May 7 2008 14:55 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? May. Gf 2686 42:82PM Pele # ¢ FILED RBFRESENTING : t ALEX SINK APR 8 206 CHIEF FINANCIAL OFFICER STATE OF FLORIDA . IN THE MATTER OF: _o CASE NO.: 91433-08-AG RICHARD C, HOFFMAN ADMINISTRATIVE COMPLAINT TO: RICHARD C, HOFFMAN Greene-Hazel & Associates 10739 Deerwood Park Blvd. Suite 200 Jacksonville, FL 32256 RICHARD C. IIOFFMAN 4463 Timber Bluff Court Jacksonville, FI, 32224-8664 You, RICHARD C. HOFFMAN, license ID. #D042262, 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, RICHARD C. HOFFMAN, are currently licensed in this state as a general lines (property & casualty) agent. 2. At all times pertinent to the dates and occurrences referred to herein, you, RICHARD C, HOFFMAN, were licensed in this state as an insurance agent. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services has jurisdiction over your insurance agent license and eligibility for licensure. 4, Ataill times material herein, you. RICHARD C, HOFFMAN, as a licensed insurance agent, deliberately misrepresented the terms and conditions of insurance policics, May 7 2008 14:55 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? May. Gf 2686 42:82PM PSe12 failed to properly place professional liability insurance coverage with insurers, and issued false and fraudulent proof of insurance to the insureds. COUNT I 5. The above general allegations are hereby realleged and fully incorporated herein by reference, . 6. Prior to and after January, 2005, you, RICHARD C, HOFFMAN, as a licensed insurance agent, employed by Harden & Associates, created and submitted false documents for the account of Baptist Primary Care to reflect that policy number 160051703 covered eleven (11) physicians, which were not covered by the professional liability policy issued by Mag Mutual Insurance Company. Upon the discovery of your false and fraudulent conduct as aforesaid, you, RICHARD C. HOFFMAN, adinitted to same, which ultimately caused your employer to be sued and pay approximately $275,000.00 to correct the fraudulent documents prepared and submitted by you. IT IS THEREFORE CHARGED that you, RICHARD C. HOFFMAN, 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) 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]; (b) Demonstrated lack of fitness or trustworthincss 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]; and (d) Knowingly delivering to any person any false material statement. [Section 626,9541(1)(e)1., Florida Statutes]. May 7 2008 14:55 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? May. Gf? 2686 82:63PM P4122 COUNT Il 7, The above general allegations are hereby realleged and fully incorporated herein by reference. 8. Prior to and after January, 2005, you, RICHARD C. HOFFMAN, as a licensed insurance agent, employed by Harden & Associates, created and submitted false and fraudulent documents for the account of Health Care Management Casualty, Inc. to reflect false retro dates under professional liability policy number CRL-112041, issued by ACE Insurance Company in behalf of the policyholder. IT IS THEREFORE CHARGED that you, RICHARD C. HOFFMAN, 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) 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]; (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.61 1(7), Florida Statutes]; (c) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; and (d) Knowingly delivering to any person any false material statement. [Section 626.9541(1)(e)1., Florida Statutes]. WHEREFORE, you, RICHARD C, HOFFMAN, 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 626.61 1, 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. May 7 2008 14:55 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr May. @? 2668 2:63PM Pole NOTICE OF RIGHTS You have the right to request a procceding to contest this action by the Department of Financial Services ("Department") pursuant to Sections 120.569 and 120.57, Florida Statutes, and Rule 28-106, 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 acting as 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 SUSPENSION OR REVOCATION WILL BE ENTERED AGAINST YOU. If you request a proceeding, you must provide information that complies with the requirements of Rule 28-106.2015, 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, address, and telephone number, and facsimile number (if any) of the respondent (for the purpose of requesting a hearing in this matter, you are the "respondent"), (b) The name, address, telephone number, facsimile number of the attorney or qualified representative of the respondent (if any) upon whom service of pleadings and other papers shall be made. May 7 2008 14:55 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? May. Gf 2686 82:63PM Peele (c) A statement requesting an administrative hearing identifying those material facts that are in dispute. If there are none, the petition must so indicate. (d) A statement of when the respondent received notice of the administrative complaint. (e) A statement including the file number to the administrative complaint. 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 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 frecform 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. May 7 2008 14:57 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? May. Bf 2686 42:64PM Prel2 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. REN CHANDLER Deputy Chief Financial Officer May 7 2008 14:57 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? May. Gf 2686 82:64PM Peele 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; RICHARD C. HOFFMAN, Greene-Ilazel & Associates, 10739 Deerwood Park Blvd., Suite 200, Jacksonville, FL 32256; and RICHARD C. HOFFMAN, 4463 Timber Bluff Court, Jacksonville, FL 32224- 8664 by Certified Mail this Sth day of Ae cil , 2008, Dean Andrews Division of Legal Services 200 East Gaines Si, 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4242 Phone (850) 487-4907 Fax Florida Bar Number 0001959

Docket for Case No: 08-002226PL