Dec 9 2008 14:32 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Dec. 69 2665 2:42PM Pa ‘ REPRESENTING F } L E D ALEX. SINK CHTEF FINANCIAL OFFICER STATE OF FLORIDA OCT 7 2003 Dockated by, Cry IN THE MATTER OF: ted CASE NO.: 96977-08-AG SHANNON DALE VICK / ADMINISTRATIVE COMPLAINT SHANNON DALE VICK 128 Community Church Road Adel, GA 31620 You, SHANNON DALE VICK, license LL.D. # E103150, 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 resident insurance agent in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, SHANNON DALE VICK, are currently licensed in this state as a resident life including variable annuity and health agent. 2. At all times pertinent to the dates and occurrences referred to herein, you, SHANNON DALE VICK, were licensed in this state as a resident life including variable annuity and health agent. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services (“Department”) has jurisdiction over your insurance li¢enses and appointments, Dec 9 2008 14:32 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Dec. 89 2665 2:42PM P4 COUNT! 4. The above general allegations are hereby realleged and fully incorporated herein by reference. ) 5. On or around May 9, 2005, you, SHANNON DALE VICK, met with D.G., of Tallahassee, Florida, 6. On May 9, 2005, you, SHANNON DALE VICK, sold 1D.G. two Life Legacy products from Shenandoah Life Insurance Company (“Shenandoah”). 7. You, SHANNON DALE VICK, made a commission on each Life Lepavy product you sold to D.G. 8, The Shenandoah Life Legacy product combines an immediate annuity with a life insurance policy that is fully paid for in ten years using the proceeds of the immediate annuity. 9. The annuity proceeds can only be used to purchase the corresponding life insurance policy. 10, You, SHANNON DALE VICK, did not explain to D.G, that the Life Legacy products combined an immediate annuity with a life insurance policy that was to bé fully paid in ten years using the proceeds of the immediate annuity. ll. D.G. did not know that the Life Legacy products were annuities that combined an immediate annuity with a life insurance policy that was to be fully paid in ten years using the proceeds of the immediate annuity. 12. You, SHANNON DALE VICK, did not explain to D.G. that the annuity proceeds could only be used to pay the premiuime on a corresponding life insurance policy, 13. D.G. did not know that the annuity proceeds could only be used to pay the premiuims on a corresponding life insurance policy, Dec 9 2008 14:32 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Dec. 89 2668 2:42PM PS 14. _D.G. did not want annuities whose payments could only be used to pay the premiuims on a corresponding life insurance policy, 15. DG. wanted annuities that were going to pay him income. 16. This was not the first time you, SHANNON DALE VICK, met with D.G. 17, You, SHANNON DALE VICK, initially met D.G. when you made an unsolicited door-to-door sales call to D,G.’s house in early 2005. 18. This was not the first time you had sold D.G. insurance products. 19, On April 4, 2005, and April 19, 2005, you, SIIANNON DALE VICK, sold D.G, life insurance products. IT 18 THEREFORE CHARGED that you, SHANNON DALE VICK, have violated or arc accountable under one or more of the following provisions of the Florida Statutes or Florida Administrative Code, which constitute grounds for the suspension or revocation of your licenses as a Florida insurance agent: (a) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626,611(7), Florida Statutes]; (b) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.61 1(8), Florida Statutes]; (c) Violation of any lawful order or rule of the department. [Section 626.621(3), Florida Statutes]; @ In the conduct of business under the license or appointment, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part IX of Dec 9 2008 14:33 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Dec. 69 2665 2:42PM Pe this chapter, or having otherwise shown himseif or herself to be a source of loss to the public. [Section 626,621(6), Florida Statutes]; (e) If a life agent, violation of the code of ethics, [Section 626.621(9), Florida Statutes]; (f) Misrepresentations and false advertising of insurance policies,-- Knowingly making, issuing, circulating, or causing to be mado, issued, or circulated, any estimate, illustration, citeular, statement, sales presentation, omission, or comparison which: 1, Misrepresents the benefits, advantages, conditions, or terms of any insurance policy. [Section 626.9541(1)(a)1, Florida Statutes]; (g) | Mistepresentations in insurance applications -- 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)I, Florida’ Statutes]; ch) =‘ The Business of Life Insurance is hereby declared to be a public trust in which service all agents of all companies have a common obligation to work together in serving the best interests of the insuring public, by understanding and observing the laws governing Life Insurance in letter and in spirit by presenting accurately and completely every fact essential to a client’s decision, aid by being fair in all relations with colleagues and competitors always placing the policyholder’s interests first. [Rule 69B-215,210, Florida Administrative Code}; ‘@) No person shal] make any misleading representations or incomplete or fraudulent comparison of any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, or convert any insurance policy, Dec 9 2008 14:33 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Dec. 89 2668 2:45PM Pr or to take out a policy of insurance in another insurer. [Rule 69B-215.215, Florida Administrative Code]; and | @) No person shall make, issue, circulate, or cause to be made, issued, or circulated, any estimate, circular, or statement misrepresenting the terms of any policy issued or to be issued or the benefits or advantages promised thereby or the dividends or share of the surplus to be received thereon, or make any false or misleading statement as to the dividends or share of surplus previously paid on similar policies, or make any misleading representation or any misrepresentation as to the financial condition of any insurer, ot as to the legal reserve system upon which any life insurer operates, or use any name or title of any policy or class of policies misrepresenting the true nature thereof. [Rule 69B-215.230(1), Florida Administrative Code]. COUNT I 20, The above general allegations are hereby realleged and fully incorporated herein by reference. 21, On or around August 19, 2005, you, SHANNON DALE VICK, met with D.G., of Tallahassee, Florida, 22, On August 19, 2005, you, SHANNON DALE VICK, sold D.G. a life insurance policy with Shenandoah in the amount of $30,731.39, 23. You, SHANNON DALE VICK, did not explain to D.G. that he was buying life insurance, 24. DG. did not know that he was buying life insurance. 25, DG, thought he was buying an annuity. 26. In fact, you, SHANNON DALE VICK, told D:G., that he was buying an annuity. Dec 9 2008 14:33 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Dec. 89 2668 82:45PM Pe 27, You, SHANNON DALE VICK, recommended that D.G, surrender an annuity he had with AIG Annuity Insurance Company (“AIG”) in order to purchase an annuity with Shenandoah. 28. You, SHANNON DALE VICK, told D.G. that he would make more money with the Shenandoah annuity he was purchasing with you than he would make with the AIG annuity he already owned. 29. —*D.G. surrendered the annuity he had with AIG. 30. _‘D.G. incurred a surrender penalty of approximately $3,000 on the AIG annuity. 31. You, SHANNON DALE VICK, did not explain to D.G. that he would incur a surrender charge with AIG. 32, DG. did not know he would incur a surrender charge of approximately $3,000 on the AIG annuity. 33, You, SHANNON DALE VICK, encouraged D.G, to do a reverse mortgage on his home, 34, You, SHANNON DALE VICK, encouraged D.G, to place $30,000 in proceeds from the reverse mortgage into the Shenandoah policy. 35. D\G, agreed, and added $30,000 to the Shenandoah policy, still believing at that time that the Shenandoah policy was an annuity, 36, The $30,000 represented nearly half of the after-tax proceeds 1D.G. received from the reverse mortgage. 37, You, SHANNON DALE VICK, made a commission on the sale of the Shenandoah policy, and another commission on the $30,000 that D.G. subsequently added to the Shenandoah policy, Dec 9 2008 14:34 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Dec. 89 2665 2:45PM Po IT I§ THEREFORE CHARGED that you, SHANNON DALE VICK, have violated or are accountable under.one or more of the following provisions of the Florida Statutes or Florida Administrative Code, which constitute grounds for the suspension or revocation of your licenses as a Florida insurance agent: (a) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance, [Section 626.611(7), Florida Statutes]; (b) 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); (c) Violation of any lawful order or rule of the department, [Section 626.621(3), Florida Statutes); (@) In the conduct of business under the license or appointment, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part IX of this chapter, or having otherwise shown himsclf or herself to be a source of logs to the public, [Section 626,621(6), Florida Statutes]; (e) ‘If a life agent, violation of the code of ethics, [Section 626,621(9), Florida Statutes]; | (f) Misrepresentations and false advertising of insurance policies.-- Knowingly making, issuing, circulating, or causing to be made, issued, or circulated, any estimate, illustration, circular, statement, sales presentation, omission, or comparison which: 1, Misrepresents the benefits, advantages, conditions, or terms of any insurance policy. [Section 626,9541(1)(a)1, Florida Statutes]; Dec 9 2008 14:34 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Dec. 89 2685 2:44PM Pla (g) Misrepresentations in insurance applications.-- 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, of other benefit from any insurer, agent, broker, or individual. [Section 626,9541(1)(k)1, Florida Statutes]; (bh) = Twisting -- Knowingly making any misleading representations or incomplete or fraudulent comparisons or fraudulent material omissions of or with respect to any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on, or convert any insurance policy or to take out a policy of insurance in another ingurer. [Section 626.9541(1)(1), Florida Statutes]; @ The Business of Life Insurance is hereby declared to be a public trust in which service all agents of all companies have a common obligation to work together in serving the best interests of the insuring public, by understanding and observing the laws governing Life Insurance in letter and in spirit by presenting accurately and completely every fact essential to a client’s decision, and by being fair in all relations with colleagues and competitors always placing the policyholder’s interests first, [Rule 69B-215.210, Florida Administrative Code]; a No person shall make any misleading representations or incomplete or fraudulent comparison of any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, or convert any insurance policy, or to take out a policy. of insurance in another insurer, [Rule 69B-215.215, Florida Administrative Code]; and (k) No person shal! make, issue, circulate, or cause to be made, issued, or circulated, any estimate, circular, or statement misrepresenting the terms of any policy issued or to be issued Dec 9 2008 14:34 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Dec. 89 2688 @2:44PM Pil or the benefits or advantages promised thereby or the dividends or share of the surplus to be received thercon, or make any false or misleading statement as to the dividends or share of surplus previously paid on similar policies, or make any misleading representation or any misrepresentation as to the financial condition of any insurer, or as to the legal reserve system upon which any life insurer operates, or use any name or title of any policy or class of policies misrepresenting the true nature thereof. [Rule 69B-215,230(1), Florida Administrative Code]. COUNT III 38. The above general allegations are hereby realleged and fully incorporated herein by reference. 39, On or around April 5, 2007, you, SHANNON DALE VICK, obtained a resident insurance agent license(s) in the State of Georgia. 40. You, SHANNON DALE VICK, were not a resident of the State of Florida when you obtained the resident insurance agent license(s) in the State of Georgia, 41. At the time you, SHANNON DALE VICK, obtained a resident agent ineurance license(s) in the State of Georgia, you also had a resident insurance agent license in the State of Florida. 42. On or around December 19, 2007, eight months after obtaining a resident insurance agent license(s) in the State of Georgia, you, SHANNON DALE VICK, sought to surrender the resident insurance agent license you held in the State of Florida. 43. The Department rejected the surrender of your license since it had begun an investigation of your activities while licensed as a resident insurance agent in the State of , Florida. Dec 9 2008 14:35 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Dec. 89 2885 2:44PM Pl2 1 44. At the time you, SHANNON DALE VICK, sought to surrender the resident insurance agent license you held in the State of Florida, you knew that the Department had begun an investigation of your activities while licensed as a resident insurance agent in the State of Florida, 43. You, SHANNON DALE VICK, still maintain a resident insurance agent license in the State of Florida. 46, You, SHANNON DALE VICK, ate not currently a resident of the State of Florida, . 47. You, SHANNON DALI VICK, continue to be a resident of the State of Georgia, 43, You, SHANNON DALE VICK, are no longer qualified to hold a4 resident insurance agent license in the Stete of Florida. IT IS THEREFORE CHARGED that you, SHANNON DALE VICK, have violated or are accountable under one or more of the following provisions of the Florida Statutes or Florida Administrative Code, which constitute grounds for the suspension or revocation of your licenses as a Florida insurance agent: (a) Every licensee shall notify the department in writing within 60 days after a change of name, residence address, principal business street address, or mailing address, Any livensed agent who has moved his or her residence from this state shall have his or her license and all appointments immediately terminated by the department. Failure to notify the department within the required time period shall result in a fine fiot to exceed $ 250 for the first offense and, for subsequent offenses, a fine of not less than $ $00 or suspension or revocation of the license pursuant to s, 626.611 or 3, 626.621, [Section 626.551, Florida Statutes]; 10 Dec 9 2008 14:35 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Dec. 89 26688 2:45PM Pls (b) Lack of one or more of the qualifications for the license or appointment as specified in this code. [Section 626,611(1), Florida Statutes}; (c) The Department shall not grant or issue a license as life agent to any individual found by it to be untrustworthy or incompetent, or who does not meet the following qualifications: (b) Must be a United States citizen or legal alien who possesses work authorization from the United States Bureau of Citizenship and Immigration Services and a bona fide resident of this state, [Section 626.785(1}(b), Florida Statutes]; (4) —s 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]; and (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]. WITEREPORE, you, SHANNON DALE VICK, ate 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 28-106, Florida Administrative Code. The proceeding request must be in writing, signed by you, and must be Dec 9 2008 14:35 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Dec. 89 2885 2:45PM P14 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 ag the Ageney Clerk, at the Florida Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. Your written respotise 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 complics 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, 12 Dec 9 2008 14:35 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Dec. 89 26688 2:45PM Pls (4) A statement of when the respondent received notice of the administrative complaint, (ec) A statement including the file number of 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 procecding pursuant to Sections 120.569 and 120.57(1), Plorida Statutes. These proccedings are held before a State Administrative Law Judge of the Division of Administrative Hearings. Unless the majotity 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 correspondetice shall operate as a valid request for an administrative proceeding, Any request for an 13 Dec 9 2008 14:35 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Dec. 89 2685 2:46PM P16 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. DATED and SIGNED this "TA day of _OC4+O ber. , 2008, TAMMY TESYON Deputy Chief Financial Officer Dec 9 2008 14:36 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? ' Dec. 89 2665 2:46PM P17? CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoin: ’ g ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been furnished to: SHANNON DALE Ms » 128 Community Church Road, Adel, GA 31620, by Certified Mail this “7th day of , 2008, 7 Robert Alan Fox Senior Attorney Department of Financial Services Division of Legal Services 612 Larson Building 200 East Gaines Street Tallahassee, Florida 32399-0333 (850) 413-4227 COMPHE ES THES She Po bE GM LE Wry re CLK TE Relivary artirena eittarent frorr tart %7 ° t YES, onter dallvery addrags below: { "a, Atiiola Number i 7ibO 3902 9845 1730 WHue (3, Service Type CRATIMIED MAIL 4. Restrictad Delivery? (@xtra Fae) 1. Arligie Addrauged to: Reference Infor tion \NNON DALE VICK 96977-08-AGI _ SH OMMUNITY CHURCH ROAD oy 2008 PELRESTRICTED Fox DELIVERY fh PS Porm 4611, danuery 2006 Domestic Return Recalpt

Docket for Case No: 08-006144PL