Illinois Department of Insurance Disciplinary Report for April 2010

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

• Erin M. Flanagan, Chicago - Insurance producer license revoked effective January, 9 2010. Ms. Flanagan was licensed to sell accident and health insurance since May 21, 2008.  The Order of Revocation was issued as a result of an investigation revealing Ms. Flanagan had submitted 70 health applications to an insurer that contained invalid consumer information.  The Order of Revocation also included a $7,000 civil penalty.

• Barbara J. Harmon, Oak Park - Stipulation and Consent Order issued regarding the insurance producer license of Ms. Harmon, effective January 10, 2010.  Ms. Harmon has been licensed to sell life, accident, health, property, casualty and variable insurance since July 2, 1987.  The Stipulation and Consent Order, which includes a $1,000 civil forfeiture and corrective orders, alleges that Ms. Harmon transacted business through an unlicensed insurance agency.

• Gbolahan Adebayo, Country Club Hills - Insurance producer license revoked effective February 22, 2010.  Mr. Adebayo had been licensed to sell life, accident, health, property and casualty insurance since June 6, 2007.  Mr. Adebayo's license was revoked following conclusion of a hearing on the Department's Order of Revocation dated October 22, 2009.  The Order of Revocation was issued as a result of an investigation revealing Mr. Adebayo intimidated a test facilitator into writing a fraudulent note.

• Ronald Newman, Glenview - Stipulation and Consent Order issued effective February 5, 2010.  Mr. Newman is licensed to sell life, accident, health, fire, and casualty insurance.  The Stipulation and Consent Order, which includes a $15,000 civil forfeiture and corrective orders, alleges that Mr. Newman: violated a Director's Order; misappropriated insurance premiums; failed to return premiums properly; had a surplus lines violation; collected service fees improperly; improperly withdrew commissions; had improper disbursements out of the premium fund trust account (PFTA); had negative balances in the PFTA; and failed to reconcile PFTA bank records.

• Patrick D. Connelly, Chicago - Application for insurance producer license denied effective March 4, 2010.  Mr. Connelly's application for a license to sell life, accident, health, property, casualty and variable insurance was denied as a result of an investigation which revealed that the Applicant was convicted of felony Unlawful Restraint - Victim under 17 on September 8, 2008.

• Marvin D. Spatz, Glen View - Stipulation and Consent Order issued effective February 5, 2010.  Mr. Spatz is licensed to sell life, accident, health, fire, and casualty insurance.  The Stipulation and Consent Order, which includes a $15,000 civil forfeiture and corrective orders, alleges that Mr. Spatz: violated a Director's Order; misappropriated insurance premiums; failed to return premiums properly; had a surplus lines violation; collected service fees improperly; improperly withdrew commissions; had improper disbursements out of the premium fund trust account (PFTA); had negative balances in the PFTA; and failed to reconcile PFTA bank records.

• Michael C. Hunter, Rockton - Insurance producer license revoked effective March 9, 2010.  Mr. Hunter was licensed to sell life, accident, health, fire, casualty and variable insurance.  Mr. Hunter's license was revoked following conclusion of a hearing on the Department's Order of Revocation dated September 16, 2009.  The Order of Revocation was issued as a result of an investigation revealing that Mr. Hunter had failed to comply with a June 25, 2009, Stipulation and Consent Order.

• M. Shawn Nelson, Decatur - Stipulation and Consent Order issued effective March 2, 2010.  Mr. Nelson was previously licensed in 2007 and is now licensed to sell life, accident and health insurance.  The Stipulation and Consent Order, which includes a $2,000 civil forfeiture and corrective orders, alleges that Mr. Nelson, while previously licensed, failed to disclose a consumer's complete health history on a Medicare Supplement application for insurance.

• Michael Dean Reynolds, Oswego - Application for insurance producer license denied effective March 18, 2010.  Mr. Reynolds's application for a license to sell property and casualty insurance was denied following conclusion of a hearing on the Department's Letter of Denial dated June 3, 2009.  The Letter of Denial was issued as a result of an investigation revealing Mr. Reynolds had been convicted of felony Mob Action, felony Possession of a Controlled Substance, and felony Possession of a Controlled Substance.  The Director's Order also required Mr. Reynolds to pay hearing costs of $369.35 within 35 days of the date of the Order.

• Mark Edmond Rover, Algonquin - Insurance producer license revoked effective March 11, 2010. Mr. Rover had been licensed to sell life, accident, and health insurance since March 19, 2009.  Mr. Rover's license was revoked following a hearing on the Department's Order of Revocation dated December 18, 2009.  The Order of Revocation was issued as a result of an investigation revealing Mr. Rover had been convicted of felony stalking on March 8, 2007, and failed to reveal said felony to the Department on his initial application for an insurance license.

• Dakota Street Insurance, LLC, Spring Valley, and Shelly A. Samolinski, LaSalle - Stipulation and Consent Order regarding the insurance producer licenses of Dakota Street Insurance, LLC and Ms. Samolinski, effective March 24, 2010.  Dakota Street Insurance, LLC and Ms. Samolinski have been licensed to sell life, accident, health, fire, and casualty insurance since September 06, 2001, and January 12, 1993, respectively.  The Stipulation and Consent Order, which includes a $17,000 civil forfeiture, and corrective orders, alleges that Dakota Street Insurance, LLC and Ms. Samolinski: paid premiums to an insurer prior to collection; failed to match and identify commission withdrawals out of the Premium Fund Trust Account (PFTA); did not return a return-premium in a timely fashion; and failed to maintain positive running balances in PFTA check stubs or disbursement register and label PFTAs properly.

• Abu H. Ali, Euclid, Ohio - Stipulation and Consent Order effective March 24, 2010.  Mr. Ali has been licensed to sell life, accident, health and variable insurance since April 13, 1999.  The Stipulation and Consent Order, which includes a $1,000 civil forfeiture and corrective orders, alleges that Mr. Ali signed an annuity application as the writing agent that he did not solicit or sell, which was in violation of the disclosure law.

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 visit www.insurance.illinois.gov/orders or call or e-mail Anjali Julka at anjali.julka@illinois.gov or Louis G. Pukelis at louis.pukelis@illinois.gov.