FILED é JAN 22-2014 CHIEF FINANCIAL OFFICER o) JEFF ATWATER Docketed by lk. IN THE MATTER OF: JAMIE S. ZINK CASE NO.: 130544-14-AG ADMINISTRATIVE COMPLAINT TO: JAMIES. ZINK 140 NE 51" Avenue Ocala, Florida 34470 JAMIE S. ZINK 6035 SW 54™ Street #101 * Ocala, Florida 34474 YOU, JAMIE S. ZINK, are hereby notified that the Chief Financial Officer of the State of Florida (“the Department”) 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, JAMIE S. ZINK, ate currently licensed in this state as a Life, including Variable Annuity agent. 2. At all times pertinent to the dates and occurrence referred to herein, you, JAMIE S. ZINK, 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 licenses and appointments. 4. At no time relevant to the allegations of this complaint, was Michael Smorch licensed to solicit insurance in this state pursuant to Section 626.112, Florida Statutes, 5. For all of the relevant periods of time covered below, you, JAMIE S. ZINK, were an officer and director of Smorch International, Inc, an incorporated insurance agency doing business in Ocala, Florida. At no time relevant to the allegations of this complaint was Smorch International, Inc. licensed in this state as an insurance agency pursuant to Sections 626.112(7)(a), and 626.172, Florida Statutes. 6. _— Atall times pertinent to the allegations of this complaint, you, JAMIE S. ZINK, as officer and director of the agency, were personally and fully liable and accountable for any wrongful acts, misconduct, or violations of any provisions of the Florida Insurance Code committed by you or by any person under your direct supervision and control while acting on behalf of the corporation pursuant to Section 626.734, Florida Statutes. COUNT I 7. The above General Allegations are hereby realleged and fully incorporated herein by reference. 8. You, JAMIE S. ZINK, on behalf of the corporation, Smorch International, Inc. solicited the sale of eleven annuities to Florida insurance consumers. The annuities were issued by Jackson National Life Insurance Company. At no time pertinent to the dates and occurrences referred to herein was the agency licensed by this Department or authorized to transact insurance in this state on behalf of Jackson National. 9. Eleven annuity applications were signed by Michael Smorch as the agent of record on behalf of Smorch International. At no time was Michael Smorch licensed in this state as an insurance agent. The applications misrepresented that they were entered into in Michigan, where Michael Smorch was a licensed agent, even though the contracts were actually entered into in Florida, This was done solely to evade Florida’s licensure requirements of Sections 626.112 and 626.172, Florida Statutes. 10. You, JAMIE S. ZINK, knowingly allowed Michael Smorch to hold himself out to the insurance buying public as a Florida insurance agent and allowed Smorch International, Inc. to hold itself out as a Florida licensed insurance agency, all without benefit of licensure and in violation of Sections 626.112(1)(a) and (b) and (7)(a), and 626.172, Florida Statutes. 11. You, JAMIE S. ZINK, were aware of or certainly should have been aware of the above mentioned facts. IT IS THEREFORE CHARGED that you, JAMIE S. ZINK, have violated or are. accountable under the following provisions of the Florida Insurance Code and Rules of the Florida Department of Financial Services which constitute grounds for the suspension or revocation of your license and eligibility for licensure asa managing general agent: (2) — Section 626,112(1)(a), Florida Statutes, which provides that no person may be, act as, or advertise or hold herself out to be an insurance agent or customer service representative unless she is currently licensed by the department and appointed by an appropriate entity or person; (b) — Section 626.112(1(b), Florida Statutes, which provides that except as provided in subsection (6) or in applicable department rules, and in addition to other conduct described in this chapter with respect to particular types of agents, a license as an insurance agent, service representative, customer representative, or limited customer representative is required in order to engage in the solicitation of insurance; (c) Section 626.112(7)(a), Florida Statutes, which provides that no entity shall act directly or indirectly as an insurance agency unless it complies with Section 626.172, with respect to possessing and insurance agency license. (d) —_ Section 626.611(7), Florida Statutes, which provides that it is a violation to demonstrate a lack of fitness or trustworthiness to engage in the business of insurance; (e) Section 626.61 1(13), Florida Statutes, which provides that it is a violation to willfully fail to comply with, or willfully violate any proper order or rule of the department or . willful violation of any provision of this code; ®- Section 626.621(2), Florida Statutes, which provides that it is a violation to willfully fail to comply with any provision of this code or any other law applicable to the business of insurance in the course of dealing under the license or permit; (g) 626.621(12), Florida Statutes, which provides that it is a violation to knowingly aid, assist, procure, advise, or abet any person in the violation of or to violate a provision of the insurance code or any order or rule of the department, commission, or office. WHEREFORE, you, JAMIE S. ZINK, are hereby notified that the Chief Financial Officer of the State of Florida, 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, 626.692, and 626.9521, Florida Statutes, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. You are further notified that any order entered in this case revoking or suspending any license or eligibility for licensure held by you shall also apply to all other licenses and eligibility held by you under the Florida Insurance Code. 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 for administrative hearing will suffice as a written request. The request must be filed with Julie Jones, Agency Clerk, at the Florida Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0390. 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. FAILURE TO ENSURE YOUR WRITTEN RESPONSE IS RECEIVED BY THE DEPARTMENT 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 A CEASE AND DESIST ORDER SHALL 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) . Your name, address, and telephone number, and facsimile number (if any). (b) The name, address, telephone number, facsimile number of your attorney or qualified representative (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 this Administrative Complaint. (e) | Astatement 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. Ifa 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 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 this 2.2" day of SDonuouyy , 2014, Gregory Thomas Director, Agent & Agency Services CERTIFICATE OF SERVICE I HEREBY CERTIFY that a copy of the foregoing Administrative Complaint was sent by Electronic Mail and/or U.S. Certified Mail to: Jamie S. Zink at , Jamie@smorchinternational.com , 140 NE 51* Avenue, Ocala, Florida 34470; JAMIE S. ZINK, 6035 SW 54™ Street #101, Ocala, Florida 34474 this 22" day of Dan onuary , 2014. wwf fomal James A. cml | Esquire 0 East Gaines Street 612 Larson Building Tallahassee, FL 32399-0333 (850) 413-4124 Florida Bar No. 374598 Attorney for the Department

Docket for Case No: 14-000707PL