MAR 21 2000 TREASURER AND INSURANCE COMMBSIONER Docketed by: THE TREASURER OF THE STATE OF FLORIDA DEPARTMENT OF INSURANCE op ee eee ores BILL NELSON IN THE MATTER OF OOo 7 08 MARTIN JAY DARLOW CASE NO.: 28669-99-AG % may ADMINISTRATIVE COMPLAINT Eee. TO: MARTIN JAY DARLOW Chora gZ 10900 sw 83? ct. “ Miami, Florida 33156-3582 oe eee eememgu eer dee MARTIN JAY DARLOW Martin J. Darlow & Associates, Inc. 10420 SW 77° Avenue Miami, Florida 33156 YOU, MARTIN JAY DARLOW, 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 i 1. Pursuant to Chapter 626, Florida Statutes, you, MARTIN ; JAY DARLOW, are currently licensed in this state as a RPCJUA agent (2-17), surplus lines property agent (1-20), life agent (2- 16), life and health agent (2-18), anda general lines insurance agent (2-20). «PRR ICRI “OIE eect greeny ime 7) Ww 2. At all times’ pertinent to the dates and occurrence referred to herein, you, MARTIN JAY DARLOW, were licensed in this state to transact life, health and general lines insurance. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Insurance | has | Jurisdiction over your insurance licenses and appointments. 4. During all times material to the allegations contained in this complaint you, MARTIN JAY DARLOW, were a director of Martin J. Darlow & Associates, Inc., 10420 SW 77° Avenue, Miami, Florida 33156 and were shown as a signatory on the account of Martin J. Darlow & Associates, Inc with Commercial Bank of Florida, 1533 Sunset Drive, Miami, Florida 33143. COUNT I 5. The above General Allegations numbered one through four are hereby realleged and fully incorporated herein by reference. 6. On or about December 12, 1997 and April 3, 1998 you, MARTIN JAY DARLOW, received two checks in payment for insurance coverage provided to the Port of Miami Terminal Operating Company (POMTOC) made payable to, Martin J. Dariow & Associates: POMTOC check number 1348 in the amount of $76,661.03 and POMTOC check number 1973 in the amount of $45,161.03. to pepe ie ge meee epee ae 9 ese emer Ww 7) 7. The above-referenced checks were both deposited into the bank account for Darlow Marine Underwriters. Check number 1348, according to a Martin J. Darlow & Associates invoice dated December 11, 1997, covered the cost of the first quarter premium of $45,161.03, plus a consulting fee of $31,500.00. 8. At all material times alleged herein, POMTOC did not have a consulting contract with Darlow Marine Underwriters, nor was there any primary agent listed for Darlow Marine Underwriters. 9. You, MARTIN JAY DARLOW, in a letter dated August 21, 1998, advised that POMTOC had entered into an agreement with Darlow Marine Underwriters’ to obtain an insurance policy with the TT Club for a fee and through your negotiations were able to obtain acceptable cerms, when in fact there was no such agreement or contract. 10. “Because of your misleading statements and/or deceptive omissions, tuis | F. Hernandez, acting as Chief Financial Officer for ‘POMTOC, was not aware that ‘the above referenced fee was illegal under Florida law. 11. You, MARTIN JAY DARLOW, have charged § a fee in excess of the premium | applicable to the insurance coverage issued to 4 Pi te an os 2 ae oe ee ee POMTOC. IT IS THEREFORE CHARGED that you, MARTIN JAY DARLOW, 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 a general lines insurance agent: (a) Willful misrepresentation of any insurance policy or annuity contract or willful deception with regard to any such policy or contract, done either in person or by any form of dissemination of information or advertising. [Section 626.611(5), Florida Statutes] ; (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes] ; (c) Fraudulent or dishonest practices in the conduct of business under the license or permit. [section 626.611(9), Florida Statutes] ; (d) 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]; i w/ Nod (e) 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 permit. [Section 626.621(2), Florida Statutes] ; (£) Violation of any lawful order or rule of the department. [Section 626.621(3), Florida Statutes]; _ (g) 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]; (h) No person shall engage in this state in any trade practice which is defined in this part as, or determined pursuant to s. 626.951 or s. 626.9561 to be, an unfair method of compet ition or an unfair or deceptive act or practice involving the business of insurance. [Section 626.9521, Florida Statutes]; . (4) Knowingly making, issuing, circulating, or causing to be made, issued, or circulated, any estimate, illustration, circular, statement, sales presentation, omission, or comparison dvantages, conditions, or terms wa Ww . J of any insurance policy. [Section 626.9541(1) (a)1., Florida Statutes] ; 4) Knowingly collecting as a premium or charge for insurance any sum in excess of or less than the premium or charge applicable to such insurance, in accordance with the applicable classifications and rates as filed with and approved by the department, and as specified in the policy; or, in cases when classifications, premiums, or rates are not required by this code to be so filed and approved, premiums and charges in excess of or less than those specified in the policy and as fixed by the insurer. [Section 626.9541(0)2., Florida Statutes] ; (k) False statements and entries. - 1. Knowingly: a. Filing with any supervisory or other public official, . . / b. Making, publishing, disseminating, circulating, c. Delivering to any person, dad. 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 ed \wd 626.9541(1) (e)1., Florida Statutes] ; (1) Knowingly paying, allowing, or giving, or offering to pay, allow, or give, directly or indirectly, as inducement to such insurance contract, any unlawful rebate of premiums payable on the contract, any special favor or advantage in the dividends oer other benefits thereon, or any valuable consideration or inducement whatever not specified in the contract. [Section 626.9541(1) (h) (1)b., Florida statutes) . WHEREFORE, you, MARTIN JAY DARLOW, are hereby notified that the Treasurer and Insurance Commissioner intends to enter an Order suspending or revoking your licenses and appointments as an insurance agent or to impose such penalties as may be provided under the provisions of Sections 626.611, 626.621, 626.681, 626.691, 626.692, and 626.9521, Florida Statutes, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. You are further notified that any order entered in this case revoking or suspending any license or eligibility for Licensure held by you shall also apply to all other licenses and eligibility Hela By you unde? the Florida Insurance Code. eee Ww . Ww 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 AND ‘AN ORDER OF REVOCATION WILL BE ENTERED AGAINST YOU. If a proceeding is requested and there is no dispute of fact weno coger “These proc Ww ld 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 in fact, if you feel that a hearing is necessary one will be conducted in Tallahassee, Florida or by telephonic conference call upon your request. - 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; - fe) Any other information which you contend is material. g are held before a State administrative law judge of the Division of Administrative Hearings. Unless the w . led majority of witnesses are located elsewhere, the Department will request that the hearing be conducted in Tallahassee. Tf 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 21st day of March, 2000. LL NELSON Treasurer and Insurance Commissioner mere pe cern te eee ee rN ere oe we pee CR TORRE a IN THE MATTER OF: MARTIN JAY DARLOW / STATE OF FLORIDA Pr e QD DEPARTMENT OF INSURANCE Ha 3 4 33 pag Case No. : Deaggage ALIN TeTVE HEARINGS ELECTION OF RIGHTS ; I have received and have read the Administrative Complaint filed against me including the Notice of Rights contained therein and I understand my options. I am requesting disposition of this matter as indicated below. {Choose one) 1. of Jj I do not desire a proceeding. The Department may enter a final order revoking my license(s). 2. I do not dispute any of the Department's factual allegations and I hereby elect an informal proceeding to be conducted in accordance with section 120.57(2), Florida Statutes. In this regard I desire to (Choose one): { J] submit a written statement and documentary evidence { ] attend an informal hearing to be held in Tallahassee; or { -] attend an informal hearing by way of a telephone conference call. 3. [ ] I do dispute the Department's factual allegations. I have attached to this form a statement indicating the specific issues of fact which are disputed and other required information indicated in the Notice of Rights. I hereby request a formal adversarial proceeding pursuant to Sections 120.569 and 120.57(1), Florida Statutes to be held before the Division of Administrative Hearings. DATE: TO PRESERVE YOUR RIGHT TO A PROCERDING, YOU MUST RETURN THIS FORM WITHIN TWENTY-ONE (21) DAYS OF RECEIPT TO THE DEPARTMENT OF INSURANCE AT THE ADDRESS INDICATED IN THE NOTICE OF RIGHTS. Signature of Petitioner Name: 2 Address: Phone: Serra peer ee Ww . Ned CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT has been furnished to: MARTIN JAY DARLOW, 10900 SW 83°? Ct.; Miami, Florida 33156-3582 and to MARTIN JAY DARLOW, Martin J. Darlow & Associates, Inc., 10420 SW 77 Avenue, Miami, Florida 33156 by Certified U.S. Mail this 21stday of March, 2000. David J. Busch Florida Department of Insurance Division of Legal Services 645 Larson Building 200 East Gaines Street Tallahassee, Florida 32399-0333 (850) 413-4146 Fla. Bar No. 140945 ~— cree Re ERE apt eee ne ER ee

Docket for Case No: 00-001708