Volume 2, No. 8 - December 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 including variable annuity and health agent alleged that he replaced four annuities, misrepresented the terms and conditions of the annuities such as the surrender charges, and sold annuities that were unsuitable for the senior consumers.
Disposition: License revoked and made permanently ineligible for licensure.

Case: An investigation of a life including variable annuity agent alleged that he submitted numerous fraudulent insurance applications to an underwriter without the knowledge, consent or true signature of the consumers.
Disposition: License revoked and he was arrested by the Division of Insurance Fraud. His felony case is ongoing.

Case: An administrative complaint filed against a title insurance agent alleged that as agent in charge of a title insurance agency, she failed to secure a surety bond, failed to pay the title administrative surcharge, and failed to notify the Department of a change in principal business address and contact telephone number.
Disposition: License revoked.

Case: An administrative complaint filed against a general lines, life including variable annuity and health agent alleged that he misappropriated fiduciary funds and that he falsely advertised that he was an agent appointed with a nationally-recognized insurance company following the termination of his agency agreement with the company.
Disposition: License suspended for 18 months.

Case: An investigation of a general lines, life including variable annuity and health agent alleged that he failed to remit funds to a premium finance company, failed to refund an insured, failed to submit a change of business address to the Department, and failed to timely forward funds to an insurer resulting in the cancellation of two policies.
Disposition: License suspended for 12 months.

Case: An investigation of a general lines agent alleged that he failed to forward premium payments in excess of $3,000 to the insurer collected in the normal course of business. No consumers were harmed as their insurance certificates were issued despite the agent's failure to remit the funds.
Disposition: License suspended for nine months and shall provide proof to the Department that the outstanding debt to the insurer has been satisfied.

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: License suspended for three months and fined $2,000.

Case: An investigation of a bail bond agent alleged that he failed to return unearned premiums to an indemnitor in a timely manner, failed to issue a bond after receiving a premium payment, failed to update his business address with the Department, and failed to pay a fine to the Department within 60 days.
Disposition: License suspended for two months, fined $3,750, shall complete seven hours of continuing education.

Case: An administrative complaint filed against a general lines agent alleged that he failed to conduct a diligent search for insurance coverage through an admitted carrier and provided misleading information on insurance-related documents.
Disposition: Fined $10,000.

Case: An investigation of an automobile warranty and credit life or disability firm alleged that the employees charged excess premium for a services agreement contract and failed to refund excess premium in a timely manner. Restitution was ultimately made to the consumers.
Disposition: Fined $2,500 and placed on probation for 12 months.

Case: An investigation of a life and health agent alleged that he offered inducements to purchase annuity products, disseminated misleading advertisements, failed to fully disclose in boldface type the product and insurer in an advertisement for insurance, failed to obtain insurer approval on an advertisement, and failed to update his business address with the Department.
Disposition: Fined $1,750 and placed on probation for six months.

Case: An investigation of a public adjuster alleged that he failed to timely designate a primary adjuster for firm locations and failed to update all addresses with the Department.
Disposition: Fined $1,250 and placed on probation for 12 months.

Case: An application for a resident life including variable annuity and health agent license was received from an individual who allegedly transacted insurance and misappropriated premiums while his previously held license and appointments were revoked.
Disposition: Application denied.

Case: An application for an insurance agency license was received by the Department after the license had already expired because the agency failed to renew it timely. The Department had emailed the agency prior to the expiration advising that the license needed to be renewed.
Disposition: Application denied.

 

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