reece ei ESRC TE DEPARTMENT OF FINANCIAL SERVICES . FILEG Tom GALLAGHER WAY 21 2004 CHIEF FINANCIAL OFFICER IN THE MATTER OF: Docketed oy ftde CASE NO.: 75606-04-AG / oy 9 214 PL 2. 2. JUDITH ANN EHLING ADMINISTRATIVE COMPLAINT TO: JUDITH ANN EHLING 3163 Benton Boulevard Pace, Florida 32571-9512 You, JUDITH ANN EHLING, 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: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, JUDITH ANN EHLING, are currently licensed in this state as a Health Agent (2-40), License #D057414. 2. At all times pertinent to the dates and occurrences referred to herein, you, JUDITH ANN EHLING, were licensed in this state as an insurance agerit. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services has jurisdiction over your insurance licenses and appointments 4, At all times pertinent to the dates and occurrences referred to herein, you, JUDITH ANN EHLING, were the Vice-President of Ehling Insurance & Investments, a Florida Corporation. 5. At all times pertinent to the dates and occurrences referred to herein, Local 16 National Health Fund (“Local 16”), and Meridian Benefit, Inc. (“Meridian”), were entities unauthorized to transact insurance business in the State of Florida and unauthorized to act as Multiple Employer Welfare Arrangements (“MEWAs”) in the State of Florida. COUNT I 6. The above general allegations are hereby realleged and fully incorporated herein by reference. 7. On or about January 1, 2001, you, JUDITH ANN EHLING, as a licensed insurance agent, sold group health insurance to Lowery Industrial Coatings, Inc. through Local 16. Lowery Industrial Coatings, Inc. was located in Pensacola, Florida. IT IS THEREFORE CHARGED that you, JUDITH ANN EHLING, 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]. COUNT II 8. The above general allegations are hereby realleged and fully incorporated herein by reference. 9. On or about December 1, 2001, you, JUDITH ANN EHLING, as a licensed insurance agent, sold group health insurance to Lowery Industrials Inc. through Meridian. You, JUDITH ANN EHLING, moved Lowery Industrials, Inc. to Meridian for its group health insurance after Local 16 provided notice to Lowery that it was filing for bankruptcy. Both Local 16 and Meridian failed to pay health insurance claims for Lowery’s employee(s). IT IS THEREFORE CHARGED that you, JUDITH ANN EHLING, 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 626.61 1(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]. . COUNT III 10. The above general allegations are hereby realleged and fully incorporated herein by reference. 11. On or about May 1, 2000, you, JUDITH ANN EHLING, as a licensed insurance agent, sold group health insurance to McBride Construction through Locai 16. McBride Construction was located in Pensacola, Florida. IT IS THEREFORE CHARGED that you, JUDITH ANN EHLING, 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 susperision 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 626.90] (1), Florida Statutes]. COUNT IV 12. The above general allegations are hereby realleged and fully incorporated herein by reference. 13. On or about May 1, 2001, you, JUDITH ANN EHLING, as a licensed insurance agent, sold group health insurance to McBride Construction through Meridian. You, JUDITH ANN EHLING did this after Local 16 indicated that it was filing for bankruptcy. Local 16 failed to pay health insurance claims for McBride Construction’s employee(s). IT IS THEREFORE CHARGED that you, JUDITH ANN EBLING, 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 626.61 1(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]. COUNT V 14. The above general allegations are hereby realleged and fully incorporated herein by reference. 15. Onor about June 1, 2000, Rita and Roger Sparling purchased Paul David Restoration from Bill McBride of McBride Construction. Paul David Restoration was located in Pensacola, Florida and operates under the general contractor's license of McBride Construction. Paul David Restoration’s group health insurance was included in McBride Construction’s group policy. 16. | When the Sparlings purchased Paul Davis Restoration, the group health insurance was with Local 16 and the agent was Ehling Insurance & Investments. When Local 16 terminated the coverage, the Sparlings turned to Ehling Insurance & Investments, to purchase group health insurance. 17. On or about May 1, 2001, you, JUDITH ANN EHLING, as a licensed insurance agent, sold Paul Davis Restoration group health insurance through Meridian. 18. Meridian failed to pay health insurance claims for Paul Davis Restoration’s employee(s). IT IS THEREFORE CHARGED that you, JUDITH ANN EHLING, 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 626.61 1(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]. COUNT VI 19. The above general allegations are hereby realleged and fully incorporated herein by reference. 20. Onor about August 1, 2001, you, JUDITH ANN EHLING, as a licensed insurance agent, sold family health insurance to M.S., an adult resident of Pensacola, Florida, through TRG Marketing LLC. 21. Atall times material hereto, TRG was the acronym or pseudonym for a multitude of entities that engaged in the business of insurance or operated as one or more MEWAs in Florida. These entities included, but were not limited to: a) T.R.G. Marketing, LLC b)* T.R.G. Administration, LLC c) The Redwood Group, LLC. 22. None of the “TRG” entities were or are authorized to conduct insurance business within the State of Florida. Specifically, TRG Marketing LLC was not ar. entity authorized to conduct insurance business in the State of Florida. 23. TRG failed to pay health insurance claims for M.S. or his family member(s). IT IS THEREFORE CHARGED that you, JUDITH ANN EHLING, 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 suspensior. 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 626.61 1(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 626.61 1(8), Florida Statutes]; (a) 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 o- 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]. COUNT VU 24. The above general allegations are hereby realleged and fully incorporated herein by reference. 25. On or about April 1, 2000, you, JUDITH ANN EHLING, as a licensed insurance agent, sold group health insurance to Cotton Pickin Shirts through Local 16. Cotton Pickin Shirts was located in Pensacola, Florida. 26. Local 16 failed to pay health insurance claims for Cotton Pickin Shirts’ employee(s). IT IS THEREFORE CHARGED that you, JUDITH ANN EHLING, 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 1X) 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]; 63) 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 10 insurer not being authorized to transact such business in this state. [Section 626.901(1), Florida Statutes]. COUNT VU 27. The above general allegations are hereby realleged and fully incorporated herein by reference. 28. On or about April 1, 2001, you, JUDITH ANN EHLING, as a licensed insurance agent, sold group health insurance to Cotton Pickin Shirts through Meridian. 29, Meridian failed to pay health insurance claims for Cotton Pickin Shirts’ employee(s). IT IS THEREFORE CHARGED that you, JUDITH ANN EHLING, 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 626.61 1(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 626.61 1(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 proh‘bited under Part X (re- 11 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]. COUNT IX 30. The above general allegations are hereby realleged and fully incorporated herein by reference. 31. On or about December 1, 2001, you, JUDITH ANN EHLING, as a licensed insurance agent, sold group health insurance to the Taylor County Board of County Commissioners through Meridian. 32, Meridian failed to pay health insurance claims for Taylor County Board of County Commissioners’ employee(s). IT IS THEREFORE CH ARGED that you, JUDITH ANN EHLING, 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]; 12 (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, en gaging 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 kerself 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]. COUNT X 33. The above general allegations are hereby realleged and fully incorporated herein by reference. 34. On or about November 1, 2001, you, JUDITH ANN EHLING, as a licensed insurance agent, sold group health insurance to the City of Perry, Florida through Meridian. 35. Meridian failed to pay health insurance claims for the City of Perry’s employee(s). IT IS THEREFORE CH ARGED that you, JUDITH ANN EHLING, 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 appoiniments: (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]; 13 (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 bea 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]. COUNT XI 36. The above general allegations are hereby realleged and fully incorporated herein by reference. 37. On or about March 1, 2001, you, JUDITH ANN EHLING, as a licensed insurance agent, sold group health insurance to Southeast Personnel Leasing through Meridian. Southeast Personnel Leasing was located in Tarpon Springs, Florida. 38. Meridian failed to pay health insurance claims for Southeast Personnel Leasing’s employee(s). IT IS THEREFORE CHARGED that you, JUDITH ANN EHLING, 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: 14 (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 1o 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]. COUNT XI 39. The above general allegations are hereby realleged and fully incorporated herein by reference. 40. On or about June 1, 2000, you, JUDITH ANN EHLING, as a licensed insurance agent, sold group health insurance to Dr. Salvatore A. Vernali through Local 16. Dr. Vernali’s medical practice is located in Milton, Florida. 41. Local 16 failed to pay health insurance claims for Dr. Vernali’s employee(s). 15 IT IS THEREFORE CHARGED that you, JUDITH ANN EHLING, have violated or are accountable under the following provisions of the Florida Insurance Code anc 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 626.61 1(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]. COUNT Xill 42. The above general allegations are hereby realleged and fully incorporated herein by reference. 16 43. On our about June 1, 2002, after Local 16 filed for bankruptcy. you, JUDITH ANN EHLING, as a licensed insurance agent, sold group health to Dr. Salvatore Vernali through Meridian. 44. Meridian failed to pay health insurance claims for Dr. Vernali’s employee(s). IT IS THEREFORE CHARGED that you, JUDITH ANN EHLING, 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 Jicenses 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) Inthe 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]. 17 WHEREFORE, you, JUDITH ANN EHLING, 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; 18 (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. Ifa 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 norma'ly 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. 19 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_ 2/2 day of “Taf 2004. OAL Ll KAREN CHANDLER Deputy Chief Financial Officer 20 CERTIFICATE OF SERVICE ] HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been furnished to: JUDITH A EHLING, 3163 Benton Boulevard, Pace, Florida 32571-9512, by Certified Mail this od/ =day of , 2004. 21 yl blon at wd 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

Docket for Case No: 04-002314PL