FLORIDA DEPARTMENT OF FINANCIAL SERVICES TOM GALLAGHER ; CHIEF FINANCIAL OFFICER FILED STATE OF FLORIDA Gx > SEP 17 2004 IN THE MATTER OF: pocketed by: UN CASE NO.: 71928-04-AG “ MARY OWENS MURPHY Ea / a ~ BK -f\4 yj JD OF4 PL ADMINISTRATIVE COMPLAINT TO: MARY OWENS MURPHY MARY OWENS MURPHY Sun Key Insurance Store c/o Infanto & Berman, Attorneys at Law $20 North Orlando Ave. #250 180 South Knowles Ave. #7 Winter Park, FL 32789 Winter Park, FL 32789 MARY OWENS MURPHY 5400 Collins Road #35 Jacksonville, FL 32224 You, MARY OWENS MURPHY, a/k/a Mary Aldrich, a/k/a Mary Sturtevant, license I.D. #A198315, are hereby notified that the Chief Financial Officer of the State of Florida has caused to be made an investigation of your activitics 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, MARY OWENS MURPHY, are currently licensed in this state as a General Lines (Property & Casualty) (2-20) insurance agent. 2. At all times pertinent to the dates and occurrences referred to herein, you, MARY OWENS MURPHY, were licensed in this state as a General Lines (Property & Casualty) (2-20) insurance agent. 3. Pursuant to Chapter 626, Florida Statutes, 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, MARY OWENS MURPHY, operated an insurance agency from your residence address at 5400 Collins Road, Jacksonville, Florida. COUNT I 5. The above general allegations are hereby realleged and fully incorporated herein by reference. 6. Since 2002, you, MARY OWENS MURPHY, have been selling insurance from your home address, located at 5400 Collins Road #35, Jacksonville, Florida. This business location is not readily identifiable to your customers. 7. You, MARY OWENS MURPHY, have distributed business cards indicating that your office address is that of Sunkey Insurance Store, located in Winter Park, Florida. 8. You, MARY OWENS MURPHY, have not maintained signs or anything else that could identify your residence as your place of business. 9, The office you, MARY OWENS MURPHY, claim to customers is your business address is, in fact, over 130 miles from your actual business address and not readily accessible to the customers you solicit in the Jacksonville area. IT IS THEREFORE CHARGED that you, MARY OWENS MURPHY, 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) 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]; (b) 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. [Scction 626.611(13), Florida Statutes]; (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]; (d) The applicant's place of business will be located in this state and he or she will be actively engaged in the business of insurance and will maintain a place of business, the location of which is identifiable by and accessible to the public. [Section 626.731(1)(c), Florida Statutes]; (e) A place of business located within an agent’s residence must be located in a room that is easily accessible to the public and is in fact in the usual course of business used by the agent in his or her dealings with the public. [Section 626.749(2), Florida Statutes]; (f) The existence of a place of business located inside an agent’s residence must be suitably advertised. [Section 626.749(3), Florida Statutes]. COUNT II 10. The above paragraphs 1 through 9 are hereby realleged and fully incorporated herein by reference. 11. The business address that you, MARY OWENS MURPHY, have submitted to the Department is: Sunkey Insurance Store, 520 North Orlando Ave. #250, Winter Park, FL 32789. 12. You, MARY OWENS MURPHY, have been conducting business address out of your residence and failed to inform the Department of this business address. 13. In 2002, you, MARY OWENS MURPHY, began working for Orange Park Insurance, located at 1670 Wells Road #111, Orange Park, FL. However, you never notified the Department of this change in business address. IT IS THEREFORE CHARGED that you, MARY OWENS MURPHY, 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) Failure to notify the Department in writing of a change of name, residence address, principal business street address, or mailing address within 30 days, as specified in this code. (Section 626.551, Florida Statutes]; (b) 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]; (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]. COUNT III 14. The above general allegations are hereby realleged and fully incorporated herein by reference. 15. On or about December 29, 2002, M.M.M. of Jacksonville, Florida gave you, MARY OWENS MURPHY, a down payment in the amount of $500.00 for an automobile insurance policy with Progressive American Insurance Company. 16. You, MARY OWENS MURPHY, failed to inform M.M.M. that $80.00 of this down payment was actually used to pay for a membership in Key Motor Club, an ancillary towing and emergency road service policy, which was not part of her insurance policy. 17. At the time of the transaction, M.M.M. already had a membership in a similar motor club and did not, in fact want or need the services purported to be offered by Key Motor Club. 18. You, MARY OWENS MURPHY, led M.M.M. to believe that the services purported to be offered by Key Motor Club were actually included in the automobile insurance policy she had purchased. 19. You, MARY OWENS MURPHY, willfully ignored the wishes of M.M.M. and without her consent took $80.00 of M.M.M.’s money to pay for a membership that she did not want and duplicated coverage which she had already secured. IT IS THEREFORE CHARGED that you, MARY OWENS MURPHY, 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) 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]; (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (c) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), 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) 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]; (f) Knowingly making, or causing to be made, any statement, sales presentation, omission, or comparison which misrepresents the benefits, advantages, conditions, or terms of any insurance policy. [Section 626.9541(1)(a)1., Florida Statutes]; (g) Representing to the applicant that a specific ancillary coverage or product is included in the policy applied for without an additional charge when such charge is required. [Section 626.9541(1)(z)2., Florida Statutes]. COUNT IV 20. The above general allegations are hereby realleged and fully incorporated herein by reference. 21. On or about December 16, 2002, R.A.K. of Jacksonville, Florida gave you, MARY OWENS MURPHY, the sum of $1,508.00 as premium payment for an automobile insurance policy with Progressive American Insurance Company. 22. On or about December 17, 2002, R.A.K. of Jacksonville, Florida gave you, MARY OWENS MURPHY, the sum of $348.00 as premium payment for the aforementioned automobile insurance policy with Progressive American Insurance Company 23. You, MARY OWENS MURPHY, only submitted $697.00 of the $1,856.00 collected from R.A.K. to Progressive American Insurance Company in a timely manner. 24. You, MARY OWENS MURPHY, have misappropriated, converted, or withheld $1,159.00 belonging to R.A.K. IT JIS THEREFORE CHARGED that you, MARY OWENS MURPHY, 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) 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) 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]; (c) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (d) 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.]; (ce) 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]; (f) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.61 1(9), Florida Statutes]; (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]; (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]; (i) In the conduct of business under the license or permit, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part IX of Chapter 626, Florida Statutes, 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 V 25. The above general allegations are hereby realleged and fully incorporated herein by reference. 26. On or about July 11, 2002, Bobby Sheffield, an automobile salesperson employed by Emie Palmer Westside Toyota in Jacksonville, Florida, negotiated, solicited, or otherwise transacted an automobile insurance policy to K.W.D. on behalf of you, MARY OWENS MURPHY. Bobby Sheffield did not have a license to transact insurance, but he did advise K.D.W. of the terms of insurance policy which you were to sell him and collected a cash payment of the premium for this policy. 27. You, MARY OWENS MURPHY, knew or should have known that Bobby Sheffield was not licensed as an insurance agent and therefore could not legally conduct transactions. 28. You, MARY OWENS MURPHY, knew or should have known that Bobby Sheffield was soliciting insurance by: (1) Describing the benefits or terms of insurance coverage, including premiums or rates of return; (2) Distributing an invitation to contract to prospective purchasers; (3) Making general or specific recommendations as to insurance products; (4) Completing orders or applications for insurance products; or (5) Comparing insurance products, advising as to insurance matters, or interpreting policies or coverages. IT IS THEREFORE CHARGED that you, MARY OWENS MURPHY, 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 insurance 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(1), Florida Statutes]; (b) No person may be, act as, or advertise or hold himself or herself out to be an insurance agent or customer representative unless he or she is currently licensed by the department and appointed by one or more insurers. [Section 626.112(1)(a), Florida Statutes]; (c) The primary agent in an unincorporated agency, or the primary agent in an incorporated agency in which no officer, director, or stockholder is an agent, shall be responsible and accountable for the acts of salaried employees under his or her direct supervision and control, while acting on behalf of the agency. [Section 626.592(5), Florida Statutes]; (d) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (e) 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]; (f) 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]; (g) Knowingly aiding, assisting, procuring, advising, or abetting any person in the violation of or to violate a provision of the insurance code or any order or rule of the Department. [Section 626.621(12), Florida Statutes]; (h) No individual shall, unless licensed as a general lines agent, solicit insurance or procure applications therefore. [Section 626.7315(1), Florida Statutes]; (i) No individual shall, unless licensed as a general lines agent, in this state, receive or issue a receipt for any money on account of or for any insurer, or receive or issue a receipt for money from other persons to be transmitted to any insurer for a policy, contract, or certificate of insurance or any renewal thereof, even though the policy, certificate, or contract is not signed by him or her as agent or representative of the insurer. [Section 626.7315(2), Florida Statutes]; 10 (Gj) No individual shall, unless licensed as a general lines agent, directly or indirectly represent himself or herself to be an agent of any insurer or as an agent, to collect or forward any insurance premium, or to solicit, negotiate, effect, procure, receive, deliver, or forward, directly or indirectly, any insurance contract or renewal thereof or any endorsement relating to an insurance contract, or attempt to effect the same, of property or insurable business activities or interests, located in this state. [Section 626.7315(3), Florida Statutes]. COUNT VI 29. Paragraphs one though five are hereby incorporated herein by reference. 30. You, MARY OWENS MURPHY, failed to designate a primary agent at your agency location located at 5400 Collins Road, Jacksonville, Florida. IT IS THEREFORE CHARGED that you, MARY OWENS MURPHY, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules or the Department of Financial Services which constitute grounds for the suspension or revocation of your licenses and appointments: (a) Each person operating an insurance agency shall designate a primary agent for that location [Section 626.592(1), Florida Statutes]; (b) An insurance agency location may not conduct the business of insurance unless a primary agent is designated at all times. [Section 626.592(7), Florida Statutes}; (c) 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]; 11 (d) 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). WHEREFORE, you, MARY OWENS MURPRY, 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, 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. 12 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. 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 matcrial 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 _/ 7th day of {eoktmber, 2004. N CHANDLER Deputy Chief Financial Officer 14 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: MARY OWENS MURPHY, 5400 Collins Road #35, Jacksonville, FL 32224; MARY OWENS MURPHY, Sun Key Insurance Store, 520 North Orlando Ave. #250, Winter Park, FL 32789; and MARY OWENS MURPHY, c/o Infanto & Berman, 180 South Knowles Ave. #7, Winter Park, Florida 32789 by Certified Mail this ay of _ September, 2004. John M Iriye Division of Legal ma 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-033 (850) 413-1685 Florida Bar Number 129674 "2. Article Number ‘itiom««€ - ‘WM = FLO 35) WHY 2699 C440 COMPLETE THIS SECTION ON DELIVERY oolag 3. Service Type CERTIFIED MAIL = : — i} 4 @estricted Delivery? (Extra Fee) [ave | 1. ‘article Addressed to: MARY OWENS MURPHY 5400 COLLINS ROAD #35 JACKSONVILLE, FL. 32224 RESTRICTED j PS Form 3814, July 2001 Domestic Return Receipt Compiinassitbigat ¢ is)

Docket for Case No: 05-000946PL