed the form, without the applicant’s knowledge or consent. Sanctions: Fine - $1,500.

Lorraine J. Spiotta, East Brunswick, NJ
Order #E10-72; November 9, 2010; Respondent signed an applicant’s name on a HIPAA Medical Authorization Form without the applicant’s knowledge or consent. Sanctions: Fine - $500.

Final Order

Charles T. Hansen, Lake Worth, FL
Order #E10-70, November 17, 2010; Respondent failed to respond to an order to show cause charging him with not disclosing  felony convictions and administrative actions taken against him on his producer license application.  Sanctions: Revocation, $1,500 fine and $225 costs.  

 
October

Final Order

Daniel Trolaro, Oakland, NJ
Order #E10-65; October 5, 2010; Respondent failed to respond to an Order to Show Cause charging him with converting funds paid by multiple clients for investments in securities and/or insurance policies or annuities for his personal use and misrepresenting to clients when he sought obtained loans from them which loans were not repaid. Sanctions: Revocation, Fine - $105,000, Costs - $375, and Restitution - $1,603,147.11.

Consent Orders

Theresa Ferguson, Upper Darby, PA
Order #E10-67; October 25, 2010; Respondent solicited business in New Jersey prior to obtaining a New Jersey producer’s license.  Sanctions: Fine - $3,000.

Richard N. Hartman, Colts Neck, NJ
Order #E10-64; October 1, 2010;  Respondent consented in 2008 to the revocation of his insurance producer license for failing to monitor employees who made investments of client funds without the clients’ written authorization and paying operating expenses from the premium trust account.  Since no client or insurer sustained damage and Respondent paid a fine for the prior misconduct, the Department reinstated Respondent’s license on a probationary status for two years.

Patrick L. Nelson, Succasunna, NJ, Dependable Insurance Agency, Inc., Newark, NJ
Order #E10-66; October15, 2010; Respondents submitted applications to NJPAIP with deficiencies, including the submission of checks that were not honored.  Respondents failed to forward a premium check for a client to the insurance company or to refund the premium to the client. Sanctions: Fine - $5,000.

 
September


Final Orders

Ted L. Calinog and TLC Group, Parsippany, NJ
Order #E10-59, September 23, 2010; Respondent failed to respond to an Order to Show Cause charging him with falsely indicating on claims submitted to a long term care insurer for caregiver services rendered to his stepfather that he was not related to the insured.  Sanctions: Revocation, $5,000 fine and $575 costs.

Eldridge Fleming and Fleming Bail Bonds, LLC, Camden, NJ
Order #E10-61, September 30, 2010; Respondents failed to respond to an Order to Show Cause charging them with taking premiums from five customers for bail bonds and not obtaining the bonds, refunding the premiums for three of the five after they filed a complaint with the Department and not refunding the premium to the remaining two; failing to respond to several department subpoenas, and failing to notify the Department of a new business address.  Sanctions:  Revocation, $9,500 fine and $425 costs.

Order to Show Cause

Pape M. Seck, Newark, NJ
Order #E10-62; Respondent charged with falsifying two applications for life insurance by misrepresenting the identity of the applicant for insurance and including false financial information, forged documents, false medical information and a false social security number.  Respondent also charged with failing to notify the Department of his plea guilty to insurance fraud and forgery.

Consent Orders

GE Casualty Insurance Company, Philadelphia, PA
Order #E10-58, September 15, 2010; Respondent failed to file and obtain approval of rates for pre-standard Medicare Supplement certificates from 1997 to 2003.  Sanctions:  Fine - $25,000.

Aamer H. Sheikh, Floral Park, NY
Order #E10-57, September 15, 2010; Respondent failed to reveal a fine by another state insurance department on his application for a New Jersey non-resident insurance producer license.  Sanctions: $250 fine.

Joseph Funari, Philadelphia, PA
Order #E10-54, September 7, 2010; Respondent entered into a public adjuster written memorandum with an insured that did not specifically disclose the services to be performed in the adjustment of the insured’s claim.  Sanction: $250 fine.

 
August


Final Orders

Jennifer L. Coneys, Brick, NJ
Order #E10-49, August 19, 2010; Respondent failed to respond to an Order to Show Cause charging her with violations based on her conviction for third degree theft for misappropriation of $68,459 from a title escrow account and for failure to notify the Department of the conviction.  Sanctions:  Revocation, $6,000 fine and $950 costs.

Thomas E. Pugmire, Highland, Utah
Order #E10-53, August 25, 2010; Respondent failed to respond to an Order to Show Cause charging him with failing to notify the Department of a fine levied by another state insurance department and for improperly stating on his license renewal application that he was not involved in administrative proceeding regarding a professional license.  Sanctions:  $1,000 fine and $412.50 costs.

Consent Orders

Sang K. Kim and Sonamu Agency, Township of Washington, NJ
Order #E10-52, August 30, 2010; Respondents permitted an unlicensed person to sign an automobile application as the insurance producer.  Sanctions:  Fine - $1,000.

Kathleen M. Mullins, Margate, NJ
Order #E10-47, August 10, 2010; Respondent incorrectly answered a question about her position as an officer in a client’s corporation on three annual questionnaires prepared by her firm and failed to disclose a loan from her client on her annual questionnaire.  Sanctions: Suspension from May 29, 2009 to August 30, 2010 and $5,000 fine.

John Padilla and Padilla Financial Group LLC, Newtown, PA
Order #E10-46, August 2, 2010; Respondent used an advertisement that was incomplete and had the tendency to mislead or deceive and did not identify the name of the insurer.  Sanctions: Fine - $1,000.

Princeton Risk Managers, Inc., Hackettstown, NJ
Order #E10-51, August 16, 2010; Respondent used a producer who was not licensed in New Jersey to place surplus lines business and failed to deliver a surplus lines policy to the named insured within 90 days.  Sanctions: Fine - $1,400.

Ronald K. Stair, Port Jefferson Station, NY
Order #10-48, August 19, 2010; Respondent did not report administrative action taken by the insurance department of another state.  Sanctions: Fine - $250.

Steadfast Insurance Company, New York, NY
Order #10-50, August 24, 2010; Respondent accepted surplus lines placements from a producer who did not have surplus lines authority and issued the insurance policies without the required transactions numbers.  Sanctions: Fine - $2,500. 

 
July


Final Orders

Rhett Kirchhoff & Senior Financial Planners Ins., Marmora, NJ
Order # E10-40, July 13, 2010; Respondents failed to respond to an Order to Show Cause charging them with violations relating to a federal conviction for conspiracy to commit securities fraud, conspiracy to commit wire fraud, conspiracy to commit money laundering, conspiracy to interfere with commerce by threats of violence and bankruptcy fraud.  Sanctions:  Revocation, $2,000 fine and $575 costs.

Debbie L. Madosky, Cambridge Springs, PA
Order #E10-43, July 14, 2010; Respondent failed to respond to an Order to Show Cause charging her with violations relating to a conviction of five counts of theft by failure to make required disposition of funds received and one count of acting as a broker-dealer without being registered.  Sanctions:  Revocation, $1,000 fine and $1,275 costs.

Orders to Show Cause

Eldridge L. Fleming and Fleming Bail Bonds, LLC, Camden, NJ
Order #E10-41, July 13, 2010; Respondents charged with taking premiums for bail bonds but not obtaining the bail bonds and not issuing refunds, failing to comply with Department subpoenas and failing to notify Department of new business address.

Kevin J. McCoy and Brook Hollow Insurance Agency, Inc., Piscataway, NJ
Order #E10-42, July 14, 2010; Respondents charged with selling, soliciting and servicing insurance without an individual insurance producer license, receiving commissions while not licensed, conducting business without a properly licensed active officer, forgery, fraudulent renewal of producer licenses, fraudulent issuance of automobile insurance identification cards, failure to timely remit premium to carriers, failure to disclose license revocation on producer application, alteration of Department letter and failure to return producer license to Department after revocation.

Patrick L. Nelson and Dependable Insurance Agency, Inc., Succasunna, NJ
Order #E10-39, July 13, 2010; Respondents charged with numerous NJPAIP violations including failure to honor checks and failure to remit premium to insurance company.

Daniel J. Trolaro, Oakland, NJ
Order #E10-44, July 20, 1010; Respondent charged with various violations related to conversion of client funds totaling $1.6 million.

Consent Orders

Boris Elenbogen, Rockaway, NY
Order #E10-38, July 13, 2010; Respondent failed to disclose an administrative action by the New York Department of Insurance on his New Jersey nonresident insurance producer license application.  Sanctions:  Fine - $250.

Carney Gavin Gatta, Jr., Wayside, NJ
Order #E10-45, July 20, 2010; Respondent consent to temporary license suspension pending Department investigation of allegations of misconduct.

 
June

Final Order

John E. Mullins, Margate, NJ
Final Decision and Order # E10-37, June 28, 2010; Respondent failed to respond to an Order to Show Cause charging him with fraudulent acts relating to misappropriation of client funds and failing to notify the Department of his plea of guilty to third degree misapplication of entrusted funds and entrance into the pre-trial intervention program. Sanctions: Revocation and $5,000 fine.

Consent Orders

Carl J. Barone, Clementon, NJ
Consent Order #E10-25, June 2, 2010; Respondent failed to notify the Department of a consent order entered into with the New Jersey Bureau of Securities within 30 days of the order.  Sanctions:  Fine - $500.

Milagros Bonaparte, Edison, NJ
Consent Order #E10-26, June 2, 2010; Respondent paid for his licensing fee with a check that was dishonored for insufficient funds and nor replaced, failed to respond to two written inquiries of the Department and changed business address without notification to the Department.  Sanctions:  Fine - $1,125.

Susan Brown, Woodbury, NJ
Consent Order #E10-28, June 2, 2010; Respondent notarized documents certifying signatures when she was not present to witness the signatures.  Sanctions:  Fine - $2,500.

Jose A. Fernandez, F & M Insurance Agency, Cedar Grove, NJ
Consent Order #E10-27, June 2, 2010; Respondents issued four premium payment checks to NJCAIP which were returned for insufficient funds; submitted forty-three applications with fourteen deficiencies to NJCAIP; failed to respond to Department inquiries and changed business address without notification to the Department.  Sanctions:  Fine - $3,250.

Marvin Mann, Asbury Park, NJ
Consent Order #E10-32, June 11, 2010; Respondent failed to return unearned commission.  Sanctions:  Revocation.

New Jersey Physicians United Reciprocal, Princeton, NJ
Consent Order #E10-30, June 22, 2010; Respondent disseminated marketing materials alleged to violate N.J.S.A. 17:29B-1 et seq.  Sanctions:  Administrative Fine - $10,000.

Nathan Sallop Insurance Agency, Inc., Boston, MA
Consent Order #E10-24, June 2, 2010; Respondent failed to notify the Department of disciplinary action by the State of Florida and failed to note the disciplinary action on its renewal application.  Sanctions:  Fine - $500.

21st Century National Insurance Company, Wilmington, DE
Consent Order #E10-33, June 11, 2010; Respondent sent nonrenewal notices to 838 policyholders which notices were not the same as those submitted to the Department and did not comply with N.J.A.C. 11:2-29.3 (h) 2.  Sanctions:  Fine - $10,000.


Cease and Desist Order

IMO David L. Clark, et al.
Order #E10-34, June 22, 2010; Respondents ordered to cease and desist from engaging in or transacting the business of insurance in New Jersey, including but not limited to, selling or assisting in the procurement of health coverage, advertising and soliciting of New Jersey residents.

Order to Show Cause

Jungun Kim, Saddlebrook, NJ
Order #E1-35, June 22, 2010; Respondent charged with failing to remit premium to the insurer, failing to inform Department of an indictment and the disposition of criminal charges and failing to cooperate with a Department investigation.

 
May


Final Order

Victor D. Jones,
Business and Individual Insurance Services, Inc.

Final Decision and Order #E10-19, May 7, 2010; Respondents did not appear at the hearing to contest charges relating to the dishonoring of a check for renewal of their insurance licenses in 2002, which check was not replaced until 2005, twice changing business address without notifying the Department and failing to respond to five Department letters. Sanctions: Fine - $1,500; Costs - $462.50

Consent Orders

Mark A. Addessi, New York, NY
Consent Order #E10-20, May 10, 2010; Respondent changed address without notifying the Department.  Sanctions: Fine - $250.

Julie J. Berman, Oldwick, NJ
Consent Order #E10-23, May 10, 2010; Respondent used a business name for approximately seven years before registering the name with the Department. Sanctions: Fine - $500.

Christopher J. Lester, Cream Ridge, NJ
Consent Order #E10-18, May 5, 2010; Respondent failed to notify the Department of a consent order entered into with the New Jersey Bureau of Securities within 30 days of the date of the order and did not disclose the Bureau of Securities consent order on his New Jersey producer license renewal application. Sanctions: Fine - $1,000.

Physicians Planning Service Corp. of Connecticut, Deerfield Beach, FL
Consent Order #E10-17, May 5, 2010; Respondent failed to report a sanction levied by Virginia to the Department within 30 days of the date of the sanction and did not disclose the sanction on its New Jersey producer renewal application. Sanctions:  Fine - $1,000.

William J. Quinn, Poughkeepsie, NY
Consent Order #E10-21, May 10, 2010; Respondent changed address without notifying the Department and failed to respond to three Department letters. Sanctions: Fine - $1,750.

Underwriters at Lloyd’s, London, East Windsor, NJ
Consent Order #E10-22, May 10, 2010; respondent placed six risks with surplus lines insurance companies without using a New Jersey surplus lines producer and maintained incomplete quarterly reports on the surplus lines processing subsystem. Sanctions: Fine - $6,000.

 
April


Final Order

Juan M. Guzman, Clifton, NJ
La Raza Bail Bonds, Inc., Passaic, NJ
Final Order #E10-14, April 9, 2010; Respondents did not reply to charges of failure to return collateral payment for bail bonds, failure to remit premium to surety, failure to remit fees and failure to respond to Department inquiries.  Sanctions: Revocation of insurance producer licenses, restitution of $25,000 to surety, $30,000 administrative fine and $322 in costs.

Orders to Show Cause

Ted L. Calinog, Little Falls, NJ
Order to Show Cause #E10-13, April 7, 2010; Respondent is charged with submitting claims to a long term care carrier as a provider of caregiver services for his step father and stating that he has no familial relationship to his stepfather.

Jennifer Coneys, Brick, NJ
Order to Show Cause #E10-15, April 12, 2010; Respondent is charged with misappropriating funds from an escrow account and failing to advise the Department of a criminal conviction of third degree theft related to said misappropriation.

Thomas E. Pugmire, Highland, UT
Order to Show Cause #E10-16, April 20, 2010; Respondent failed to advise the Department of an administrative fine levied by the Utah State Insurance Department and incorrectly indicated on an application to reinstate his New Jersey non-resident insurance producer license that he had not been involved in any administrative proceeding regarding any professional or occupational license.


 
March


Order to Show Cause

Kathleen Maria Mullins, Northfield, NJ
John Edward Mullins, Northfield, NJ
Order to Show Cause #E10-09, March 4, 2010; John and Kathleen Mullins are charged with fraudulent acts in connection with obligations to an elderly, ill widow who resided in a nursing home and to her charitable foundation; John Mullins is also charged with failing to timely disclose to the Department his entrance into a pre-trial intervention program as a result of his conditional guilty plea to third degree misapplication of entrusted funds.

Consent Orders

CIGNA HealthCare of New Jersey, Inc., Jersey City, NJ
Connecticut General Life Insurance Company, Bloomfield, CT
Consent Order # C10-101, March 19, 2010; CIGNA issued health benefit coverage that did not comply with the Individual Health Coverage Program Act.  Sanctions:  Fine - $75,000; Remediation of premium to applicable NJ residents, including 12% interest.
 
Sandra Kaminer, Longport, NJ
Consent Order # E10-11, March 24, 2010; Producer failed to disclose to an insurer (Chubb) the falseness of information from an insured regarding a claim for lost jewelry.  Sanctions:  Voluntary surrender of license effective no later than May 23, 2010; Fine - $5,000; Other - in connection with proceedings by the Office of the Insurance Fraud Prosecutor, Kaminer will enter into pre-trial intervention.

Kyle J. Kelly, Hoboken, NJ
Consent Order # E10-10, March 10, 2010; Producer submitted 12 insurance applications for homeowners and/or automobile insurance to Liberty Mutual Insurance Company, asserting that the proposed insureds were entitled to discounts, which in fact, were not applicable to the insureds. Sanction:  Fine - $10,000.

 
February


Orders to Show Cause

Rosa M. Tavares, Cranford, NJ
Order to Show Cause #E10-06, February 3, 2010; Producer is charged with committing fraudulent acts by making false or misleading statements to Horizon in her claim for health benefits, violations of the Insurance Fraud Prevention Act for which she agreed to pay a fine and attorney’s fees in a settlement with the Office of the Insurance Fraud Prosecutor.

Consent Orders

Governor Hendley, Newburgh, NY
Consent Order #E10-07, February 9, 2010; Producer failed to disclose a 1975 criminal conviction on his license application.  Sanction:  Fine - $1,000.

Lawrence D. Share, Plantation, FL
Consent Order #E10-08, February 16, 2010; Producer failed to disclose a 1975 criminal conviction on his 1990 license application.  By way of previous settlement of that violation, Share surrendered his producer license.  In order to be permitted to reapply for a producer license, Share now agrees to pay a fine.  Sanction: Fine - $1,000.

 
January


Final Orders

Charles D. Edwards, Somerset, NJ
Renita Thomas (not licensed)
On Top Bail Bonds, New Brunswick, NJ
Final Order #E10-03, January 14, 2010; Edwards, as owner and designated responsible producer for On Top, failed to adequately supervise and manage On Top’s bail bonds business; and unlicensed Thomas was allowed to represent herself as a bail bond agent of On Top and accept premium from a consumer.  Service of administrative charges upon Thomas was unsuccessful and the charges against her are dismissed without prejudice.  Sanctions (Edwards and On Top):  Suspension of licenses for one year, Fine - $2,500.

Orders to Show Cause

Debbie L. Madosky, Medford, NJ
Order to Show Cause #E10-05, January 27, 2010; Producer is charged with criminal activity by reason of her multi-count felony conviction for crimes involving dishonesty or breach of trust which conviction bars insurance employment; and she failed to timely notify the Department of the filing of a criminal complaint against her, the subsequent conviction and sentencing.

Consent Orders

James Citta, Toms River, NJ
Consent Order # E10-02, January 6, 2010; Bail producer imposed premium charges that were not based on a fee schedule established by the surety and which on occasions varied by defendant despite the common face amount of the bond; failed to establish and maintain a premium trust account; and attempted to charge an indemnitor a service-related fee.  Sanction:  Fine - $3,000.

Frank Guida, Allentown, PA
Consent Order #E10-01, January 6, 2010; Producer failed to notify the Department of a Consent Order entered into with the New Jersey Bureau of Securities.  Sanction:  Fine - $1,000.

Jeffrey R. Halpert, Millburn, NJ
Jeffrey Matthews Financial Group, Millburn, NJ
Consent Order #E10-04, January 25, 2010; Producers failed to timely disclose to the Department and report on renewal applications two FINRA regulatory actions.  Sanction:  Fine - $1,000.

 

Previous Years
 
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