Volume 2, No. 4 - June 2011

Case Notes

The following are instances in which licensees or other persons violated the Florida Insurance Code and the administrative action the department has taken against them.
Note: All administrative investigations are subject to referral to the Division of Insurance Fraud for criminal investigation.

Case: An investigation of a general lines, life, health and variable annuity agent and his agency alleged that he aided and abetted a permanently barred customer representative in the transaction of insurance, which caused the misappropriation of fiduciary funds in excess of $1,600, failed to perform due diligence in attempting to appoint a customer representative, failed to properly supervise the agency, failed to forward premiums to insurers, and failed to return premiums to an insured.
Disposition: Licenses of the agent and agency were revoked.

Case: An administrative complaint filed against a public adjuster alleged that he failed to maintain the required surety bond on file with the Department.
Disposition: Fined $2,000 and license suspended for 3 months and will remain so until a replacement bond has been filed and the fine paid.

Case: An investigation of a general lines, life, health and variable annuity agent alleged that he issued a fraudulent Letter of Reinstatement to an insured, aided and abetted an unauthorized insurer, and obstructed the Department in the course of the investigation.
Disposition: License suspended for 18 months, must complete 6 hours of CE in ethics and 4 hours related to unauthorized entities, and is responsible to pay restitution for any unpaid claims that may arise related to his actions.

Case: An investigation of a customer representative alleged that she misrepresented herself as an agent on an insurance application and continued to transact beyond the scope of her license after being notified by the Department.
Disposition: Fined $3,500 and probation for 6 months.

Case: An investigation of a life, health and variable annuity agent alleged that he made misleading statements in annuity presentations, unnecessarily replaced an annuity, and failed to deliver annuity contracts in a timely manner.
Disposition: Fined $3,500, restitution of $5,400, and probation for 12 months.

Case: An administrative complaint filed against a general lines agent and her agency alleged that she submitted fraudulent wind mitigation inspection forms to an insurer.
Disposition: Fined $10,000 and probation for 6 months.

Case: An administrative complaint filed against a nonresident general lines and surplus lines agent alleged that he misappropriated over $6,000 of insurance premium and failed to maintain a surety bond.
Disposition: License suspended for 15 months.

Case: An administrative complaint filed against a general lines agent and his agency alleged that he had misappropriated insurance premiums.
Disposition: Licenses of the agent and agency were revoked. He was arrested by fraud detectives and remains in jail with multiple felony charges pending.

Case: An investigation of a roofing company alleged that it advertised adjusting services on its website when it was not licensed to do so.
Disposition: Ordered to cease and desist from advertising it provides public adjusting services.

Case: An administrative complaint field against a life, health and variable annuity agent alleged that he submitted to an insurer numerous insurance applications containing false and misleading information for the purpose of obtaining commissions to which he was not entitled.
Disposition: License revoked and he was subsequently arrested for his conduct and pled nolo contendere, along with the payment of restitution and costs totaling $8,500.

 

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