PRS REE ot THE TREASURER OF THE STATE OF FLORIDA DEPARTMENT OF INSURANCE TOM GALLAGHER Ins poorer ; Doeketad ti: a bie IN THE MATTER OF: . : CASE NO. 40734-01-AG HENRY CLARENCE ETHEZE ee / ADMINISTRATIVE COMPLAINT TO: HENRY CLARENCE ETHEZE 111 NE 12" Terrace Ocala, Florida 34470 HENRY CLARENCE ETHEZE 529 NE 21" Terrace Ocala, Florida 34470 You, HENRY CLARENCE ETHEZE, are hereby notified that pursuant to Chapter 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: (GENERAL ALLEGATIONS 1. You, HENRY CLARENCE ETHEZE, are currently licensed in the state as a life . insurance agent, life and health insurance agent, general lines insurance agent, health insurance agent and legal expense insurance agent, - 2. _At all time pertinent to the dates and occurrences referred to in this Administrative Complain you, | HENRY ‘CLARE ENCE EETHEZE, were e licensed as an 1 insurance agent in this state. OI-2701fK, a 2 4 3. At all times pertinent to the. dates and occurrences referred to in this Administrative Complaint, you, HENRY CLARENCE ETHEZE, you were an officer and director of Etheze Insurance Agency. Inc.; a Florida incorporated insurance agency. COUNTI | 4. Paragraphs one through three realleged and incorporated herein by reference. 5. On or about August 5, 1999, you, HENRY CLARENCE ETHEZE, solicited and sold to Patricia Miller of Ocala, Florida, a homeowner's insurance policy to be issued by Cypress Property and Casualty Insurance Company, which she desired to purchase. 6. The property to be insured included an unattached structure located behind the primary residence, which Patricia Miller rented out to tenants in order to obtain rental income. You, HENRY CLARENCE ETHEZE, were informed of and were aware at all times of the existence of this unattached dwelling. . 7. You, HENRY CLARENCE ETHEZE, failed to visit, inspect or make any inquiries concerning the property to be insured, including the unattached structure and whether it ; was rented. Rather, you relied upon photographs of the property provided by Patricia Miller. 8. You, HENRY CLARENCE ETHEZE, represented to Patricia Miller that her property was fully insured in its entirety, including the unattached structure. The insurance ; company issued the insurance policy, policy number CYV 0000748-00. This representation was false and a material misstatement of fact. _The policy specifically excluded any structures rented — or held for rental to any person not a tenant of the dwelling. You, HENRY CLARENCE ETHEZE, were aware or certainly should have been aware of this exclusion, but you failed to inform Patricia Miller of the exclusion. 9. On or about February 1, 2000, the unattached structure burned and was a complete loss. The structure was rented at the time of the fire. Patricia Miller duly filed a claim for her loss. 10. The insurance company denied the claim on the grounds that the policy excluded structures rented or held for rental to any person not a tenant of the dwelling. As a result, Patricia Miller has suffered a financial loss. IT IS THEREFORE CHARGED that you, HENRY CLARENCE ETHEZE, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the State Treasurer and Insurance Commissioner which constitute grounds for the suspension or revocation of your insurance licenses and eligibility for licensure: (a) Willful misrepresentation of any insurance policy or annuity contract or willful deception with regards to any such policy or contract. {Section 626.611(5), Florida Statutes}; (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.61 \), Florida Statutes}; (c) Demonstrated lack of reasonable adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.61 1(8), Florida Statutes. (d) Fraudulent or dishonest practices in the conduct of business under the license or permit. [Section 626.611(9), Florida Statutes]; (e) False statements and entries. — 1. Knowingly: a. Filing with any supervisory or other public official, b. Making, publishing, disseminating, circulating, 3 c. Delivering to any person, d. Placing before the public. e. Causing, directly or indirectly, to be made, published, disseminated, circulated, delivered to any person, or placed before the public. any false material statement. [Section 626.9541(1)(e)1, Florida Statutes]. | 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, F lorida 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 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 i ¥ 3 upon which the agency has relied. While a hearing is normally not required in the absence of a dispute of fact, if you feel that a hearing is necessary one will be conducted in Tallahassee. Florida or by telephonic conference call upon your request. | If you dispute material facts, which are the basis for this agency's action. you may request a formal adversarial proceeding pursuant to Sections 120.569 and 120.57(1), Florida Statutes. If you request this type of proceeding, the request must comply with all of the requirements of Rule 28-106, F.A.C. and contain a) A statement identifying with particularity the allegations of the Department which you dispute and the nature of the dispute; b) An explanation of what relief you are seeking and believe you are entitled to; c) Any other information which you contend is material. 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, t to call and cross-examine witnesses, and to have ; subpoena and subpoena duces tecum issued o 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 i in this matter r shall be considered freeform agency action, and no 6 such comrespondence shall o operate as a valid request _ for an administrative proceeding. Any request for administrative proceeding received prior to 5 epee ant aad Ses pies ehh the date of this notice shall be deemed abandone guidelines as set out above. d unless timely renewed in compliance with the DATED and SIGNED this 27th day of _ June » 2001. SOT rr one reer ince a Erp ay ED CERTIFICATE OF SERVICE o ty Agk is iCjde ae 4 og I HEREBY CERTIFY that a true and correct copy of the foregoin: nai ape Complaint was mailed by certified mail to: HENRY CLARENCE ETHEZE, 11 me 138 ; Terrace. Ocala, Florida 34470, and HENRY CLARENCE ETHEZE, 529 NE 21" Terrace, Ocala. Florida 34470, on this 27th day of _ June 2001. —_ Le (‘axes A. BOSSART, ESQUIRE ivision of Legal Services 612 Larson Building Tallahassee, FL 32399-0333 (850) 413-4124 ; niggers sien ee te eine ee

Docket for Case No: 01-002901PL