Volume 2, No. 7 - November 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 resident general lines agent and her insurance agency alleged she received applications and premiums from customers at her agency, failed to remit those applications and premiums to insurers, made overcharges for premiums, and provided false documents to customers as proof of policies that were not in force. This misconduct caused customers to be without insurance coverage for several months.
Disposition: Licenses revoked of the agent and agency and both are permanently banned from the insurance industry. The agent was arrested by the Division of Insurance Fraud and convicted of Scheme to Defraud and Misuse of Insurance Funds.

Case: An investigation of a general lines agent alleged that he issued 17 fraudulent certificates of insurance and policy declaration pages. The Division of Insurance Fraud obtained a warrant for his arrest, which he subsequently was, leading to a felony conviction of Forgery and Uttering a Forged Instrument.
Disposition: License revoked and permanently ineligible for licensure.

Case: An administrative complaint filed against a title insurance agent and her title agency alleged that she failed to refund $9,000 in trust funds belonging to a Florida consumer following a real estate purchase that fell through.
Disposition: Licenses revoked of the agent and her agency.

Case: An investigation of a life, health and variable annuity agent alleged that he failed to deliver two policies to an insured, failed to maintain proper records for the Department's examination and inspection, and failed to provide a change of home, business, and mailing addresses to the Department.
Disposition: License revoked.

Case: An investigation of a customer representative alleged that he submitted fraudulent wind mitigation inspection forms to an insurer, created at least three fraudulent wind mitigation invoices for the purpose of obtaining a fee, and diverted fiduciary funds collected during the normal course of business.
Disposition: License revoked.

Case: An investigation of a general lines, life and health agent and his insurance agency alleged that he mishandled insurance premiums collected in the normal course of business at the agency, failed to forward premiums to a finance company and the insurer, and failed to return premiums to insureds in a timely manner. The agent paid restitution to the harmed consumer due to the Department's intervention.
Disposition: Licenses suspended for 12 months for both the agent and the agency.

Case: An investigation of a life, health, variable annuity, and general lines agent alleged that he knowingly submitted a fraudulent premium finance contract without the true signature, knowledge, and consent of the consumer and failed to provide a current business address to the Department. The consumer was not harmed because the fraudulent policy was subsequently canceled by the insurance company per the consumer's request.
Disposition: License suspended for six months.

Case: An administrative complaint filed against a life, health and variable annuity agent alleged that she made all the premium payments on three life insurance policies she sold and made material misstatements to the insurer.
Disposition: Fined $25,000 and license suspended for three months.

Case: An investigation of a life, health and variable annuity agent alleged that he aided and abetted in the submission of an annuity contract containing false information and made an unlawful rebate of premium to an insured.
Disposition: Fined $7,500 and probation for 12 months.

Case: An investigation of a public adjuster alleged he failed to properly supervise a public adjuster apprentice in the solicitation of adjusting contracts and submitted an adjusting contract to an insurer which contained a false signature.
Disposition: Fined $7,500 and probation for 12 months.

Case: An investigation of a life, health and variable annuity agent alleged that he made misrepresentations in the sale of variable universal life insurance policies and annuities.
Disposition: Fined $7,500 and probation for 12 months.

Case: An investigation of a life and variable annuity agent alleged that he failed to explain material provisions of annuity contracts sold to seniors. The insurance company returned consumers' premiums due to the Department's intervention.
Disposition: Fined $6,000.

Case: An investigation of a nonresident general lines agent alleged that he made a misrepresentation on his application for licensure when he failed to disclose another state's previous action against him for selling insurance on behalf of an unlicensed entity.
Disposition: Fined $3,500 and probation for 12 months.

Case: An applicant for licensure as a resident insurance agency failed to disclose on its application that a final judgment was previously entered against an officer of the agency for failure to forward over $10,000 in commissions. The judgment was paid.
Disposition: Fined $3,500 and license granted.

 

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