New York: 75 Agents Lost Licenses through First Half of 2008

Seventy-five New York insurance agents, brokers and other producers lost their licenses in the first half of 2008, and another 225 producers were fined a total $530,000, according the state’s insurance department.

“Protecting New York consumers is of prime importance to the Insurance Department,” Dinallo said. “Insurance is based on trust – trust that you’re getting the right product at the right price, trust that the money you give an agent or broker will go to pay your premiums, trust that if anything happens, you will be covered. We will continue to aggressively pursue those who violate that trust and make sure consumers receive the full protection of the insurance law.”
License revocation, the department’s strongest sanction, is used to protect consumers against the most serious violations of the insurance law. Among those whose licenses were revoked or who signed an agreement with the department agreeing to give up their licenses are:

— US Group Medical Administrators, Frank Winston, Tarrytown, for collecting more than $900,000 in premiums that was not remitted to the insurance companies or accounted for

— Kevin James Dunn, Jr., of Staten Island for forging a client’s signature to fraudulently obtain $100,000. He failed to cooperate with the Department’s investigation and did not notify the Department of his new business address

— Fox Brokerage Inc., and Michael B. Fox, of Brooklyn, for admitting to commingling premium and operating expense accounts and issuing 137 premium checks totaling $84,552.69 that were dishonored by the bank. He failed to notify the Department within 30 days that he was arrested in Kings County

— Michael Trummer, of Salamanca, for submitting 33 applications for insurance that were neither requested nor authorized by the proposed insureds. He also failed to cooperate with the Department

— Robert Regina, of West Islip, for stealing money from 11 of his clients. He attempted to cover up the thefts by making unauthorized charges to the credit cards of other clients. He was terminated for cause from Allstate for attempting to cheat them out of overtime money.

Source: New York Insurance Dept.