- FLORIDA DEPARTMENT OF FINANCIAL SERVICES TOM GALLAGHER CHIEF FINANCIAL OFFICER . STATE OF FLORIDA Y 9GPL AUG 99 ptt) Dookated by Sb Vem IN THE MATTER OF: OO CASE NO.: 85308-06-4G Q. 24 MARY BETH WIHTEHOUSE Dy ce, ya / % oP < Nat Pe to. ek CEO, gp oth ADMINISTRATIVE COMPLAINT Fi, BX Been TO: MARY BETH WHITEHOUSE i 2218 Vincent Road ¢ Orlando, Florida 32817-4324 You, MARY BETH HORNBECK aka “Mary Beth Whitehouse” aka MARY BETH HORNBECK - WHITEHOUSE, license I.D. #E049667, 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 a service representative in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, MARY BETH WHITEHOUSE, are currently licensed in this state as a Customer Representative (4-40). 2. At all times pertinent to the dates and occurrences referred to herein, you, MARY BETH WHITEHOUSE, were licensed in this state as a Customer Representative, license I.D. #E049667. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services (“Department”) has jurisdiction over your insurance licenses and appointments. 4. On or about November 19, 2002, the Department issued to you, MARY BETH WHITEHOUSE, a Customer Representative (4-40) license. 5. At all times relevant to the dates and occurrences referred to herein you, MARY BETH WHITEHOUSE, were listed as Director/Officer, President, Secretary and Treasurer of M.B. Hormbeck, Inc. 6. Atall times pertinent to the dates and occurrences referred to herein, M.B. Hornbeck, Ine. d/b/a/ Hornbeck Insurance Group conducted banking activities in this state with Bank of America, account number 003676286242, for which only you, MARY BETH WHITEHOUSE, were the authorized signatory. 7. Atall times pertinent to the dates and occurrences referred to herein, M.B. Hornbeck, Inc. conducted banking activities in this state with SunTrust Bank, account number 1000023627705, for which only you, MARY BETH WHITEHOUSE, were the authorized signatory. 8. At all times pertinent to the dates and occurrences referred to herein, all funds received by you, MARY BETH WHITEHOUSE, pursuant to Section 626.561, Florida Statutes, from consumers or on behalf of consumers were trust funds received in a fiduciary capacity and were paid over to persons entitled therto in the regular course of business. COUNT I 9. The above general allegations are hereby realleged and fully incorporated herein by reference. 10. On or about February 9, 2004, a Producer Agreement was entered into between The Hornbeck Insurance Group and Irvin B. Green & Associates (IBGA), a Florida licensed managing general agency in Orlando, Florida. That Producer Agreement established the regular course of business to be followed between The Hornbeck Insurance Group and IBGA, including the obligation of the Hornbeck Group to timely remit premiums to IBGA. That Producer Agreement contained a personal guaranty provision which provided the following: tw Personal Guaranty For and in consideration of the rights and benefits given and accepted under this agreement and other good and lawful consideration, the undersigned personally and individually guarantees the faithful performance and payment by Producer of any sum, obligation or liability for which the Producer may be liable to IBGA by virtue of the terms of this agreement. 11. On February 9, 2004, you, MARY BETH WHITEHOUSE, signed the Personal Guaranty as the Guarantor. 12. On or about April 6, 2004, you, MARY BETH WHITEHOUSE, received a check from Darla Grunewald on behalf of Grunewald Contracting, Inc. for $734.65 payable to Hornbeck Insurance for the full annual premium to renew a commercial liability policy with Atlantic Casualty Insurance Company to be effective April 6, 2004 to April 6, 2005. 13. On or about April 7, 2004, that check was deposited in the account of M.B. Hornbeck, Inc. d/b/a/ Hornbeck Insurance Group, account number 003676286242 of Bank of America. 14, Pursuant to the producer agreement between Hornbeck Insurance Group, Inc. and IBGA, You, MARY BETH WHITEHOUSE, were obligated to promptly transmit to IBGA complete applications and binders for all insurance made along with all premiums, taxes, and applicable expense or fees required. 15. Instead, on or about this same date, a premium finance agreement was signed by you, MARY BETH WHITEHOUSE, financing the renewal premium of Grunewald Contracting, Inc. in the amount of $514.65, notwithstanding the receipt and deposit of the full annual premium by you, MARY BETH WHITEHOUSE, in the amount of $734.65. The premium finance agreement was with Pro Premium Finance Co., Inc. (“PPF”) a Florida licensed premium finance company. 16. The premium finance agreement provided for the following Agent’s Note: The undersigned agent hereby certifies that all policies listed above hereof have been issued and delivered by this agency and that the down payment as shown in the contract has been paid by or on behalf of the assured, and that all policies listed therein were issued by this agency. The undersigned warrants that the above contract evidences a bona fide and legal transaction; that the insured is of legal age and has capacity to contract, that the signature is genuine unless otherwise shown were provided. Agent acknowledges that it is not affiliated in any capacity or manner with THE FINANCE COMPANY and agrees that if in the event of cancellation, to remit the gross unearned commissions or unearned premiums to THE FINANCE COMPANY upon request. 17. You, MARY BETH WHITEHOUSE, signed as the broker or agent to this agreement certifying the Agent’s Note. 18. On or about April 4, 2004, you, MARY BETH WHITEHOUSE, or someone under your supervision and/or control signed the name of “Allen Grunewald” to the premium finance agreement without his knowledge or authorization. _19, The premium finance agreement which was signed by you, MARY BETH WHITEHOUSE, as a “broker or agent,” provided for a cash down payment of $220.00 and 8 monthly installments in the amount of $72.26 payable on the 4" day of each month. 20. On or about June 4, 2004, you, MARY BETH WHITEHOUSE, caused to be made the initial installment in the amount of $82.26 via check number 1309 to Pro Premium Finance Company, Inc. (“PPF”) for contract number 3563537for Grunewald Contracting Inc. policy number 208300800. 21. On or about June 17, 2004, you, MARY BETH WHITEHOUSE, caused to be made the second installment for the aforementioned policy. 22, On or about July 16, 2004, you, MARY BETH WHITEHOUSE, caused to be made the third installment for the aforementioned policy via check number 1069. However, on or about July 27, 2004, that check was returned for insufficient funds. 23. On or about August 19, 2004, the insured was notified that policy number 208300800 would be cancelled for non payment of premium. Therefore, on or about August 20, 2004, Darla Grunewald made an installment in the amount of $72.26 to keep the policy in force. 24, Thereafter, the insured was required to make 5 (five) installments in the amount of $72.26 to complete the finance agreement and keep the policy in force. 25. From July 4, 2004, until December 4, 2004, you, MARY BETH WHITEHOUSE, failed to remit the required premium payments in the amount of $433.56 to PPE. 26. Demand has been made by the insured for payment of the funds, but you, MARY BETH WHITEHOUSE, have refused. Asa result, Grunewald Contracting, Inc. has suffereda . significant financial loss. IT IS THEREFORE CHARGED that you, MARY BETH WHITEHOUSE, 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, received by a customer representative in transactions under the license are trust funds received by the licensee in a fiduciary capacity. 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)]; (b) 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 626.61 1(5)]; (c) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7)]; (d) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9)]; (ec) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transaction authorized by the license or appointment. [Section 626.61 1(8)]; tn (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)]; (g) Willful failure to comply with, or willful violation of, any proper order or rule or the department or willful violation of any provision of this code. [Section 626.61 1(13)]; (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)]; (i) Failure or refusal, upon demand, to pay over to any insurer he or she represents or has represented any money coming into his or her hands belonging to the insurer. [Section 626.621(4)]. COUNT II 27. The above general allegations are hereby realleged and fully incorporated herein by reference, 28. Between June 17, 2004, and July 21, 2004, you, MARY BETH WHITEHOUSE, or someone under your direct supervision and control, did remit seventeen (17) checks on behalf of M.B. Hornbeck, Inc. drawn on the agency bank account payable to Leader Insurance Company in the total amount of approximately $3033.31. These funds were intended to be the premium payments on insurance policies paid for by Florida insurance consumers, who purchased their insurance from M.B. Hornbeck, Inc. 29. These checks represented “premium payments” made by you, MARY BETH WHITEHOUSE, on behalf of Hornbeck customers. 30. You, MARY BETH WHITEHOUSE, or someone under your direct supervision and/or control, forwareded the aforementioned checks to Leader Insurance Company in payment of the policy premiums. 31. These checks were presented for payment to the drawee bank but payment was refused and the checks returmed for insufficient funds. You, MARY BETH WHITEHOUSE, or someone under your direct supervision and/or control, failed to remit the funds to the respective payee or anyone else so entitled. 32. The aforementioned represented trust funds received by you, MARY BETH WHITEHOUSE, from insurance consumers in a fiduciary capacity for Leader Insurance Company. 33. Demand has been made by Leader Insurance Company for payment of the funds, but you, MARY BETH WHITEHOUSE, have refused same. Asa result, Leader Insurance Company has suffered a significant financial loss. IT IS THEREFORE CHARGED that you, MARY BETH WHITEHOUSE, 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, received by a customer representative in transactions under the license are trust funds received by the licensee in a fiduciary capacity. 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)]; (b) 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 626.61 1(5)]; (c) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (d) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.61 19); (e) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transaction authorized by the license or appointment. [Section 626.611(8)]; (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)]; (g) Willful failure to comply with, or willful violation of, any proper order or rule or the department or willful violation of any provision of this code. [Section 626.611(13)]; (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)] WHEREFORE, you, MARY BETH WHITEHOUSE, 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, 626.692 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. 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. 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 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 thi Ze day of / 2006. N CHANDLER, Deputy Chief Financial Officer 10 CERTIFICATE OF SERVICE J HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been furnished to: MARY BETH WHITEHOUSE, 2218 Vincent Road, Orlando, Florida 32817-4324 by Certified Mail this : LiL avy oC Lagu ree Angelique Knox Division of Legal Services 612 Larson Building 200 East Gaines Street Tallahassee, Florida 32399-0333 Phone: (850) 413-4219 Fax: (850) 488-0697 { i 7ubO 390L 348 44sy 74,75 i | To; MARY BETH WHITEHOUSE | 2218 VINCENT ROAD . ORLANDO, FLORIDA 32817-4324 S a oe t i) ' B+ 8 cia i SENDER: — Knox g zg § E 3 | REFERENCE; 85308-06- i , c { AUGUST 29, 2006 js § dH , a s {_PS Form 3800, June 2000 8 | RETURN | Postage —_aa é a = a cena Certified Fee === x g i Return Recaipt Fea a FA & | Restricted Delivery = a 2 > B a h Tolal Postage & Fees ——___ 4), bam —— rn a Qs ; US Postal Service POSTMARK OR DATE Sa 2 ze) ESs 3 | Recei — we E Sls = ao 8 i eceipt for — | ole BS > t sree . ——— ee eee 3 Certified Mail m Jeials ROS = =————— [=m 1 Not === 5 |i) |, Bes 7 | De nmmes Cpa re XR |s|/2is oes E | ene — e Ble 24 Ss: . nr ore =—— QO) cle a & oy | isl d|¥vj= =O & | eeceecantesenraremeeemee Lael t |

Docket for Case No: 06-003479PL