Volume 2, No. 5 - July 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 failed to deposit fiduciary funds in a separate escrow account approved by the Department, failed to disburse funds in accordance with a HUD-1 Settlement Statement, and misappropriated fiduciary funds collected in the normal course of business.
Disposition: License revoked and permanently barred from engaging in the insurance business.

Case: An investigation of an insurance agency alleged that one of its officers conducted insurance business with a suspended license, failed to forward premiums in excess of $41,400, failed to place coverage after accepting premium, mishandled premium funds collected in the normal course of business, failed to update the business address with the Department, and failed to designate an agent in charge for the agency.
Disposition: License revoked.

Case: An investigation of a life and variable annuity agent alleged that he submitted a document to an insurer containing false signatures and misrepresented the terms and conditions of an annuity sold to a senior consumer.
Disposition: License revoked.

Case: An administrative complaint filed against an independent all lines adjuster alleged that she conducted public adjusting activities without the proper licensure.
Disposition: License revoked.

Case: An investigation of a title insurance agent alleged that she failed to credit binder fees toward the risk premium, charged above maximum rate for title endorsements, and failed to provide a change of business address to the Department.
Disposition: License surrendered for two years.

Case: An investigation of a general lines agent and insurance company adjuster alleged that he made material misrepresentations to obtain his general lines agent license by certifying that he had experience in a variety of insurance areas when he, in fact, did not.
Disposition: License surrendered.

Case: An investigation of an unlicensed individual revealed he acted as a public adjuster without a license or appointment.
Disposition: Ordered to cease and desist; will not have the right to apply for licensure as a public adjuster for four years.

Case: An investigation of a bail bond agent alleged that he failed to timely return collateral funds received in the conduct of business in the amount of $10,000. Due to the efforts of the Bureau of Investigation, the funds were ultimately returned to the consumer.
Disposition: Fined $20,000 and placed on probation for 12 months.

Case: A Notice of Intent to Issue Cease and Desist Order was filed against a roofing company and two unlicensed individuals associated with it for advertising and holding themselves out to be public adjusters and specializing in dealing with insurance claims by negotiating with insurance carriers and giving claims advice.
Disposition: Ordered to cease and desist.

Case: An investigation of a nonresident life agent alleged that he aided and abetted an unlicensed individual in the sale of two life insurance products and made misrepresentations on the two applications for life insurance.
Disposition: License suspended for 18 months.

Case: An investigation of an automobile warranty sales firm alleged that it aided and abetted an unauthorized entity in the sale of automobile warranty products, and failed to provide the name, address and license number of the service agreement company on an advertisement.
Disposition: Fined $7,500; ordered to cease and desist; shall be responsible for any unpaid claims for any clients it placed with the unauthorized entity.

Case: An investigation of a public adjuster alleged that he charged fees for adjusting services that were not performed for two Florida insurance consumers.
Disposition: Fined $1,000 and ordered to pay restitution of $4,695 to the consumers.

Case: An investigation of a nonresident general lines, life, health and variable annuity agent alleged that he used misleading website advertisements in the solicitation of insurance products.
Disposition: Fined $1,000 and ordered to cease and desist from using misleading advertisements.

Case: An investigation of an insurance agency alleged that it disseminated an advertisement that misrepresented the benefits, advantages, or terms of an annuity.
Disposition: Fined $1,000 and ordered to cease and desist from using misleading advertisements.

Case: An investigation of a life, health and variable annuity agent alleged that he failed to obtain insurer approval on an advertisement and failed to disclose all required limitations and conditions which affect the rate of return in the advertisement.
Disposition: Fined $750; ordered to obtain insurer approval on future advertisements; cease and desist from using misleading advertisements.

 

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