FILED NOV 29 2000 THE TREASURER OF THE STATE OF FLORIDA 2 -.. : DEPARTMENT OF INSURANCE TREASURER APS) BILL NELSON IN THE MATTER OF: CASE NO.: 36905-00-AG PHYLLIS LEAR NEWPORT OO-4103 PL / ADMINISTRATIVE COMPLAINT TO: PHYLLIS LEAR NEWPORT Rural Route 4, Box 332 #2 Perry, FL 32347 PHYLLIS LEAR NEWPORT P.O. Box 420 Perry, FL. 32347 You, PHYLLIS LEAR NEWPORT, are hereby notified that the Insurance Commissioner of the State of Florida has caused to be made an investigation of your activities while licensed as an insurance agent in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, PHYLLIS LEAR NEWPORT, are currently licensed in this State as a general lines agent and as a health agent. 2. At all times relevant to the dates and occurrences set forth herein, you, PHYLLIS LEAR NEWPORT, were licensed in this State as a general lines agent and as a health agent. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Insurance has jurisdiction over your insurance license and appointments. 4. At all times relevant to the dates and occurrences set forth herein, you, PHYLLIS LEAR NEWPORT, were an officer, director, or shareholder of Newport Insurance Agency, Inc., with business offices at 1308 South Jefferson Street, Perry, Florida. 5. At all times relevant to the dates and occurrences set forth herein, Newport Insurance Agency, Inc. was an “insurance agency” as defined in Section 626.094, Florida Statutes, and maintained an insurance agency office at 1308 South Jefferson Street, Perry, Florida. 6. At all_times relevant to the dates and occurrences set forth herein, you, PHYLLIS LEAR NEWPORT, were the mother of Jamie Ellison. 7. Atall times relevant to the dates and occurrences set forth herein, Jamie Ellison was an officer, director, or shareholder of Newport Insurance Agency, Inc., with business offices at 1308 South Jefferson Street, Perry, Florida. 8. At all times relevant to the dates and occurrences set forth herein, Jamie Ellison was not licensed by the Department to transact insurance. 9. On or about June 7, 1998, in DOI Case no. 19824-97-A, you, PHYLLIS LEAR NEWPORT, entered into a Settlement Stipulation for Consent Order, whereby you, PHYLLIS LEAR NEWPORT, agreed to cease and desist from the use of Jamie Ellison to transact any business for which a license is required under the Insurance Code, unless and until Ms. Ellison was duly licensed by the Department. The Consent Order was entered in DOI Case no. 19824- 97-A on June 18, 1998. COUNT I 10. | The General Allegations set forth in Paragraphs 1 through 9 above are hereby realleged and fully incorporated herein by reference. 2 11. Onor about April 26, 2000, Department Investigator Richard Morgan telephoned Newport Insurance Agency and, using the alias “Tommy Newsome”, spoke to Jamie Ellison. Investigator Morgan represented that he had refurbished a 1953 Chevrolet pickup truck, and that he was seeking automobile insurance for it. Ms. Ellison suggested that the automobile be appraised, so as not to be insured at “book” value. Ms. Ellison went on to explain the difference between “book” value and replacement cost under a policy of automobile insurance, and advise Investigator Morgan that he was fortunate to speak to her, since the office was very busy and you, PHYLLIS LEAR NEWPORT, were out of the office recovering from eye surgery. ’ 12. Jamie Ellison’s representations to Investigator Morgan on or about April 26, 2000 constituted the unlicensed transaction of insurance, in violation of Sections 626.041 and 626.112, Florida Statutes. 13. You, PHYLLIS LEAR NEWPORT, either knew or reasonably should have known of the unlicensed transaction of insurance by Jamie Ellison on or about April 26, 2000. 14. Jamie Ellison was under the direct supervision and control of you, PHYLLIS LEAR NEWPORT, while engaging in the unlicensed transaction of insurance or about Apt 26, 2000. IT IS THEREFORE CHARGED that you, PHYLLIS LEAR NEWPORT, 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) If the license or appointment is willfully used, or to be used, to circumvent any of the requirements or prohibitions of the Florida Insurance Code [Section 626.61 1(4), Florida Statutes]; (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance [Section 626.611(7), Florida Statutes]; (c) Fraudulent or dishonest practices in the conduct of business under the license or appointment [Section 626.611(9), Florida Statutes]; (@) 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]; (e) Willful failure to comply with, or willful violation of, an order or rule of the Department of Insurance or willful violation of any provision of the Florida Insurance Code [Section 626.611(13), Florida Statutes]; (fh Violation of any provision of the Florida Insurance Code or 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]; (g) 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 Chapter 626, Florida Statutes, or having otherwise shown himself or herself to be a source of injury or loss to the public [Section 626.621(6), Florida Statutes]; (h) —_No person shall engage in this state in any trade practice which is defined in this part as, or determined pursuant to Sections 626.951 or 626.9561. Florida Statues, to be, an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance [Section 626.9521(1), Florida Statutes]; and (i) Any general lines insurance agent who is an officer, director, or stockholder of an incorporated general lines insurance agency shall remain personally and fully liable and 4 accountable for any wrongful acts, misconduct, or violations of any provisions of this code committed by such licensee or by any person under his or her direct supervision and control while acting on behalf of the corporation. Nothing in this section shall be construed to render any person criminally liable or subject to any disciplinary proceedings for any act unless such person personally committed or knew or should have known of such act and of the facts constituting a violation of this chapter [Section 626.734, Florida Statutes]. COUNT II 15. The Generai Allegations set forth in Paragraphs 1 through 9 above are hereby realleged and fully incorporated herein by reference. 16. | Onor about May 5, 2000, Investigator Morgan personally visited the offices of Newport Insurance Agency and spoke with Jamie Ellison concerning insurance for a 1993 Ford truck. Investigator Morgan represented that he wanted minimal coverage on the vehicle. Jamie - Ellison advised Investigator Morgan that she could sell him “10/20/10” insurance (minimal liability and property damage insurance), but that for an additional $2.00 in premium she could sell “10/20/25” insurance (increasing the property damage limits from $10,000 to $25,000). Ms. Ellison then explained the way each policy would apply as a practical matter, using: hypothetical examples. Ms. Ellison then asked Investigator Morgan whether he was interested in purchasing comprehensive-and-collision insurance for the Ford, and explained the benefits of that coverage. Investigator Morgan then represented that he was interested in purchasing a 1999 Dodge 4-wheel drive pickup truck. Ms. Ellison then printed several different quotes for automobile insurance policies for the 1999 Dodge 4-wheel drive pickup truck, discussed the quotes with Investigator Morgan, and provided him with handwritten notations for the quotes. 17. Jamie Ellison’s representations to Investigator Morgan on or about May 5, 2000 constituted the unlicensed transaction of insurance, in violation of Sections 626.041 and 626.112, Florida Statutes. 18. You, PHYLLIS LEAR NEWPORT, either knew or reasonably should have known of the unlicensed transaction of insurance by Jamie Ellison on or about May 5, 2000. 19. Jamie Ellison was under the direct supervision and control of you, PHYLLIS LEAR NEWPORT, while engaging in the unlicensed transaction of insurance or about May 5, 2000. IT IS THEREFORE CHARGED that you, PHYLLIS LEAR NEWPORT, 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: Sections 626.61 1(4), 626.611(7), 626.611(9), 626.621(12), 626.611(13), 626.621(2), 626.621(6), 626.9521(1), and 626.734, Florida Statutes, all of which are set forth specifically in Count I above and are hereby realleged and fully incorporated herein by reference. COUNT II 20. The General Allegations set forth in Paragraphs 1 through 9 above are hereby realleged and fully incorporated herein by reference. 21. | Onor about May 9, 2000, Adrian Cassidy personally visited the offices of Newport Insurance Agency and spoke with Jamie Ellison concerning mobile home insurance. Jamie Ellison quoted Ms. Cassidy a price of $400 per year for the insurance, and explained the benefits of the insurance. 22. Jamie Ellison’s representations to Adrian Cassidy on or about May 9, 2000 constituted the unlicensed transaction of insurance, in violation of Sections 626.04 1 and 626.112, Florida Statutes. 23. You, PHYLLIS LEAR NEWPORT, either knew or reasonably should have ‘known of the unlicensed transaction of insurance by Jamie Ellison on or about May 9, 2000. 24. Jamie Ellison was under the direct supervision and control of you, PHYLLIS LEAR NEWPORT, while engaging in the unlicensed transaction of insurance or about May 9, 2000. IT IS THEREFORE CHARGED that you, PHYLLIS LEAR NEWPORT, 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: Sections 626.611(4), 626.611(7), 626.611(9), 626.621(12), 626.611(13), 626.621(2), 626.621(6), 626.9521(1), and 626.734, Florida Statutes, all of which are set forth specifically in Count I] above and are hereby realleged and fully incorporated herein by reference. COUNT IV 25. The General Allegations set forth in Paragraphs 1 through 9 above are hereby realleged and fully incorporated herein by reference. 26. | Onor about June 6, 2000, Anthony Jim Whiddon personally visited the offices of Newport Insurance Agency and spoke with Jamie Ellison concerning mobile home insurance. Jamie Ellison presented Mr. Whiddon with an insurance application to sign, explained the benefits of the insurance, and described various payment plans. 27. Jamie Ellison’s representations to Anthony Jim Whiddon on or about June 6, 2000 constituted the unlicensed transaction of insurance, in violation of Sections 626.041 and 626.112, Florida Statutes. 28. You, PHYLLIS LEAR NEWPORT, either knew or reasonably should have known of the unlicensed transaction of insurance by Jamie Ellison on or about June 6, 2000. 29. Jamie Ellison was under the direct supervision and control of you, PHYLLIS LEAR NEWPORT, while engaging in the unlicensed transaction of insurance or about June 6, 2000. IT IS THEREFORE CHARGED that you, PHYLLIS LEAR NEWPORT, 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: Sections 626.611(4), 626.611(7), 626.611(9), 626.621(12), 626.611(13), 626.621(2), 626.621(6), 626.9521(1), and 626.734, Florida Statutes, all of which are set forth specifically in Count I above and are hereby realleged and fully incorporated herein by reference. COUNT V 30. The General Allegations set forth in Paragraphs 1 through 9 above are hereby realleged and fully incorporated herein by reference. 31. Onor about June 2, 2000, Angela Dillon personally visited the offices of Newport Insurance Agency and spoke with Jamie Ellison concerning mobile home insurance. Jamie Ellison advised Ms, Dillon that there were several insurance companies from which the insurance could be obtained. Ms. Ellison further advised that one company in particular would be best for the coverage sought by Ms. Dillon. Ms. Ellison further advised that coverage started from the day that Ms. Dillon made a down payment. 32. Jamie Ellison’s representations to Angela Dillon on or about June 2, 2000 constituted the unlicensed transaction of insurance, in violation of Sections 626.041 and 626.112, Florida Statutes. 33. You, PHYLLIS LEAR NEWPORT, either knew or reasonably should have known of the unlicensed transaction of insurance by Jamie Ellison on or about June 2, 2000. 34. Jamie Ellison was under the direct supervision and control of you, PHYLLIS LEAR NEWPORT, while engaging in the unlicensed transaction of insurance or about June 2, 2000. IT IS THEREFORE CHARGED that you, PHYLLIS LEAR NEWPORT, 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: Sections 626.61 1(4), 626.611(7), 626.611(9), 626.621(12), 626.611(13), 626.621(2), 626.621(6), 626.9521(1), and 626.734, Florida Statutes, all of which are set forth specifically in Count-I above and are hereby realleged and fully incorporated herein by reference. COUNT VI 35. The General Allegations set forth in Paragraphs 1 through 9 above are hereby realleged and fully incorporated herein by reference. 36. | Onor about August 19, 1999, Tina Blair personally visited the offices of Newport Insurance Agency and spoke with Jamie Ellison concerning mobile home insurance. Jamie Ellison inquired as to the amount of financing of the mobile home, and the lienholder. Ms. 9 Ellison then explained payment terms, and that she would have to call First Union Bank for certain papers. Ms. Blair gave Ms. Ellison a check for $110, which Ms. Ellison accepted. explained the benefits of the insurance. 37. On or about August 27, 1999, Ms. Blair called Ms. Ellison in a state of concern over a hurricane that had been reported. Ms. Ellison explained to Ms. Blair that the policy applied for could not be issued during the time that the storm remained a hurricane. 38. Jamie Ellison’s representations to Tina Blair on or about August 19, 1999 and August 27, 1999. constituted the unlicensed transaction of insurance, in violation of Sections 626.041 and 626.112, Florida Statutes. | 39. You, PHYLLIS LEAR NEWPORT, either knew or reasonably should have known of the unlicensed transaction of insurance by Jamie Ellison on or about August 19, 1999 and August 27, 1999. 40. Jamie Ellison was under the direct supervision and control of you, PHYLLIS LEAR NEWPORT, while engaging in the unlicensed transaction of insurance or about August 19, 1999 and August 27, 1999. . IT IS THEREFORE CHARGED that you, PHYLLIS LEAR NEWPORT, 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: Sections 626.611(4), 626.61 1(7), 626.611(9), 626.621(12), 626.611(13), 626.621(2), 626.621(6), 626.9521(1), and 626.734, Florida Statutes, all of which are set forth specifically in Count I above and are hereby realleged and fully incorporated herein by reference. WHEREFORE, you, PHYLLIS LEAR NEWPORT, are hereby notified that the Treasurer and Insurance Commissioner intends to enter an Order revoking your licenses, registrations, and appointments as an insurance agent or to impose such lesser penalties as may be provided under the provisions of sections 626.611, 626.621, 626.681, 626.691, 626.9521, and 626.9581, Florida Statutes, arid under the other referenced sections of the Florida Statutes as set out in the 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 the right to request a proceeding to contest this action by the Department. You may elect a proceeding by completing the attached Election of Rights form or filing a Petition. Your Petition or Election of a proceeding must be in writing and must be filed with the General Counsel acting as the Agency Clerk, Department of Insurance. If served by U.S. Mail the Petition or Election should be addressed to the Florida Department of Insurance at 612 Larson Building, Tallahassee, Florida 32399-0333. If Express Mail or hand delivery is utilized, the Petition or Election should be delivered to 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. The Petition or Election-must be received by, + and filed in the Department within twenty-one (21) days of the date of your receipt of this notice. YOUR FAILURE TO RESPOND TO THIS ADMINISTRATIVE COMPLAINT WITHIN TWENTY-ONE (21) DAYS WILL CONSTITUTE A WAIVER OF YOUR RIGHT TO REQUEST A PROCEEDING ON THE MATTERS ALLEGED HEREIN AND AN ORDER OF REVOCATION WILL BE ENTERED AGAINST YOU. If a proceeding is requested and there is no dispute of fact 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 section 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. These proceedings are held before the 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. Pursuant to section 120.573, Florida Statutes, you are hereby notified that mediation is not available. Failure to follow the procedure outlined with regard to your response to this notice may result in the request being denied. All prior correspondence in this matter shall be considered freeform agency action, and no such correspondence shall operate as a valid request for an administrative proceeding. Any request for administrative proceeding received prior to the date of this notice shall be deemed abandoned unless timely renewed in compliance with the guidelines as set out above. DATED and SIGNED this 794% day of _ Mavew ber , 2000. eta by. , . : ILL NELSON Treasurer and Insurance Commissioner * 7 $ 4 & & G ) “ € vw fs fa natin CERTIFICATE OF SERVICE 1 HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT has been furnished to: PHYLLIS LEAR NEWPORT, Rural Route 4, Box 332 #2, Perry, FL 32347; and PHYLLIS LEAR NEWPORT, P.O. Box 420, Perry, FL 32347 by U.S. Certified Mail this 724. day of _ Neveubar , 2000. Richard M. Ellis, Esquire Department of Insurance Division of Legal Services 612 Larson Building 200 East Gaines Street Tallahassee, FL 32399-0333 (850) 413-4195

Docket for Case No: 00-005153PL