May 29 2009 9:33 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? May. 29 26689 88:44AM PS an & 2009 REPRESENTING ALEX SINK CHIEF FINANCIAL OFFICER STATE OF FLORIDA IN THE MATTER OF: GERALD SCOTT ADAMS CASE NO: 100155-08-AG ADMINISTRATIVE COMPLAINT TO: GERALD SCOTT ADAMS Post Office Box 15059 Clearwater, Florida 33766-5059 R. Nathan Hightower, Esq. General Counsel AmeriLife Group LLC 2536 Countryside Boulevard, Sixth Floor Clearwater, Florida 33763-1639 You, GERALD SCOTT ADAMS, license LD. #A001244, 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, GERALD SCOTT ADAMS, are currently licensed in this state as a 2-14 Life Including Variable Annuity Agent, a 2-15 Life Including Variable Annuity and Health Agent, a 2-16 Life Agent, a 2-18 Life and Health Agent, and a 2-40 Health Agent. May 29 2009 9:34 FROM : DEPT OF FINANCIAL SERVICES FAs NO. : 8564874987 May. 29 2689 BE:44AmM P4 2. At all times pertinent to the dates and occurrences referred to herein, you, GERALD SCOTT ADAMS, were licensed in this state as an insurance agent, license number A001244, 3. At all times material hereto, you, GERALD SCOTT ADAMS, were agent-in- charge of an insurance agency known as Ameri-Life & Health Services of Brevard County, LLC, located at 808 West New Haven Avenue, Melbourne, Florida 32901 (“Brevard Ameri- Life”). 4, Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services (“Department”) has jurisdiction over your insurance licenses and appointments, 5. 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]. . COUNT I 6. The above General Allegations are realleged and incorporated herein by reference. 7. On or about November 1, 2006, you, GERALD SCOTT ADAMS, held a seminar in Suntree, Florida to promote the “Any, Any, Any” plan for Universal Healthcare (“Universal”). 8. As part of the presentation, you, GERAIT) SCOTT ADAMS, represented to consumers that the plan allowed them to go to any doctor, any hospital, anytime, and anywhere May 29 2009 9:34 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? May. 29 2669 8:44AM PS through a private fee for a service plan. 9. Additionally, you, GERALD SCOTT ADAMS, represented to consumers that the plan would save them approximately $1,100.00 per year by replacing their Medicare Part B coverage. 10. At no time did you, GERALD SCOTT ADAMS, disclose to the seminar attendees that the plan carried a $4,000.00 annual premium. 11. On or about November 20, 2006, consumer W.B., of Melbourne, FL, attended the seminar and applied for coverage with the Universal “Any, Any, Any” plan. At the time of the application, W.B. had health coverage through Wellcare, and was paying $93.50 per month for Medicare Part B coverage. 12. - Upon receipt of his new policy and ID card approximately two months later, W.B. discovered that the “Any, Any, Any” plan required him to pay a $4,000.00 annual premium. 13, On January 4, 2007, W.B. went to the doctor for back pain. Once there, W.B. was informed that his physician did not.accept Universal coverage. As a result, not all of W.B.’s medical bills for that visit were paid by Universal. 14. Thereafter, W.B. continued to discover that his doctors did not accept Universal's “Any, Any, Any” plan, forcing him to pay out of pocket for medical services rendered on January 9 and 23, 2007. 15. When W.B. asked for a list of approved doctors who would accept the “Any, Any, Any” plan, you, GERALD SCOTT ADAMS, told him to contact one of your agents. The agent was unable to provide W.B. the requested information. 16. In February 2007, prior to the annual premium coming due, W.B. cancelled his Universal plan and returned to Wellcare. May 29 2009 9:34 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? May. 29 2669 8:45AM Pe 17. You, GERALD SCOTT ADAMS, knew, or should have known, that “Any, Any, Any” plan’s name was misleading, that, despite its name, plenty of doctors did not accept Universal and therefore would not honor the “Any, Any, Any” plan, and that the plan did not provide sufficient coverage for W.B.’s medical needs, IT IS THEREFORE CHARGED that you, GERALD SCOTT ADAMS, 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) Engaged in fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; (d) In the conduct of business under the license or appointment, engaging in unfair methods of competition or in unfair or deceptive acta or practices, as prohibited under part IX of this chapter, or having otherwise shown himself or herself to be a source of injury or loss to the public [Section 626.621(6), Florida Statutes]; (e) Knowingly making, issuing, circulating, or causing to be made, issued, or circulated, any estimate, illustration, circular, statement, sales presentation, omission, or comparison, which misrepresents the benefits, advantages, conditions, or terms of any insurance policy. [Section 626.9541(1)(a)1., Florida Statutes]; . (f) Uses any name or title of any insurance policy or class of insurance policies misrepresenting the true nature thereof. [Section 626.9541(1)(a)5., Florida Statutes]; May 29 2009 9:35 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? May. 29 2669 88:45AM Pr (g) Knowingly making, publishing, disseminating, circulating, or placing before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public...an advertisement, announcement, or statement containing any assertion, representation, or statement with respect to he business of insurance, which is untrue, deceptive, or misleading. [Section 626,9541(1)(b), Florida Statutes); (h) 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 insurer. [Section 626.9541(1)(), Florida Statutes], COUNT II 18. The above General Allegations are realleged and incorporated herein by reference. 19. On January 30, 2007, you, GERALD SCOTT ADAMS, visited the home of consumer J.M. and his wife, M.M., of Melbourne, FL, to discuss financial options for their retirement. 20. You, GERALD SCOTT ADAMS, discussed with J.M and M.M. the possibility of purchasing annuities using funds from their IRA accounts. 21. You, GERALD SCOTT ADAMS, also discussed the possibility of J.M. purchasing a life insurance policy. 22. On your advice and believing you, GERAILD SCOTT ADAMS, to be acting in his best interests, J.M. applied for a life insurance policy through Shenandoah Life Insurance Company (“Shenandoah”). 23. At that time, JM, and his wife, M.M., also signed applications, which, you, May 29 2009 9:35 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? May. 29 2669 8:45AM Pe GERALD SCOTT. ADAMS, presented, for two flexible premium indexed deferred annuities through American Equity Investment Life Insurance Company (“American Equity”). 24. You, GERALD SCOTT ADAMS, failed to inform J.M. and M.M. of material facts about the annuities, including the 17-year life of the annuities and surrender charges of up to 17.5% of each annuity’s total value. 25, J.M. and M.M, told you, GERALD SCOTT ADAMS, that they did not want the annuity applications processed unless J.M.’s life insurance policy was approved. 26, Thereafter, J.M failed to pass Shenandoah’s required physical examination and his life insurance application was declined, 27. Nevertheless, you, GERALD SCOTT ADAMS, submitted J.M. and M.M.’s annuity applications to American Equity, enrolling them in annuities they did not want or need, 28. Subsequent to the annuity sales, J.M. contacted you, GERALD SCOTT ADAMS, on several occasions to clarify specifics of the annuities because they were not explained to him at the time of the sale. You, GERALID SCOTT ADAMS, failed to resolve J.M.’s concerns about the annuities. 29. Additionally, you, GERALD SCOTT ADAMS, failed to refund in a timely manner the $2,066.70 premium J.M. submitted to Shenandoah for a life insurance policy that was never issued. 30, You, GERALD SCOTT ADAMS, knew, or should have known, that J.M. and M.M.’s annuity applications were not to be submitted unless J.M. obtained life insurance with Shenandoah, that they were not fully informed about the annuities they purchased, and that J.M.’s premium payment should have been remitted to him immediately following the denial of his life insurance application. May 29 2009 9:35 FROM : DEPT OF FINANCIAL SERVICES FAs NO. : 8564874987 May. 29 2689 BS:46AM Po IT 1S THEREFORE CHARGED that you, GERALD SCOTT ADAMS, 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 filness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (b) Demonstrated Jack 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) Engaged in fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; (d) Misappropriation, conversion, or unlawful withholding of moncys belonging to insurers or insureds or beneficiaries or to others and received in conduct of business under the license or appointment. [Section 626.611(10), Florida Statutes]; (e) 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 himself or herself to be a source of injury or loss to the public [Section 626,621(6), Florida Statutes]; (f) Knowingly made a false or fraudulent statement or representation on an application for an insurance policy for the purpose of obtaining a fee, commission, or other benefit. [Section 626.9541(1)(k)(1), Florida Statutes]. WHEREFORE, you, GERALD SCOTT ADAMS, 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 penaltics as may be provided under the provisions of Scctions 626.611, 626.621, 626.681, 626.691, 626.692, and 626.9521, Florida May 29 2009 9:36 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? May. 29 28689 88:46AM Pla Statutes, and under the other referenced Sections of the Florida Statutes as set out in this Administrative Complaint. 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 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 RNTERED 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 qualiticd representative of the respondent (if any) upon whom service of pleadings and other May 29 2009 9:36 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? May. 29 2689 @8:46AM Pil 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 resporident 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, Jn this regard, you may submit oral or written evidence in opposition to the action taken by the Department or a written statement challenging the grounds upon which the Department has relied. While a hearing is normally not required in the absence of a dispute of fact, if you feel that a hearing is necessary, one will be conducted in Tallahassee, Florida, or by telephonic conference call upon your request. However, if you dispute material facts which are the basis for the Department’s action, you must request an adversarial proceeding pursuant to Sections 120.569 and 120.57(1), Florida Statutes. These proceedings are held before a State Administrative Law Judge of the Division of Administrative Hearings. Unless the majority of witnesses are located elsewhere, the Department will request that the hearing be conducted in Tallahassee, Florida. Failure to follow the procedure outlined with regard to your response to this notice may result in the request being denied, All prior oral communication or correspondence in this matter shall be considered freeform agency action, and no such oral communication or correspondence shall operate as a valid request for an administrative proceeding. Any request for an administrative proceeding received prior to the date of this notice shall be deemed abandoned unless timely renewed in compliance with the guidelines as set out above. May 29 2009 9:36 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? May. 29 2889 8:47AM 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_ Us“ day oi Thnucct 20091 Tammy Teston Deputy Chief Financial Officer May 29 2009 9:37 FROM : DEPT OF FINANCIAL SERVICES FAs NO. : 8564874987 May. 29 2689 BE:47AM P13 STATE OF FLORIDA DEPARTMENT OF FINANCIAL SERVICES DIVISION OF LEGAL SERVICES IN THE MATTER OF: GERALD SCOTT ADAMS CASE NO.: 100155-08-AG / ELECTION OF PROCEEDING Thave received and have read the Administrative Complaint filed by the Florida Department of Financial Services ("Department") against me, including the Notice of Rights contained therein, and J understand my options. Iam requesting disposition of this matter as indicated below. (CHOOSE ONE) Ltd 1 do not dispute any of the Department’s factual allegations and I do pot desire a hearing. I understand that by waiving my right to a hearing, the Department may enter a fine order that adopts the Administrative Complaint and imposes the sanctions sought, including suspending of revoking my licenses and appointments as may be appropriate. 2. 1 donot dispute any of the Department's factual allegations and I hereby elect a proceeding to be conducted in accordance with Section 120.57(2), Florida Statutes. In this regard, ] desire to (CHOOSE ONE): {] Submit a written statement and documentary evidence in lieu of a hearing; or in| Personally attend a hearing conducted by a department hearing officer in Tallahassee; or {] Attend that same hearing by way of a telephone conference call. 3. [J ( do dispute one or more of the Department's factual allegations, T hereby request a hearing pursuant to Section 120.57(1), Florida Statutes, to be held before the Division of Administrative Hearings, | have attached to this election form the infortnation required by Rule 28-106.2015, Florida Administrative Code, as specified in subparagraph (c) of the Notice of Rights. Specifically, | have identified 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 RECEIPT 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 OF THE ADMINISTRATIVE COMPLAINT. The address for filing is; General Counsel acting as Agency Cleric, Florida Department of Financial Services, 612 Larson Building, 200 Gast Gaines Street, Tallahassee, Florida 32399-0333. Signature Print Name Tate: Address: __ lon tm Date Administrative vo ae Complaint Received: If you are represented by an attorney or qualified Phone Na,; representative, please attach to this election form his or her name, address, telephone and fax numbers Fax No,: eee te ene ee May 29 2009 9:37 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? May. 29 2889 8:47AM P14 CERTIFICATE OF SERVICE 1 HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been furnished by Certified Mail to: Gerald Scott Adams, Post Office Box 15059, Clearwater, Florida 33766-5059, and R, Nathan Ilightower, Esq., General Counsel, AmeriLife Group LLC, 2536 Countryside Boulevard, Sixth Floor, Clearwater, Florida 33763-1639 this Wal day of Sarvacd _» 2009. Blaffk Jackson Assistant General Counsel Department of Financial Services Division of Legal Services 612 Larson Building Tallahassee, Florida 32399-0333 850-413-4269

Docket for Case No: 09-002959PL