Volume 2, No. 3 - April 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 title insurance agent alleged that she misappropriated escrow funds, failed to remit premiums due to an insurer and failed to disperse funds in accordance with the HUD-1 Settlement Statement.
Disposition: License revoked and permanently banned from the insurance industry.

Case: An investigation of a life, health and variable annuity agent alleged that he submitted fraudulent insurance applications to an insurer, including one without accepting premium.
Disposition: License revoked.

Case: An investigation of a title insurance agency alleged that an officer overcharged for a recording fee, charged separate line items that were part of the closing fee, failed to reconcile the escrow account, failed to maintain proper records, and failed to provide a current business address to the Department.
Disposition: License surrendered for 24 months.

Case: An administrative complaint filed against a life, health and variable annuity agent  and his agency alleged that he allowed unlicensed employees to solicit and sell health insurance on behalf of the agency, some of which made misrepresentations to customers.
Disposition: The agency was fined $10,000 and the agent $5,000. The agent also was required to implement a corrective action plan at the agency that included ensuring all the employees obtained a license.

Case: An investigation of a nonresident managing general agent (MGA) alleged that it failed to require a customer representative to cease performing all customer representative duties without a supervising agent, failed to designate a new licensed and appointed general lines agent to supervise the customer representative.
Disposition: Fined $10,000 and probation for 12 months.

Case: An investigation of a roofing company alleged that it advertised itself to conduct public adjusting activities, which it was not licensed to do.
Disposition: Fined $5,000 and ordered to cease and desist from advertising itself as able to conduct public adjusting activities.

Case: An investigation of an automobile warranty licensee alleged it distributed misleading advertisements for automobile warranty products.
Disposition: Fined $5,000.

Case: An investigation of a general lines agent alleged he failed to return unearned premium to an insured in a timely manner.
Disposition: Fined $2,500 and probation for 12 months.

Case: An investigation of a public adjuster apprentice alleged that he solicited an adjusting contract for services without the direct supervision and guidance of the supervising public adjuster.
Disposition: Fined $2,500 and probation for 12 months.

Case: An investigation of a public adjuster alleged that he adjusted a claim prior to being appointed.
Disposition: Fined $2,000 and probation for 12 months.

 

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