w FILED MAY 23 2000 | THE TREASURER OF THE STATE OF FLORIDA DEPARTMENT OF INSURANCE Co BILL NELSON ; Ces , O-20!) Ze = = IN THE MATTER OF: Seo 7 an CASENO. 3278U-9%:AG 9 Sen) DONALD JOSEPH TIMKO BE, = / aN maf ADMINISTRATIVECOMPLAINT TO: DONALD JOSEPH TIMKO 13167 93*° Avenue Largo, Florida 34646 DONALD JOSEPH TIMKO 10033 9" Street N., 3" floor St. Petersburg, Florida 33716 You, DONALD JOSEPH TIMKO, are hereby notified that pursuant to Chapters 624 and 626, Florida Statutes, 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 that: Se GENERAL ALLEGATIONS 1. You, DONALD JOSEPH TIMKO, are currently licensed in this state as a life insurance agent and as a life and health insurance agent. Ww UW 2. At all times relevant to the dates and occurrences alleged herein, you, DONALD JOSEPH TIMKO, were licensed in this state as an insurance agent. 3, Pursuant to Chapter 626, Florida Statutes, the Insurance Commissioner of the State of Florida and the Department of Insurance has jurisdiction over your insurance licenses and your eligibility for licensure and appointment. COUNTI 4. The above General Allegations numbered one (1) through three (3) are hereby realleged and fully incorporated herein by reference. 5. On or about March 5, 1998, you, DONALD JOSEPH TIMKO, visited the home of Reba Lukens, age 82 of Hudson, Florida, for the purpose of soliciting the sale of insurance policies. 6. As of March 5, 1998, Reba Lukens held her retirement assets in three annuities as follows: an American Life & Casualty annuity policy, 40ON976531, with a value of $31,049.07, an American Life & Casualty annuity policy, #ON976530, with a value of $25,762.36, and an American National Life Insurance annuity policy, #LAR0035394, with a value of $57,255.38. The payouts from these annuities represented Reba Lukens sole source of retirement income apart from Social Security. - : | 7. On or about March 5, 1998, you, DONALD JOSEPH TIMKO, after reviewing her annuities, represented to Reba Lukens that she could receive a superior return than she was already receiving on her funds by purchasing annuities being sold by you. 8. You, DONALD JOSEPH TIMKO, then induced Reba Lukens to surrender her three above-mentioned annuities. We Wd 9. You, DONALD JOSEPH TIMKO, then induced Reba Lukens to purchase two “LIFE USA annuities, policy #500291 ‘and #5500303. The annuities were duly issued. You, DONALD JOSEPH TIMKO, received a commission. 10. You, DONALD JOSEPH TIMKO, failed to disclose to Reba Lukens the terms and conditions of the Life USA annuities that were purchased including, but not limited to, failure to disclose the cash surrender value, surrender charges, maturity date and the annual yield or rate of return. 11. You, DONALD JOSEPH TIMKO, failed to disclose to Reba Lukens that she would be assessed $5,340 in surrender fees upon the surrender of her previously issued annuities. Reba Lukens would not have purchased the LIFE USA annuities if she had been made aware of the surrender charges. You, DONALD J OSEPH TIMKO, were aware or should have been aware of this fact. 12. You, DONALD JOSEPH TIMKO, failed to disclose to Reba Lukens that the replacement of her then in effect annuities with the Life USA annuities would result in the loss of her retirement income. You, DONALD JOSEPH TIMKO, were aware of or should have been aware of this fact. 13. Reba Lukens would not have knowingly liquidated her financial instruments and fee, commission, money or other benefit from an insurance company. ue vy IT IS THEREFORE CHARGED that you, DONALD JOSEPH TIMKO, have violated or are accountable under the following provisions of the Florida Insurance Code which constitute grounds for the suspension or revocation of your licenses as an insurance agent in the state: (a) 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] (b) 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 626.61 1(5), Florida Statutes] (c) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.61 1(7), Florida Statutes] (d) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.611(8), Florida Statutes] (e) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.61 1(9), Florida Statutes] ) 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] . ‘@ 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 626.62 1(2), Florida Statutes] UO u (h) Violation of any lawful order or rule of the department. [Section 626.621(3), Florida Statutes] @ 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 to be a source of injury or loss to the public. [Section 626.621(6), Florida Statutes] Gg) Knowingly making, issuing, circulating, or causing to be made, issued, or circulated, any estimate, illustration, circular, statement, sales presentation, omission, or comparison, which misrepresents the benefits, advantages, conditions, or terms of any insurance policy. [Section 626.9541(1)(a) 1, 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, & _ Causing diretly or indrety, to be made, published, disseminated, circulated, delivered to. any person, or placed before the publi any ‘false material statement. [Section . oe sens fae ae | - _ , Florida f. Knowingly making any misleading representations or incomplete or fraudulent comparisons 0 or t fraudulent material omissions of or F with respect to any insurance policies or insurers for the purpose ‘of inducing any person to surrender any insurance e policy, or take out a policy of insurance in » another insurer. r. [Section 626. 9541(1)0, Florida States) 5 NOTICE OF RIGHTS Pursuant to Sections 120.569 and 120.57, Florida Statutes and Rule Chapter 28-106, Florida Administrative Code (F.A.C.), you have a 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 US 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. Ifa Proceeding i is requested and there i is no 0 dispute o of fact the © provisions of Section 120.57(2), Florida Statutes would apply. In this regard y you may submit oral o or written evidence in opposition to the action taken by this agency | ora written statement challenging the grounds upon which the agency has relied. While a hearing i is normally ni not t required i 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. ap cep ees ER eee we wa If you dispute material facts, which are the basis for this agency’s action, you may request a formal adversarial proceeding pursuant to Section 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 Chapter 28-106, F.AC. and contain a) | A statement identifying with particularity the allegations of the Department which you dispute and the nature of 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. 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 comespondence in this matter shall be considered freeform agency > action, andn no such comespondence shall operate a asa a valid request fora an n administrative proceeding. Any 4 request for administrative proceeding received prior to the date of this notice shall be deemed abandoned unless timely renewed in compliance with the guidelines set out above. DATED and SIGNED this 23rd_dayof__ May, 2000. BILL NELSON Cog Treasurer and Bon Berge ett! oy ae Insurance Commissioner _ DEPARTMED STATE OF FLORIDA DEPARTMENT OF INSURANCE IN THE MATTER OF: DONALD JOSEPH TIMKO CASE NO.: 32780-99-AG / . 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. [ ] Ido not desire a proceeding. The Department may enter a final order revoking my license(s). 2. Ido 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 [J attend an 1 informal hearing by way of a telephone conference cail. 3. [ ] Ido dispute t the Department's factual allegations. [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 Section 120. 57(1), Florida Statutes to be held before the Division of Administrative Hearings. DATE: | con Signature of Petitioner . TO PRESERVE YOUR RIGHT TO A Name: PROCEEDING, YOU MUST RETURN - THIS FORM WITHIN TWENTY-ONE ou... Address: (21) DAYS OF RECE PT. THE NOTICE OF RIGHTS. Phone: Complaint has been furnished by certifie nited States Mail to: DONALD JOSEPH TIMKO, 13167 93rd Avenue, Largo, Florida 34646 and DONALD JOSEPH TIMKO, 10033 9th Street, North, 3rd Floor, St. Petersburg, Florida 33716, this 23rd day of May 2000. AMES A. BOSSART, ESQUIRE Division of Legal Services 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4124 10 or er ee emo eee eee = er Or re reper eo pee”

Docket for Case No: 00-002619