Petitioner: DEPARTMENT OF INSURANCE
Respondent: PATRICIA MARIE LORELLO
Judges: LAWRENCE P. STEVENSON
Agency: Department of Financial Services
Locations: St. Petersburg, Florida
Filed: May 09, 2000
Status: Closed
Settled and/or Dismissed prior to entry of RO/FO on Wednesday, January 10, 2001.
Latest Update: Dec. 22, 2024
tee
FILED
MAR OY | 2000
THE TREASURER OF THE STATE OF FLORIDA
DEPARTMENT OF INSURANCE
INSURANCE COMMISSIONER
BILL NELSON —
BY
IN THE MATTER OF: | O0- GY
CASE NO.: 27866~-99-AG
PATRICIA MARIE LORELLO
/
ADMINISTRATIVE COMPLAINT
TO: PATRICIA MARIE LORELLO
5572 Park Blvd
Pinellas Park, Florida 34665-3353
PATRICIA MARIE LORELLO
2477 Stag Run Blvd.
Clearwater, FL 34625-1835
You, PATRICIA MARIE HORELLO, are hereby notified that the
Insurance Commissioner of the State of Florida has ca sed to be
ap ebetaur ie
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,
PATRICIA MARIE LORELLO, are currently licensed ir State as a
general lines agent (2-20) and you also hold a_.residential
property and casualty JUA appointment (0-17).
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2. At all times pertinent to the dates and occurrences
referred to herein, you, PATRICIA MARIE LORELLO, were a licensed
and appointed insurance agent in the State of Florida.
3. At all times pertinent to the dates and occurrences
referred to herein, you, PATRICIA MARIE LORELLO, acted in the
capacity of primary agent for Aladdin Insurance Agency at the
Pinellas Park location. In that position, you were responsible
for the hiring and supervision of all individuals within that
location who dealt with the public in the solicitation,
negotiation and sale of insurance contracts or in the collection
or accounting of moneys from the general public. as described in
each of the counts of this complaint below.
4. As a primary agent in an unincorporated agency you,
PATRICIA MARIE LORELLO, were responsible for the acts of salaried
employees under your direct supervision and control, while acting
on behalf of the agency, and you knew or should have known of the
activities of those employees under your direct supervision and
control, and you were responsible and accountable for all such
activities of the staff at the agency locations described herein
for the times and occurrences as hereafter presented. References
to you, PATRICIA MARIE LORELLO, include persons acting under your
direct supervision and control at the agencies described herein.
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5. At all time pertinent to the dates and occurrences
referred to herein, Just Premium Finance, Inc., headquartered in
Pinellas Park, Florida, financed premiums for consumers who
purchased insurance at Aladdin Insurance Agency.
6. Pursuant to Chapter 626, Florida Statutes, the Florida
Department of Insurance has -jurisdiction over your insurance
licenses and appointments.
COUNT _I
7. The above general allegations are hereby realleged and
fully incorporated herein by reference.
8. On or about sune 29, 1998, after receiving a notice of
renewal, Ms. Cruz A. Almonte went to the Aladdin Insurance Agency
in Pinellas Park, Florida to renew her auto insurance policy which
was due to expire on or about July 22, 1998. Ms. Almonte met with
Aladdin agent Joseph John Scaglione, Jr., an individual whom you,
PATRICIA MARIE LORELLO, supervised as primary agent.
9, Agent Scaglione quoted Ms. Almonte an annual premium of
$435.00. Ms. Almonte gave the agent a cash down payment in the
amount of $112 and signed a Just Premium Finance Agreement and
Disclosure Statement for the balance of the premium. Scaglione
caused Ms. Almonte, who does not speak or understand English well,
to sign an Accident Medical Protection Plan (“AMPP”) application
without Ms. Altmonte’s knowledge or consent. The charge for this
AMPP, which was included in her total premium, was $100.00. Ms.
Almonte never received a policy or other evidence of coverage
regarding this AMPP, which was to be underwritten by Sphere Drake
and she was unaware of the additional $100 charge for this medical
policy.
10. The three insurers listed on the Accident Medical
Protection Plan application sold to Ms. Almonte, as alleged in
this count, are Omni, Integon and Dairyland. These insurers were
not authorized to write medical insurance coverage other than by
offering this insurance under the surplus lines provisions of the
Florida Insurance Code. There was no documentation to confirm that
a diligent effort had been made to seek coverage from and had been
rejected by at least three authorized insurers currently writing
this type of coverage.
11. You, PATRICIA MARIE LORELLO, knew that Omni, Integon
and Dairyland were not authorized to write medical insurance
coverage other than by offering this insurance under the surplus
lines provisions of the Florida Insurance Code and yet you
willfully agreed to and encouraged the agents under your
supervision to sell such medical insurance products.
12. You, PATRICIA MARIE LORELLO, knew that agent Scaglione
was selling Sphere Drake add-on insurance products without the
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informed consent of insured and you willfully agreed to, allowed
and encouraged such deceptive sales practice.
IT IS THEREFORE CHARGED that you, PATRICIA MARIE
LORELLO, have violated or are accountable under the following
provisions of the Florida Tusurance 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) A “primary agent” is responsible for the hiring and
supervision of all individuals within an insurance agency location
who deal with the public in the solicitation or negotiation of
insurance contracts or in the collection or accounting of moneys
from the general public. Section 626.592 (2) , Florida Statutes.
(b) The primary agent in an unincorporated agency shall be
responsible for the acts of Salaried employees under his or her
direct Supervision and control, while acting on behalf of the
agency. Section | 626. 59215 dy Florida Statutes.
“(c) Surplus lines coverages may be procured From unauthorized
: insurers only “if property and lability insurance. coverages of
subjects resident, located, or, to be performed in this state
cannot be procured from authorized insurers and the following
conditions are met:
PER ronnie step ae =
(1) The insurance must be eligible for export under
section 626.916 or section 626.917, Florida Statutes;
(2) The insurer must be an eligible surplus lines
insurer under section 626.918, Florida Statutes;
(3) The insurance must be so placed through a licensed
Florida surplus lines agent; and
(4) The other applicable provisions of the Surplus
Lines Law must be met.
{Sections 626.913, 626.914(4). and 626.915, Florida Statutes];
(ad) No insurance coverage shall be eligible for export
unless it meets all of the following conditions:
(1) The full amount of insurance required must not
be procurable, after a diligent effort has been made by
the producing agent to do so, from among the insurers
authorized to transact and actually writing that kind
and class of insurance in this state, and the amount of
insurance exported shall be only the excess over the
amount so procurable from authorized insurers. Surplus
lines agents must verify that a diligent effort has
been made by requiring a properly documented statement
of diligent effort from the retail or producing agent.
However, to be in compliance with the diligent effort
requirement, the surplus lines agent's reliance must be
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reasonable under the particular circumstances
surrounding the export of that particular risk.
Reasonableness shall be assessed by taking into account
factors which include, but are not limited to, a
regularly conducted program of verification of the
information provided by the retail or producing agent.
Declinations must be documented on a risk-by-risk
basis. If it is not possible to obtain the full amount
of insurance required by layering the risk, it is
permissible to export the full amount.
(2) The premium rate at which the coverage is
exported shall not be lower than that rate applicable,
if any, in actual and current use by a majority of the
authorized insurers for the same coverage on a similar
risk.
(3) The policy or contract form, under which the
insurance is exported ‘shall. not be more favorable to
“the insured as to the “coverage, or rate than under
similar contracts on file and in actual current use in
this “state by _ fhe majority of authorized insurers
actually writing similar “coverages on similar risks;
except that a coverage may be exported under a unique
form of policy designed for use with respect to a
particular subject of insurance if a copy of such form
is filed with the department by the surplus lines agent
desiring to use the same and is subject to the
disapproval of the department within 10 days of filing
such form exclusive of Saturdays, Sundays, and legal
holidays if it finds that the use of such special form
is not reasonably necessary for the principal purposes
of the coverage or that its use would be contrary to
the purposes of this Surplus Lines Law with respect to
_the reasonable protection of authorized insurers from
unwarranted competition by unauthorized insurers.
(4) Except as to extended coverage in connection
with fire insurance policies and except as to windstorm
insurance, the policy or contract under which the
insurance is exported shall not provide for deductible
amounts, in determining the existence or extent of the
insurer's liability, other than those available under
similar policies or contracts in actual and current use
by one or more authorized insurers.
(Section 626.916, Florida Statutes];
(e) When placing coverage with an eligible surplus lines
insurer, the surplus lines agent must verify that a diligent
effort has been made by requiring from the retail or producing
8
4 SE A RAI SRD i ene e
fy ore one Y
agent a properly documented statement of diligent effort on form
Dif-1153 (7/94), “Statement of Diligent Effort”, which is hereby
adopted and incorporated by reference. Declinations must be
documented on a vrisk-by-risk basis [Rule 45-5.003, Florida
Administrative Code]. “Diligent effort” means seeking coverage
from and having been rejected by at least three authorized
insurers currently writing this type of coverage and documenting
these rejections. [Section 626.914 (3), Florida Statutes];
(£) Violation of any lawful order or rule of the Department.
[Section 626.621(3), Florida Statutes];
(g) If the license or appointment is willfully used, or to
be used, to circumvent any of the requirements or prohibitions of
this code. [Section 626.611(4), Florida Statutes] ;
(n) “willgul 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] ; sous pe tee
i) Demonstrated lack of fitness or trustworthiness to
engage in the business of insurance. {Section 626.611(7),
Florida Statutes];
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(j) Demonstrated lack of reasonably adequate knowledge and
technical competence to engage in the transactions authorized by
the license or permit. [Section 626.611(8), Florida Statutes];
(k). Fraudulent or dishonest practices in the conduct of
business under the license or permit. [Section 626.611(9),
Florida Statutes];
(1) Violation of any provision of the Florida Insurance
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] ;
(m) 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];
(n} By sliding which is the practice of:
1. Representing to the applicant that a Specific
; ancillary coverage | or product _ is _ required PY law An.
conjunction with the purchase of motor . vehicle
required;
insurance when such ‘coverage or product is not
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2. Representing ‘to the applicant that a specific
ancillary coverage or product is included in the motor
vehicle policy applied for without an additional
charge when such charge is required; or
3. Charging an applicant for a specific ancillary
coverage or product, in addition to the cost of the
motor vehicle insurance coverage applied for, without
the informed consent of the applicant.
[Section 626.9541(1) (z), Florida Statutes]
COUNT IT
13. The above general allegations, paragraphs 1 through 6,
are realleged and incorporated herein by reference.
14. On or about September 4, 1998 Mr. Jonathan C. Bailey
contacted Aladdin Insurance Agency in Pinellas Park, Florida for
the purpose of changing the vehicle listed on his insurance
policy. Mr. Bailey met with a woman later determined to be Ann
Klein, an individual whom you, PATRICIA MARIE LORELLO, supervised
as the primary agent.
7 lein advised Mr. Bailey that it would b
to write a new policy rather than process a change of vehicle
endorsement . Mr. Bailey signed an application for auto insurance
underwritten by Delta Casualty Insurance Company to be effective
September 4, 1998 for-a total premium of $516.00. Mr. Bailey
1]
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~;-insurance agent: Sections 626.592(2); 626.592(5); 626.913-
v moos eae ngy
also signed a Just Premium Finance Agreement and Disclosure
Statement and a Disclosure Form. Mr. Bailey believed he paid a
down payment of $129 as reflected on the Premium Finance
Agreement .
16. On November 13, 1998, Mr. Bailey discovered that he had
been charged $100 for a Sphere Drake Policy. Mr. Bailey does not
remember signing an application for the Sphere Drake policy. He
was unaware of the coverage provided by the Sphere Drake policy.
17. You, PATRICIA MARIE LORELLO, knew that agent Klein was
selling Sphere Drake add-on insurance products without the
informed consent of insured and you willfully agreed to, allowed
and encouraged such deceptive sales practice.
IT IS THEREFORE CHARGED that you, PATRICIA MARIE
LORELLO, have violated or are accountable under the following
provisions of the Florida Insurance Code and Rules of the
suspension or revocation of your licenses and appointments as an
918;
626.611 (4); 626.611(5); 626.611(7); 626.611(8); 626.611(9);
(2 1(3);
626.621(2); 626.62 626.621 (6)
Statutes, as fully described under Count I above and incorporated
in full here.
j, and 626.9541(1) (z), Florida
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ee These three insurers were fot authorized to write
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COUNT TIT
18. The above general allegations, paragraphs 1 through 6,
are realleged and incorporated herein by reference.
19. On July 29, 1998, Thomas A. Bond went to Aladdin
insurance Agency in Pinellas Park to obtain auto insurance on his
1986 Ford Escort. Mr. Bond dealt with Ms. Jean Fisherkeller,
whose social security number 048-52-8390 appears on the Bond
application for insurance. Mr. Bond explained to Ms. Fisherkeller
that he wanted minimum limits.
20. Mr. Bond signed an application for insurance
underwritten by Lyndon Property Insurance Company to be effective
July 29, 1998. His annual premium was to be $340. Mr. Bond gave
Ms. Fisherkeller a down payment of $88. Mr. Bond signed a Just
Premium Finance Agreement and Disclosure Statement and Disclosure
Form.
21. Mr. Bond was Unaware oF a 8100 charge for a Sphere
Drake policy. “Although 1 medical insurance was never offered : or
“nentioned, Mr. Bond signed | an Accident Medical Protection Plan
Application, but he stated that he did not realize he was signing
for such “neurance coverage The three insurers on the Accident
ion Plan were Omni, Progressive
and Delt
medical insurance.
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22. Ms. Fisherkeller told Mr. Bond to sign the applications
without explaining to him what it was he was signing. Mr. Bond
never received the Sphere Drake Policy. The ‘Department of
Insurance has no licensed agent record for “J. Fisherkeller” with
the social security number as described above.
23. You, PATRICIA MARIE LORELLO, knew that Omni,
Progressive and Delta Casualty were not authorized to write
medical insurance coverage other than by offering this insurance
under the surplus lines provisions of the Florida Insurance Code
and yet you willfully agreed to and encouraged the agents under
your supervision to sell such medical insurance products.
24. You, PATRICIA MARIE LORELLO, supervised Ms.
Fisherkeller and knew that she was selling Sphere Drake add-on
insurance products without an insurance license and without the
informed consent of insured and you willfully agreed to, allowed
and encouraged such deceptive sales practice.
IT Is THEREFORE CHARGED © that you, PATRICIA MARIE LORELLO,
have violated or are accountable under the following provisions na 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: Sections 626.592(2); 626.592(5); 626.913-.918; 626.611(4);
626.611(5); 626.611(7) ; 626.611(8) ; 626.611(9); 626.621(2); oo
14
Deweakibe: me ART pe BR oP
Insurance Company for an annual premium of $549, commencing on
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626.621(3); 626.621(6); and 626.9541 (1) (z), Florida Statutes, ag
fully described under Count I above and incorporated in full here.
COUNT IV
25. The above general allegations, paragraphs 1 through 6,
are hereby realleged and fully incorporated herein by reference.
26. On February 6, 1998, Ms. Karen Cambron went to Aladdin
Insurance Agency in Pinellas Park, Florida to apply for auto
insurance for her 1991 Dodge Dynasty. Ms. Cambron had been doing
business with Aladdin Insurance Agency since December, 1997. On
this occasion she dealt with a male agent later identified as
Joseph John Scaglione.
27. Ms. Cambron directed the agent to provide her with the
minimum insurance coverage necessary to drive her car in Florida.
Since her car was financed, she also asked for physical damage
coverage. At this February 6, 1998 meeting, Ms. Cambron signed
an auto insurance application underwritten by Delta Casualty
February 6, 1998.
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28 Ma Cambron gave, the agent a ‘down payment of $140 and
signed a Just Premium finance Agreement and Disclosure Statement
and Disclosure Form. Ms. Cambron also signed an Accident Medical
Protection Plan Application and Confirmation of Coverage and cost
Breakdown Forms. At the time Ms. Cambron signed these forms, she
15
was unaware that she was purchasing medical insurance and she was
unaware that there was a premium charge of $100 for these
unwanted Sphere-Drake add-on policies. Furthermore, the three
insurers listed under the medical plan, Omni, Integron and
Progressive, were not authorized to write such medical insurance.
29. You, PATRICIA MARIE LORELLO, knew that Omni, Integon
and Progressive were not authorized to write medical insurance
coverage other than by offering this insurance under the surplus
lines provisions of the Florida Insurance Code and yet you
willfully agreed to and encouraged the agents under your
supervision to sell such medical insurance products.
30. You, PATRICIA MARIE LORELLO, knew that agent Scaglione
was selling Sphere Drake add-on insurance products without the
informed consent of insured and you willfully agreed to, allowed
and encouraged such deceptive sales practice.
IT IS THEREFORE CHARGED that you, PATRICIA MARIE LORELLO,
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: Sections 626.592(2); 626.592(5); 626.913-.918; 626.611(4);
626.611(5); 626.611(7); 626.611(8); 626.611(9); 626.621(2); eeaneecaanestin’
fis ett
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626.621(3); 626.621(6); and 626.9541(1) (z), Florida Statutes, as
fully described under Count I above and incorporated in full here.
COUNT _V
31. The above general allegations, paragraphs 1 through 6,
are hereby realleged and fully incorporated herein by reference.
32. On August 25, 1998, Ms. Wanda I. Latorre went to
Aladdin Insurance Agency in Pinellas Park, Florida to purchase
auto insurance for her 1996 Nissan. Ms. Latorre dealt with
customer representative Patrick Davis who asked her to sign an
application for insurance underwritten by Amstar Insurance Company
effective August 25, 1998. The annual premium was $1,333.
33. Ms. Latorre paid Davis a down payment of $287. Ms.
Latorre also signed a Just Premium Finance Agreement and
Disclosure Statement and Disclosure Form. Ms. Latorre was not
advised that she was also being charged an additional $100 for a
Sphere Drake add-on Policy.
°34. Ms. Latorre did not request such medical insurance
coverage nor was the Sphere Drake > policy ever mentioned to her.
At ‘that, time Ms. atorre ‘had medical insurance coverage ‘provided
by her employer. Ms. Latorre does not recall signing a Sphere
Drake application and a a Sphere | Drake > Policy « was never received.
35. you, PATRICIA MARIE LORELLO, “knew that - Sphere Drake was
not authorized to write medical insurance coverage other than by
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offering this insurance under the surplus lines provisions of the
Florida Insurance Code and yet you willfully agreed to and
encouraged Mr. Davis, a non-licensed agent under your supervision,
to sell this medical insurance product.
36. You, PATRICIA MARIE LORELLO, knew that customer
representative Davis was selling Sphere Drake add-on insurance
products without being licensed as an insurance agent and without
the informed consent of insured and you willfully agreed to,
allowed and encouraged such deceptive sales practice.
IT IS THEREFORE CHARGED that you, PATRICIA MARIE LORELLO,
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: Sections 626.592 (2); 626.592 (5); 626.913-.918; 626.611{4);
626.611(5); 626.611(7); 626.611(8); 626.611(9); 626.621(2);
626.621(3); 626-621 (6) ; and 626.9541(1) (z), Florida Statutes, as
fully described under ‘Count I above nd in orporated in full here.
38. On May 15, 1998, Mr. Anthony R. Porter visited Aladdin
Insurance Agency in Pinellas Park, Florida for a renewal quote on
18
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his auto coverage. A man named “Jeff” with Aladdin had earlier
quoted him a premium of around $700 on the telephone before the
visit.
39. On May 15, 1998, Mr. Porter also met with a man named
“Rick” or “Rich” at the Aladdin location. Mr. Porter signed an
Application for Florida Personal Policy for auto insurance
underwritten by Amstar, to be effective May 17, 1998 with a total
premium of $751.00. wr. Porter did not notice that there was a
cost of $40.00 appearing on a “Confirmation of Coverage Form and
Cost Breakdown” form. Mr. Porter also signed a Just Premium
Finance Agreement a Disclosure Statement and Disclosure Form and
then gave the agent a cash down payment of $182.00, for which he
received a receipt.
40. Mr. Porter was under the understanding that the entire
$182.00 cash down payment would be applied toward his premium;
however, he lat r discovered that only $132.00 had been applied
thereto.
Porter also
signed,
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without _ iis, . knowledge or
consent, a Roadside Recovery Service contract costing him $40. 00.
Mr. Porter aid Age. know that this charge, and a notary charge, com
a rere
would be taken from his S182. 00 down Payment . _Mr Porte id not
ask for, aid not discuss with any agent, and did not want towing
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or roadside coverage and he was unaware that he was purchasing
such product.
42. The agent’s social security number appearing on the
Porter application belongs to you, PATRICIA MARIE LORELLO. The
signature appearing on the finance agreement belongs to agent
Joseph Scaglione.
43. You, PATRICIA MARIE LORELLO, knew that agent Scaglione
was selling Sphere Drake add-on products without being licensed
as an insurance agent. and without the informed consent of the
insured and you willfully agreed to, allowed and encouraged such
deceptive sales practice.
IT IS THEREFORE CHARGED that you, PATRICIA MARIE LORELLO,
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: Sections 626. 592(2) i 626. 592 (5 5); (626.913-.918; 626. 611(4);
626. 611(s), 626.611(7); | 626.611(8); 626. 61119); 626. 621(2); i
626.621(3); 626.621(6); and 626. 9541(1) (z), Florida Statutes, as we
fully described under, Count r above and incorporated in full here.
CO
44, The above general allegations, paragraphs 1 chrough 6,
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are hereby realleged and fully incorporated herein by reference.
45. On September 17, 1998, Mr. John Podkulski went to
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Aladdin Insurance Agency in Pinellas Park, Florida to purchase
auto insurance. He met with customer representative Melissa
Mallette. Ms. Mallette gave Mr, Podkulski a quote of $867 for his
annual premium. Mr. Podkulski signed an agreement based on that
quote for insurance to be underwritten by Delta Casualty effective
September 17, 1998.
46. Mr. Podkulski gave customer representative Mallette a
down payment of $17C and signed a Just Premium Finance Agreement
and Disclosure Statement. On February 3, 1999, Mr. Podkulski
noticed a $100 charge for a Sphere Drake Policy, but did not agree
to the purchase of such medical coverage. Mr. Podkulski has
medical insurance through his employer and had no reason to
purchase the Sphere Drake Policy from Ms. Mallette. In fact, Ms.
Mallette had never mentioned such insurance coverage at the time
Mr. Podkulski signed the group of insurance papers.
~47, Mr. Podkulski later discovered that his accident
Medical protection Plan Application contained his signature, but
he was completely unaware that he had signed for such coverage.
The three insurers listed on the medical plan were Delta, Omni,
and NIA. (Delta and Omnd. are not authorized to write medical
insurance. NIA” stands for, the National Insurance Association Z
and is not even an authorized Florida insurer. Furthermore, Ms.
3
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. Insurance which constitute. grounds: for the Suspension or.
wv Cg te rv
Mallette does not have a 2-20 license; therefore, she was not
qualified to write surplus lines business. Mr. Podkulski never
received any Sphere Drake Policy.
48. You, PATRICIA MARIE LORELLO, knew that Delta, Omni, and
“NIA” were not authorized to write medical insurance coverage
other than by offering this insurance under the surplus lines
provisions of the Florida Insurance Code and yet you willfully
agreed to and encouraged Ms. Mallette, a non-licensed agent under
your supervision, to sell such medical insurance products.
49. You, PATRICIA MARIE LORELLO, knew that customer
representative Mallette was selling Sphere Drake add-on insurance
products without being licensed as an insurance agent and without
the informed consent of insured and you willfully agreed to,
allowed and encouraged such deceptive sales practice.
IT Is THEREFORE CHARGED that you, PATRICIA MARIE LORELLO,
have violated or are accountable under the following provisions of. ce, |
the Florida Insurance code and Rules of the _Pepartment of
hot revocation of your dicenses and appointments as an insurance _
agent: Sections 626.592 (2); 626.592(5); 626.913-.918; 626.611(4);
626.611(5); 626.611(7); 626.611(8); 626.611(9); 626.621(2);
626.621(3); 626.621(6); and 626.9541(1) (z), Florida Statutes, as
fully described under Count I above and incorporated in full here.
22
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COUNT VIII
50. The above general allegations, paragraphs 1 through é,
are hereby realleged and fully incorporated herein by reference.
51. On June 30, 1998, Mr. Juan C. Pabon went to Aladdin
Insurance Agency in Pinellas Park, Florida to review his auto
insurance coverage. At the agency Mr. Pabon dealt with customer
representative April Ribar who quoted him an annual premium of
$883.00. Mr. Pabon then signed an application for auto insurance
underwritten by Delta Casualty Insurance Company effective July
10, 1998 through agent Janie Rodriguez.
52. Mr. Pabon gave customer representative Ribar a down
payment of $200.00. Mr. Pabon did not notice a Sphere Drake
charge of $100 appearing on the forms at the time of signing. Mr.
Pabon also apparently signed a Sphere Drake Accident Medical
Protection Application. Mr. Pabon stated he did not know at the
time it was for medical insurance.
“53. . Pabon did not ‘discuss medical coverage with . oe BA
customer representative Ribar including the Fact that the cost :
_ for any, such coverage would be an additional $100. oo.
54. You, PATRICIA MARIE LORELLO, knew that Sphere-Drake was |
not authorized to write medical insurance coverage other than by
offering this insurance under the surplus lines provisions of the
Florida Insurance Code and yet you willfully agreed to and
23
yer ot y
encouraged Ms. Ribar, a non-licensed agent under your
supervision, to sell such medical insurance products.
55.° You, PATRICIA MARIE LORELLO, knew that customer
representative Ribar was selling Sphere Drake add-on insurance
products without being licensed as an insurance agent and without
the informed consent of insured and you willfully agreed to,
allowed and encouraged such deceptive sales practice.
IT IS THEREFORE CHARGED that you, PATRICIA MARIE LORELLO,
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: Sections 626.592(2); 626. 592(5); 626.913-.918; 626. 611(4);
626 .611(5); 626.611(7); 626.611(8); 626.611(9); | 626. 621 (2)
626 -621(3); 626 .621(6) ; and 626. 9541 (1) (2 ), Florida Stat
fully sncorporated herein by reference.
53. On May 5, 1998, Ms. Gloria Valladares went to Aladdin wh
Insurance Agency in Pinellas Park, Florida to purchase auto
insurance. Customer Representative Melissa Mallette handled the
coger ve
24
TES Ste er r
transaction. Ms. Valladares requested the minimum amount of
insurance as required by state law.
54. After receiving an annual premium quote of $551.00, Ms.
Valladares signed a Brokering Agents Application for auto
insurance underwritten by Lyndon Property Insurance Company
effective May 2, 1998 at a premium of about $551.00. Ms. }
Valladares gave Ms. Malette a cash down payment of $176 and was
given a receipt for this amount.
55. Ms. Valladares signed a Just Premium Finance Agreement
and Disclosure Statement and a Disclosure Form. Ms. Valladares
did not then notice the presence of a Sphere Drake charge of $100
appearing on all three forms. Ms. Valladares believed the entire
$176 down payment was going toward her annual premium, but in
fact only $131.00 was So applied.
56. Ms. Valladares also signed a Roadside Recovery Service
Contract, but did not comprehend what, _She was ‘Signing or
‘purchasing. Customer Representative Malette did not
er
Roadside Recovery Service. Plan with Ms. _ Valladares. __Ms.
Valladares did not notice that a $40.00 charge for the roadside
plan had been taken out of her down payment.
57. Ms. Valladares also signed an Accident Medical
Protection Plan Application having an annual premium of $100.00,
which increased her annual premium to $651. Ms. Malette did not
25
Fee eee
allowed and encouraged such dece tive
wd
discuss the plan with her and she did not notice the premium was
included on the Premium Finance Agreement. The two insurers
listed on the Accident Medical Protection Plan application were
Omni and Delta. These two insurers are not licensed to write
medical coverage in Florida. Furthermore, Representative Malette
does not have a 2-20 agent’s license; therefore, she is not
qualified to write such surplus lines business.
58. You, PATRICIA MARIE LORELLO, knew that Omni and Delta
were not authorized to write medical insurance coverage other
than by offering this insurance under the surplus lines
provisions of the Florida Insurance Code and yet you willfully
agreed to and encouraged Ms. Malette, a non-licensed agent under
your supervision, to sell such medical insurance products.
59. You, PATRICIA MARIE LORELLO, knew that customer
representative Malette was selling Sphere Drake add-on insurance
products without Peing licensed as an insurance agent and without
the informed consent. of insured and you willfully agreed to,
1
practice.
: IT IS THEREFORE CHARGED chat. You, PATRICIA MARTE LORELLO,
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
26
é
4
; ww
agent: Sections 626.592 (2); 626.592(5); 626.913-.918; 626.611 (4);
626.611(5); 626.611(7); 626.611(8); 626.611(9); 626.621(2);
626.621(3); 626.621(6); and 626.9541(1) (z), Florida Statutes, as
fully described under Count I above and incorporated in full here.
COUNT X
60. The above general allegations, numbered 1 through 6,
are hereby realleged and fully incorporated herein by reference.
61. In May 1998, the mother-in-law of Ms. Chong Suk Woody,
Jane Woody, called Aladdin Insurance Agency in Pinellas Park,
Florida and received a quote of about $435.00 for auto insurance
on behalf of Chong Suk Woody. Ms. Chong Suk Woody then visited
the agency to renew her car insurance based on the quote of
$435.00 given Jane Woody.
62. At the agency, Chong Suk Woody met with an agent and
signed an application for insurance underwritten by Southern Group
Indemnity effective ve May 24, 1998. The agent told Chong § Suk Woody —
that the annual premium would be $535, 00, not $435.00. The agent
said the extra $100. 00 was due toa recent rate increase.
63, Ms. Chong Suk Woody signed a Just Premium Finance
Agreement and Disclosure Statement and gave the agent a down
payment ‘of $102. “Agent Scaglione’ s signature appeared < on ‘the
application as the writing agent. Ms. Chong Suk Woody thought
Ww
that the whole amount would go toward her annual premium, but in
fact only $97.00 was actually applied to the premium.
64. Ms. Chong Suk Woody signed the Accident Medical
Protection Plan Application, but did not understand she was
purchasing health insurance. The agent never mentioned hospital
or medical insurance. Furthermore, the three insurers listed on
the Accident Medical Protection Plan were Omni, Progressive, and
Integron. These insurers were not authorized to write medical
insurance.
65. Ms. Chong Suk Woody also signed a Confirmation of
Coverage and Cost Breakdown, but did not understand it included a
$100 charge for medical insurance. Since her native language is
Chinese, Ms. Chong Suk Woody does not speak or understand English
well.
66. When Ms. Chong Suk Woody reviewed documents pertaining
‘to her expired coverage from 1996- 1997, she was surprised to see
that she had purchased Roadside Recovery Service for $40.00. She
was ‘unaware that she had made this purchase. An invoice showed
that she made a down payment of $115.00, instead of the $75.00
required under the Policy. ‘this leaves a difference of $40, 00,
that being the , charge for the Roadside Recovery Service. The
writing agent for this May 24, 1997 transaction was Ms. April
Ribar.
67. You, PATRICIA MARIE LORELLO, knew that Omni, Integon
and Progressive were not authorized to write medical insurance
coverage other than by offering this insurance under the surplus
lines provisions of the Florida Insurance Code and yet you
willfully agreed to and encouraged the agents under your
supervision to sell such medical insurance products.
68. You, PATRICIA MARIE LORELLO, knew that agent Scaglione
was selling Sphere Drake add-on insurance products without the
informed consent of insured and you willfully agreed to, allowed
and encouraged such deceptive sales practice.
IT IS THEREFORE CHARGED that you, PATRICIA MARIE LORELLO,
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: Sections 626.592(2); 626.592(5); 626.913-.918; 626.611 (4);
626.611(5); 626.611(7); 626.611(8) ; 626.611(9); 626.621(2);
626.621(3); 626.621(6); and 626.9541(1)(z), Florida Statutes, as
fully described under Count I above and incorporated in full here.
COUNT XI
69. The above general allegations, numbered 1 though 6, are
hereby realleged and fully incorporated therein by reference.
29 .
!
|
;
70. On July 24, 1998, Mr. Gary Wurster visited Aladdin
Insuiance Agency in Pinellas Park, Florida to purchase auto
insurance. Mr. Wurster believed it was then time to renew his
policy.
71. Mr. Wurster dealt with Customer Representative Melissa
Mallette who gave him an annual quote of $368.00 underwritten by
Lyndon Property Insurance Company. Mr. Wurster paid a $134 down
payment. He did not realize at the time that by signing
additional papers he was agreeing toa $25.00 payment for towing
and road service. Mr. Wurster also signed a Just Premium Finance
Agreement and Disclosure Statement and he signed an Accident
Medical protection Plan Application for a charge of $150.00. The
three insurers on the medical plan were Delta, Omni, and NIA.
Delta and Omni are not authorized to write medical insurance
according to the D artment of Insurance database. “NIA” is the
National Insurance Association and is not a Florida insurer
You,“ PATRICTA MARIE LORELLO, knew that Omni, Delta and
“NIA” were not authorized to write medical insurance rage
*SERSE than PY offering this insurance under the surplus lines
creme oe
7 ; provisions of the Florida Insurance Code and yet you willfully
agreed to and encouraged Ms. Mallette, a non- "licensed agent under
~ your “supervision, ‘to sell such medical insurance ‘products.
Ok ee
%
£
p F)
_-Ministrative Complaint . You are - further notified Ehat any order
73. You, PATRICIA MARIE LORELLO, knew that customer
representative Malette was selling Sphere Drake add-on insurance
products without being licensed as an insurance agent and without
the informed consent of insured and you willfully agreed to,
allowed and encouraged such deceptive sales practice.
IT IS THEREFORE CHARGED that you, PATRICIA MARIE LORELLO,
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: Sections 626.592(2); 626.592(5); 626.913-.918; 626.611(4);
626.611(5); 626.611(7); 626.611(8); 626.611(9); 626.621(2);
626.621(3); 626.621(6); and 626.9541(1) (z), Florida Statutes, as
fully described under Count I above and incorporated in full here.
WHEREFORE, you, PATRICIA MARIE LORELLO, are hereby notified
that the Treasurer and Tnsurance Commissioner intends to enter an
te olan Lab
Order suspending or revoking 3 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 n this
ee eee
nesipe kes
ree
entered in this case revoking | or suspending any license or
31
eligibility for licensure held by you shall also apply to all
other licenses and eligibility held by you under the Florida
Insurance Code.
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, - The Petition or Electio
_ 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. ,
32
Wee oes gee teen eeeeicenzwine
Ste abet >
‘These proces gs fore | ate administrative law | Judge
oe Ww
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
of the Division of Administrative Hearings. Unless the majority
33
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.
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.
March
. os 7th
DATED and SIGNED this day of
BILL NELSON
Treasurer and
Insurance Commissioner
Da
aR ae RE Tea ve
foregoing ADMINISTRATIVE COMPLAINT has been furnished to:
i Ww ede Bo " ‘ Ww
CERTIFICATE OF SERVICE
I. HEREBY CERTIFY that a true and correct copy of the
PATRICIA MARIE LORELLO, 5572 Park Blvd., Pinellas Park, Florida
"34665-3353 and to PATRICIA MARIE LORELLO, 2477 Stag Run Blvd.,
7th
Clearwater, FL 34625-1835 by Certified U.S. Mail this day
March
of , 2000.
David J. Busch
Division of Legal Services
612 Larson Building
Tallahassee, FL 32399-0307
(850) 413-4146
Docket for Case No: 00-001943
Issue Date |
Proceedings |
Jan. 10, 2001 |
Order Closing File issued. CASE CLOSED.
|
Jan. 09, 2001 |
(Petitioner) Motion to Close and Return File filed.
|
Aug. 17, 2000 |
Order Placing Case in Abeyance issued (parties to advise status by October 17, 2000).
|
Aug. 16, 2000 |
Joint Motion to Abate filed.
|
Jul. 03, 2000 |
Request for Subpoenas filed.
|
Jun. 01, 2000 |
Order of Pre-hearing Instructions sent out.
|
Jun. 01, 2000 |
Notice of Hearing sent out. (hearing set for August 24 and 25, 2000; 9:00 a.m.; St. Petersburg, FL)
|
May 25, 2000 |
Response to Initial Order filed.
|
May 23, 2000 |
Joint Response to Initial Order filed. |
May 11, 2000 |
Initial Order issued. |
May 09, 2000 |
Election of Rights filed.
|
May 09, 2000 |
Administrative Complaint filed.
|
May 09, 2000 |
Agency Referral Letter filed.
|