DA~ 3758 QPL 1 FILED THE TREASURER OF THE STATE OF PLORDA BML GA DEPARTMENT OF INSURANCE _ sep 9 200 Tom GALLAGHER woppit Co Treasurer and insurance Co ner Docketed by, IN THE MATTER OF: CASE NO. : 60711-02-AG RUSSELL WILLIAM TAYLOR / ADMINISTRATIVE COMPLAINT TO: RUSSELL WILLIAM TAYLOR 4345 Fern Creek Drive Jacksonville, Florida 32211-1126 LIFE BROKERAGE CORPORATION 2121 Corporate Square Blvd. Suite 144 Jacksonville, Florida 32216-1990 You, RUSSELL WILLIAM TAYLOR, 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 adjuster in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, RUSSELL WILLIAM TAYLOR, are currently licensed in this state as life and variable annuity (2-14) agent; life, health and variable annuity (2-15) agent; life (2-16), agent; life and health (2-18) agent; and health (2-40) agent. Your license identification number is A261830. 2. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Insurance (hereinafter referred to as the “Department”) has jurisdiction over your license and appointments. 3. On or about July 11, 1985, you, RUSSELL WILLIAM TAYLOR, pled guilty to one count of mail fraud, a violation of Title 18, United States Code, Section 1341 and 1342, in case # 84-163(S)-CR-J-12. United States of America vs. Russell W. Taylor, in the United States District Court in and for the Middle District of Florida. The court found you, RUSSELL WILLIAM TAYLOR, guilty and entered a judgment of guilt. This felony directly related to the business of insurance. You, RUSSELL WILLIAM TAYLOR, as an insurance agent licensed in the state of Florida, were involved in a fraudulent scheme to obtain money from Massachusetts Mutual Life Insurance Company who employed you, RUSSELL WILLIAM TAYLOR, at the time. 4. On or about March 6, 1986, you, RUSSELL WILLIAM TAYLOR, and the Department entered into a Settlement Stipulation for Consent Order for the purpose of settling an outstanding Administrative Complaint filed by the Department seeking to revoke your license as a result of the above referenced conviction. Pursuant to the Stipulation, you, RUSSELL WILLIAM TAYLOR, voluntarily surrendered your license and eligibility of licensure, which had the same legal effect as a revocation. On or about March 24, 1986 the Department entered a Consent Order, which approved and incorporated the Settlement Stipulation. 5. On or about September 30, 1993, you, RUSSELL WILLIAM TAYLOR, filed an application for licensure with the Department. On or about January 5, 1993 you, RUSSELL WILLIAM TAYLOR; and the Department entered into a Settlement Stipulation for Consent Order. Pursuant to the Stipulation, your application was approved and you were placed on probation for two (2) years. COUNTI 6. The above general allegations 1 through 5 are hereby realleged and fully incorporated herein by reference. 7. On or about July 6, 1999, you, RUSSELL WILLIAM TAYLOR, met with Marge Lockhart of Jacksonville, Florida and took an application from her for long-term health care coverage with Transamerica Life Companies. You, RUSSELL WILLIAM TAYLOR, completed the application and Ms. Lockhart signed and initialed it. 8. On or about July 6, 1999, you, RUSSELL WILLIAM TAYLOR, drafted a letter to Penn Treaty Life Insurance Company on behalf of Ms. Lockhart. The letter requested that policy # N 618802 be cancelled. The letter bearing a signature purported to be Ms. Lockhart’s was forwarded to Penn Treaty Life Insurance Company. On or about July 29, 1999, the policy was cancelled. 9. On or about July 13, 1999, you, RUSSELL WILLIAM TAYLOR, signed the Agent Report section of the application. In that section, you RUSSELL WILLIAM TAYLOR, indicated that you reviewed Ms. Lockharts current health care insurance coverage and that the application was not replacing another health insurance contract when in fact the applied for policy was intended to replace an existing health insurance contract. 10. On or about July 13, 1999 the application, which included the Agent Report, was forwarded to Transamérica Life Companies. The company denied the application. 11. On about July 6, 1999, when you took Ms. Lockhart’s application for long term health care coverage, you, RUSSELL WILLIAM TAYLOR, knew or should have known that she has existing coverage. You, RUSSELL WILLIAM TAYLOR, had a duty to advise Ms. Lockhart not to cancel her existing coverage until a new policy was issued. Not only did you not advise Ms. Lockhart not to cancel her existing coverage, but also you assisted her in canceling the coverage. As a result of your actions, Ms. Lockhart was left without long-term health care coverage and was unable to obtain long-term coverage. IT IS THEREFORE CHARGED that you, RUSSELL WILLIAM TAYLOR, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code which constitute grounds for the suspension or revocation of your licenses as an insurance agent in this state: (a) 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] (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] (c) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes] (d) Violation of any provision of this code or of any other law applicable to the business of insuranée in the course of dealing under the license or appointment. [Section 626.621(2), Florida Statutes] (f) Violation of the provision against twisting, as defined in ss. 626.9541(1)(1). [Section 626.621(5), 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 IX of this chapter, 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) If a life agent, violation of the code of ethics. [Section 626.621(9), Florida Statutes] @) 1. Knowingly making a false or fraudulent written or oral statement or representation on, or relative to, an application or negotiation for an insurance policy for the purpose of obtaining a fee, commission, money, or other benefit from any insurer, agent, broker, or individual. [Section 626.9541(1)(k)1, Florida Statutes] (j) Knowingly making a material omission in the comparison of a life, health, or Medicare supplement insurance replacement policy with the policy it replaces for the purpose of obtaining a fee, commission, money, or other benefit from any insurer, agent, broker, or individual. For the purposes of this subparagraph, a material omission includes the failure to advise the insured of the existence and operation of a preexisting condition clause in the replacement policy. [Section 626.954 1(1)(k)2, Florida Statutes] (k) Twisting —Knowingly making any misleading representations or incomplete or fraudulent comparisons or fraudulent material omissions of or with respect to any insurance policies or insurers fof the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on, or convert any insurance policy or to take out a policy of insurance in another insurer. [Section 626.9541(1)(1), Florida Statutes] WHEREFORE, you, RUSSELL WILLIAM TAYLOR, are hereby notified that the Treasurer and Insurance Commissioner intends to enter an Order suspending or revoking your licenses and 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, and 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 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 Proceeding form and/or a petition for administrative hearing 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. The Department must receive your written response 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 form the agency. 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 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, 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. Mediation of this matter pursuant to section 120.573, Florida Statutes, is not available. No Department attorney will discuss this matter with you until the response has been received by day of & Lal le) , 2002. KENNEY SHIPLEY Deputy Insurance Commissioner the Department of Insurance. t CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF RIGHTS has been furnished to RUSSELL WILLIAM TAYLOR, 4345 Fern Creek Drive, Jacksonville, Florida 32211-11262121, and Corporate Square Blvd., Suite 144, Jacksonville, Florida 32216-1990; by Certified Mail this Gu day of VAinitpon Ye ALE : = Florida Department of Insurance Division of Legal Services 612 Larson Building Tallahassee, Florida 32399-033 (850) 413-4188 Fla. Bar No. 318530

Docket for Case No: 02-003758PL