FILED ai APR 10 2003 F] PH Foden we DEPARTMENT OF FINANCIAB SERVICES UTS AOMIEIS | RAGS HEARINGS L. Tom GALLAGHER CHIEF FINANCIAL OFFICER IN THE MATTER OF: O17 Oar CASE NO.: 62340-03-AG SCOTT ALEXANDER ROSE ADMINISTRATIVE COMPLAINT TO: SCOTT ALEXANDER ROSE 975 S.W. 9" Terrace Boca Raton, FL 33486-5459 SCOTT ALEXANDER ROSE 1700 N. Dixie Highway, Suite 145 Boca Raton, FL 33432-1807 You, SCOTT ALEXANDER ROSE, are hereby notified that the Chief Financial Officer 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: rf GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, SCOTT ALEXANDER ROSE, are currently licensed in this state as a Life (2-16), Life & Health (2-18), General Lines (Prop & Cas. Ins.)(2-20) and Health (2-40) agent, license LD. #A225813. 2. At all times pertinent to the dates and occurrences referred to herein, you, SCOTT ALEXANDER ROSE, were licensed in this state as an insurance agent. 3. Pursuant to chapter 626, Florida Statutes, the Florida Department of Financial Services has jurisdiction over your insurance licenses and appointments. COUNT I 4. The above general allegations are hereby realleged and fully incorporated herein by reference. 5. On or about January 2, 2001, you, SCOTT ALEXANDER ROSE, as a licensed insurance agent, contacted R.B. to sell him a health insurance plan through an entity known as TRG. You furnished to him application forms which he completed and delivered to you together with his check in the sum of $100.00 payable to the Dardick Agency. 6. On or about January 2, 2001, R.B. additionally delivered to you a check in the amount of $395.00 payable to the Dardick Agency for coverage by TRG and representing initial premium payment. Said plan purportedly became effective January 2001. Thereafter, R.B. delivered to a check to you in the sum of $400.00 per month, payable to the Dardick Agency, as premium for insurance coverage by TRG, from and including February 2001 until November 2001. 7. Thereafter, on or about November 2001, R.B. received information that his health insurance coverage had been cancelled by TRG and further, he received information from the Florida Department of Insurance, n/k/a the Office of Insurance Regulation of the Financial Services Commission within the Department of Financial Services, that TRG was an entity without a certificate of authority to conduct insurance business in the state of Florida. 8. At all times material herein, TRG was an entity unauthorized to conduct insurance business in the state of Florida. 9. TRG refused to pay claims incurred between January 2001 and November 2001, on behalf of R.B. Said claims exceed $50,000.00. IT IS THEREFORE CHARGED that you, SCOTT ALEXANDER ROSE, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Financial Services which constitute grounds for the suspension or revocation of your licenses and appointments: (a) No person shall transact in this state, or relative to a subject of insurance resident, located, or to be performed in this state, without complying with the applicable provisions of this Code. [Section 624.11, 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 law applicable to the business of insurance in the course of dealing under the licensure or appointment. [Section 626.621(2), Florida Statutes]; (e) 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 (re- designated as 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]; (f) No person shall, from offices or by personnel or facilities located in this state . . . directly or indirectly act as an agent for, or otherwise represent or aid on behalf of another, any insurer not being authorized to transact such business in this state. [Section 626.901(1), Florida Statutes]; \ WHEREFORE, you, SCOTT ALEXANDER ROSE, are hereby notified that the Chief Financial Officer 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 626.901, Florida Statutes, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. COUNT I 10. The above general allegations are hereby realleged and fully incorporated herein by reference. 11. On or about December 19, 2000, you, SCOTT ALEXANDER ROSE, as a licensed insurance agent, contacted K.W. to sell her a health insurance plan through an entity known as TRG. You fumished to her application forms which she completed and delivered to you together with her check in the sum of $100.00 payable to “TDA” as an application fee. 12. Onor about January 2001, K.W. additionally delivered to you a check in the amount of $244.00 payable to the Dardick Agency for coverage by TRG and representing initial premium payment. Said plan purportedly became effective January 1, 2001. Thereafter, K.W. delivered to a check to you in the sum of approximately $249.50, payable to the Dardick Agency, as premium for insurance coverage by TRG, from February 2001 until December 2001. 13. Thereafter, on or about December 2001, K.W. received information that her health insurance coverage had been cancelled by TRG and further, she received information from the Florida Department of Insurance, n/k/a the Office of Insurance Regulation of the Financial Services Commission within the Department of Financial Services, that TRG was an entity without a certificate of authority to conduct insurance business in the state of Florida. 14. Atall times material herein, TRG was an entity unauthorized to conduct insurance business in the state of Florida. \ 15. KW. incurred medical expenses during 2001 which were not covered by TRG. IT IS THEREFORE CHARGED that you, SCOTT ALEXANDER ROSE, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Financial Services which constitute grounds for the suspension or revocation of your licenses and appointments: (a) No person shall transact in this state, or relative to a subject of insurance resident, located, or to be performed in this state, without complying with the applicable provisions of this Code. {Section 624.11, 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 law applicable to the business of insurance in the course of dealing under the licensure or appointment. [Section 626.621(2), Florida Statutes]; (e) 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 (re- designated as 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]; (f) No person shall, from offices or by personnel or facilities located in this state . .. directly or indirectly act as an agent for, or otherwise represent or aid on behalf of another, any insurer not being authorized to transact such business in this state. [Section 626.901(1), Florida Statutes]; WHEREFORE, you, SCOTT ALEXANDER ROSE, are hereby notified that the Chief Financial Officer 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 626.901, 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 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 Financial Services, 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) — Astatement 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. 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 the Department of Financial Services. . ( DATED and SIGNED this [O%A day of April , 2003. KAREN CHANDLER Deputy Chief Financial Officer CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been furnished to: SCOTT ALEXANDER ROSE, 975 S.W. 9" Terrace, Boca Raton, FL 33486-5459, and/or 1700 N. Dixie Highway, Suite 145, Boca Raton, FL 33432-1807, by Certified Mail this low day of Apt 7) , 2003. William W. Tharpe, Jr. Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4110 Florida Bar Number 312411 STATE OF FLORIDA DEPARTMENT OF FINANCIAL SERVICES DIVISION OF LEGAL SERVICES IN THE MATTER OF: SCOTT ALEXANDER ROSE CASE NO.: 62340-03-AG / ELECTION OF PROCEEDING Thave received and have read the Notice of the ADMINISTRATIVE COMPLAINT filed against me, including the Notice of Rights contained therein, and I understand my options. Iam requesting disposition of this matter as indicated below. (Choose one) 1.0] I do not dispute any of the Department’s factual allegations and I do not desire a hearing. I understand that by waiving my right to a hearing, the Department may enter a final order that adopts the Administrative Complaint and imposes the sanctions sought, including revoking my licenses and appointments as may be appropriate. 2. I do not dispute any of the Department's factual allegations and I hereby elect a proceeding to be conducted in accordance with section 120.57(2), Florida Statutes. In this regard, I desire to (Choose one): {} Submit a written statement and documentary evidence in lieu of a hearing; or {] Personally attend a hearing conducted by a department hearing officer in Tallahassee; or {] Attend that same hearing by way of a telephone conference call. 3.[] I do dispute one or more of the Department's factual allegations. I hereby request a hearing pursuant to section 120.57(1), Florida Statutes, to be held before the Division of Administrative Hearings. TO PRESERVE YOUR RIGHT TO A HEARING, YOU MUST FILE YOUR RESPONSE WITH THE ({ DEPARTMENT OF FINANCIAL SERVICES WITHIN TWENTY-ONE (21) DAYS OF YOUR RECEIPY OF THE ADMINISTRATIVE COMPLAINT. THE RESPONSE MUST BE RECEIVED BY JHE DEPARTMENT NO LATER THAN 5:00 P.M. ON THE TWENTY-FIRST DAY AFTER YOUR RECEIPT OF THE ADMINISTRATIVE COMPLAINT. The address for filing is: General Counsel as acting agency clerk, Florida Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. Signature Print Name Date: _ Address: Phone No.: 2. Article Number MM 7hbO 3501 5844 7723 1055 3. Service Type CERTIFIED MAIL j 0. Is delivery address different trom item 1? If YES, enter delivery address below 4. Restricted Delivery? (Extra Fee) 1. Article Addressed to: SCOTT ALEXANDER ROSE 1700 N DIXIE HWY STE 145 BOCA RATON, FL 33432-1807 62340-03-AG 4/10/03 | Payne PS Form 3811, July 2001 Domestic Return Receipt 2. Article Number rN COMPLETE THIS SECTION ON DELIVERY Lf (1 Agent