THE TREASURER OF THE STATE OF F RIDA, TREASURER AND DEPARTMENT OF INSURAN' Oe Way URANCE CONES. BILL NELSON ae 2 i ae | Backsted IN THE MATTER OF: . CASE NO. 30751-99-AG THOM WADE CHABOT , O0- 0979 ADMINISTRATIVE COMPLAINT TO: THOM WADE CHABOT 7534 Notre Dame Drive New Port Richey, FL 33653 THOM WADE CHABOT 400 South Fort Harrison Clearwater, FL 33756 You, THOM WADE CHABOT, are hereby notified that the Insurance Commissioner of the State of Florida has caused to be made an investigation of your activities while licensed as an insurance agent in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, THOM WADE CHABOT, are currently licensed i in this state as an insurance adjuster (5-20). 2. At all times pertinent to the dates and occurrences referred to herein, you, THOM WADE CHABOT, were licensed in this state as an insurance adjuster. UW ¢ U | 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Insurance (hereinafter “the Department”) has jurisdiction over your insurance licenses and appointments. COUNT 4. The above general allegations are hereby realleged and fully incorporated herein by reference. 5. On or about the period of November 1, 1996, through January 30, 1997, you, THOM WADE CHABOT, were employed as a licensed insurance adjuster by Fireman’s Fund Risk Management, Inc., hereinafter referred to as Fireman’s Fund. 6. At all times relevant to the allegations in this Administrative Complaint, Fireman’s Fund was the administrator for Enterprise Rent A Car, Inc., hereinafter referred to as Enterprise Rent A Car, which is a self insured automobile rental company. 7. On October 28, 1996, Carlos Reinoso of Bridgport, Connecticut was involved in a motor vehicle accident, hereinafter referred to as “the October 28, 1996, accident,” while driving an automobile rented from Enterprise Rent A Car in Dade County, Florida. The accident involved a second vehicle belonging to Jose Bonilla of Charlotte, North Carolina. There were no other vehicles involved in this accident. A claim for this accident was filed with Enterprise Rent A Car. . 8. You, THOM WADE CHABOT, were the insurance adjuster for Fireman's Fund for the claim arising out of the October 28, 1996, accident. Of UW ¢ 9. On or about November 12, 1996, you, THOM WADE CHABOT, represented to Fireman’s Fund via a diary change for the claim that there was third vehicle involved in the October 28, 1996 accident. 10. On or about November 12, 1996, you, THOM WADE CHABOT, represented to Fireman’s Fund that Jose Bonilla’s vehicle had been pushed into the vehicle of Steven Knitter of Garden City, Michigan in the, October 28, 1996, accident. 11. On or about November 12, 1996, you, THOM WADE CHABOT, represented to Fireman’s Fund that Steven Knitter had sustained damages in the amount of nine hundred sixty dollars ($960.00) during the October 28, 1996, accident. 12. Onor about January 6, 1997, you, THOM WADE CHABOT, made another diary change for the claim that represented to Fireman’s Fund that Steven Knitter had sustained additional damages to his vehicle that were related to the October 28, 1996, accident. 13. On or about November 12, 1996, Fireman’s Fund issued a check payable to Steven Knitter in the amount of nine hundred sixty dollars ($960.00). This check was issued to Steven Knitter by Fireman's Fund on the basis of your representation to ' Fireman’s Fund that Steven Knitter's vehicle had been damaged in the October 28, : 1996, accident. 14. | Onor about January 6, 1997, Fireman’s Fund issued a second check payable to Steven Knitter in the amount of three hundred twenty dollars ($320.00). This check was issued to Steven Knitter by Fireman’s Fund on the basis of your 3 WU ¢ WU representation to Fireman’s Fund that Steven Knitter's vehicle had been damaged in the October 28, 1996, accident. 15. You, THOM WADE CHABOT, misrepresented the involvement of Steven Knitter in the October 28, 1996, accident to Fireman's Fund. Steven Knitter was not involved in the October 28, 1996, accident and he did not file a claim for that accident. 16. You, THOM WADE CHABOT, misrepresented the involvement of Steven Knitter in the October 28, 1996, accident to Fireman’s Fund in order to repay Steven Knitter for money that he had loaned you. 17. You, THOM WADE CHABOT, misappropriated and converted for your own use and benefit a total of one thousand two hundred eighty dollars ($1,280) from Fireman’s Fund by fraudulently misrepresenting the involvement of Steven Knitter in the October 28, 1996, accident in order to repay a personal loan. IT IS THEREFORE CHARGED that you, THOM WADE CHABOT, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitute grounds for the suspension or revocation of your licenses and appointments as an insurance agent: (a) Any agent, customer representative, solicitor, ‘or adjuster who, not being lawfully entitled thereto, either temporarily or permanently diverts or misappropriates such funds or any portion thereof or deprives the other person of a benefit therefrom commits the offense specified below. [Section 626.561(3), Florida Statutes]. If the funds diverted or misappropriated are more than $300, but less than $20,000, a felony of the third 4 WU 6 YW degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084. [Section 626.56 1(3)(b), Florida Statutes}; (c) | Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (d) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.61 1(9), Florida Statutes]; (e) Misappropriation, conversion, or uniawful withholding of moneys belonging to insurers or insureds or beneficiaries or to others and received in conduct of business under the license. [Section 626.611(10), Florida Statutes]; (f) Willful failure to comply with, or willful violation of, any proper order or rule of the department or willful violation of any provision of this code. (Section 626.611(13), Florida Statutes]; (g) Violation of any provision of this code or of any other law applicable to the business of insurance in the course of dealing under the license or appointment. [Section 626.621(2), Florida Statutes]; (h) In the conduct of business under the license or permit, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part X of this chapter, or having otherwise shown himself to be a source of injury or loss to the public. [Section 626.621(6), Florida Statutes]; (i) No person shall engage in this state in any trade practice which is defined in this part as, or determined pursuant to Section 626.951 or Section 626.9561 to be an UW UY ¢ unfair method of competition or an unfair or deceptive act or practice involving the business of insurance. [Section 626.9521(1), Florida Statutes]; () Any person who violates any provision of this part shall be subject to a fine in an amount not greater than $2,500 for each nonwillful violation and not greater than $20,000 for each willful violation. Fines under this subsection may not exceed an aggregate amount of $10,000 for ail nonwillful violations arising out of the same action or an aggregate amount of $100,000 for all willful violations arising out of the same action. The fines authorized by this subsection may be imposed in addition to any other applicable penalty. [Section 626.9521(2), Florida Statutes]; (k) Knowingly: a. Filing with any supervisory or other public official, b. Making, publishing, disseminating, circulating, c. Delivering to any person, d. Placing before the public, e. Causing, directly or indirectly, to be made, published, disseminated, circulated, delivered to any person, or placed before the public, any false material statement. [Section 626.9541(1)(e) 1.] (} Knowingly making any false entry of a material fact in any book, report, or statement of any person, or knowingly omitting to make a true entry of any material fact pertaining to the business of such person in any book, ‘Teport, or statement of such person. [Section 626.9541(1)(e) 2]. (m) Knowingly collecting any sum as a premium or charge for insurance, which is not then provided, or is not in due course to be provided, subject to acceptance of the risk by the insurer, by an insurance policy issued by an insurer as permitted by this code. [Section 626.9541(1)(0)1]. WW ¢ YW ( (n) 1. Any agent, physician, claimant, or other person who causes to be presented to any insurer a false claim for payment, knowing the same to be false; or 2. Any agent, solicitor, collector, or other person who represents any insurer or collects or does business without the authority of the insurer, secures cash advances by false statements, or fails to turn over when required, or satisfactorily account for, all collections of such insurer, shall, in addition to the other penalties provided in this act, be guilty of a misdemeanor of the second degree and, upon conviction thereof, shall be subject to the penalties provided by s. 775.082 or s. 775.083. [Section 626.9541(1)(u]. NOTICE OF RIGHTS Pursuant to Sections 120.569 and 120.57, Florida Statutes and Rule 28-106, Florida Administrative Code (F.A.C.), you have the right to request a proceeding to contest this action by the Department. You may elect a proceeding by completing the attached Election of Rights form or filing a Petition. Your Petition or Election of a proceeding must be in writing and must be filed with the General Counsel acting as the Agency Clerk, Department of Insurance. If served by U.S. Mail the Petition or Election should be addressed to the Florida Department of Insurance at 612 Larson Building, Tallahassee, Florida 32399-0333. If Express Mail or hand delivery is utilized, the Petition or Election should be delivered to 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. The Petition or Election must be received by, and filed in the Department within twenty-one (21) days of the date of your receipt of this notice. YOUR FAILURE TO RESPOND TO THIS ADMINISTRATIVE COMPLAINT WITHIN TWENTY-ONE (21) DAYS WILL CONSTITUTE A WAIVER OF YOUR RIGHT TO REQUEST A PROCEEDING ON THE MATTERS ALLEGED HEREIN 7 U 6 YW ¢ AND AN ORDER OF REVOCATION WILL BE ENTERED AGAINST YOU. If a proceeding is requested and there is no dispute of fact the provisions of Section 120.57(2), Florida Statutes would apply. In this regard you may submit oral or written evidence in opposition to the action taken by this agency or a written statement challenging the grounds upon which the agency has relied. While a hearing is normally not required in the absence of a dispute of fact, if you feel that a hearing is necessary one will be conducted in Tallahassee, Florida or by telephonic conference.call upon your request. If you dispute material facts which are the basis for this agency's action you may request a formal adversarial proceeding pursuant to Sections 120.569 and 120.57(1), Florida Statutes. If you request this type of proceeding, the request must comply with all of the requirements of Rule 28-106, F.A.C. and contain a) A statement identifying with particularity the allegations of the Department which you dispute and the nature of the dispute; b) An explanation of what relief you are seeking and believe you are entitled to; '¢c) — Any other information which you contend is material. These proceedings are held before a State administrative law judge of the Division of Administrative Hearings. Unless the majority of witnesses are located elsewhere the Department will request that the hearing be conducted in Tallahassee. UW: UW ( If you request a hearing, you have the right to be represented by counsel, or other qualified representative, to take testimony, to call and cross-examine witnesses, and to have subpoena and subpoena duces tecum issued on your behalf. You are hereby notified that mediation under Section 120.573, Florida Statutes, is not available. Failure to follow the procedure outlined with regard to your response to this notice may result in the request being denied. All prior correspondence in this matter shall be considered freeform agency action, and no such correspondence shall operate as a valid request for an administrative proceeding. Any request for administrative proceeding received prior to the date of this notice shall be deemed abandoned unless timely renewed in compliance with the guidelines as set out above. DATED and SIGNED this s day of. / ecro Ler , 1999. Nhe BILL NELSON Treasurer and Insurance Commissioner

Docket for Case No: 00-000079