Volume 2, No. 6 - August 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 life, health and variable annuity agent alleged that he sold a consumer a life insurance policy that named a trust owned by the agent as the beneficiary. The agent at no point in time had a familial relationship with the consumer to whom he sold the policy.
Disposition: License revoked.

Case: An administrative complaint filed against a title agent and her title agency alleged that she, as the sole officer, failed to maintain a surety bond, failed to pay title administrative surcharges, and failed to notify the Department of a change in address.
Disposition: Licenses of agent and agency revoked.

Case: An administrative complaint filed against a public adjuster alleged that he, while president and director of two public adjusting firms, misappropriated funds to which his client was rightfully entitled and failed to designate a primary adjuster.
Disposition: License revoked.

Case: An administrative complaint filed against a general lines agent and his agency alleged that he misappropriated funds belonging to a premium finance company for his own personal use.
Disposition: Agent license suspended for 12 months with eligibility for reinstatement conditioned upon repayment to the premium finance company of approximately $13,000; agency license suspended three months with eligibility for reinstatement conditioned upon repayment to the premium finance company of approximately $3,300.

Case: An investigation of a general lines, legal expense, life, health and variable annuity agent alleged that he issued insurance binders without prior authority, failed to timely return premiums due insureds, and failed to maintain proper records.
Disposition: License suspended six months; fined $2,500.

Case: An administrative complaint filed against a life, health and variable annuity agent alleged that an Acceptance, Waiver and Consent ("AWC") was entered against her by the Financial Industry Regulatory Authority on or around September 20, 2010, which found and concluded that she was in possession of unauthorized study aids, related to the examination subject matter, while taking the Investment Company and Variable Contracts Products Representative Qualification (series 6) examination.
Disposition: License suspended for 6 months.

Case: An administrative complaint filed against a life, health and variable annuity agent alleged that he sold an insurance product on behalf of Depawix Health Resources, Inc., an unauthorized insurer.
Disposition: License suspended for 3 months.

Case: An investigation of a general lines agent alleged that he allowed unlicensed individuals to transact insurance, failed to properly supervise his agencies, and collected fees in excess of the actual cost for motor vehicle reports.
Disposition: Fined $15,000 and probation for one year.

Case: An investigation of a general lines, life and health agent and his insurance agency alleged that he implemented and authorized a practice at his agency to charge insurance consumers an "agency fee" of $100, in addition to the actual premium amount charged by the insurer.
Disposition: Agency fined $2,000; agent fined $1,000; all consumers who had paid the fee were refunded.

Case: An investigation of a life, health and variable annuity agent alleged that he failed to notify the Department of an administrative action taken against him by another state.
Disposition: Fined $1,000.

Case: An applicant for licensure as a personal lines agent failed to disclose on his license application that the Department had previously revoked his license in 1995.
Disposition: License granted and fined $1,500.

Case: An applicant for a resident insurance agency license was initially determined that grounds existed to deny the application based upon the applicant's failure to disclose that the Florida Office of Financial Regulation entered into a Stipulation and Consent Agreement with an officer of the applicant, for selling over one hundred equity indexed annuities to Florida consumers without approval from the insurer and for continuing to sell the equity indexed annuities after he received a verbal warning from the insurer. The officer agreed to cease and desist from the violations and pay an administrative fine of $15,000. A Final Order adopting the Stipulation and Consent Agreement was issued and the fine was paid.
Disposition: Resident insurance agency license granted and placed on probation for 1 year.

Case: An investigation of a customer representative alleged that she failed to fully explain commercial automobile coverage to a policyholder.
Disposition: Fined $1,500 and probation for one year.

Case: An investigation of an attorney-owned title insurance agency alleged that it offered an illegal inducement for title-related services by providing at an open house party a drawing for a gift basket.
Disposition: Fined $500 and ordered to cease and desist from offering inducements for title-related services.

Case: An investigation of a registered insurance agency alleged that the owner made a misrepresentation on the application for agency registration by listing himself as the sole owner when an unlicensed person jointly owned the agency.
Disposition: Agency surrendered registration and was required to submit an application for an agency license.

 

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