Crossing the Border: Mexico Travel Offers Opportunities for Agents
Features • February 7, 2005
Mexico is a country rich in cultural heritage and scenic landscapes. From colonial villages to majestic desert panoramas to pristine beaches, our bordering neighbor to the south offers something ...
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Subject: AEA Insurance Company, Ltd., AEA Insurance Services, Ltd., J
Posted On: April 10, 2005, 6:18 pm CDT
Posted By: edward cook
Comment:
3/15/05
CALIFORNIA DEPARTMENT OF INSURANCE
LEGAL DIVISION
Danette C. Brown, Esq., SBN 195983
300 Capitol Mall, 17th Floor
Sacramento, California 95814
Telephone: 916 492-3170
Facsimile: 916 324-1883
Attorneys for John Garamendi,
California Insurance Commissioner
BEFORE THE INSURANCE COMMISSIONER
OF THE STATE OF CALIFORNIA
SACRAMENTO
In the Matter of the License and Licensing Rights of
JOSE ANDRES ALEMAN,
a/k/a JOE A. ALEMAN, individually,
and
ARSA INSURANCE SERVICES, INC.,
Respondents.
File No. SD 6723-A
ORDER OF IMMEDIATE SUSPENSION AND PROHIBITION FROM PARTICIPATION IN THE CONDUCT OF THE BUSINESS OF INSURANCE
[Ins. Code § 1748.5, subd. (e) (1)];
And,
NOTICE OF RIGHT TO HEARING
[Ins. Code § 1748.5, subd. (f) (1)];
And,
NOTICE OF CIVIL PENALTIES
[Ins. Code § 1748.5, subd. (h) (2)]
JURISDICTION AND PARTIES
A. The California Department of Insurance, (hereafter "Department"), brings this matter before the Insurance Commissioner of the State of California (hereafter "Insurance Commissioner"). The Insurance Commissioner is the principal government regulator of insurance in California, pursuant to the California Insurance Code.1
B. This matter arises under the California Insurance Code, Division 1, Part 2, Chapter 5, Article 13, section 1748.5, which governs disciplinary actions against production agencies, including Life Agents, as well as Fire and Casualty Broker-Agents.
C. Respondent, JOSE ANDRES ALEMAN, a/k/a JOE A. ALEMAN, (hereafter "ALEMAN" and/or "Respondent Aleman"), is now, and since September 23, 1991, has been licensed by the Insurance Commissioner of the State of California to act as a Fire and Casualty Broker-Agent, License Number 0A15402.
D. Respondent, ARSA INSURANCE SERVICES, INC., (hereafter "ARSA" and/or Respondent ARSA"), is now, and since September 23, 1991, has been an organization licensed by the Insurance Commissioner of the State of California to act as a Fire and Casualty Broker-Agent, License Number 0820354.
E. On or after October 25, 1990, ARSA filed its Articles of Incorporation with the Office of the Secretary of State, State of California, and became a corporation under the laws of the State of California, Corporation Number C14889653.
F. Respondent JOSE ANDRES ALEMAN, a/k/a JOE A. ALEMAN, is the President and Owner of Respondent ARSA INSURANCE SERVICES, INC. Accordingly, ALEMAN is a "controlling person" of ARSA. A "controlling person" is "a person who possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of the organization, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, including, but not limited to, power that is the result of an official position with or corporate office held by the person." (Ins. Code, § 1668.5(b).)
G. AEA INSURANCE COMPANY, LTD. and AEA INSURANCE SERVICES, LTD. (hereafter collectively referred to as "AEA"), are resident domestic corporations in the British Virgin Islands licensed to transact automobile insurance within the Territory of the Virgin Islands. The AEA entities have not, nor have ever been, issued a license, by the California Insurance Commissioner, to act in any capacity regarding the transaction of insurance.
//
FINDINGS
In accordance with California Insurance Code section 1748.5(e)(1), the Insurance Commissioner makes the following findings:
1. On or about June 15, 2004, before the Superior Court of California, County of San Diego, Central Division, in the case of The People of the State of California, Plaintiff, v. AEA Insurance Company, Ltd., AEA Insurance Services, Ltd., Jose Andres Aleman, ARSA Insurance, et al., Amended Felony Complaint, Court Case No. CD183449, DA No. ABG078, Respondents JOSE ANDRES ALEMAN, a/k/a JOE A. ALEMAN, and ARSA INSURANCE SERVICES, INC. et al., were charged with thirty (30) counts of TRANSACTING INSURANCE WITHOUT A CERTIFICATE OF AUTHORITY, in violation of California Insurance Code section 700, a felony.
2. Said felonies are alleged to have been committed on or about and between August 29, 2001 through July 10, 2002, in the County of San Diego, State of California.
3. In accordance with Paragraph Number One (1) herein above, Respondents JOSE ANDRES ALEMAN, a/k/a JOE A. ALEMAN, and ARSA INSURANCE SERVICES, INC. have been charged in a felony complaint issued by the San Diego County District Attorney (attached hereto as Exhibit "A" and incorporated herein by this reference), with a crime punishable by imprisonment for a term exceeding one (1) year, and which involves the willful and unlawful transaction of a class of insurance without first being admitted for that class by procuring a certificate of authority from the Insurance Commissioner of the State of California.
4. As the Managing General Agent2 for AEA Insurance Company, Ltd. and AEA Insurance Services, Ltd., (hereafter "AEA"), Respondents JOSE ANDRES ALEMAN, a/k/a JOE A. ALEMAN, and ARSA INSURANCE SERVICES, INC. are responsible for the solicitation, negotiation and transaction of Mexican resident auto insurance, underwritten by AEA, subject to the overall authority and control of AEA. Pursuant to California Insurance Code section 769.85, the acts of the Managing General Agent (hereafter "MGA") are considered to be the acts of the insurer on whose behalf it is transacting. Neither AEA nor Respondents JOSE ANDRES ALEMAN, a/k/a JOE A. ALEMAN, and ARSA INSURANCE SERVICES, INC. have applied for or received a Certificate of Authority from the California Insurance Commissioner to transact the business of insurance in the State of California. "Transact" as applied to insurance include any of the following: (a) Solicitation. (b) Negotiations preliminary to execution. (c) Execution of a contract of insurance. (d) Transaction of matters subsequent to execution of the contract and arising out of it. (Ins. Code § 35.)
5. The facts alleged herein above demonstrate that failure to immediately issue this order may cause direct financial or other injury to a policyholder or any other person.
ORDER
In accordance with findings stated in Paragraph Numbers 1-5 herein above, the Insurance Commissioner makes the following Orders:
NOW THEREFORE:
RESPONDENTS JOSE ANDRES ALEMAN, A/K/A JOE A. ALEMAN, AND ARSA INSURANCE SERVICES, INC., ARE HEREBY ORDERED PROHIBITED FROM PARTICIPATING IN ANY MANNER IN THE BUSINESS OF INSURANCE OR IN THE BUSINESS OF ANY INSURER OR INSURANCE PRODUCTION AGENCY, EFFECTIVE IMMEDIATELY, EXCEPT WITH THE PRIOR CONSENT OF THE INSURANCE COMMISSIONER OF THE STATE OF CALIFORNIA; and,
IT IS FURTHER ORDERED that this Order shall be effective immediately.
NOTICE OF RIGHT TO A HEARING
In accordance with California Insurance Code section 1748.5(f)(1), Respondents JOSE ANDRES ALEMAN, a/k/a JOE A. ALEMAN, and ARSA INSURANCE SERVICES, INC. may have a hearing on this matter according to the following:
a. Within thirty (30) days after the aforementioned Order is issued, you may file with the Insurance Commissioner an application for a hearing on this Order, addressed to Danette C. Brown, Staff Counsel, California Department of Insurance, 300 Capitol Mall, 17th Floor, Sacramento, California 95814.
b. Upon written request to the Insurance Commissioner at the above address, you may request an extension of the thirty (30) day period by an additional thirty (30) days provided the request is filed with the Insurance Commissioner within thirty (30) days after the Order is issued.
c. A hearing will be scheduled within fifteen (15) business days after the application for hearing is filed or within a longer period of time if requested by you.
NOTICE OF CIVIL PENALTIES
Respondents JOSE ANDRES ALEMAN, a/k/a JOE A. ALEMAN, and ARSA INSURANCE SERVICES, INC. are further notified that a violation of this Order may result in civil penalties of up to one thousand dollars ($1,000.00) per day for each day that the violation continues, pursuant to California Insurance Code Section 1748.5(h)(2).
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
Seal, this __ ___ day of , 2005.
JOHN GARAMENDI
Insurance Commissioner
By: ________________________
ROBERT HAGEDORN
Assistant Chief Counsel
///
///
1 All citations are to the California Insurance Code, unless otherwise indicated.
2 A "Managing General Agent" (MGA) means any person, firm, association, partnership, or corporation who manages all or part of the insurance business of an insurer..." (Ins. Code § 769.81.)
Subject: AEA Insurance Company, Ltd., AEA Insurance Services, Ltd., J
CALIFORNIA DEPARTMENT OF INSURANCE
LEGAL DIVISION
Danette C. Brown, Esq., SBN 195983
300 Capitol Mall, 17th Floor
Sacramento, California 95814
Telephone: 916 492-3170
Facsimile: 916 324-1883
Attorneys for John Garamendi,
California Insurance Commissioner
BEFORE THE INSURANCE COMMISSIONER
OF THE STATE OF CALIFORNIA
SACRAMENTO
In the Matter of the License and Licensing Rights of
JOSE ANDRES ALEMAN,
a/k/a JOE A. ALEMAN, individually,
and
ARSA INSURANCE SERVICES, INC.,
Respondents.
File No. SD 6723-A
ORDER OF IMMEDIATE SUSPENSION AND PROHIBITION FROM PARTICIPATION IN THE CONDUCT OF THE BUSINESS OF INSURANCE
[Ins. Code § 1748.5, subd. (e) (1)];
And,
NOTICE OF RIGHT TO HEARING
[Ins. Code § 1748.5, subd. (f) (1)];
And,
NOTICE OF CIVIL PENALTIES
[Ins. Code § 1748.5, subd. (h) (2)]
JURISDICTION AND PARTIES
A. The California Department of Insurance, (hereafter "Department"), brings this matter before the Insurance Commissioner of the State of California (hereafter "Insurance Commissioner"). The Insurance Commissioner is the principal government regulator of insurance in California, pursuant to the California Insurance Code.1
B. This matter arises under the California Insurance Code, Division 1, Part 2, Chapter 5, Article 13, section 1748.5, which governs disciplinary actions against production agencies, including Life Agents, as well as Fire and Casualty Broker-Agents.
C. Respondent, JOSE ANDRES ALEMAN, a/k/a JOE A. ALEMAN, (hereafter "ALEMAN" and/or "Respondent Aleman"), is now, and since September 23, 1991, has been licensed by the Insurance Commissioner of the State of California to act as a Fire and Casualty Broker-Agent, License Number 0A15402.
D. Respondent, ARSA INSURANCE SERVICES, INC., (hereafter "ARSA" and/or Respondent ARSA"), is now, and since September 23, 1991, has been an organization licensed by the Insurance Commissioner of the State of California to act as a Fire and Casualty Broker-Agent, License Number 0820354.
E. On or after October 25, 1990, ARSA filed its Articles of Incorporation with the Office of the Secretary of State, State of California, and became a corporation under the laws of the State of California, Corporation Number C14889653.
F. Respondent JOSE ANDRES ALEMAN, a/k/a JOE A. ALEMAN, is the President and Owner of Respondent ARSA INSURANCE SERVICES, INC. Accordingly, ALEMAN is a "controlling person" of ARSA. A "controlling person" is "a person who possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of the organization, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, including, but not limited to, power that is the result of an official position with or corporate office held by the person." (Ins. Code, § 1668.5(b).)
G. AEA INSURANCE COMPANY, LTD. and AEA INSURANCE SERVICES, LTD. (hereafter collectively referred to as "AEA"), are resident domestic corporations in the British Virgin Islands licensed to transact automobile insurance within the Territory of the Virgin Islands. The AEA entities have not, nor have ever been, issued a license, by the California Insurance Commissioner, to act in any capacity regarding the transaction of insurance.
//
FINDINGS
In accordance with California Insurance Code section 1748.5(e)(1), the Insurance Commissioner makes the following findings:
1. On or about June 15, 2004, before the Superior Court of California, County of San Diego, Central Division, in the case of The People of the State of California, Plaintiff, v. AEA Insurance Company, Ltd., AEA Insurance Services, Ltd., Jose Andres Aleman, ARSA Insurance, et al., Amended Felony Complaint, Court Case No. CD183449, DA No. ABG078, Respondents JOSE ANDRES ALEMAN, a/k/a JOE A. ALEMAN, and ARSA INSURANCE SERVICES, INC. et al., were charged with thirty (30) counts of TRANSACTING INSURANCE WITHOUT A CERTIFICATE OF AUTHORITY, in violation of California Insurance Code section 700, a felony.
2. Said felonies are alleged to have been committed on or about and between August 29, 2001 through July 10, 2002, in the County of San Diego, State of California.
3. In accordance with Paragraph Number One (1) herein above, Respondents JOSE ANDRES ALEMAN, a/k/a JOE A. ALEMAN, and ARSA INSURANCE SERVICES, INC. have been charged in a felony complaint issued by the San Diego County District Attorney (attached hereto as Exhibit "A" and incorporated herein by this reference), with a crime punishable by imprisonment for a term exceeding one (1) year, and which involves the willful and unlawful transaction of a class of insurance without first being admitted for that class by procuring a certificate of authority from the Insurance Commissioner of the State of California.
4. As the Managing General Agent2 for AEA Insurance Company, Ltd. and AEA Insurance Services, Ltd., (hereafter "AEA"), Respondents JOSE ANDRES ALEMAN, a/k/a JOE A. ALEMAN, and ARSA INSURANCE SERVICES, INC. are responsible for the solicitation, negotiation and transaction of Mexican resident auto insurance, underwritten by AEA, subject to the overall authority and control of AEA. Pursuant to California Insurance Code section 769.85, the acts of the Managing General Agent (hereafter "MGA") are considered to be the acts of the insurer on whose behalf it is transacting. Neither AEA nor Respondents JOSE ANDRES ALEMAN, a/k/a JOE A. ALEMAN, and ARSA INSURANCE SERVICES, INC. have applied for or received a Certificate of Authority from the California Insurance Commissioner to transact the business of insurance in the State of California. "Transact" as applied to insurance include any of the following: (a) Solicitation. (b) Negotiations preliminary to execution. (c) Execution of a contract of insurance. (d) Transaction of matters subsequent to execution of the contract and arising out of it. (Ins. Code § 35.)
5. The facts alleged herein above demonstrate that failure to immediately issue this order may cause direct financial or other injury to a policyholder or any other person.
ORDER
In accordance with findings stated in Paragraph Numbers 1-5 herein above, the Insurance Commissioner makes the following Orders:
NOW THEREFORE:
RESPONDENTS JOSE ANDRES ALEMAN, A/K/A JOE A. ALEMAN, AND ARSA INSURANCE SERVICES, INC., ARE HEREBY ORDERED PROHIBITED FROM PARTICIPATING IN ANY MANNER IN THE BUSINESS OF INSURANCE OR IN THE BUSINESS OF ANY INSURER OR INSURANCE PRODUCTION AGENCY, EFFECTIVE IMMEDIATELY, EXCEPT WITH THE PRIOR CONSENT OF THE INSURANCE COMMISSIONER OF THE STATE OF CALIFORNIA; and,
IT IS FURTHER ORDERED that this Order shall be effective immediately.
NOTICE OF RIGHT TO A HEARING
In accordance with California Insurance Code section 1748.5(f)(1), Respondents JOSE ANDRES ALEMAN, a/k/a JOE A. ALEMAN, and ARSA INSURANCE SERVICES, INC. may have a hearing on this matter according to the following:
a. Within thirty (30) days after the aforementioned Order is issued, you may file with the Insurance Commissioner an application for a hearing on this Order, addressed to Danette C. Brown, Staff Counsel, California Department of Insurance, 300 Capitol Mall, 17th Floor, Sacramento, California 95814.
b. Upon written request to the Insurance Commissioner at the above address, you may request an extension of the thirty (30) day period by an additional thirty (30) days provided the request is filed with the Insurance Commissioner within thirty (30) days after the Order is issued.
c. A hearing will be scheduled within fifteen (15) business days after the application for hearing is filed or within a longer period of time if requested by you.
NOTICE OF CIVIL PENALTIES
Respondents JOSE ANDRES ALEMAN, a/k/a JOE A. ALEMAN, and ARSA INSURANCE SERVICES, INC. are further notified that a violation of this Order may result in civil penalties of up to one thousand dollars ($1,000.00) per day for each day that the violation continues, pursuant to California Insurance Code Section 1748.5(h)(2).
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
Seal, this __ ___ day of , 2005.
JOHN GARAMENDI
Insurance Commissioner
By: ________________________
ROBERT HAGEDORN
Assistant Chief Counsel
///
///
1 All citations are to the California Insurance Code, unless otherwise indicated.
2 A "Managing General Agent" (MGA) means any person, firm, association, partnership, or corporation who manages all or part of the insurance business of an insurer..." (Ins. Code § 769.81.)