FILED MAY 21 2001 TREASURER AND INSURANCE COMMISSIONER TOM GALLAGHER Docketed bye en IN THE MATTER OF: O/ 3 / 2ZTPL BEVERLY JEAN PHILLIPS CASE NO.: 41391-01-AG _ / THE TREASURER OF THE STATE OF FLORIDA DEPARTMENT OF INSURANCE ADMINISTRATIVE COMPLAINT TO: BEVERLY JEAN PHILLIPS 2818 Geoffrey Drive Orlando, FL 32826-3324 BEVERLY JEAN PHILLIPS Boylan, Jennings and Associates, Inc. 4917 Orange Avenue Orlando, FL 32806-6932 You, BEVERLY JEAN PHILLIPS, 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. Pursuant to Chapter 626, Florida Statutes, at all times pertinent to the dates and occurrences referred to herein, you, BEVERLY JEAN PHILLIPS, were licensed in this state as a general lines agent and are currently so licensed, License No. A206354. 2. At all times pertinent to the dates and occurrences referred to herein, you, BEVERLY JEAN PHILLIPS, were licensed in this state as an insurance agent. me. 3. Pursuant to Chapter 626, Florida Statues, the Florida Department Insurance has jurisdiction over your insurance licenses and appointments. COUNT I 4. The above general allegations are realleged and incorporated herein fully by reference. 5. On or about June 10, 1998, Mae Esther Cowan, consulted with you, BEVERLY JEAN PHILLIPS, as a licensed insurance agent, to obtain homeowners insurance coverage for property on which she operated a child daycare center. On such date you advised her that you would provide such coverage for an annual premium cost therefore of $1,757.00. «6. On said date, as aforesaid, you, BEVERLY JEAN PHILLIPS, advised Mae Esther Cowan that in order to effect immediate coverage it would be necessary for her to then pay ; $1,000.00 which she did by issuance of check in that sum payable to your agency, Boylan, Jennings and Phillips. The remaining balance of the quoted premium was to be paid as follows: $310.00 by Mae Esther Cowan on or before two weeks, which was paid through issuance of further check in that sum on June 17, 1998; $457.00 to be obtained from her mortgage company, | Homeside Lending, Inc. | 7. On or about July 22, 1998, and after receipt by you of premium funds from Mae Esther Cowan, as a foresaid, you, BEVERLY JEAN PHILLIPS, proceeded to obtain through a | premium finance contract the full sum of $1,757.00 from Homeside Lending, Inc, representing the full premium cost quoted by you to Mae Esther Cowan for insurance coverage allegedly effected by you on June 10, 1998. icp A 8. In or about August 1998, Mae Esther Cowan discovered that you, BEVERLY JEAN PHILLIPS, had improperly obtained $1,757.00 from her mortgage lender and she made demand upon you for return of the premium sum she had previously paid. 9. On or about September 22, 1998, you, BEVERLY JEAN PHILLIPS, did issue to Mae Esther Cowan a check in the sum of $1,310.00 representing return of those sums improperly obtained by you. 10. | Onor about September 25, 1998, some three months after you had allegedly afforded homeowners insurance coverage for Mae Esther Cowan, did you then submit an application for insurance to the Florida Residential Property Joint Underwriters Association. 11. _Inor about December 1998, Mae Esther Cowan discovered that: insurance coverage placed by you in her behalf had not been effected until September 27, 1998 and not June 10, 1998 as you had otherwise represented; said policy was being cancelled because of insufficient information submitted by you; and that the actual annual premium for such policy was $707.00 and not $1,757.00 as quoted and received by you. 12. Thereafter, Mae Esther Cowan made demand upon you for return of monies _improperly paid for insurance coverage, not afforded and for false and inflated premium costs. Failing any voluntary action on your part to do so she filed complaint with the Department of Insurance and only after intervention of the Department did you, on or about October 25, 2000, return such monies to Mae Esther Cowan. IT IS THEREFORE CHARGED, that you, BEVERLY JEAN PHILLIPS, have violated and are accountable under the following provisions of the Florida Insurance Code and Rules of | the Department of Insurance which constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: as taeitinesil (a) All premiums, return premiums, or other funds belonging to insurers or others received by an agent in transactions under his or her license are trust funds received by the licensee in a fiduciary capacity. [Section 626.561(1), Florida Statutes]; (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes); (c) 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]; (d) Violation of any provision of this code or 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]; (e) . Willful failure to comply with, or willful violation of, any proper order or tule of the Department or willful violation of any provision of this code. [Section 626.611(13), 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 or herself to be a source of i injury or loss to the ses public or “detrimental to the public interest. [Section 626. 621(6), “Florida Statutes]. COUNT I “13. The above general allegations are realleged and incorporated herein fully by reference. 14. On or about October 22, 1999, you, BEVERLY JEAN PHILLIPS, conferred with Kevin Jordan for the purpose of furnishing to him general liability and workers compensation insurance coverage for his business, AAA Roofing, Cleaning and Pressure Washing, Inc. You advised him that you would provide a general liability policy through Century Surety Company and a worker’s compensation policy through CEIB Insurance Company. 15. Onor about October 22, 1999, upon your instruction, Kevin Jordan provided to you his company check made payable to you individually in the total sum of $3,568.00 as and for the premium cost quoted by you for the general liability policy in the amount of $1, 053.00 and down payment for the workers compensation policy in the amount of $2,515.00. You then . issued to him a certificate of liability insurance certifying both general liability and workers compensation insurance coverage to be effective as of that date through the companies identified by you. 16. In or about November 1999, Kevin Jordan received a general liability insurance policy written by Century Surety Company and naming his company as insured, however, as of January 2000, he had not received any policy or any other information regarding the workers ‘compensation insurance coverage which you had allegedly afforded to him through CEIB Insurance Company. 17. In January 2000, Kevin Jordan made inquiry to you, BEVERLY JEAN PHILLIPS, regarding his apparent lack of workers compensation insurance. You informed him that he was insured at all times and obtained from him a further payment of $1,440.00 as additional premium payment for such insurance. 18. Inor around February 2000, Kevin Jordan contacted you to inform that he had yet 0 receive copy of his workers compensation insurance policy. You, BEVERLY JEAN PHILLIPS, then informed Kevin Jordan that CEIB Insurance Company would not provide insurance coverage for him, but you would find another company which would do so. t a i ‘ La 19. Onor about June 23, 2000, Kevin Jordan contacted you, BEVERLY JEAN PHILLIPS, to demand return of his workers compensation premiums previously paid to you in the total sum of $3,755.00 and you responded that you were without financial resources to do so. 20. At all times from and after October 22, 1999, you failed to provide any workers compensation insurance coverage for Kevin Jordan and his company, AAA Roofing, Cleaning and Pressure Washing, Inc. 21. Upon and after complaint made to the Department of Insurance by Kevin Jordan, you thereafter issued checks to him in return of the premium sums for workers compensation insurance which you had falsely obtained. IT IS THEREFORE CHARGED, that you, BEVERLY JEAN PHILLIPS, have violated and are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: (a) All premiums, return premiums, or other funds belonging to insurers or others received by an agent in transactions under his or her license are trust funds received by the licensee in a fiduciary capacity. [Section 626.561(1), Florida Statutes]; (b) | Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes], (c) 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]; (d) Violation of any provision of this code or 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]; (e) 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]; (63) 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 or detrimental to the public interest. [Section 626.621(6), Florida Statutes]. | COUNT II 22. The above general allegations are realleged and incorporated herein fully by reference. 23. On or about October 18, 2000, Donald Haun, conferred with you as an insurance agent to provide builders risk insurance coverage for a building under construction owned by him and utilized for storage of his company farm equipment, Iron Cross Farms, Inc. You, BEVERLY JEAN PHILLIPS, advised him that you would afford coverage through the Burlington Insurance Company. The said Donald Haun then and there agreed to purchase such ; insurance from you and you thereafter faxed to him an insurance binder in behalf of Burlington Insurance Company showing effective dates of coverage from October 18, 2000 through October 18, 2001, such binder signed by you as an authorized representative. 24. On or about November 6, 2000, you, BEVERLY JEAN PHILLIPS, submitted an invoice to Donald Haun for premium cost of builders risk insuratice policy in the sum of $1,200.00. Not having yet received the policy, Donald Haun informed you that he would ) forward 50% of the premium cost or $600.00 and the balance would be paid upon receipt of the policy. You, BEVERLY JEAN PHILLIPS, requested the said, Donald Haun, to make his check payable to you personally, however, he made such check payable to Burlington Insurance Company, dated November 6, 2000, and thereupon furnished same to you. On or about November 20, 2000, you, BEVERLY JEAN PHILLIPS, deposited said check to your agency account. 25. Thereafter, a theft loss occurred at the property purportedly insured by you for Donald Haun, and on December 6, 2000, he contacted you to determine the address of Burlington Insurance Company in order to provide a list of stolen equipment and materials. You, BEVERLY JEAN PHILLIPS, then and there advised him that he should send the list to you and you would process the claim in his behalf. 26. | Onor about December 14, 2000, Donald Haun again contacted you, BEVERLY JEAN PHILLIPS, whereupon you informed him that neither his premium check nor his application for insurance had ever been furnished by you to Burlington Insurance Company and he was, therefore, without any insurance coverage. . 27. Onor about J anuary 2, 2001, Donald Haun filed a complaint with the Department of Insurance and after intervention of the Department, you then returned to him $600.00 as the — premium payment which he had previously provided to you for insurance coverage and which you failed to provide in accordance with your false assertions. ITIS THEREFORE CHARGED, that you, BEVERLY JEAN PHILLIPS, have violated and or accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: (a) All premiums, return premiums, or other funds belonging to insurers or others received by an agent in transactions under his or her license are trust funds received by the licensee in a fiduciary capacity. [Section 626.561(1), Florida Statutes]; (b) | Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (c) | Demonstrated lack of reasonably adequate knowledge and technical confidence to engage in the transactions authorized by the license or appointment. [Section 626.611(8), Florida Statutes]; (d) Violation of any provision of this code or 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]; (e) 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 an on ce a _& 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 or detrimental to the public interest. [Section 626.621(6), Florida Statutes]. WHEREFORE, you, BEVERLY JEAN PHILLIPS, are hereby notified the Treasurer and Insurance Commissioner intends to enter an order suspending or revoking your license(s) and eligibility for licensure as an insurance agent or to impose such lesser penalties as maybe - | provided under the provisions of Chapter 626, Florida Statutes, and under the other reference 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 Chapter 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 i in the Department within twenty-one ev days of the date of your receipt of this notice. ae ee 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 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 Chapter 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. You are hereby notified that mediation under Section 120.573, Florida Statutes, is not available. 0 ote 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. DONE AND ORDERD this 21 dayof__ MAY 2001. k KENNEY SHIPI“Y Deputy Insurance Commissioner 12 by B. Date of Delivery BML Print Clearly) ee TOL 4575 L294 1254 7213 3. Service Type CERTIFIED MAIL D. Is be address di op nt from item 1? IfYES, enter delivery g aydress below: » . Restricted Delivery? (Extra Fee) . Article Addressed to: BEVERLY JEAN PHILLIPS - BOYLAN, JENNINGS & ASSOC, INC.9S ‘IIKY S2 AVH 10 4917 ORANGE AVENUE 7 SSCMMSS WOT 30 AG ORLANDO, FL 32806-6932 LEHASYSHL 2M 30 ida SATOSY RE: , 2001, MAY Tallahassee, Florida 32399-0333 (850) 413-4242 DEAN ANDREWS, ESQUIRE Division of Legal Services 612 Larson Building , Inc., 4917 Orange Avenue, Orlando, FL 32806-6932, Florida Bar No. 0001959 CERTIFICATE OF SERVICE day of 21 SENDER: PS Form 3811, June 2000 Domestic Return Receipt < x 2. Article Number COMPLETE THIS SECTION ON DELIVERY 7LOb 4575 1294 1254 720b “IFYES, enter delivery addfess below: 3. Service Type CERTIFIED MAIL 2818 Geoffrey Drive, Orlando, FL 32826-3324 and BEVERLY JEAN PHILLIPS, I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTIONS OF RIGHTS have been furnished to: BEVERLY JEAN Boylan, Jennings and Associates - PHILLIPS, certified mail this 4. Restricted Delivery? (Extra Fee) Q Yes 1, Article Addressed to: ij BEVERLY JEAN PHILLIPS 2818 GEOFFREY DRIVE ISKY $2 jyy 10 ORLANDO, FL 32826-3324 guy eevee 30. Ganga" i 10 130) 7 RE: SENDER: RO Farm 244 fone ONAN Damactio Raturn Raanint get A Bons ee eee ed

Docket for Case No: 01-003127PL