FILED THE TREASURER OF THE STATE OF FLORIDA JAN 14 2000 DEPARTMENT OF INSURANCE BILL NELSON IN CURA SHR AS ner Docketed by:_| ‘ IN THE MATTER OF: CASE NO.: 28075-99-AG EDUARDO CARABALLO 060677 ADMINISTRATIVE COMPLAINT TO: EDUARDO CARABALLO 2314 SW 23" Terrace Miami, FL 33145-3608 EDUARDO CARABALLO Edra Insurance Planning, Inc. 1005 SW 67" Ave Miami, FL 33144-4757 You, EDUARDO CARABALLO, 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, EDUARDO CARABALLO, are currently licensed in this State as a life and health insurance agent and health insurance agent. 2. At all times relevant to the dates and occurrences set forth herein, you, EDUARDO CARABALLO, were licensed in this State as a general lines insurance agent, a life and health insurance agent, and a health insurance agent. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Insurance has jurisdiction over your insurance licenses and appointments. Nv) VU 4, Pursuant to Section 626.561, Florida Statutes, all premiums, return premiums, or other funds belonging to others received by you, EDUARDO CARABALLO, constituted trust funds, received in a fiduciary capacity, and you, EDUARDO CARABALLO, were and remain obligated to account for and pay such funds to the insurer, insured. or other persons lawfully entitled thereto in the applicable regular course of business. 5. You, EDUARDO CARABALLO, have sole signatory authority over the Edra Realty, Inc., bank account, account number 0202085585-05, at Ocean Bank in Miami, Florida. COUNT I 6. The General Allegations set forth in Paragraphs | through 5 above are hereby realleged and fully incorporated herein by reference. 7. On or about August 22, 1997. you, EDUARDO CARABALLO, sold to Jose M. Sevares a six-month renewal automobile insurance policy from Ocean Harbor Casualty Insurance Company for a 1988 Chevrolet Caprice owned by Mr. Sevares’ son, Manuel de Jesus Sevares. 8. On or about August 22, 1997, you, EDUARDO CARABALLO, issued to Mr. Sevares a binder covering the subject automobile for sixty (60) days, effective August 23, 1997. 9. On or about August 22, 1997, Mr. Sevares gave you, EDUARDO CARABALLO, a check, check number 568, in the amount of $208.00, as payment for the automobile insurance coverage. 10. On or about August 25, 1997, you, EDUARDO CARABALLO, deposited said check into account number 0202085585-05, at Ocean Bank in Miami, Florida. 11. | Onor about November 1, 1999, the subject automobile was involved in an accident. Upon reporting the accident to Ocean Harbor Casualty Insurance Company, Manuel de 2 YU UY Jesus Sevares was informed by the company that no policy was ever issued for his 1988 Chevrolet Caprice. 12. You, EDUARDO CARABALLO, failed to timely remit Mr. Sevares’ $208.00 payment and application for automobile insurance to an insurance company. As a result thereof, Mr. Sevares incurred a debt in the amount of $2780.69 for damages resulting from the November 1, 1997, accident, which damages would have been covered by the insurance policy which Mr. Sevares purchased from you, EDUARDO CARABALLO, on or about August 22, 1997. IT IS THEREFORE CHARGED that you, EDUARDO CARABALLO, 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, registrations, and appointments as an insurance agent: (a) All premiums, return premiums, or other funds belonging to insurers or others received by an agent, solicitor or adjuster in transactions under his license shall be trust funds so received by the licensee in a fiduciary capacity; and the licensee in the applicable regular course of business shall account for and pay the same to the insurer, insured, or other person entitled thereto. [Section 626.561(1), Florida Statutes]; (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.61 1(7), Florida Statutes]; (c) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; (d) Misappropriation, conversion, or unlawful withholding of moneys belonging to insurers or insured or beneficiaries or to others and received in conduct of business under the license or appointment. [Section 626.61 1(10)]; YU UY (e) 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 626.61 1(13), Florida Statutes]; (f) 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]; (g) In the conduct of business under the license or appointment, 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 or herself to be a source of injury or loss to the public. [Section 626.621(6), Florida Statutes]; and (h) Knowingly collecting any sum as a premium or charge for insurance, which is not then provided, or 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., Florida Statutes]. WHEREFORE, you, EDUARDO CARABALLO, are hereby notified that the Treasurer and Insurance Commissioner intends to enter an Order revoking your licenses, registrations, and appointments as an insurance agent or to impose such lesser penalties as may be provided under the provisions of Sections 626.611, 626.621, 626.681, 626.691, and 626.9521, Florida Statutes, and under the other referenced sections of the Florida Statutes as set out in the Administrative Complaint. NOTICE OF RIGHTS Pursuant to Section 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 4 Nw U 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 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 Section and 120.57(1), Florida Statutes. If you Tequest 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; 5 UY WU 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 the 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. 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, Pursuant to Section 120.573, Florida Statutes, you are hereby notified that mediation 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 14TH day of _ JANUARY , 2000. ILL NELSON Treasurer and Insurance Commissioner YW Nv CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT has been furnished to: EDUARDO CARABALLO, 2314 SW 23” Terrace, Miami, FL 33145-3608; and EDUARDO CARABALLO, Edra Insurance Planning, Inc., 1005 SW 67" Ave, Miami, FL 33 144-4757, by U.S. Certified Mail this_14THday of JANUARY 2000. Christopher J. Karo, Esq. Florida Department of Insurance Division of Legal Services 612 Larson Building 200 East Gaines Street Tallahassee, FL 32399-0333 (850) 413-4250

Docket for Case No: 00-000677