CA~ FAAS PL Co ee Pine pb opin » : P os THE TREASURER OF THE STATE OF FLORIDA ©, aby ; “y % DEPARTMENT OF INSURANCE a WAR 1 8p TOM GALLAGHER : Inst ep cone tips Docketed by: ner IN THE MATTER OF: CASE NO. 42245-01-AG FRANK ROBERT CAVALIERE / ADMINISTRATIVE COMPLAINT TO: FRANK ROBERT CAVALIERE B L Panther Insurance Agency 1280 SW 26" Avenue Suite 2 Fort Lauderdale, FL 33312-3097 FRANK ROBERT CAVALIERE P.O. Box 452167 Sunrise, FL 33345-2167 FRANK ROBERT CAVALIERE 12380 NW 30" Street Sunrise, FL 33323-1518 You, FRANK ROBERT CAVALIERE, 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: 1, GENERAL ALLEGATIONS Pursuant to Chapters 626 and 642, Florida Statutes, you, FRANK ROBERT CAVALIERE, are currently licensed in this state as an insurance agent, License No. A043797. 2. At all times pertinent to the dates and occurrences referred to herein, you, FRANK ROBERT CAVALIERE, were licensed in this state as a legal expense and general lines agent. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Insurance (hereinafter referred to as “Department”) has jurisdiction over your insurance licenses and appointments. 4. Atall times pertinent to the dates and occurrences referred to herein, you, FRANK ROBERT CAVALIERE, were employed as an insurance agent, or doing business as BL Panther Insurance, Inc. (hereinafter referred to as “BL Panther Agency”) whose principal place of business was 1280 SW 26" Avenue, Suite #2, Fort Lauderdale, Florida 33312, 5. At all times pertinent to the dates and occurrences referred to herein, you, FRANK ROBERT CAVALIERE, were the President and primary agent of BL Panther Agency. The agency was administratively dissolved for lack of an annual report on September 22, 2000. 6. You, FRANK ROBERT CAVALIERE, opened First Union National Bank account number 2090002361399 on October 16, 1997 as a commercial checking account under the account title, BL Panther Insurance, Inc D/B/A BLP Insurance Agency, located at 1280 SW 26" Avenue, Suite #2, Fort Lauderdale, Florida 33312. This bank account was closed on March 23, 2000. | 7. You, FRANK ROBERT CAVALIERE, were the only authorized si gnatory on the aforementioned commercial checking account. 8. During the period June 1, 1999 through March 23, 2000, you, FRANK ROBERT CAVALIERE, utilized your above referenced commercial checking account to willfully divert premium funds, belonging to the insureds, and misappropriated said funds for your own financial gain. COUNT I 9. The General Allegations set forth above are hereby realleged and fully incorporated herein by reference. 10. On or about J anuary of 2000, Jennifer Wuenschel of Hollywood, Florida, contacted BL Panther Agency to obtain a quote on homeowners and flood insurance coverages for her new home, located at 1320 N. 73°¢ Way, Hollywood, Florida 33024. She was advised that the annual premium amount for homeowners insurance was $926 and the annual premium amount for flood insurance was $215. Based on the quotes she received, Ms. Wuenschel decided to purchase the aforementioned insurance coverage from BL Panther Agency. 11. You, FRANK ROBERT CAVALIERE, or one of your agents, brokered a homeowners policy on behalf of Ms. Wuenschel through Yanoff South Inc., a surplus lines agency, for placement with Scottsdale Insurance Company. Yanoff South, Inc. placed the coverage as requested by BL Panther Agency. 12. Onor about February 15, 2000, you, FRANK ROBERT CAVALIERE, faxed an insurance binder to Enterprise Title, Inc. The binder, signed by you, FRANK ROBERT CAVALIERE, listed Scottsdale Insurance Company and Bankers Insurance Company as the insurers, BL Panther Agency as the producing agency, and Ms. Wuenschel as the insured. 13. On or about February 22, 2000, Enterprise Title, Inc., on behalf of Ms. Wuenschel, issued check #2841 in the amount of $1,141, made payable to BL Panther Agency. This check constituted premium funds to secure a Scottsdale homeowners insurance policy, #HOS0208801, and a Bankers flood insurance policy, #090008035965-00, on Ms. Wuenschel’s personal residence, 14. On or about February 22, 2000, you, FRANK ROBERT CAVALIERE, deposited check #2841 in First Union Bank account number 2090002361399. This check was endorsed, “FOR DEPOSIT ONLY, BL PANTHER INSURANCE, INC D/B/A BLP INSURANCE AGENCY.” 15. The actual annual premium amount for Ms. Wuenschel’s homeowners policy was $873.88. However, you, FRANK ROBERT CAVALIERE, collected $926, resulting in a premium overcharge of $52.12. This amount has not been refunded to the insured or to the insurer on behalf of Ms. Wuenschel. 16. Ms. Wuenschel was later notified that no homeowners or flood insurance policy was ever placed on her home. 17. You, FRANK ROBERT CAVALIERE, did not submit Ms. Wuenschel’s application and premium payment for insurance coverage to Scottsdale Insurance Company, Bankers Insurance Company or any other insurer, resulting in no coverage for the policyholder. Instead you, FRANK ROBERT CAVALIERE, misappropriated and diverted fiduciary funds for your own financial gain. IT IS THEREFORE CHARGED that you, FRANK ROBERT CAVALIERE, 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, registration, and appointments as an insurance agent: a. All premiums, return premiums, or other funds belonging to insurers or others received by an agent, customer representative, solicitor, or adjuster in transactions under his or her license are trust funds received by the licensee in a fiduciary capacity. An agent shall keep the funds belonging to each insurer for which he or she is not appointed, other than a surplus lines insurer, in a separate account so as to allow the department to properly audit such funds. The licensee in the applicable regular course of business shall account for and pay the same to the insurer, insured, or other person entitled thereto. [Section 626.561 (1), Florida Statutes]; b. Any agent, customer representative, solicitor, or adjuster who, not being lawfully entitled thereto, either temporarily or permanently diverts or misappropriates such funds or any portion thereof or deprives the other person of a benefit there from commits the offense specified below...(b) If the funds diverted or misappropriated are more than $300, but less than $20,000, a felony of the third degree, punishable as provided in ss. 775.082, ss. 775.083, or ss. 775.084. [Section 626.561 (3) (b), Florida Statutes]; c. Ifthe 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]; d. 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 626.611 (5), Florida Statutes]; e. Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611 (7), Florida Statutes]; f. Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611 (9), Florida Statutes]; g. Misappropriation, conversion, or unlawful withholding of moneys belonging to insurers or insureds or beneficiaries or to others and received in conduct of business under the license or appointment. [Section 626.611 (10), Florida Statutes]; h. 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]; i. Failure or refusal, upon demand, to pay over to any insurer he or she represents or has represented any money coming into his or her hands belonging to the insurer. [Section 626.621 (4), Florida Statutes]; J. 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 18. The above General Allegations are hereby realleged and fully incorporated herein by reference. 19. Based ona referral from Mortgage Masters, Steven Follese and Lenore Follese (Folleses) of Deerfield Beach, Florida decided to have homeowners and windstorm insurance purchased through you, FRANK ROBERT CAVALIERE, to complete the closing on their home. 20. On or about December 3, 1999, you, FRANK ROBERT CAVALIERE, faxed an Acord Evidence of Property Insurance binder to Mr. Follese. This binder, si gned by you, FRANK ROBERT CAVALIERE, showed American Superior Insurance Company and Florida Windstorm Underwriting Association (FWUA) as the insurers, the Folleses as the insureds, and BL Panther Agency as the producing agency. The binder also requested a total remittance of $1,423 in premium funds for a $700 American Superior Insurance Company homeowners policy and a $723 F.W.U.A windstorm policy on behalf of the Folleses. 21. On or about December 17, 1999, Prestige Title and Research Company, the Folleses’ settlement agent, issued check #20671, made payable to BL Panther Agency in the amount of $1423 for homeowners and windstorm coverages on behalf of the Folleses. 22. On or about December 28, 1999, said check was deposited by you, FRANK ROBERT CAVALIERE, in First Union Bank account number 2090002361399. This check was endorsed, “FOR DEPOSIT ONLY, BL PANTHER INSURANCE, INC D/B/A BLP INSURANCE AGENCY.” 23. You, FRANK ROBERT CAVALIERE, did not submit the Folleses’ premium payments or their applications for homeowners and windstorm insurance to American Superior Insurance Company, F.W.U.A., or any other insurer, resulting in no coverage for the policyholders. Instead you, FRANK ROBERT CAVALIERE, misappropriated and diverted fiduciary funds for your own financial gain. IT IS THEREFORE CHARGED that you, FRANK ROBERT CAVALIERE, 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, registration, and appointments as an insurance agent: Sections 626.561(1), 626.561(3)(b), 626.61 1(4), 626.611(5), 626.61 1(7), 626.61 1(9), 626.611(10), 626.611(13) and 626.621(4), and 626.621(6), Florida Statutes. COUNT III 21. The above General Allegations are hereby realleged and fully incorporated herein by reference. 24. Based on a referral from Advantage Home Loan, Richard Williams of Miami, Florida decided to purchase homeowners and windstorm insurance policies through you, FRANK ROBERT CAVALIERE to complete the refinancing on his home mortgage. 25. On or about January 20, 2000, you, FRANK ROBERT CAVALIERE, faxed an Acord Evidence of Property Insurance binder to Prestige Title & Research, Inc., Mr. Williams’ settlement agent. 26. The binder, signed by you, FRANK ROBERT CAVALIERE, showed American Superior Insurance Company and Florida Windstorm Underwriting Association (FWUA) as the insurers, Richard Williams as the insured, and BL Panther Agency as the producing agency. 27, The binder requested a total remittance of $4,990 in premium funds for a $2742 American Superior Insurance Company homeowners policy and a $2248 F.W.U.A windstorm policy on behalf of Mr. Williams. 28. On or about February 1, 2000, Prestige Title and Research Company issued check #25300, made payable to BL Panther Agency in the amount of $4,990 for homeowners and windstorm coverages on behalf of Mr. Williams. 29. On or about February 7, 2000, this check was deposited by you, FRANK ROBERT CAVALIERE, in First Union Bank account number 2090002361399. This check was endorsed, “FOR DEPOSIT ONLY, BL PANTHER INSURANCE, INC D/B/A BLP INSURANCE AGENCY.” 30. You, FRANK ROBERT CAVALIERE, did not submit Mr. Williams’ premium payments or his applications for homeowners and windstorm insurance to American Superior Insurance Company, F.W.U.A., or any other insurer, resulting in no coverage for the policyholder. Instead you, FRANK ROBERT CAVALIERE, misappropriated and diverted fiduciary funds for your own financial gain. IT IS THEREFORE CHARGED that you, FRANK ROBERT CAVALIERE, 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, registration, and appointments as an insurance agent: Sections 626.561(1), 626.561(3)(b), 626.61 1(4), 626.611(5), 626.611(7), 626.611(9), 626.61 1(10), 626.611(13) and 626.621(4), and 626.621(6), Florida Statutes. COUNT IV 31. The above General Allegations are hereby realleged and fully incorporated herein by reference. 32. Based ona referral from Coastal Mortgage & Financial Services, Frank Weekly of Opa Locka, Florida decided to secure homeowners insurance through you, FRANK ROBERT CAVALIERE, for the purpose of refinancing his home mortgage. 33. On or about J anuary 13, 2000, you, FRANK ROBERT CAVALIERE, faxed an Acord Evidence of Property Insurance binder to Prestige Title & Research, Inc., Mr. Weekly’s settlement agent. 34, The binder, signed by you, FRANK ROBERT CAVALIERE, showed Interstate Fire & Casualty as the insurer, Frank Weekly as the insured, and BL Panther Agency as the producing agency. 35. The binder requested a total remittance of $938 in premium funds for homeowners coverage on behalf of Mr. Weekly. 36. On or about J anuary 31, 2000, Prestige Title & Research issued check #25223, made payable to BL Panther Agency in the amount of $938 for homeowners coverage on behalf of Mr. Weekly. 37. On or about February 7, 2000, this check was deposited by you, FRANK ROBERT CAVALIERE, in First Union Bank account number 2090002361399. This check was endorsed, “FOR DEPOSIT ONLY, BL PANTHER INSURANCE, INC D/B/A BLP INSURANCE AGENCY.” 38. You, FRANK ROBERT CAVALIERE, did not submit Mr. Weekly’s premium payment or his application for homeowners insurance to Interstate Fire & Casualty or any other insurer, resulting in no coverage for the policyholder. Instead you, FRANK ROBERT CAVALIERE, misappropriated and diverted fiduciary funds for your own financial gain. 39, You, FRANK ROBERT CAVALIERE, did not have authority to accept risks or issue binders or certificates of declarations on behalf of Burns & Wilcox, the Florida general agent for Interstate Fire & Casualty Insurance Company. Binders and declarations pages issued by you, FRANK ROBERT CAVALIERE, depicting Fire & Casualty Insurance Company as the insurer, were fraudulent and invalid. IT IS THEREFORE CHARGED that you, FRANK ROBERT CAVALIERE, 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, registration, and appointments as an insurance agent: Sections 626.561(1), 626.561(3)(b), 626.61 1(4), 626.611(5), 626.611(7), 626.611(9), 626.611(10), 626.611(13) and 626.621(4), and 626.621(6), Florida Statutes. COUNT V 40. The above General Allegations are hereby realleged and fully incorporated herein by reference. 41. On or about January 25, 2000, Jason and Anita Bozenbury (Bozenburys), previous insurance clients of yours, visited BL Panther Agency for the purpose of obtaining homeowners and flood insurance for their new home. 42. The Bozenburys paid $1591 in cash to you, FRANK ROBERT CAVALIERE, fora $1312 Interstate Fire & Casualty homeowners insurance policy and a $279 Bankers Insurance flood insurance policy. You, FRANK ROBERT CAVALIERE, gave them a signed receipt for their premium payments, 43. You, FRANK ROBERT CAVALIERE, promised the Bozenburys that they would receive a credit of $320.21 on their new policy premiums. You, FRANK ROBERT CAVALIERE, owed them this amount as an unearned premium cancellation credit on the previous policy they had purchased from you, FRANK ROBERT CAVALIERE. This amount was never credited to their new premium payments. 44. You, FRANK ROBERT CAVALIERE , also gave them an insurance binder showing Interstate Fire & Casualty and Bankers Insurance as the insurers, the Bozenburys as the insureds, and BL Panther Agency as the producing agency. 45. You, FRANK ROBERT CAVALIERE, did not submit the Bozenburys’ premium payments or their applications for homeowners insurance and flood insurance to Interstate Fire & Casualty, Bankers Insurance or any other insurer, resulting in no coverage for the policyholders. Instead you, FRANK ROBERT CAVALIERE, misappropriated and diverted fiduciary funds for your own financial gain. IT IS THEREFORE CHARGED that you, FRANK ROBERT CAVALIERE, 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, registration, and appointments as an insurance agent: Sections 626.561(1), 626.561(3)(b), 626.61 1(4), 626.611(5), 626.611(7), 626.611(9), 626.61 1(10), 626.61 1(13) and 626.621(4), and 626.621(6), Florida Statutes. COUNT VI 46. The above General Allegations are hereby realleged and fully incorporated herein by reference. 47. Verzell Perkins of Riviera Beach, Florida was referred to BL Panther Agency by Innovative Title and Escrow Company. Consequently, he decided to purchase homeowners and windstorm insurance coverage through you, FRANK ROBERT CAVALIERE, to complete the refinancing on his property mortgage. 48. On or about J uly 23, 1999, you, FRANK ROBERT CAVALIERE, issued an Acord Evidence of Property Insurance binder to Innovative Title and Escrow Company. The binder, signed by you, FRANK ROBERT CAVALIERE, showed Florida Residential Property and Casualty Joint Underwriting Association (FRPCJUA) and FWUA as the insurers, and Mr. Perkins as the insured, and BL Panther Agency as the producing agency. 49. The binder Tequested a total remittance of $707 for a $369 FRPCJUA homeowners policy and a $338 FWUA windstorm policy. 50. On or about September 3, 1999, Innovative Title and Escrow Company issued check #12511 in the amount of $369 for the homeowners insurance policy and check #12512 in the amount of $338 for the windstorm insurance policy. Both checks were made payable to BL Panther Agency. 51. On or about September 17, 1999, these checks were deposited by you, FRANK ROBERT CAVALIERE, in First Union Bank account number 2090002361399. They were endorsed, “FOR DEPOSIT ONLY, BL PANTHER INSURANCE, INC D/B/A BLP INSURANCE AGENCY.” 52. Both the homeowners insurance policy and the windstorm insurance policy were subsequently cancelled. 53. On or about December 16, 1999, FWUA issued a $193 unearned premium refund check #41284, made payable to BL Panther Agency. On or about December 28, 1999, this check was deposited by you, FRANK ROBERT CAVALIERE, in First Union Bank account number 2090002361399, without the payee’s endorsement or consent. This check were endorsed, “FOR DEPOSIT ONLY, BL PANTHER INSURANCE, INC D/B/A BLP INSURANCE AGENCY.” 54. Mr. Perkins never received check #41284 from FWUA or the proceeds there from you, FRANK ROBERT CAVALIERE, or anyone else in the amount of $193 and never gave permission to you, FRANK ROBERT CAVALIERE, or anyone else to use, have or deposit the check and convert the proceeds to your own use and benefit. IT IS THEREFORE CHARGED that you, FRANK ROBERT CAVALIERE, 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, registration, and appointments as an insurance agent: Sections 626.561(1), 626.561(3)(b), 626.611(4), 626.611(5), 626.611(7), 626.611(9), 626.611(10), 626.611(13) and 626.621(4), and 626.621(6), Florida Statutes. COUNT VII 55. The above General Allegations are hereby realleged and fully incorporated herein by reference. 56. Kim Showers of Fort Lauderdale, Florida was referred to BL Panther Agency by Advantage Home Loan. Consequently, she decided to purchase homeowners insurance coverage through you, FRANK ROBERT CAVALIERE, to complete the refinancing on her home mortgage. 357. On or about February 9, 2000, you, FRANK ROBERT CAVALIERE, issued an Acord Evidence of Property Insurance binder to Advantage Home Loan. The binder, signed by you, FRANK ROBERT CAVALIERE, showed Scottsdale Insurance Company as the insurer, Ms. Showers as the insured, and BL Panther Agency as the producing agency. 58. The binder requested a total remittance of $1073 in premium funds for homeowners coverage on behalf of Ms. Showers. 59. On or about February 15, 2000, Prestige Title & Research issued check #23059, made payable to BL Panther Agency in the amount of $1073 for homeowners coverage on behalf of Mr. Showers, 60. On or about February 23, 2000, said check was deposited by you, FRANK ROBERT CAVALIERE, in First Union Bank account number 2090002361399. This check was endorsed, “FOR DEPOSIT ONLY, BL PANTHER INSURANCE, INC D/B/A BLP INSURANCE AGENCY,” 61. You, FRANK ROBERT CAVALIERE, did not submit Ms, Showers premium payment or her application for homeowners insurance to Scottsdale Insurance Company or any other insurer, resulting in no coverage for the policyholder. Instead you, FRANK ROBERT CAVALIERE, misappropriated and diverted fiduciary funds for your own financial gain. IT IS THEREFORE CHARGED that you, FRANK ROBERT CAVALIERE, 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, registration, and appointments as an insurance agent: Sections 626.561(1), 626.561(3)(b), 626.611(4), 626.611(5), 626.611(7), 626.611(9), 626.611(10), 626.611(13) and 626.621(4), and 626.621(6), Florida Statutes. COUNT VII 62. The above General Allegations are hereby realleged and fully incorporated herein by reference. 63. Christopher Damanti of Boynton Beach, Florida contacted you, FRANK ROBERT CAVALIERE, to renew three separate insurance policies that had come up for renewal. 64, On or about February 8, 1999, Mr. Damanti wrote and gave to you, FRANK ROBERT CAVALIERE, check #429, made payable to BL Panther Agency in the amount of $1226 as premium funds for renewal of his homeowners, flood, and windstorm insurance policies. The windstorm renewal premium portion was $561. 65. On or about February 14, 1999, said check was deposited by you, FRANK ROBERT CAVALIERE, in First Union Bank account number 2090002361399. This check was endorsed, “FOR DEPOSIT ONLY, BL PANTHER INSURANCE, INC D/B/A BLP INSURANCE AGENCY.” 66. You, FRANK ROBERT CAVALIERE, did not submit Mr. Damanti’s premium payment or his application for windstorm insurance coverage to FWUA or any other insurer, resulting in no coverage for the policyholder. Instead you, FRANK ROBERT CAVALIERE, misappropriated and diverted fiduciary funds for your own financial gain. ITIS THEREFORE CHARGED that you, FRANK ROBERT CAVALIERE, 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, registration, and appointments as an insurance agent: Sections 626.561(1), 626.561(3)(b), 626.61 1(4), 626.611(5), 626.611(7), 626.611(9), 626.611(10), 626.61 1(13) and 626.621(4), and 626.621(6), Florida Statutes. COUNT IX 67. The above General Allegations are hereby realleged and fully incorporated herein by reference. 68. Araceli and Jose Rodriquez (Rodriquezs) of Pompano Beach, Florida had previously purchased an insurance policy from you, FRANK ROBERT CAVALIERE. On or about December 21, 1999, Jose visited you, FRANK ROBERT CAVALIERE for the purpose of renewing the insurance policy. However, since the premium payment proved to be less, Jose decided to purchase a new policy rather than renew his previous policy. 69. During this visit, Jose wrote and gave to you, FRANK ROBERT CAVALIERE, check #1643, made payable to BL Panther Agency in the amount of $757.47 as premium funds for a new homeowners policy #HOB1016399, 70. On or about February 22, 1999, said check was deposited by you, FRANK ROBERT CAVALIERE, in First Union Bank account number 2090002361399. This check was endorsed, “FOR DEPOSIT ONLY, BL PANTHER INSURANCE, INC D/B/A BLP INSURANCE AGENCY.” 71. The actual annual premium amount for the Rodriquezs’ homeowners policy was $654.86. However, you, FRANK ROBERT CAVALIERE, collected $757.47, resulting in a premium overcharge of $52.12. This amount has not been refunded to the insured or to the insurer on behalf of the Rodriquezs. 72. You, FRANK ROBERT CAVALIERE, did not submit the Rodriquezs’ premium payment or their application for homeowners insurance coverage to Interstate Fire & Casualty or any other insurer, resulting in no coverage for the policyholder. Instead you, FRANK ROBERT CAVALIERE, misappropriated and diverted fiduciary funds for your own financial gain. IT IS THEREFORE CHARGED that you, FRANK ROBERT CAVALIERE, 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, registration, and appointments as an insurance agent: Sections 626.561(1), 626.561(3)(b), 626.61 1(4), 626.611(5), 626.611(7), 626.611(9), 626.61 1(10), 626.611(13) and 626.621(4), and 626.621(6), Florida Statutes. COUNT X 73. The above General Allegations are hereby realleged and fully incorporated herein by reference. 74. Christopher Damanti of Boynton Beach, Florida contacted you, FRANK ROBERT CAVALIERE, to renew three Separate insurance policies that had come up for renewal. 75. On or about February 8, 1999, Mr. Damanti wrote and gave to you, FRANK ROBERT CAVALIERE, check #429, made payable to BL Panther Agency in the amount of $1226 as premium funds for renewal of his homeowners, flood, and windstorm insurance policies. The windstorm renewal premium portion was $561. 76. On or about February 14, 1999, said check was deposited by you, FRANK ROBERT CAVALIERE, in First Union Bank account number 2090002361399. This check was endorsed, 17 “FOR DEPOSIT ONLY, BL PANTHER INSURANCE, INC D/B/A BLP INSURANCE AGENCY.” 77, You, FRANK ROBERT CAVALIERE, did not submit Mr. Damanti’s premium payment or his application for windstorm insurance coverage to FWUA or any other insurer, resulting in no coverage for the policyholder. Instead you, FRANK ROBERT CAVALIERE, misappropriated and diverted fiduciary funds for your own financial gain. IT IS THEREFORE CHARGED that you, FRANK ROBERT CAVALIERE, 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, registration, and appointments as an insurance agent: Sections 626.561(1), 626.561(3)(b), 626.61 1(4), 626.611(5), 626.611(7), 626.611(9), 626.611(10), 626.611(13) and 626.621(4), and 626.621(6), Florida Statutes. COUNT XI 78. The above General Allegations are hereby realleged and fully incorporated herein by reference. 79. At all times pertinent to the dates and occurrences referred to herein, BL Panther Agency had a brokerage agreement with Unamark Underwriters, the general agent for Preferred National Insurance Company. Unamark Underwriters is a subsidiary of Colony Group. 80. This brokerage agreement was later terminated on March 28, 2000. Prior to the termination of the aforementioned brokerage agreement, you, FRANK ROBERT CAVALIERE, collected and failed to remit the premium funds to Unamark Underwriters for the following insureds: Alan Baffiero, Inc., All County Lawn Experts, Nations Title Loans TH, New Kanton Restaurant, Malnik & Salkin, P.C. Controls, Inc., and Urban Solutions/Robert Cohen Associates. 18 81. Said funds were submitted to you, FRANK ROBERT CAVALIERE , as renewal premiums or premiums for new policies that should have been forwarded to Unamark Underwriters on behalf of the insureds. 82. When the insureds, referenced in { 80, provided proof of premium payments to Unamark Underwriters, the company in each instance either issued a policy or refunded the premium funds to the insureds. 83. The cumulative total of refunds and net premium paid on behalf of the insureds by Unamark Underwriters is $9691.10, You, FRANK ROBERT CAVALIERE, have not refunded this amount to Unamark Underwriters, Colony Group, or Preferred National Insurance Company. IT IS THEREFORE CHARGED that you, FRANK ROBERT CAVALIERE, 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, registration, and appointments as an insurance agent: Sections 626.561(1), 626.561(3)(b), 626.61 1(4), 626.611(5), 626.611(7), 626.611(9), 626.61 1(10), 626.611(13) and 626.621(4), and 626.621(6), Florida Statutes, WHEREFORE, you, FRANK ROBERT CAVALIERE, 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, and 626.9521, Florida Statutes, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. NOTICE OF RIGHTS You have the right to request a proceeding to contest this action by the Department pursuant to sections 120.569 and 120.57, Florida Statutes, and Rule 28-107, Florida Administrative Code. The proceeding request must be in writing, signed by you, and must be filed with the Department within twenty-one (21) days of your receipt of this notice, Completion of the attached Election of Proceedin g form and/or a petition for administrative hearin g will suffice as a written request. The request must be filed with the General Counsel as acting Agency Clerk, at the Florida Department of Insurance, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. Your written response must be received by the Department no later than 5:00 p.m. on the twenty-first day after your receipt of this notice. Mailing the response on the twenty-first day will not preserve your right to a hearing. YOUR FAILURE TO RESPOND IN WRITING WITHIN TWENTY-ONE (21) DAYS OF YOUR RECEIPT OF THIS NOTICE 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 you request a proceeding, you must provide information that complies with the requirements of Rule 28-107.004, Florida Administrative Code. As noted above, completion of the attached Election of Proceeding form conforms to these requirements. Specifically, your response must contain: (a) The name and address of the party making the request, for purpose of service; (b) A statement that the party is requesting a hearing involving disputed issues of material fact, or a hearing not involving disputed issues of material fact; and (c) A reference to the notice, order to show cause, administrative complaint, or other communication that the party has received from the agency. 20 If a hearing of any type is requested, you have the right to be represented by counsel or other qualified representative at your expense, to present evidence and argument, to call and cross-examine witnesses, and to compel the attendance of witnesses and the production of documents by subpoena. If a proceeding is requested and there is no dispute of material fact, the provisions of section 120.57(2), Florida Statutes, apply. In this regard, you may submit oral or written evidence in opposition to the action taken by the Department or a written statement challenging the grounds upon which the Department 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. However, if you dispute material facts which are the basis for the Department’s action, you must request an adversarial proceeding pursuant to sections 120.569 and 120.57(1), Florida Statutes. These proceedings are held before a State administrative law j udge 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, Florida. 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. 21 ws Mediation of this matter pursuant to section 120.573, Florida Statutes%2 not available. Ly “¢ a No Department attorney will discuss this matter with you until the response has been Ypceived by Ae Xs A Ailey od 5 the Department of Insurance. Cone “5 uw oes vy DATED this 18TH day of _ MARCH , 2002" KENNEY SHIPLEY Deputy Insurance Commissioner CERTIFICATE OF SERVICE THEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT has been furnished by Certified Mail to: FRANK ROBERT CAVALIERE, B L Panther Insurance Agency, 1280 SW 26" Avenue, Suite 2, Fort Lauderdale, FL 33312-3097; FRANK ROBERT CAVALIERE, P.O. Box 452167, Sunrise, FL 33345-2167; and FRANK ROBERT CAVALIERE, 12380 NW 30" Street, Sunrise, FL 33323-1518 this 18TH day of MARCH , 2002. Cc, bull Anthony B. Miller, Esquire Division of Legal Services 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4220 22

Docket for Case No: 02-002223PL