est mnt ems rn Tom GALLAGHER CHIEF FINANCIAL OFFICER IN THE MATTER OF: CASE NO.: MECHELE VERGINIA NEILLE / ADMINISTRATIVE COMPLAINT TO: MECHELE VERGINIA NEILLE the Chief Financial Officer of the State of Florida has cau: activities while licensed as Primerica Financial Services 1607 NW 183rd Street Miami, FL 33169-3613 MECHELE VERGINIA NEILLE 180 NE 123rd Street Miami, FL 33161-5348 MECHELE VERGINIA NEILLE 3127 West Hallandale Beach Blvd., Suite 115B Pembroke Park, FL 33009 MECHELE VERGINIA NEILLE 20834 San Simeon Way, #66 Miami, FL 33179 68146-04-AG You, MECHELE VERGINIA NEILLE, license I.D. #A318649, are hereby notified that sed to be made an investigation of your an insurance agent in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes (2003), you, MECHELE VERGINIA NEILLE, are currently licensed in this state as a Life Agent (2-16), General Lines (Property & Casualty) Agent (2-20), and Legal Expense Agent (2-56). 2. At all times pertinent to the dates and occurrences referred to herein, you, MECHELE VERGINIA NEILLE, were licensed in this state as a Life Agent (2-16), General Lines (Property & Casualty) Agent (2-20), and Legal Expense Agent (2-56). 3. Pursuant to Chapter 626, Florida Statutes (2003), the Florida Department of Financial Services (hereinafter “Department”) has jurisdiction over your insurance licenses and appointments. 4. At all times relevant to the dates and occurrences referred to herein, you, MECHELE VERGINIA NEILLE, were an officer of British West Insurance & Financial Services, Inc. (hereinafter "British West") and authorized to sign checks issued on the Bank of America account of British West. 5. At no time pertinent to the dates and occurrences referred to herein, did you, MECHELE VERGINIA NEILLE, have any appointments, authorized by the Department, for your General Lines (2-20) License. 6. At various times during 2001, and pursuant to Section 626.752, Florida Statutes (2001), you, MECHELE VERGINIA NEILLE, placed customers of British West with insurers you were not appointed to represent. 7. At all times relevant to the dates and occurrences referred to herein, all funds received by you, MECHELE VERGINIA NEILLE, from consumers or on behalf of consumers representing premiums for insurance policies, were trust funds pursuant to Section 626.561(1), Florida Statutes (2000), and were received in a fiduciary capacity and were to be accounted for and paid over to the insurer, insured, or other persons entitled thereto in the regular course of business. COUNT I 8. The above general allegations are hereby realleged and fully incorporated herein by reference. 9. On or about September 5, 2001, R.R., and her husband, R.L., of Miami Lakes, Florida, closed on a house for which British West was the provider of homeowner's insurance. The insurer was FRPCJUA. The annual premium of the homeowner's insurance was TWO THOUSAND THREE HUNDRED SIXTY-TWO AND 00/ 100 ($2,362.00) DOLLARS, and was included in the purchase price and/or closing costs of the property. R.R. and R.L. received evidence of coverage with FRPCJUA at the time of closing, on a form signed by you, MECHELE VERGINIA NEILLE, which indicated coverage was from August 28, 2001 through August 28, 2002. They received no other information regarding their homeowner's policy. 10. Onor about September 6, 2001, the Law Office of Wadie A. Zacca, the closing agent, issued check number 3796, in the amount of TWO THOUSAND THREE HUNDRED SIXTY-TWO AND 00/100 ($2,362.00) DOLLARS, to pay for R.R. and R.L.'s policy, to British West. The check was made payable to FRPCJUA. This check was not deposited nor forwarded to FRPCJUA by British West. 11. Inor around October, 2001, having still hot received a copy of the details of their homeowner's policy, R.R. telephoned British West to inquire as to its whereabouts. She was informed that delivery of the policy could take up to eight weeks from the date of closing. 12. On or about November 15, 2001, the home of R.R. and R.L. was burgled, causing them to suffer a financial loss. 13. On or about, November 16, 2001, RR. telephoned you, MECHELE VERGINIA NEILLE, to inform British West of the loss. She had still not received a copy of her policy. 14. On or about November 21, 2001, R.R. entered the offices of British West to discuss her claim and her policy. Upon her arrival, you, MECHELE VERGINIA NEILLE, were not there, and an employee of British West handed R.R. a check; number 1306, drawn on the account of British West, and payable to R.L. in the amount of TWO THOUSAND THREE HUNDRED SIXTY-TWO AND 00/100 ($2,362.00) DOLLARS. You, MECHELE VERGINIA NEILLE, signed this check. 15. Inor about the end of November, 2001, R.L. received a letter from British West dated November 15, 2001, however, the envelope was postmarked November 21, 2001. This letter was meant to inform R.R. and R.L. that a new application form was mailed to them on October 1, 2001. The letter claimed that these new applications and forms would have needed signatures and be remitted to British West in order to keep their homeowner's policy in effect. The letter further stated that since the new application was never remitted to British West, that R.R. and R.L.'s policy was now cancelled and British West would subsequently refund the policy premium of TWO THOUSAND THREE HUNDRED SIXTY-TWO AND 00/100 ($2,362.00) DOLLARS, RR. and RL. never received any application, mailed or otherwise, from British West prior to the end of November, 2001. 16. In or about the end of November, 2001, R.L. received a second envelope from British West. This envelope was also postmarked November 21, 2001. This envelope contained several blank forms, including; a form for updating client personal information for British West, a page with the title, "Underwriting Information (continued)," and a page with spaces for producer's certification, applicant's certification, binder, and signatures. There was no date listed on any of the forms. Much of the pertinent information on these forms had been left blank, yet indicators had been made where R.L. was to initial or sign. Particularly, whether coverage was bound or not, and the effective dates of the binder as well as its expiration date, had all been left blank. 17. On or about March 19, 2002, check number 3796, referenced in paragraph 10, was not honored because, "endorsement not as drawn." On or about, April 4, 2002, and in response to a request from British West, the Law Office of Waddie A. Zacca issued check number 5789, made payable to British West, to replace check number 3796. The amount of check 5789 was TWO THOUSAND THREE HUNDRED SIXTY-TWO AND 00/100 ($2,362.00) DOLLARS. 18. Your failure, MECHELE VERGINIA NEILLE, to ensure that R.R. and R.L. had properly bound homeowner's insurance coverage, as well as your failure to properly manage premium funds entrusted to you, has caused R.R. and R.L. to be without insurance. Furthermore, as a direct consequence of your failure to properly bind their coverage, R.R. and R.L. have suffered significant loss. IT IS THEREFORE CHARGED that you, MECHELE VERGINIA NEILLE, 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 license and appointments: (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 (2001). (b) If the 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 (2001). (c) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. Section 626.611(7), Florida Statutes (2001). (d) | 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 (2001). (e) Fraudulent or dishonest practices in the conduct of business under the license or appointment. Section 626.611(9), Florida Statutes (2001). (f) 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 (2001). (g) 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 (2001). (h) Violation of any provision of this code or of 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 (2001). @ 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 or detrimental to the public interest. Section 626.621(6), Florida Statutes (2001). q) No person shall engage in this state in any trade practice which is defined in this part as, or determined pursuant to s. 626.951 or s. 626.9561 to be, an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance. Section 626.9521(1), Florida Statutes (2001). (k) Knowingly . . . 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), Florida Statutes (2001). (3) 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), Florida Statutes (2001). COUNT Ii 19. The above general allegations are hereby realleged and fully incorporated herein by reference. 20... Onor about October 5, 2001, P.I.C., of Coral Gables, Florida, closed on a house for which British West was the provider of homeowner's insurance. The insurer was FRPCJUA. The annual premium of the homeowner's insurance was ONE THOUSAND ONE AND 00/100 ($1,001.00) DOLLARS, and was included in the purchase price and/or closing costs of the property. P.J.C. received evidence of coverage with FRPCJUA at the time of closing, on a form signed by you, MECHELE VERGINIA NEILLE, which indicated coverage was from September 27, 2001, through September 27, 2002. Several days later, P.J.C. received through the mail, a copy of an application for insurance with indicators for where P.J.C. was to sign and then return the completed form to British West. P.J.C. completed the forms and hand-delivered them to the offices of British West. 21. On or about October 5, 2001, the Law Office of Wadie A. Zacca, the closing agent, issued check number 4132, in the amount of ONE THOUSAND ONE AND 00/100 ($1,001.00) DOLLARS, to pay for P.J.C.'s policy, to British West. The check was made payable to British West. This check was not deposited nor forwarded to FRPCJUA by British West. 22. In or around the end of November, 2001, the property belonging to P.J.C. was heavily damaged by fire. Shortly thereafter, P.J.C. telephoned you, MECHELE VERGINIA NEILLE, to inform you and British West of her loss, and make a claim. 23. Onor about, February 20, 2002, check number 4132, referenced in paragraph 21, was returned to the Law Office of Wadie A. Zacca, with the instruction that they reimburse to P.J.C. ONE THOUSAND ONE AND 00/100 ($1,001.00) DOLLARS. The Law Office of Wadie A. Zacca subsequently issued check number 5451, in the amount of ONE THOUSAND ONE AND 00/100 ($1,001.00) DOLLARS, payable to P.J.C. 24. Your failure, MECHELE VERGINIA NEILLE, to ensure that P.J.C. had properly bound homeowner's insurance coverage, as well as your failure to properly manage premium funds entrusted to you, has caused P.J.C. to be without insurance. Furthermore, as a direct consequence of your failure to properly bind her coverage, P.J.C. has suffered significant loss. IT IS THEREFORE CHARGED that you, MECHELE VERGINIA NEILLE, have violated or are accountable under the following provisions of the Florida Insurance Code and hi ee nen Rules of the Department of Financial Services which constitute grounds for the suspension or revocation of your license and appointments: (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 ina 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 (2001). (b) If the 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 (2001). (c) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. Section 626.61 1(7), Florida Statutes (2001). (d) | 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 (2001). (e) Fraudulent or dishonest practices in the conduct of business under the license or appointment. Section 626.611(9), Florida Statutes (2001). ) (f) .. 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 (2001). (g) 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 626.61 1(13), Florida Statutes (2001). (h) Violation of any provision of this code or of 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 (2001). (i) 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 Joss to the public or detrimental to the public interest. Section 626.621(6), Florida Statutes (2001). (j) No person shall engage in this state in any trade practice which is defined in this part as, or determined pursuant to s. 626.951 or s. 626.9561 to be, an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance. Section 626.9521(1), Florida Statutes (2001). (k) Knowingly . . . 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), Florida Statutes (2001). ad) 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), Florida Statutes (2001). 10 COUNT III 25. The above general allegations are hereby realleged and fully incorporated herein by reference. 26. According to Department records, your business address, MECHELE VERGINIA NEILLE, is located at Primerica Financial Services, 1607 NW 183rd Street, Miami, Florida, 33169-3613. Pursuant to an investigation by the Department, as of March 24, 2003, this address is no longer correct. Based upon information discovered during the course of this investigation, it has been determined that your business address is actually, 3127 West Hallandale Beach Blvd., Suite 115B, Pembroke Park, Florida, 33009. 27. You have failed to notify the Department of a change of your business address. IT IS THEREFORE CHARGED that you, MECHELE VERGINIA NEILLE, 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 license and appointments: (a) Every licensee shall notify the department or office in writing within 60 days after a change of name, residence address, principal business street address, or mailing address. Section 626.551, Florida Statutes (2003). (b) Willful failure to comply with, or willful violation of, any proper order or rule of the Department, commission, or office or willful violation of any provision of this code. Section 626.611(13), Florida Statutes (2003). (c) Violation of any provision of this code or of 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 (2003). 11 WHEREFORE, you, MECHELE VERGINIA NEILLE, 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 626.9521, Florida Statutes (2003), 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 (2003), 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 12 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. 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 (2003), 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 (2003). 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 (2003), 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 art day of March. 2004. KAREN CHANDLER Deputy Chief Financial Officer CERTIFICATE OF SERVICE 1 HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF RIGHTS has been furnished to: MECHELE VERGINIA NEILLE, Primerica Financial Services, 1607 NW 183rd St., Miami, Florida 33169-3613; MECHELE VERGINIA NEILLE, 180 NE 123rd St., Miami, Florida 33161-5348; MECHELE VERGINIA NEILLE, 3127 West Hallandale Beach Blvd., Suite 115B, Pembroke Park, Florida 33009; MECHELE VERGINIA NEILLE, 20834 San Simeon Way, #66, Miami, Florida 33179, by Certified Mail this 33 day of March. , 2004. Michael T. Ruff Florida Bar Number 0688541 Division of Legal Services 612 Larson Building 200 East Gaines Street BS £, Tallahassee, Florida 32399-03; Phone: (850) 413-4134 Fax (850) 487-4907 Attorney for Department COMPLETE THIS SECTION ON DELIVERY B. Date ee x agent ‘7hbO 390] 44 2699 3423 D. Is delivayyfaddress different trafh it Addressee HYES, Oxfor delivery addreedoicce 7 7 | ° {No A. Received by (Please Print Clearly) 3. Service Type CERTIFIED MAIL 4. Restricted Delivery? (Extra Fea) [_]ves 1. a Addressed to: MICHELE VERGINIA NEILLE STerencé Information sth inane HALLANDALE BEACH BLVD., B 68146-04-A PEMBROKE PARK, FL 33009 03/03/2004 e AC Ruff 2 , ‘ setriched Pelivers, ‘orm 3811, July 2001 Domestic Return Receipt

Docket for Case No: 04-001161PL