THE TREASURER OF THE STATE OF FLORIDA DEPARTMENT OF INSURANCE BILL NELSON a IN THE MATTER OF: OO-A ? a CASE NO: 35033-00-AG CECILIA MARIE WISE aka: Cecilia Wise Graham ADMINISTRATIVE COMPLAINT TO: CECILIA MARIE WISE Chip Everton Agency 3046 West Bearss Ave. Tampa, Florida 33618 CECILIA MARIE WISE 5364 Ehrlich Road, #50 Tampa, Florida 33625-5503 You, CECILIA MARIE WISE, are hereby notified that the Insurance Commissioner of| State of Florida has caused to be made an investigation of your activities while licensed as| insurance agent in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, CECILIA MARIE WISE, currently licensed in this state as a RPCJUA, life and health, general lines and health agent. 2. Atall times pertinent to the dates and occurrences referred to herein, you, CECILIA MARIE WISE, were licensed in this state as an insurance agent. the an are 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Insurance has Jurisdiction over your insurance licenses and appointments. LY no, 4, At all times pertinent to the dates and occurrences referred to herein, you, CECILIA MARIE WISE were an employee of the Chip Everton Agency, an Allstate Insuran . Agency, owned by Walter Rupert Everton, III, a licensed insurance agent. Prior to December 1998, said Agency was located at 14426-B North Dale Mabry Highway, Tampa, Florida. F ron late December 1998 through October 1999, said agency was collocated with another Allstate Insurance Agency, at 14949 North Florida Ave., Tampa, Florida, owned by Walter Rupert Everton, III’s wife, Paula Mae Everton. Starting in early October 1999, said agency was re- located to and remains located at 3046 West Bearss Ave., Tampa, Florida. 5. From at least November 1998 to the present, the Chip Everton Agency routinely used automobile sales personnel to solicit clients, arrange for coverage, and collect premium | monies for automobile insurance policies. These automobile sales personnel were not licensed to transact insurance by the State of Florida Department of Insurance. 6. If, while purchasing an automobile, an individual needed to arrange for automobile insurance, the automobile sales person would call the Chip Everton Agency for th purchaser, would arrange for coverage, receive a binder number, and accept both cash and chdck premium down payments from the customers. The customer often times would not speak to any insurance agent about the transaction. 7. From at least late 1998 through 1999, the automobile sales persons delivered the collected premium down payments to agents at the Chip Everton Agency, while collocated wi the Paula Everton Agency at 14949 N. Florida Ave., Tampa, Florida. The automobile sales persons were, there and then, paid $25.00 for each referral, and you, CECILIA MARIE WISE, actually delivered these monies to the automobile sales persons, and you had full knowledge of and consented to the existence and operation of the referral practices. Ca U 8. Commencing in January 2000, after the Chip Everton Agency moved to the 3046 West Bearss Ave. location, employees of that agency, including you, CECILIA MARIE WISE, would stop by the automobile dealerships and collect the premium down payments. However, by mutual agreement, the auto sales persons had already deducted from those premium monies $25.00 for each policy sold. COUNTI 9. The above general allegations are hereby realleged and fully incorporated hereir, by reference. 10. On or about March 21, 2000, Tiffany A. Scrivens purchased an automobile ftom Bond Auto Sales, 10500 N. Florida Ave., Tampa, Florida. 11. On or about March 21, 2000, auto salesman Claude Donaway, obtained automobile insurance for Tiffany Scrivens by calling the Chip Everton Agency. Mr. Donaway collected a dash down payment amount of $263.00 from Ms. Scrivens for the requested insurance. 12. On or about April 7, 2000, an agent from the Chip Everton Agency picked up $238.00, leaving $25.00 as a referral fee for salesman Claude Donaway. 13. Subsequently Tiffany Scrivens notified CECILIA MARIE WISE that she was having problems identifying the amount of her down payment. Although the Chip Everton Agency said the premium down payment was $238.00, Claude Donaway, the sales person at Bond Auto Sales, told her it was $263.00, so as to insure collection of his $25.00 referral fee. 14. When confronted with Tiffany Scrivens’ complaint, he returned $25.00 to Tiffany Scrivens. UW Ww we) 15. Thus, Donaway’s referral fee was included in the insurance premium down payment, thereby overcharging the insurance customer. Only when Tiffany Scrivens specitiehlly complained about this practice was the proper down payment charged. i 16. You, CECILIA MARIE WISE, violated your fiduciary duty by impropt rly accounting for insurance premium funds, unlawfully sharing commissions, and knowingly ailled . . . aa { and assisted an unlicensed person to solicit and procure automobile insurance. i IT IS THEREFORE CHARGED that you, CECILIA MARIE WISE, have violated or| 4 accountable under the following provisions of the Florida Insurance Code and Rules of Department of Insurance which constitute grounds for the suspension or revocation of your licebses and appointments as an insurance agent: | (a) All premiums, return premiums, or other funds belonging to insurers or o received by an agent, solicitor, or adjuster in transactions under his license shall be trust fun 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 theteto. [Section 626.561(1), Florida Statutes]; (b) If the license or permit is willfully used, or to be used, to circumvent any of| requirements or prohibitions of this code. [Section 626.61 1(4), Florida Statutes]; | (c) Demonstrated lack of fitness or trustworthiness to engage in the businesd insurance. [Section 626.611(7), Florida Statutes]; (d) Demonstrated lack of reasonably adequate knowledge and technical competenc engage in the transactions authorized by the license or permit. [Section 626.611(8), Flo Statutes]; the | ers so the of ida VU Nw (e) Fraudulent or dishonest practices in the conduct of business under the licensd or permit. [Section 626.61 1(9), Florida Statutes]; (63) Misappropriation, conversion, or unlawful withholding of moneys belonging to insurers or insureds or beneficiaries or to others and received in conduct of business under tthe license. [Section 626.611(10), Florida Statutes]; (g) Unlawfully rebating, attempting to unlawfully rebate, or unlawfully dividing} or offering to divide his or her commission with another. [Section 626.61 1(11), Florida Statutes}; (h) Willful failure to comply with, or willful violation of, any proper order or rule ofithe department or willful violation of any provision of this code. (Section 626.611(13), Flotida Statutes]; (i) Violation of any provision of this code or of any other law applicable to the busirless of insurance in the course of dealing under the license or permit. [Section 626.621(2), Flotida Statutes]; dG) In the conduct of business under the license or permit, engaging in unfair method$ 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]; (k) Knowingly aiding, assisting, procuring, advising, or abetting any person in the violation of or to violate a provision of the insurance code or any order or rule of the department. [Section 626.621(12), Florida Statutes]; (()) No person shall transact insurance in this state, or relative to a subject of insurance resident, located, or to be performed in this state, without complying with the applicable provisigns of this code. [Section 624.11, Florida Statutes]. (m) With respect to any such insurance, no person shall, unless licensed as an agent: |(a) Solicit insurance or procure applications therefor; (b) In this state receive or receipt for any money on account of or for any insurer, or receive or receipt for money from other persons toi be transmitted to any insurer for a policy, contract, or certificate of insurance or any renewal ther f, although such policy, certificate, or contract is not signed by him or her as agent or representative of the insurer. [Section 626.04 1(2), Florida Statutes]. (n) No person shall be, act as, or advertise or hold himself or herself out to bei an insurance agent, customer representative, solicitor, or adjuster unless he or she is currently licenked and appointed. [Section 626.112(1), Florida Statutes]. / (0) All premiums, return premiums, or other funds belonging to insurers or t received by an agent, customer representative, solicitor, or adjuster in transactions under his or license are trust funds received by the licensee in a fiduciary capacity. [Section 626.561(1), F lotida Statutes]. (p) An agent may divide or share in commissions only with his or her own employed solicitors and with other agents appointed and licensed to write the same kind or kinds of insurarfce. : | [Section 626.753(1)(a), Florida Statutes] ° (q) _No person shall engage in this state in any trade practice which is defined in thi part as, or determined pursuant to Sections 626.951 or 626.9561, Florida Statutes, to be, an unfair method of competition or an unfair or deceptive act or practice involving the business of i } insurance. [Section 626.9521(1), Florida Statutes] (r) The following are defined as unfair methods of competition and unfair or deceptive acts or practices: 1. Knowingly collecting any sum as a premium or charge for insurance, whichiis not then provided, or is not in due course to be provided, subject to acceptance of the risk by the S er WY UY insurer, by an insurance policy issued by an insurer as permitted by this code. 2, Knowingly collecting as a premium or charge for insurance any sum in excess of or less than the premium of charge applicable to such insurance, in accordance with the applicable classifications and rates aq filed with and approved by the department, and as specified in the policy. [Section 626.9541 (1)(b), Florida Statutes] COUNT II 17. The above general allegations are hereby realleged and fully incorporated hereix} by reference. 18. From at least November 1998, you, CECILIA MARIE WISE have been married to David Graham and hold yourself out to the public as Cecilia Wise Graham. 19. You, CECILIA MARIE WISE have and distributed to the public Chip Everton! Agency business cards using the name Cecilia Wise Graham. 20. Upon relocation to the Bearss Ave. address and upon marriage to David Graham pnd the use of his surname, you, CECILIA MARIE WISE did not update your name change or change of business location with the Department as required by Florida Statutes. [Section 626.551, Florida Statutes]. ° IT IS THEREFORE CHARGED that you, CECILIA MARIE WISE, 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: (a) Every licensee shall notify the department in writing within 30 days after a change of name, residence address, principal business street address, or mailing address. [Section 626.551 > Florida Statutes]. wy) ww (b) Willful failure to comply with, or willful violation of, any proper order or rule 0 department or willful violation of any provision of this code. [Section 626.611(13), Flofi Statutes]; (c) Violation of any provision of this code or of any other law applicable to the eka of insurance in the course of dealing under the license or permit. [Section 626.621(2), Fl Statutes]; COUNT II 21. The above general allegations are hereby realleged and fully incorporated never by reference. 22. During this period, CECILIA MARIE WISE routinely misrated auto ones policies by rating trucks, vans, and sports utility vehicles as commercial vehicles when she knew. or using due diligence, should have known that they were not commercial vehicles. 23. These intentional misratings lowered the insureds policy amount, down paynfent and monthly premium, so as to allow CECILIA MARIE WISE, to write that coverage to exclusion of insurance agents who would correctly rate the risk and charge a correspondiely higher and correct premium. 24. You, CECILIA MARIE WISE, knew or using due diligence should have known these acts were unfair methods of competition and/or deceptive practices in violation of the Flo Insurance Code. IT IS THEREFORE CHARGED that you, CECILIA MARIE WISE, have violated or accountable under the following provisions of the Florida Insurance Code and Rules of the ida 1 > | the ha fida | | are the Department of Insurance which constitute grounds for the suspension or revocation of your licerses and appointments as an insurance agent: Cn ND} (a) Demonstrated lack of fitness or trustworthiness to engage in the busines$ of insurance. [Section 626.611(7), Florida Statutes]; (b) 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]; (c) Fraudulent or dishonest practices in the conduct of business under the license or permit. [Section 626.61 1(9), Florida Statutes]; (d) Wiilful 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(1 3), Florida Statutes]; (e) Violation of any provision of this code or of any other law applicable to the busihess of insurance in the course of dealing under the license or permit. [Section 626.621(2), Florida Statutes]; (f) 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]; (g) No person shall engage in this state in any trade practice which is defined in this part as, or determined pursuant to Sections 626.951 or 626.9561, Florida Statutes, to be, an unfair method of competition or an unfair or deceptive act or practice involving the business df insurance. [Section 626.9521(1), Florida Statutes] (h) The following are defined as unfair methods of competition and unfair or deceptive . ’ ; acts or practices: 1. Knowingly collecting any sum as a premium or charge for insurance, whicl is WW WU not then provided, or is 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. 2. Knowingly collecting as a premium or charge for insurance any sum in excess of or less than the premium o charge applicable to such insurance, in accordance with the applicable classifications and rates filed with and approved by the department, and as specified in the policy. [Section 626.9541(1}(6), Florida Statutes} WHEREFORE, you, CECILIA MARIE WISE, are hereby notified that the Treasurer find Insurance Commissioner intends to enter an Order suspending or revoking your licenses L. 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, hnd 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 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 a right to request a hearing to contest this action by tHe Department. You may request a hearing by filing a Petition. The Petition must be in writing dnd signed by you. The Petition requesting a hearing must be directed to the General Counsel, acting as the Agency Clerk for the Department of Insurance. If you respond by U.S. Mail, the “t see, should be addressed to the Florida Department of Insurance at 612 Larson Building, Tallahas Florida 32399-0333. If Express Mail or hand delivery is utilized, the Petition should be delivered to 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. e Caan U Petition must be received by the Department within twenty-one (21) days of the date of your receipt of this notice. Mailing the Petition on the twenty-first day will not preserve your rightlto a hearing. YOUR FAILURE TO SO ENSURE THAT: THE PETITION REPLYING TO THIS ADMINISTRATIVE COMPLAINT IS RECEIVED BY THE DEPARTMENT WITHIN TWENTY-ONE (21) DAYS WILL CONSTITUTE A WAIVER OF YOUR RIGHT TO REQUEST A HEARING ON THE MATTERS ALLEGED HEREIN AND AN ORDER OF REVOCATION WILL BE ENTERED AGAINST YOU. You may be entitled to a hearing on the proposed agency action pursuant to Sections 120.569 and 120.57, Florida Statutes. If the Petition requests a hearing, it must comply with all of the requirements of Rule 28-106, Florida Administrative Code, and must specifically contain: (a) The name and address of each agency affected and each agency's file or identification number, if known (See the Case No. on the Administrative Complaint); (b) The name, address, and telephone number of the petitioner (For the purpose of requesting hearing in this matter, you are the “petitioner”.); the name, address, and telephone number of the petitioner's representative, if any, which shall be the address for service purpos¢s during the course of the proceeding; and an explanation of how the petitioner's substantial interests will be affected by the agency determination; (c) A statement of when and how the petitioner received notice of the agency decision (the Administrative Complaint to which your petition is responding); (d) A statement of all disputed issues of material fact. If there are none, the petition} must so indicate; U U (e) A concise statement of the ultimate facts alleged, including the specific facts the petitioner contends warrant reversal or modification of the agency's proposed action; (f) A statement of the specific rules or statutes the petitioner contends require reversal or modification of the agency's proposed action; and (g) A statement of the relief sought by the petitioner, stating precisely the action petitioner wishes the agency to take with respect to the agency's proposed action. Your failure to substantially comply with any of those requirements will result in your petition being dismissed as provided for in Rule 28-106.201(4) F.A.C. ADDITIONAL RIGHTS Ifa hearing of any type 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 oral communication or correspondence in this matter shall be considered freeform agency action, and no such oral communication or correspondence shall operate as a valid request for an administrative proceeding. Any request for an 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. ; Y Mediation of this matter is not available, and no department attorney will discuss this matter with you until the Petition has been received by the epi DONE and ORDERED this BILL NELSON Treasurer and Insurance Commissioner U U STATE OF FLORIDA DEPARTMENT OF INSURANCE IN THE MATTER OF: 2 CECILIA MARIE WISE Case No. 3503f-00-aG PETITION FOR PROCEEDING 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. [ ]I do not desire a hearing. The Department may enter a final order revoking my licenses and appointments as may be appropriate. 2. [ 11 do not dispute any of the Department's factual allegations and I hereby elect a proceeding to be conducted in accordance with section 120.57(2), Florida Statutes. In this regard I desire to (Choose one): { ] submit a written statement and documentary evidence in lieu of a hearing [ J] personally attend a hearing conducted by a department hearing officer in Tallahassee; or { ] attend that same hearing by way of a telephone conference call. w uw I do dispute one or more of the Department's factual allegations. I hereby request a hearing pursuant to Section 120.57(1), Florida Statutes to be held before the Division of Administrative Hearings. I have attached to this petition form additional writings indicating the specific issues of fact which are disputed and ALL other required information set forth in subparagraphs a) through and including g) of the Notice of Rights form. I understand that my failure to substantially comply with those written requirements will result in a dismissal of my petition. DATE: Signature of Petitioner TO PRESERVE YOUR RIGHT TO A HEARING, YOU MUST ENSURE DELIVERY OF THIS PETITION TO THE Name DEPARTMENT OF INSURANCE AT THE ADDRESS INDICATED ON Address THE NOTICE OF RIGHTS WITHIN TWENTY ONE (21) DAYS OF YOUR RECEIPT OF THE ADMINISTRATIVE Phone COMPLAINT ydieoey waned oyseuiog ds pp) :eanyeuBbis ‘9 : S661 Jequis: ‘persenber 41 Alu) sseuppy $,2esseuppy ‘8 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and NOTICE OF RIGHTS have been furnished by Certified Mail to CECILL MARIE WISE, Chip Everton Agency , 3046 West Bearss Ave., Tampa, Florida 33618, and to 7? MARIE WISE, 5364 Ehrlich Road, #50, Tampa, Florida 33625-5503, this ZO ay of we 2000. Michael H. Davidson, Esq. Wm. Fred Whitson, Esq. Florida Department of Insurance Division of Legal Services 200 E. Gaines St., 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4178 i a i aeaas SR SRuw a z ZAG e ge Soue m P 979 O55 582 Poas é Be TO: a4ac i] Be. . a Suge & a P9379 O55 983 o 5 . GS2h") E> | Tos > A> < 6. i CECILIA MARIE WISE Beg Zz : CHEP EVERTON AGENCY FEZ™, : 3046 WEST BEARSS AVENUE aeo jG TAMPA, FLORIDA 33618 a” | 7 in = SENDER: 2 FRED WHITSON : REFERENCE: 35033-00-AG Return Receipt Fee Show to whom, dale ™ —_ land address of deliver Restricted Delivery Total Postage and Fees [| US Postal Service POSTMARK OR DATE Receipt for Certified Mail Insurance Coverage Provided ; Do not use for Intemational Mail Aranod jo eyeq "2 JaquinN ey ‘ey ze )) so1nies BUMO|O} _ #10} USHA O5FE | €@b SSO Geb d STATE OF FLORIDA DEPARTMENT OF INSURANCE ; Y be, ; IN THE MATTER OF: O ; ava Q) Wye, CECILIA MARIE WISE Case No. 5032-00-06 figs” / OS Me PETITION FOR PROCEEDING 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. € J] I do not desire a hearing. The Department May enter a final order revoking my licenses and appointments as may be appropriate. 2. { ] I do not dispute any of the Department's: factual allegations and I hereby elect a 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 in lieu of a hearing { ] personally attend a hearing conducted by a department hearing officer in Tallahassee; or { j attend that same hearing by way of a telephone conference call. . 3. [KI x do dispute one or more of the Department's factual allegations. I : hereby request a hearing pursuant to Section 120.57(1), Florida Statutes to be held before the Division of . Administrative Hearings. I have attached to this petition form additional writings indicating the specific issues of fact which are disputed and ALL other required information set forth in subparagraphs a) through and including g) of the Notice of Rights form. I understand that my failure to substantially comply with those written requirements will result in a dismissal of my petition. pate: /-/0)-XOCO TO PRESERVE YOUR RIGHT TO A 7 a as, ff SIA Oa _ Qnature of Petitioner , , bp ae HEARING, YOU MUST ENSURE CELIA PYRE (1S DELIVERY OF THIS PETITION TO THE a LOT 6 DEPARTMENT OF INSURANCE AT 7 SPR ET EW) cy, THE ADDRESS INDICATED ON Address ) aT 3s 7% THE NOTICE OF RIGHTS WITHIN VIVA, FE 3 BERRY TWENTY ONE (21) DAYS OF YOUR RECEIPT OF THE ADMINISTRATIVE Phone { 5/ 3 ) GOF- GLBO COMPLAINT 15

Docket for Case No: 00-002922PL