Volume 3, No. 3 - May 2012

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 administrative complaint issued against a title agency alleged that its closing agent misappropriated over $500,000 by collecting funds from one mortgagee and failing to disburse the funds to another mortgagee. It was also alleged that the agency failed to maintain a surety bond, pay its administrative surcharge, and notify the Department of a change in principal business address.
Disposition: Licenses revoked for both the agent and agency. Both are permanently barred from the insurance business. The agent was arrested by the Division on Insurance Fraud and criminally charged with three felony counts that are pending.

Case: An investigation of a general lines agent alleged she misappropriated fiduciary funds, failed to remit premiums to insurers resulting in cancellation of policies, causing a consumer's premiums to be financed without the consumer's knowledge or consent, and forged the consumer's signature on premium finance agreements.
Disposition: License revoked. She was also convicted of grand theft and sentenced to 15 years felony probation making her permanently ineligible for licensure.

Case: An investigation of a life and health agent alleged that he submitted fraudulent insurance applications without the knowledge, consent, or true signature of the consumers.
Disposition: License revoked and permanently barred from the insurance business.

Case: An administrative complaint issued against a general lines agent alleged that he was responsible for eight unnecessary wind mitigation inspections, forwarding eight applications to an insurer that contained fraudulent signatures, and forwarding five applications to an insurer that contained fraudulent information.
Disposition: License revoked. He was also arrested and criminally charged with organized fraud, grand theft, insurance fraud, and racketeering.

Case: An investigation of a general lines agent alleged that she submitted 27 premium finance agreement applications without the knowledge, consent, or true signature of the insured, failed to remit insurance premiums collected in the normal course of business to the insurer, and failed to provide a change of home, business, and mailing addresses to the Department.
Disposition: License revoked.

Case: An investigation of a title insurance agent alleged that she provided an unlawful inducement for the referral of business, failed to charge the promulgated rate for title insurance, failed to refund overcharges to insureds, charged separate line items that should have been part of the closing fee, and failed to forward proper premiums to the insurer in a timely manner.
Disposition: License suspended for two years.

Case: An investigation of an insurance agency alleged that an officer aided and abetted an unauthorized insurer and an unlicensed entity in the sale of cargo insurance.
Disposition: Fined $81,000 and placed on probation for one year.

Case: An administrative complaint issued against an all lines public adjuster alleged that he failed to provide his public adjuster apprentices with proper direct supervision and guidance.
Disposition: License suspended for 12 months.

Case: An investigation of an entity licensed as a service warranty sales representative and a motor vehicle service warranty agent alleged that it promoted a website reflecting the marketing and advertising of numerous warranty product without the required disclosure information.
Disposition: License suspended for 12 months.

Case: An investigation of an independent adjuster alleged that he acted as a public adjuster without the proper license, appointment, or surety bond.
Disposition: License suspended for three months.

Case: An applicant for licensure as an insurance agency failed to disclose required information on its application, including past administrative action by the Department against the listed owner. Additionally, the applicant continued transacting without a license since its agency license expired.
Disposition: Fined $4,000 and agency license granted.

Case: An investigation of a general lines agent alleged that he failed to provide a written notice of insurer insolvency to active policyholders.
Disposition: Fined $2,000; make restitution to harmed consumers; probation for one year.

Case: An applicant for licensure as a life and health agent failed to disclose a prior misdemeanor crime on his application.
Disposition: Fined $1,500 and license granted.

Case: A Notice of Intent to Issue Cease and Desist Order was issued against an entity alleging it transacted insurance without the required license and executed and collected funds from premium finance agreements for insurance policies that were never issued.
Disposition: Cease and Desist Order issued.

 

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