Appeal from PETITION FOR REVIEW (INSURANCE DEPARTMENT).
Robert Arnold Wilson, Philadelphia, for petitioner.
Jean M. Callihan, Heidi B. Hamman Shakely, Asst. Counsels, Victoria A. Reider, Deputy Chief Counsel, Linda J. Wells, Chief Counsel, Harrisburg, for respondent.
Barry and McGinley, JJ., and Kalish, Senior Judge.
[ 127 Pa. Commw. Page 336]
This is a petition to review an order of the Insurance Commissioner (Commissioner) which revoked Donald Tsolo's (petitioner) license to conduct the business of insurance in Pennsylvania, and ordered petitioner to pay a civil penalty of $10,000. We affirm.
[ 127 Pa. Commw. Page 337]
Pursuant to a hearing, the Commissioner made the following findings. Petitioner was licensed as an agent for the American Republic Company for life, accident, and health insurance. Petitioner was licensed as an agent with Prudential Property and Casualty Company for property and casualty insurance from January 26, 1984 until January 9, 1987. On January 9, 1987, the Insurance Department (Department) terminated petitioner's license to write property and casualty insurance upon having been notified by Prudential that petitioner's license with the company as an agent had been terminated. The Commissioner found that petitioner was not aware of this termination by the Department until May, 1987, but that he was not licensed to write automobile insurance after January 9, 1987.
In 1986, petitioner organized a company known as Philadelphia Motors Owners Mutual (MOM), a customary motor club providing members with a minimum insurance program upon payment of a membership fee of $500, and an annual premium of $800. Life, health, and disability benefits were to be insured through the American Life Insurance Company upon payment of a $50 membership fee.
Between January 9, 1987 and April 22, 1987, petitioner submitted eighty-nine insurance applications to the Assigned Risk Plan (Plan), an association of automobile insurers who, upon payment of a premium, assign insurance applications to automobile insurers for applicants who have been unable to purchase insurance in the voluntary market. In a number of the submitted applications, premium payments were in the form of checks drawn on MOM's account, as well as money orders purchased by the petitioner.
The Department contended that petitioner had committed numerous violations by engaging in unlawful activities on behalf of MOM, an unlicensed insurance company, misrepresenting to applicants that upon payment of the premium they were insured by MOM.
The Commissioner found petitioner's testimony incredible, and found that he intended to deceive the applicants, misrepresenting the terms of ...