Illinois Department of Insurance Disciplinary Report for March 2010

SPRINGFIELD - The Illinois Department of Insurance announced today that Director of Insurance Michael T. McRaith issued the following disciplinary orders:

• Xpert Insurance Agency, Elgin - Stipulation and Consent Order issued regarding the business entity license of Xpert Insurance Agency, Inc., effective January 10, 2010.  The Stipulation and Consent Order, which includes a $20,000 civil forfeiture and corrective orders, alleges that Xpert Insurance Agency, Inc. paid commissions to an unlicensed person and/or business entity for soliciting insurance, improperly disbursed $2,162,027.65 out of the Premium Fund Trust Account (PFTA), and failed to maintain positive running balances in the PFTA.

• Bruce Brody, Deerfield - Stipulation and Consent Order issued regarding the insurance producer license of Mr. Brody, effective November 9, 2009.  Mr. Brody has been licensed to sell life, accident, health, property, and casualty insurance since October 28, 2005.  The Stipulation and Consent Order, which includes a $20,000 civil forfeiture and corrective orders, alleges that Mr. Brody paid commissions to an unlicensed person and/or business entity for soliciting insurance, improperly disbursed $2,162,027.65 out of the Premium Fund Trust Account (PFTA), and failed to maintain positive running balances in the PFTA.

• Tim A. Dela Riva, Prospect Heights - Stipulation and Consent Order regarding the insurance producer license of Mr. Dela Riva, effective January 12, 2010.  Mr. Dela Riva has been licensed to sell life, accident, health, property, casualty, and variable insurance since August 28, 2005. The Stipulation and Consent Order, which includes a $2,000 civil forfeiture and corrective orders, alleges that Mr. Dela Riva accessed consumer personal information that he did not have consent to access.

• National Insurance Group, Inc., Worth and Mohammed Falah, Chicago Ridge - Stipulation and Consent Order regarding the insurance producer licenses of National Insurance Group, Inc. and Mr. Falah, effective December 30, 2009.  National Insurance Group, Inc. and Mr. Falah have been licensed to sell life, property, and casualty insurance since October 5, 2005, and February 22, 2005, respectively.  The Stipulation and Consent Order, which includes a $3,000 civil forfeiture and corrective orders, alleges that National Insurance Group, Inc. and Mr. Falah failed to timely pay a return premium, paid said return premium out of the wrong account, and failed to properly label the Premium Fund Trust Account.

• CMF Insurance Agency Inc, Rockford and Mark S. Bianchi, Roscoe - Stipulation and Consent Order regarding the insurance producer licenses of CMF Insurance Agency, Inc. and Mr. Bianchi, effective November 02, 2009. CMF Insurance Agency, Inc. and Mr. Bianchi have been licensed to sell life, accident, health, fire, casualty, and variable insurance since June 23, 2009, and November 2, 2009, respectively. The Stipulation and Consent Order, which includes a $15,000 civil forfeiture and corrective orders, alleges that CMF Insurance Agency, Inc. and Mr. Bianchi submitted fraudulent documents to an insurer on two separate occasions, wrote and accepted commissions for twenty-two policies that were solicited and sold when they did not have valid insurance producer licenses, and filed a fraudulent personal insurance claim with an insurer.

• Russell Glen Hedberg, Rockford - Application for insurance producer license denied effective January 27, 2010.  Mr. Hedberg's application for a license to sell life, accident and health insurance was denied following conclusion of a hearing on the Department's Letter of Denial dated September 21, 2009. The Letter of Denial was issued as a result of an investigation which revealed that Mr. Hedberg admitted to committing insurance fraud, was convicted of felony Embezzlement of Insurance Premiums and felony Filing False Income Tax Returns in July of 2003. Mr. Hedberg was also ordered to pay a civil forfeiture in the amount of $2,000 no later than March 3, 2010.

More Information
The Department's mission is to protect consumers by providing assistance and information, by efficiently regulating the insurance industry's market behavior and financial solvency, and by fostering a competitive insurance marketplace.  The Department assists consumers with all insurance complaints, including health, auto, life, and homeowner.  Consumers in need of information or assistance should visit the Department's web site at www.insurance.illinois.gov or call our toll-free hotline at (866) 445-5364.

If you would like individual disciplinary orders, please call or e-mail Anjali Julka at anjali.julka@illinois.gov or Louis G. Pukelis at louis.pukelis@illinois.gov.