FLORIDA O I- | 457 DEPARTMENT OF FINANCIAL SERVICES. TOM GALLAGHER CHIEF FINANCIAL OFFICER STATE OF FLORIDA IN THE MATTER OF: SUN TITLE & ABSTRACT COMPANY ADMINISTRATIVE COMPLAINT TO: SUN TITLE & ABSTRACT COMPANY : through Francis McAlonan, its President and Registered Agent 4010 South 57" Avenue #104 Lake Worth, Florida 33463-4301 You, SUN TITLE & ABSTRACT COMPANY (“SUN TITLE”), license I.D. #4248109, 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 title insurance agency in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, SUN TITLE, are currently licensed in this state as a Title Insurance Agency (4-12). 2. At all times pertinent to the dates and occurrences referred to herein, you, SUN TITLE, were licensed in this state as a title insurance agency. 3. Pursuant to Chapter 626, Florida Statutes, the FLORIDA DEPARTMENT OF FINANCIAL SERVICES has jurisdiction over your title insurance agency license and appointments. COUNT I 4. The above general allegations are hereby realleged and fully incorporated herein by reference. 5. You, SUN TITLE, obtained title insurance for the benefit of S.T. through United General Title Insurance Company (“United General”). 6. S.T.’s transaction was assigned file number 01-10016. 7. The effective date of the insurance policy you, SUN TITLE, obtained for S.T. was February 5, 2001. 8. United General did not receive the premium you, SUN TITLE, owed to them for S.T.’s insurance policy until March or April of 2003. IT IS THEREFORE CHARGED that you, SUN TITLE, based upon some or all of the foregoing, 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 fitness or trustworthiness to represent a title insurer in the issuance of its commitments, binders, policies of title insurance, or guarantees of title. [Section 626.8437(4), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Florida Statutes]; (c) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurance insurers or insureds or others and received in conduct of business under the license or appointment. [Section 626.8437(7), Florida Statutes]; (d) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.8437(5), Florida Statutes]; | (ce) The required retention of funds must be remitted to the insurer by the agent at least monthly. [Rule 4-186.003(9)(c), Fla. Admin. Code, now Rule 690-186.003(9)(c), Fla. Admin. Code]; (f) Violation of any lawful order or rule of the department. [Section 626.844(3), Florida Statutes]. COUNT II 9. The above general allegations are hereby realleged and fully incorporated herein by reference. 10. You, SUN TITLE, obtained title insurance for the benefit of P.C. and K.C. through United General. 11. P.C.’s and K.C.’s transaction was assigned file number 01-20072. 12. The effective date of the insurance policy you, SUN TITLE, obtained for P.C. and K.C. was May 15, 2001. 13. United General did not receive the premium you, SUN TITLE, owed to them for P.C.’s and K.C.’s insurance policies until March or April of 2003. IT IS THEREFORE CHARGED that you, SUN TITLE, based upon some or all of the foregoing, 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 fitness or trustworthiness to represent a title insurer in the issuance of its commitments, binders, policies of title insurance, or guarantees of title. [Section 626.8437(4), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Florida Statutes]; (c) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurance insurers or insureds or others and received in conduct of business under the license or appointment. [Section 626.8437(7), Florida Statutes]; ‘(d) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.8437(5), Florida Statutes]; (e) The required retention of funds must be remitted to the insurer by the agent at least monthly. [Rule 4-186.003(9)(c), Fla. Admin. Code, now Rule 690-186.003(9)(c), Fla. Admin. Code]; (f) Violation of any lawful order or rule of the department. [Section 626.844(3), Florida Statutes]. COUNT III 14. The above general allegations are hereby realleged and fully incorporated herein by reference. 15. | You, SUN TITLE, obtained title insurance for the benefit of A.R. through United General. 16. __A.R.’s transaction was assigned file number 02-10175. 17. The effective date of the insurance policy you, SUN TITLE, obtained for A.R. was June 19, 2002. 18. — United General did not receive the premium you, SUN TITLE, owed to them for A.R.’s insurance policy until March or April of 2004. IT IS THEREFORE CHARGED that you, SUN TITLE, based upon some or all of the foregoing, 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 fitness or trustworthiness to represent a title insurer in the issuance of its commitments, binders, policies of title insurance, or guarantees of title. [Section 626.8437(4), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Florida Statutes]; (c) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurance insurers or insureds or others and received in conduct of business under the license or appointment. [Section 626.8437(7), Florida Statutes]; (d) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.8437(5), Florida Statutes]; (e) The required retention of funds must be remitted to the insurer by the agent at least monthly. [Rule 690-186.003(9)(c), Fla. Admin. Code]; (f) Violation of any lawful order or rule of the department. [Section 626.844(3), Florida Statutes]. COUNT IV 19. The above general allegations are hereby realleged and fully incorporated herein by reference. 20. You, SUN TITLE, obtained title insurance for the benefit of C.H.M. through United General. 21. C.H.M.’s transaction was assigned file number 02-20400. 22. The effective date of the insurance policy you, SUN TITLE, obtained for C.H.M. was January 16, 2003. 23. United General did not receive the premium you, SUN TITLE, owed to them for C.H.M.’s insurance policy until December of 2004 or January of 2005. IT IS THEREFORE CHARGED that you, SUN TITLE, based upon some or all of the foregoing, 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 fitness or trustworthiness to represent a title insurer in the issuance of its commitments, binders, policies of title insurance, or guarantees of title. [Section 626.8437(4), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Florida Statutes]; (c) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurance insurers or insureds or others and received in conduct of business under the license or appointment. [Section 626.8437(7), Florida Statutes]; (d) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.8437(5), Florida Statutes]; (ec) The required retention of funds must be remitted to the insurer by the agent at least monthly. [Rule 690-186.003(9)(c), Fla. Admin. Code]; (f) Violation of any lawful order or rule of the department. [Section 626.844(3), Florida Statutes]. COUNT V 24. The above general allegations are hereby realleged and fully incorporated herein by reference. 25. You, SUN TITLE, obtained title insurance for the benefit of A.H.L. through United General. . 26. A.HLL.’s transaction was assigned file number 03-20092. 27. The effective date of the insurance policy you, SUN TITLE, obtained for A.H.L. was June 23, 2003. 28. United General did not receive the premium you, SUN TITLE, owed to them for C.H.M.’s insurance policy until December of 2004 or January of 2005. IT IS THEREFORE CHARGED that you, SUN TITLE, based upon some or all of the foregoing, 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 fitness or trustworthiness to represent a title insurer in the issuance of its commitments, binders, policies of title insurance, or guarantees of title. [Section 626.8437(4), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Florida Statutes]; (c) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurance insurers or insureds or others and received in conduct of business under the license or appointment. [Section 626.8437(7), Florida Statutes]; (d) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.8437(5), Florida Statutes]; (e) The required retention of funds must be remitted to the insurer by the agent at least monthly. [Rule 690-186.003(9)(c), Fla. Admin. Code]; (f) Violation of any lawful order or rule of the department. [Section 626.844(3), Florida Statutes]. COUNT VI 29 The above general allegations are hereby realleged and fully incorporated herein by reference. 30. You, SUN TITLE, obtained title insurance for the benefit of A.H.M. through United General. 31. A.H.M.’s transaction was assigned file number 04-50003. 32. The effective date of the insurance policy you, SUN TITLE, obtained for A.H.M. was March 23, 2004. 33. United General did not receive the premium you, SUN TITLE, owed to them for A.H.M.’s insurance policy until August or September of 2004. IT IS THEREFORE CHARGED that you, SUN TITLE, based upon some or all of the foregoing, 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 fitness or trustworthiness to represent a title insurer in the issuance of its commitments, binders, policies of title insurance, or guarantees of title. [Section 626.8437(4), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Florida Statutes]; (c) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurance insurers or insureds or others and received in conduct of business under the license or appointment. [Section 626.8437(7), Florida Statutes]; (d) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.8437(5), Florida Statutes]; (e) The required retention of funds must be remitted to the insurer by the agent at least monthly. [Rule 690-186.003(9)(c), Fla. Admin. Code]; (f Violation of any lawful order or rule of the department. [Section 626.844(3), Florida Statutes]. COUNT VII 34. The above general allegations are hereby realleged and fully incorporated herein by reference. 35. You, SUN TITLE, obtained title insurance for the benefit of F.M. and N.M. through United General. 36. F.M.’s and N.M.’s transaction was assigned file number 04-40035. 37. The effective date of the insurance policy you, SUN TITLE, obtained for F.M. and N.M. was April 12, 2004. 38. | United General did not receive the premium you, SUN TITLE, owed to them for F.M.’s and N.M.’s insurance policy until November or December of 2004. IT IS THEREFORE CHARGED that you, SUN TITLE, based upon some or all of the foregoing, 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 fitness or trustworthiness to represent a title insurer in the issuance of its commitments, binders, policies of title insurance, or guarantees of title. [Section 626.8437(4), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Florida Statutes]; (c) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurance insurers or insureds or others and received in conduct of business under the license or appointment. [Section 626.8437(7), Florida Statutes]; 10 (d) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.8437(5), Florida Statutes]; (e) The required retention of funds must be remitted to the insurer by the agent at least monthly. [Rule 690-186.003(9)(c), Fla. Admin. Code]; (f) Violation of any lawful order or rule of the department. [Section 626.844(3), Florida Statutes]. COUNT VIII 39. The above general allegations are hereby realleged and fully incorporated herein by reference. 40. You, SUN TITLE, obtained title insurance for the benefit of H-L.C. through United General. 41. H.L.C.’s transaction was assigned file number 04-50007. 42. The effective date of the insurance policy you, SUN TITLE, obtained for H.L.C. was February 13, 2004. 43. United General did not receive the premium you, SUN TITLE, owed to them for H.L.C.’s insurance policy until November or December of 2004. IT IS THEREFORE CHARGED that you, SUN TITLE, based upon some or all of the foregoing, 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: 11 (a) Demonstrated lack of fitness or trustworthiness to represent a title insurer in the issuance of its commitments, binders, policies of title insurance, or guarantees of title. [Section 626.8437(4), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Florida Statutes]; (c) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurance insurers or insureds or others and received in conduct of business under the license or appointment. [Section 626.8437(7), Florida Statutes]; (d) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.8437(5), Florida Statutes]; (e) The required retention of funds must be remitted to the insurer by the agent at least monthly. [Rule 690-186.003(9)(c), Fla. Admin. Code]; (f) Violation of any lawful order or rule of the department. [Section 626.844(3), Florida Statutes]. COUNT IX 44. The above general allegations are hereby realleged and fully incorporated herein - by reference. 45, You, SUN TITLE, obtained title insurance for the benefit of E.M. through United General. 46. _ E.M.’s transaction was assigned file number 03-10134. 47. The effective date of the insurance policy you, SUN TITLE, obtained for E.M. was October 20, 2003. 12 48. United General did not receive the premium you, SUN TITLE, owed to them for E.M.’s insurance policy until April 2005. IT IS THEREFORE CHARGED that you, SUN TITLE, based upon some or all of the foregoing, 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 fitness or trustworthiness to represent a title insurer in the issuance of its commitments, binders, policies of title insurance, or guarantees of title. [Section 626.8437(4), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Florida Statutes]; (c) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurance insurers or insureds or others and received in conduct of business under the license or appointment. [Section 626.8437(7), Florida Statutes]; (d) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.8437(5), Florida Statutes]; (e) The required retention of funds must be remitted to the insurer by the agent at least monthly. [Rule 690-186.003(9)(c), Fla. Admin. Code]; (f) Violation of any lawful order or rule of the department. [Section 626.844(3), Florida Statutes]. 13 COUNT X 49. The above general allegations are hereby realleged and fully incorporated herein by reference. 50. You, SUN TITLE, obtained title insurance for the benefit of M.S., L.S., and W.B. through United General. ‘ 51. M.S.’, L.S.’, and W.B.’s transactions were assigned file number 03-70020. 52. The effective date of the insurance policies you, SUN TITLE, obtained for M.S., L.S., and W.B. was May 12, 2003. 53. United General did not receive the premium you, SUN TITLE, owed to them for M.S.’, L.S.’, and W.B.’s insurance policy until February 2004. IT IS THEREFORE CHARGED that you, SUN TITLE, based upon some or all of the foregoing, 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 fitness or trustworthiness to represent a title insurer in the issuance of its commitments, binders, policies of title insurance, or guarantees of title. [Section 626.8437(4), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Florida Statutes]; (c) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurance insurers or insureds or others and received in conduct of business under the license or appointment. [Section 626.8437(7), Florida Statutes]; 14 (d) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.8437(5), Florida Statutes]; (e) The required retention of funds must be remitted to the insurer by the agent at least monthly. [Rule 690-186.003(9)(c), Fla. Admin. Code]; (f) Violation of any lawful order or rule of the department. [Section 626.844(3), Florida Statutes}. COUNT XI 54. The above general allegations are hereby realleged and fully incorporated herein by reference. 55. You, SUN TITLE, obtained title insurance for the benefit of J .K., P.K., and W.M.B. through United General. 56. J.K.’s, P.K.’s, and W.M.B.’s transactions were assigned file number 03-70034. 57. The effective date of the insurance policies you, SUN TITLE, obtained for J.K., P.K., and W.M.B. was October 14, 2003. 58. | United General did not receive the premium you, SUN TITLE, owed to them for J.K.’s, P.K.’s, and W.M.B.’s insurance policy until February 2004. IT IS THEREFORE CHARGED that you, SUN TITLE, based upon some or all of the foregoing, 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: 15 (a) Demonstrated lack of fitness or trustworthiness to represent a title insurer in the issuance of its commitments, binders, policies of title insurance, or guarantees of title. [Section 626.8437(4), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Florida Statutes]; (c) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurance insurers or insureds or others and received in conduct of business under the license or appointment. [Section 626.8437(7), Florida Statutes]; (d) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.8437(5), Florida Statutes]; (e) The required retention of funds must be remitted to the insurer by the agent at least monthly. [Rule 690-186.003(9)(c), Fla. Admin. Code]; (f) Violation of any lawful order or rule of the department. [Section 626.844(3), Florida Statutes]. COUNT XII 59. The above general allegations are hereby realleged and fully incorporated herein by reference. 60. You, SUN TITLE, obtained title insurance for the benefit of L.F. through United General. 61. LF. transaction was assigned file number 01-20257. 62. The effective date of the insurance policy you, SUN TITLE, obtained for L.F. and K.C. was November 14, 2001. 16 63. United General did not receive the premium you, SUN TITLE, owed to them for L-F.’s insurance policy until March or April of 2004. IT IS THEREFORE CHARGED that you, SUN TITLE, based upon some or all of the foregoing, 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 fitness or trustworthiness to represent a title insurer in the issuance of its commitments, binders, policies of title insurance, or guarantees of title. [Section 626.8437(4), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Florida Statutes]; (c) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurance insurers or insureds or others and received in conduct of business under the license or appointment. [Section 626.8437(7), Florida Statutes]; (d) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.8437(5), Florida Statutes]; (e) The required retention of funds must be remitted to the insurer by the agent at least monthly. [Rule 4-186.003(9)(c), Fla. Admin. Code, now Rule 690-186.003(9)(c), Fla. Admin. Code (2006)]; (f) Violation of any lawful order or rule of the department. [Section 626.844(3), Florida Statutes]. 17 COUNT XIII 64. The above general allegations are hereby realleged and fully incorporated herein by reference. 65. You, SUN TITLE, obtained title insurance for the benefit of S.I. through Old Republic National Insurance Company (“Old Republic”). 66. _ S.1.’s transactions were assigned file number 02-20143. 67. The effective date of the insurance policies you, SUN TITLE, obtained for S.1. was July 23, 2002. 68. Old Republic did not receive the premiums you, SUN TITLE, owed to them for S.I.’s insurance policies until July 2004. IT IS THEREFORE CHARGED that you, SUN TITLE, based upon some or all of the foregoing, 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 fitness or trustworthiness to represent a title insurer in the issuance of its commitments, binders, policies of title insurance, or guarantees of title. [Section 626.8437(4), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Florida Statutes]; (c) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurance insurers or insureds or others and received in conduct of business under the license or appointment. [Section 626.8437(7), Florida Statutes]; 18 (d) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.8437(5), Florida Statutes]; (e) The required retention of funds must be remitted to the insurer by the agent at least monthly. [Rule 690-186.003(9)(c), Fla. Admin. Code]; (f) Violation of any lawful order or rule of the department. [Section 626.844(3), Florida Statutes]. COUNT XIV 69. The above general allegations are hereby realleged and fully incorporated herein by reference. 70. You, SUN TITLE, obtained title insurance for the benefit of C.M.M. through Old Republic. 71. C.M.M.’s transaction was assigned file number 02-20040. 72. The effective date of the insurance policy you, SUN TITLE, obtained for C.M.M. was April 1, 2003. 73. Old Republic did not receive the premium you, SUN TITLE, owed to them for C.M.M.’s insurance policy until December 2004. IT IS THEREFORE CHARGED that you, SUN TITLE, based upon some or all of the foregoing, 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: 19 (a) Demonstrated lack of fitness or trustworthiness to represent a title insurer in the issuance of its commitments, binders, policies of title insurance, or guarantees of title. [Section 626.8437(4), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Florida Statutes]; (c) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurance insurers or insureds or others and received in conduct of business under the license or appointment. [Section 626.8437(7), Florida Statutes]; (d) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.8437(5), Florida Statutes]; (e) The required retention of funds must be remitted to the insurer by the agent at least monthly. [Rule 690-186.003(9)(c), Fla. Admin. Code]; (f) Violation of any lawful order or rule of the department. [Section 626.844(3), Florida Statutes]. COUNT XV 74. The above general allegations are hereby realleged and fully incorporated herein by reference. 75. You, SUN TITLE, obtained title insurance for the benefit of W.M., M.M. and G.M.B. through Old Republic. 76. W.M.’s, M.M.’s, and G.M.B.’s transactions were assigned file number 03-20198. 77. The effective date of the insurance policies you, SUN TITLE, obtained for W.M., M.M., and G.M.B. was June 17, 2003. 78. Old Republic did not receive the premiums you, SUN TITLE, owed to them for W.M.’s, M.M.’s, and G.M.B.’s insurance policies until June 2004. IT IS THEREFORE CHARGED that you, SUN TITLE, based upon some or all of the foregoing, 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 fitness or trustworthiness to represent a title insurer in the issuance of its commitments, binders, policies of title insurance, or guarantees of title. [Section 626.8437(4), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Florida Statutes]; (c) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurance insurers or insureds or others and received in conduct of business under the license or appointment. [Section 626.8437(7), Florida Statutes]; (d) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.8437(5), Florida Statutes]; (e) The required retention of funds must be remitted to the insurer by the agent at least monthly. [Rule 690-186.003(9)(c), Fla. Admin. Code]; (f) Violation of any lawful order or rule of the department. [Section 626.844(3), Florida Statutes]. 21 COUNT XVI 79. The above general allegations are hereby realleged and fully incorporated herein by reference. 80. You, SUN TITLE, obtained title insurance for the benefit of L.I., A.., and A.M. through Old Republic. 81. L.I.’s, A.I.’s, and A.M.’s transactions were assigned file number 03-20289. 82. The effective date of the insurance policies you, SUN TITLE, obtained for L.I., A.L., and A.M. was August 19, 2003. 83. Old Republic did not receive the premiums you, SUN TITLE, owed to them for L.I.’s, A.L.’s, and A.M.’s insurance policies until July 2004. IT IS THEREFORE CHARGED that you, SUN TITLE, based upon some or all of the foregoing, 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 fitness or trustworthiness to represent a title insurer in the issuance of its commitments, binders, policies of title insurance, or guarantees of title. [Section 626.8437(4), Florida Statutes]; . (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Florida Statutes]; (c) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurance insurers or insureds or others and received in conduct of business under the license or appointment. [Section 626.8437(7), Florida Statutes]; 22 (d) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.8437(5), Florida Statutes]; (ec) The required retention of funds must be remitted to the insurer by the agent at least monthly. [Rule 690-186.003(9)(c), Fla. Admin. Code]; (f) Violation of any lawful order or rule of the department. [Section 626.844(3), Florida Statutes]. COUNT XVII 84. The above general allegations are hereby realleged and fully incorporated herein by reference. 85. You, SUN TITLE, obtained title insurance for the benefit of R.O., J.O., and C.M.M. through Old Republic. 86. R.O.’s, J.O.’s, and C.M.M.’s transactions were assigned file number 03-20422. 87. The effective date of the insurance policies you, SUN TITLE, obtained for R.O., J.O., and C.M.M. was January 23, 2004. 88. Old Republic did not receive the premiums you, SUN TITLE, owed to them for R.O.’s, J.O.’s, and C.M.M.’s insurance policies until December 2004. IT IS THEREFORE CHARGED that you, SUN TITLE, based upon some or all of the foregoing, 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: 23 (a) Demonstrated lack of fitness or trustworthiness to represent a title insurer in the issuance of its commitments, binders, policies of title insurance, or guarantees of title. [Section 626.8437(4), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.8437(6), Florida Statutes]; and (c) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurance insurers or insureds or others and received in conduct of business under the license or appointment. [Section 626.8437(7), Florida Statutes]; (d) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.8437(S), Florida Statutes]; (e) The required retention of funds must be remitted to the insurer by the agent at least monthly. [Rule 690-186.003(9)(c), Fla. Admin. Code]; (f) Violation of any lawful order or rule of the department. [Section 626.844(3), Florida Statutes]. COUNT XVIII 89. The above general allegations are hereby realleged and fully incorporated herein by reference. 90. | You, SUN TITLE, obtained title insurance for the benefit of M.S., L.S. and W.B. through United General. These transactions were assigned file number 03-70020. 91. You, SUN TITLE, obtained title insurance for the benefit of D.H., and C.M.M. through United General. These transactions were assigned file number 03-70022. 24 92. You, SUN TITLE, obtained title insurance for the benefit of S.R. and S.R. through United General. The transaction was assigned file number 03-70023. 93. You, SUN TITLE, obtained title insurance for the benefit of J.K., P.K. and W.M.B. through United General. These transactions were assigned file number 03-70034. 94. You, SUN TITLE, obtained title insurance for the benefit of L.F., S.F. and S.M. through United General. These transactions were transactions were assigned file number 03- 70039. 95. You, SUN TITLE, placed fiduciary funds related to file numbers 03-70020, 03-70022, 03-70023, 03-70034, and 03-70039, including but not limited to premiums that were to be paid to United General and Fidelity National Title Insurance Company, into SUN TITLE’s operating account. 96. You, SUN TITLE, were required to place the fiduciary funds related to file numbers 03-70020, 03-70022, 03-70023, 03-70034, and 03-70039 into SUN TITLE’s escrow account. 97. You, SUN TITLE, paid premiums you owed to United General and Fidelity National Title Insurance Company for file numbers 03-70020, 03-70022, 03-70023, 03-70034, and 03-70039 out of SUN TITLE’s operating account. IT IS THEREFORE CHARGED that you, SUN TITLE, have, based upon some or all of the foregoing, 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 funds received by a title insurance agent to be held in trust shall be immediately placed in a financial institution that is located within this state and is a member of the Federal 25 Deposit Insurance Corporation or the National Credit Union Share Insurance Fund. These funds shall be invested in an escrow account in accordance with the investment requirements and standards established for deposits and investments of state funds in s. 17.57, where the funds shall be kept until disbursement thereof is properly authorized. [Section 626.8473(3), F lorida Statutes]; (b) Violation of any provision of this act in the course of dealing under the license or appointment. [Section 626.844(2), Florida Statutes]; (c) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.8437(5), Florida Statutes]. COUNT XIX 98. The above general allegations are hereby realleged and fully incorporated herein by reference. 99. | You, SUN TITLE, have five (5) title agency branches. 100. The branches are located in Lake Worth, Royal Palm Beach, Tamarac, Port St. Lucie, and Boca Raton, Florida. 101. The Royal Palm Beach, Tamarac, and Port St. Lucie branches are not managed by a licensed agent. IT IS THEREFORE CHARGED that you, SUN TITLE, have, based upon some or all of the foregoing, 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: 26 (a) Each branch place of business established by an agent or agency, firm, corporation, or association shall be in the active full-time charge of a licensed general lines agent or life or health agent who is appointed to represent one or more insurers. Any agent or agency, firm, corporation, or association which has established one or more branch places of business shall be required to have at least one licensed general lines agent who is appointed to represent one or more insurers at each location of the agency including its headquarters location. [Section 626.8411(1)(c), Florida Statutes, Section 626.747(1), Florida Statutes]; (b) Violation of any provision of this act in the course of dealing under the license or appointment. [Section 626.844(2), Florida Statutes]; (c) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.8437(5), Florida Statutes]. WHEREFORE, you, SUN TITLE, are hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking your licenses and appointments as a title insurance agency or to impose such penalties as may be provided under the provisions of Sections 626.8437, 626.844, 626.8443, 626.8457, and 626.846, 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 27 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. 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. 28 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 ofa 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 29 the Department of Financial Services. nitd DATED and SIGNED this 7 Z day of November. 2006. KAREN CHANDLER Deputy Chief Financial Officer 30 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 SUN TITLE & ABSTRACT COMPANY, through Francis McAlonan, its President and Registered Agent, 4010 South 57" Avenue #104, Lake Worth, Florida 33463-4301, by Certified Mail this 2E nd day of Nélemiey— , 2006. Robert Alan Fox Senior Attorney Department of Financial Services. 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-0333 31

Docket for Case No: 07-001957