Jul 29 2008 10:45 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Jul. 29 2668 92:31AM PS REPRESENTING F | L E D ALEX SINK on SATEON FLORID vik 26 Bons IN THE MATTER OF: Dovketed by; FS). CASE NO.: 955'70-08-AG LEO RUSH INSURANCE ADMINISTRATIVE COMPLAINT TO: LEO RUSIT INSURANCE 25 Old Lawrence Road Pelham, NH 03076-3721 You, LEO RUSH INSURANCE, license 1.D. #L032289, 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 a nonresident general lines insurance agency in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, LEO RUSH INSURANCE, are currently licensed in this state as a nonresident general lines insurance agency (91-05). 2. . At all times pertinent to the dates and occurences referred to herein, you, LEO RUSH INSURANCE, were licenscd in this state as a nonresident general lines insurance agency. 3, Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services has jurisdiction over your nonresident general lines agency license and eligibility for licensure. 4. Atall times pertinent to the allegations contained in this administrative complaint, you, LEO RUSH INSURANCE, were located and conducted business from an office in Pelham, New Hampshire and were owned by one Leo Rush. Jul 29 2008 10:45 FROM : DEPT OF FINANCIAL SERVICES FAS NO. 2 S584574oR7 Jul, 29 2686 89:32AM Pe 5. Leo Rush is licensed by the Department as a nonresident general lines insurance agent. 6. Peter Rozantes ("Rozantes") is an individual residing in Wellesly Hills, Massachusetts, Rozantes is not and never has been licensed or otherwise authorized to transact insurance in the State of Florida. 7. Eastern Shores Casualty and Indemnity ("Eastern Shores") is purportedly an insurer, but it is not and has never becn licensed or otherwise authorized to transact insurance in the State of Florida. 8. Insurance Company of Wellesley ("IC W") is purportedly an insurer, but it is not and has never been licensed or otherwise authorized to transact insurance in the State of Florida. 9, Parrott Key Associates, Inc. ("PKA") is a Florida real estate development corporation engaged in real estate development in Key West, Florida. COUNT 1! 10. The above general allegations are hereby realleged and fully incorporated herein by reference. 11. On November 21, 2006, Eastern Shores authorized and appointed Peter Rozantes to act as its attorney-in-fact to execute surety bonds. 12. On November 26, 2006, you, LEO RUSH INSURANCE, acting through your owner, Leo Rush, authorized and appointed Peter Rozantes to act as your attorney-in-fact. 13. Onor about November, 2006, you, LEO RUSH INSURANCE, through Rozantes, represented to PKA that you could provide a performance surety bond needed by PKA for its real estate development in Key West. In reliance on your representations, PRA secured the issuance of a check in the amount of $511,726.35 payable to Eastern Shores. This amount represented the bond premium. 14. Upon determining that the bond to be issued by Easter Shores was nonconforming to the requirements established by the lender on the real estate development project, PKA demanded the return of their premium paid and you failed or refused to return the premium. Jul 29 2008 10:45 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Jul. 29 2665 89:53AM Pr 15. In soliciting a surety bond to be issued by Eastern Shores, you, LEO RUSH INSURANCE, have represented an unauthorized insurer in the State of Florida. IT IS THEREFORE CHARGED that you, LEO RUSH INSURANCE, 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, from offices or by personnel or facilities located in this state, or in any other state or country, directly or indirectly act as agent for, or otherwise represent or aid on | behalf of another, any insurer not then authorized to transact such insurance in this state. [Section 626.901(1), Florida Statutes]; (b) Ifthe license or appointment is willfully used, or to be used, to circumvent any of the requirements or prohibitions of this code. [Section 626.61 1(4), Florida Statutes]; (c) Misappropriation, conversion, or unlawful withholding of moneys belonging to insurers or insureds or beneficiaries or to others and received in the conduct of business under the license or appointment. [Section 626.611(10), Florida Statutes]; (d) Willful misrepresentation of any insurance policy or annuity contract or 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 Statutés|; (ec) 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]; (f) Fraudulent or dishonest practices in the conduct of business under the license or appointment, [Section 626.611(9), Florida Statutes]; (g) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.61 1(7), Florida Statutes]; (h) 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 Jul 29 2008 10:47 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Jul. 29 2668 9:54AM Pe obtaining a fee, commission, money, or other benefit from any insurer, agent, broker, or individual. [Section 626.9541(1)(k)1., Florida Statutes]. COUNT IL 16. The above general allegations are hereby realleged and fully incorporated. herein by reference. 17. On November 2], 2006, Eastern Shores authorized and appointed Peter Rozantes to act as its attorney-in-fact to execute surety bonds. 18. On November 26, 2006, you, LEO RUSH INSURANCE, through your owner Leo Rush, authorized and appointed Peter Rozantes to act as your altorney-in-fact. . 19, On or about November, 2006, you, LEQ RUSH INSURANCE, through Peter Rozantes, represented to PKA that you could provide a performance surety bond needed by PKA for its real estate development in Key West. 20, In reliance on your representations, PKA secured the issuance of a check in the amount of $171,177.50 payable to the Insurance Companies of Wellesley. This amount represented the bond premium. 21. Upon determining that the bond to be issued by ICW was nonconforming to the requirements established by the lender for the real estate development project, PKA demanded to return of their premium paid and you failed or refused to return the premium. 22. In soliciting a surety bond to be issued by ICW, you, LEQ RUSH INSURANCE, have represented an authorized insurer in the State of Florida. IT IS THEREFORE CHARGED that you, LEO RUSH INSURANCE, 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, from offices or by personnel or facilities located in this state, or in any other state or country, ditectly ot indirectly act as agent for, or otherwise represent or aid on Jul 29 2008 10:48 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Jul. 29 2665 89:55AM Pao behalf of another, any insurer not then authorized to transact such insurance in this state. [Section 626.901(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} Misappropriation, conversion, or unlawful withholding of moneys belonging to insurers or insureds or beneficiaries or to others and received in the conduct of business under the license or appointment. [Section 626.611(10), Florida Statutes], (d) Willful misrepresentation of any insurance policy or annuity contract or 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) 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]; (f) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.61 1(9), Florida Statutes}; (g) Demonstrated lack of fitness of trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; ’ (h) Knowingly making a false or fraudulent written or oral statement or representation on, of relative io, 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]. NOTICE OF RIGHTS You have the right to request a proceeding 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 Jul 29 2008 10:49 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Jul. 29 2885 89:55AM Pla 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. (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. Jul 29 2008 10:50 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Jul. 29 2688 @9:56AM Pil 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 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 dale of this notice shall be deemed abandoned unless timely rencwed in compliance with the guidelines as set out above. Jul 29 2008 10:50 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Jul. 29 26688 82:37AM Pl2 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. DATED and SIGNED this_{(3"_ day of Tu { 2008. TAMMY TESYON Deputy Chief Financial Officer CERTIFICATE OF SERVICE 1 HEREBY CERTIFY that 4 true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been furnished to: LEQ RUSH INSURANCE, 25 Old Lawrence Road, Pelham, NH 03076-3721, by Certified Mail this I baty of wll , 2008, A Dean Andrews Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399033 (850) 413-4242 Florida Bar Nurriber 0001959 Jul 29 2008 10:51 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Jul. 29 2668 83:58AM Pls STATE OF FLORIDA DEPARTMENT OF FINANCIAL SERVICES IN THE MATTER OF: CASE NO.: 95570-08-AG LEO RUSH INSURANCE ELECTION OF PROCEEDING T have received and have read the Administrative Complaint filed by the Florida Department of Financial Services ("Department") against me, including (he Notice of Rights contained therein, and I understand my options. [atm requesting disposition of this matter as indicated below. (CHOOSE ONE) 10] I do not dispute any of the Department’s factual allegations and I do not desire a heating, T understand that by waiving my right to a hearing, the Department may enter a final order that adopts the Administrative Complaint and imposes the sanctions sought, including suspending or revoking my licenses and appointments as may be appropriate. 2. I do not dispute any of the Department's factual allegations and 1 hereby clect a proceeding to be conducted in accordance with Section 120.57(2), Mlorida Statutes. In this regard, | desire to (CHOOSE ONE): {] Submit a written statement and documentary evidence in lieu ofa hearing; or Ll Personally attend a hearing conducted by a department hearing officer in Tallahassee; or tl Attend that same hearing by way of a tclephone conference call, 3 £4 I do dispute onc or mor: of the Department's factual allegations. I hereby request a hearing pursuant to Section 120.57(1), Florida Statutes, to be held before the Division of Administrative Hearings, | have attachcd to this clection form the information required by Rulc 28-106.2015, Florida Administrative Code, as specified in subparagraph (c) of the Notice of Rights. Specifically, 1 have identificd the disputed issues of material fact. ‘TO PRESERVE YOUR RIGHT TO A HEARING, YOU MUST FILE, YOUR RESPONSE WITH THE DEPARTMENT OF FINANCIAL SERVICES WITHIN TWENTY-ONE (21) DAYS OF YOUR RECEIY OF THE ADMINISTRATIVE COMPLAINT. THE RESPONSE MUST BE RECEIVED BY THE, DEPARTMENT NO LATER THAN 5:00 P.M. ON THE TWENTY-FIRST DAY AFTER YOUR RECEIPT OP THE ADMINISTRATIVE COMPLAINT. The address for filing is: Gencral Counsel acting as Agency Clerk, Floride Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333, Signature ~ _ Pring Name Date: | oe Address: _ Date Administrative eieeuiey een Complaint Received: _... .... *If you are represented by an attorney or qualifled Phone No.: _. ropresentative, please attach to this election form their name, address, telephone and fax numbers Fax No. _. eo

Docket for Case No: 08-003714