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Volume 3, No. 5 - May 2014

News You Can Use

- Updating you on what's going on

Notice of Proposed Rule - Suitability and Disclosure in Annuity Investments-Forms Required

The Florida Department of Financial Services, Division of Agent & Agency Services, provided Notice of Proposed Rule for Rule 69B-162.011, Florida Administrative Code, relating to suitability and disclosure in annuity investments-forms required. The notice was filed with the Florida Department of State and officially published in the Florida Administrative Register on May 21, 2014.

The proposed rule is amended to conform with revisions to s. 627.4554, F.S., as enacted by SB 166 (Chapter 2013-163, Laws of Florida). SB 166 substantially revised Florida consumer protection laws relating to the sales of annuities by incorporating the 2010 National Association of Insurance Commissioners ("NAIC") Suitability in Annuity Transactions Model Regulation. Forms DFS-H1-1980 and DFS-H1-1981 are revised to reflect the standards, procedures and guidelines of the 2010 NAIC Annuity Suitability Model Regulation, and s. 627.4554, F.S. The proposed rule's title is revised to better reflect its scope of regulation; the proposed rule's website address is also revised.

If requested, a rule hearing will be held on Tuesday, June 17, 2014, at 10:30 a.m. in Room 116 of the J. Edwin Larson Building, 200 E. Gaines Street, Tallahassee, FL 32399.
Click here to read the full text of the notice >>

CFO Atwater Announces Arrest of Insurance Agent for Fraud

Florida Chief Financial Officer Jeff Atwater announced the arrest of Booker T. Wade, 56, an insurance agent accused of stealing insurance premium payments from an elderly client. If convicted, he faces up to five years in prison and will be permanently barred from the insurance industry.
Click here to read the press release >>

CFO Atwater Announces Arrest of Miami-Dade Clinic Owner for PIP Fraud

Florida CFO Atwater announced the arrest of Aurora Hernandez on charges of organizing and billing for a staged accident, commonly known as Personal Injury Protection (PIP) fraud. Hernandez's arrest is the latest in a string of arrests resulting from Operation No-Med Services, which dates back to May 2013 and involves four accident clinics in Miami-Dade County.
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CFO Atwater Announces Sentencing of Tampa Clinic Owner for Insurance Fraud

Florida CFO Atwater announced that Dailin Rojas Perez, 30, has entered a plea agreement and been sentenced to 24 months house arrest because of her involvement in a major insurance fraud scheme at a Tampa accident clinic. Perez is also required to pay $350,000 in restitution to victim insurance carriers and nearly $40,000 in investigative costs. She was charged in September with racketeering and money laundering involving more than $340,000 in fraudulent proceeds.
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Pensacola Chiropractor Sentenced for Racketeering and Grand Theft

Florida CFO Atwater announced that Dr. Russell Dominick, a Pensacola chiropractor, has been sentenced to more than six years in prison and 10 years probation for racketeering and grand theft. Dr. Dominick was caught urging an undercover officer posing as a patient to exaggerate injuries in order to receive a large insurance settlement.
Click here to read the press release >>

CFO Atwater Announces Arrest of Orlando Public Adjuster for Insurance Fraud

Florida CFO Atwater announced the arrest of Robert Eugene Leverett II, an Orlando public adjuster, for insurance fraud after he overestimated a claim by more than $500,000 in an effort to significantly increase the fee he was being paid.
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Arrest Made in Suspected Tampa Area Investment Fraud Scheme

The Florida Office of Financial Regulation announced the arrest of Floyd C. Raynard by the Pasco County Sheriff's Office. Raynard, of Trinity, Florida, is accused of operating an investment fraud scheme in the Tampa area. He has been charged with four counts of grand theft in relation to the scheme, which resulted in losses totaling $90,000 to four out-of-state investors.
Click here to read the press release >>

CFO Atwater Announces Six Arrests in Insurance Fraud Case Involving Tallahassee Towing Company

CFO Atwater announced that six employees of a Tallahassee towing company have been arrested for filing fraudulent insurance claims. The Department of Financial Services' Division of Insurance Fraud and the Leon County Sheriff's Office, in a joint investigation, discovered that Auto Doctor Towing Company employees filed fraudulent claims to eight insurance companies.
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Arrests Made in Orlando Investment Fraud Scheme

The Florida Office of Financial Regulation announced the arrests of Walter Cox Parsons, II, Donald (Jack) Jackson Smith, Jr., and Kenneth Ray Platter. Parsons was arrested March 18, 2014, by the Osceola County Sheriff's Office, Platter was arrested April 16, 2014, by the St. Cloud Police Department, and Smith turned himself in at the Sarasota County Sheriff's Office on April 24, 2014. These individuals are accused of making unauthorized sales of securities through investment offers marketed as "secure" and/or "no risk" ventures. Parsons, Smith, and Platter have each been charged with one count of grand theft, one count of scheme to defraud, one count of sale of unregistered securities, one count of sale of securities by an unregistered agent, and one count of securities fraud in connection with this scheme.
Click here to read the press release >>

Office Unveils an Expanded CHOICES Insurance Rate Comparison System for Consumers

The Florida Office of Insurance Regulation (Office) unveiled an expanded CHOICES system to give consumers one centralized location to search all four of the Office's insurance rate comparison systems. This includes rates for Homeowners, Automotive, Medicare Supplement and Small Group health insurance. The CHOICES system gives Floridians the ability to search different types of insurance products for the best value and coverage using a comparison of rates available for all Florida counties.
Click here to read the press release >>



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We highly recommend that licensees routinely check their MyProfile account(s) for messages from the Department. We send an email notification at the same time to remind you to check your MyProfile account but on rare occasions you may not receive that email. For that reason, we suggest you add our domain MyFloridaCFO.com to your email software's Trusted or Safe Senders List to ensure you are able to receive email notifications from us. Licensees who have a valid email address on file with the Department, as required by law, are sent important email notifications when something that affects their application, license, continuing education, or appointment(s) occurs. Additionally, we will keep you informed with warnings regarding new schemes and scams being marketed to licensees. You can update your contact information through your MyProfile account. We want to keep you informed in a timely manner of pertinent information. You are still required to abide by the Florida Insurance Code regardless of whether you read the information we provide or attempt to provide.