FILED THE TREASURER OF THE STATE OF FLORIDA JAN 21 2000 DEPARTMENT OF INSURANCE BILL NELSON Oocketed by?, IN THE MATTER OF: OO -/ 74. / PHILLIP STRUM CASENO.: 33430-99- TO: / ADMINISTRATIVE COMPLAINT PHILLIP STRUM 15476 NW 77 Ct. #111 Miami, FL 33016 PHILIP STRUM clo Market U.S.A. 5650 Stirling Road, Suite 22 Hollywood, FL 33021-1523 PHILIP STRUM 1861 N. Federal Highway, Suite 166 Hollywood, FL 33020-2827 7 You, PHILLIP STRUM, are hereby notified that the Insurance Commissioner of the * State of Florida has caused to be made an investigation oft 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, PHILLIP STRUM, are currently licensed in this state as a life and health agent and a general lines agent. mab wis dn Ww oo. Nod 2. At all times pertinent to the dates and occurrences referred to herein, you, PHILLIP STRUM, were licensed in this state as an insurance agent. 3. Pursuant to section 626.561(1), Florida Statutes, all insurance premiums, return premiums or other funds belonging to insurers or others received by you, PHILLIP STRUM, in transactions under your licenses, were and remain trust funds received by you in a fiduciary capacity and were to be accounted for and remitted to an insurer or others entitled thereto in the applicable regular course of business. 4. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Insurance has jurisdiction over your insurance licenses and appointments. COUNT I 5. The above general allegations numbered one (1) through (4) are hereby realleged and fully incorporated herein by reference. 6. On August 5, 1994, a judgment was entered against you in the Circuit Court of the Second Judicial Circuit in and for Leon County, Florida directing you, PHILLIP STRUM and All Service Insurance Agency of Ft. Lauderdale, Ine. jointly and severally, to pay in the principal sum of two thousand, seven hundred and twenty seven dollars and thirty five cents ($2,727.35), plus accrued interest through June 24, 1994 in the amount of nine hundred and forty nine © dollars (949.57), plus three hundred dollars ($300. 00) i in attorney” s fees Pursuant to Florida . Statutes Section 631.154, fora total ‘sum of of three thousand, n nine e hundred and seventy-six dollars and ninety-two cents ($3, 976.92) due the Receiver of the American Risk Assurance Company and National United Insurance Company. Said monies represented insurance premiums and/or Ned oo od unearned commissions which you, PHILLIP STRUM, owed to American Risk Assurance Company and National United Insurance Company. 7. You, PHILLIP STRUM, have failed to pay this judgment to the receiver of the American Risk Assurance Company and National United Insurance Company within the thirty (30) days required by law, and, as of the date of the entry of this Administrative Complaint, you, PHILLIP STRUM, have failed to pay this judgment. IT IS THEREFORE CHARGED that you, PHILLIP STRUM, 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) If the license is willfully used, or to be used, to circumvent any of the requirements or prohibitions of this code. [Section 626.611(4), Florida Statutes]; ©) 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 permit. [Section 626.611(9), Florida Statutes]; W oo ed (e) Misappropriation, conversion, or unlawful withholding of moneys belonging to insurers or insured or beneficiaries or to others and received in the course 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 permit. [Section 626.621(2), - Florida Statutes]; (h) Failure or refusal, upon demand, to pay over to any ir insurer he represents or has represented any money coming into his hands belonging to the i insurer. [Section 626. 621(4), Florida Statutes]; () - Inthe conduct of business under the license or permit, engaging in unfair methods or competition or in unio or deceptive acts or QF 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 or detrimental to the public interest. [Section 626.621(6), Florida Statutes]; 6) . Failing to turn over when required, or satisfactorily account for, all collections of AO ‘Premiums and unearned commissions which have been collected o on behalf of an entity has a duty to account to the receiver and to pay over amounts as may be due. The duty to _account to ‘the rec encompass ‘all persons o or entities involved in ‘the handling and a 2 eee pegs eee or SOAR Re eer eT ye nr ESE | Wd oo Ww transmittal of premium funds. An accounting shall be provided to the receiver within 20 days after receipt of a written demand for an accounting. If there is a dispute regarding the accounting, the court shall hear and decide the matter upon petition of the receiver. Compliance with this section and payment of sums determined to be owed by the court within thirty (30) days of judgment, or within other payment terms approved by the court, shall constitute requirements for continued licensure ofa person holding : a license under the F lorida Insurance Code, and failure t to comply with this section shall be sufficient grounds for the license revocation. [Section 63 1.155, Florida Statutes]. WHEREFORE, you, PHILLIP STRUM, are hereby notified that the Treasurer and Insurance Commissioner intends to enter an order 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, and 626. 9521, Florida Statutes, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. 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 a right to request a proceeding to contest this action ney. the Department. You may elect a Proceeding by completing the attached SE eer Nad ; Wd 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 “ADM TRATIVE 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. Ifa proceeding i 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. cial EMU a Malle ieee oe + oar oe lll WY. ad These proceedings are held before a State hearing officer 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 a hearing is requested, you have the-right to hire an attorney to represent you, to testify in your own behalf, to call and to cross-examine witnesses, and to compel the attendance of witnesses and the production of documents by subpoena. 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 réquist 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. pS DATED and SIGNED this 2 [day of 2000. Brel NELSON Treasurer and Insurance Commissioner CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF RIGHTS has been furnished to: PHILLIP STRUM, 15476 NW 77 Ct. #111 Miami, FL 33016, PHILIP STRUM, 1861 N. Federal Highway, Suite 166, : << Hollywood, FL 33020-2827 by Certified Mail this Z / day of , 2000. CK CREEHAN, ESQUIRE 612 Larson Building Tallahassee, Florida 32399-0333 (850) 922-3110 Ext 4189 pee ep co em ee gee CERCA RTI = ETE nay omer

Docket for Case No: 00-001741