Poughkeepsie New York Company Fined For Violating Insurance Law

                               

Albany, NY  (CompNewsNetwork) -  New York State Insurance Law, Insurance Superintendent Eric Dinallo announced Compensation Risk Managers LLC paid a $96,110 penalty to settle charges it violated licensing provisions.

Compensation Risk Managers LLC (CRM) of Poughkeepsie and its Chief Executive Officer, Daniel G. Hickey, Jr., signed a stipulation acknowledging that they had acted as independent adjusters when they were not licensed to do so. They also acknowledged paying fees or compensation to some employees who acted as independent adjusters while not being licensed as such.

Independent adjusters handle losses and claims for insurance companies. State Insurance Law requires that independent adjusters be licensed, and that companies only employ or contract with licensed adjusters. Licensing by the Department is designed to ensure adjusters are qualified to perform their duties.

CRM and Hickey admitted they were in violation of the law from 2002 to 2007, and agreed to take all necessary steps to prevent a recurrence of similar violations.

Anna Lembersky of the Department's Consumer Services Bureau launched the investigation that led to today's announcement. Associate Attorney Beth Cohen handled the case in the Department's Office of General Counsel.

The Insurance Department is responsible for licensing insurance agents, brokers, adjusters, consultants, and reinsurance intermediaries; and disciplining licensees who violate the Insurance Law.

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