New York Life Sues Former Agent to Recoup Commission Advances
The life insurer terminated the agent after finding that he'd failed to meet its application submission standards.
New York Life has sued a California-based life insurance agent to get back $88,609 in commission advances.
The life insurer terminated Victor Chavez, who was a New York Life agent from 2013 through 2023, after finding that he had failed to meet its application submission standards, according to a complaint filed earlier this month in San Joaquin County Superior Court.
Representatives for New York Life were not immediately available to comment on the case, and Chavez could not be reached for comment.
Chavez was affiliated with New York Life’s office in Pasadena, California.
“Victor Chavez was permitted to resign after a review of his business practices raised concerns on a number of issues, including a pattern of life insurance applications declined for inaccurate or incomplete information such as the insured’s contact information and a possible signature discrepancy,” according to an entry in Chavez’ record in the FINRA BrokerCheck system.
Chavez has been registered with Park Avenue Securities since December 2023, according to BrokerCheck.
New York Life says Chavez owes it money because the company has a contractual right to get back advances it paid him in connection with life insurance applications he submitted that never actually resulted in the issuance of life insurance policies, that resulted in policies on which commissions were adjusted, or that resulted in the issuance of policies that were later rescinded or canceled.
Credit: Sergign/Adobe Stock