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CA Department of Insurance

Insurance Commissioner Dave Jones announces revocation of Simi Valley Agent

Dave Althausen
July 24, 2012 2:54 PM

On December 9, 2011, an Administrative Law Judge ordered the revocation of all licensing rights of Daniel D. Gonzalez. This decision was based upon the Court's finding that Gonzalez had mishandled premiums in violation of California Insurance Code (CIC) sections 1733 and 1734, and committed multiple violations of CIC section 1668, which governs the general business practices of licensed insurance agents. The Court concluded that it was against the public interest to allow Gonzalez to remain licensed because he was lacking in integrity, had engaged in dishonest business practices, displayed incompetency and untrustworthiness, misrepresented the terms and effect of an insurance policy, and committed acts expressly forbidden by law.

Gonzalez was issued a license to transact insurance as a fire and casualty broker-agent in 1991. Since at least 2001, he had been doing business as Daniel Insurance Agency in Simi Valley. In 2002, the California Department of Insurance (CDI) issued a warning letter to Gonzalez for violating CIC section 1734 when he failed to remit premiums to an insurance company, causing one of his clients to suffer an uninsured auto accident loss.

In response to additional consumer complaints, a second investigation into his insurance sales activities was launched in 2006. Evidence uncovered by CDI at that time revealed that Gonzalez had engaged in a pattern of exposing his clients to the danger of an uninsured loss by failing to remit premium payments and required paperwork to insurers. On three occasions, his clients sustained financial losses when they were engaged in auto accidents that they were not covered for due to Gonzalez's failure to secure insurance coverage for them.

In 2009, CDI uncovered another instance when Gonzalez exposed a client to the danger of an insured loss. In this instance, Gonzalez attempted to cover up his unlawful activities by issuing a phony insurance identification card to the client, leaving her with the false impression that she was insured. Evidence also showed that Gonzalez had only remitted approximately $900 to the insurance company as payment of the premiums for a policy for his client, even though she claimed that she had paid him over $2,000.

Additional evidence uncovered by CDI revealed that Gonzalez had engaged in hundreds of NSF check and EFT payments, and that his insurance trust account was overdrawn approximately 100 times over a three month period alone. An audit of his trust account revealed that Gonzalez had used trust account funds to issue a $4,000 check to his wife.

On February 28, 2012, the Commissioner adopted the Court's Proposed Decision, which went into effect on March 27, 2012.

 

 

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