THE TREASURER OF THE STATE OF FLORIDA DEPARTMENT OF INSURANCE

BILL NELSON

IN THE MATTER OF: DOI CASE NO.: 22768-98-CO DOAH Case No. 99-5374

ALLIANT

PREMIUM FINANCE CORPORATION,

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FINAL ORDER

THIS CAUSE came on before the undersigned Treasurer of the State of Florida for consideration and final agency action. On October 19, 1999, the Department of Insurance issued an Amended Order to Show Cause to Respondent, Alliant Premium Finance Corporation (Alliant), alleging that Alliant had violated sections 627.832 and 627.848, Florida Statutes. The Respondent timely filed a request for a proceeding pursuant to section 120.57(1), Florida Statutes. The parties elected to proceed by a formal hearing which was conducted by video conference between West Palm Beach, Florida, and Tallahassee, Florida. Pursuant to notice, the proceeding was held before the Honorable Susan B. Kirkland, Administrative Law Judge, for the Division of Administrative Hearings, on April 14, 2000.

After consideration of the evidence and argument presented at the hearing, the Administrative Law Judge issued her Recommended Order on May 24, 2000. (A true and correct copy of the said Recommended Order is attached hereto as Exhibit A). The Administrative Law Judge recommended that the Department enter a Final Order finding that Alliant Premium Finance Corporation violated sections 627.832(1)(i) and 627.848(1), Florida Statutes and imposing a penalty of $2,500.00 for the willful violation of section 627.832(1)(i), Florida Statutes, and a penalty of $250.00 for the non-willful violation of section 627.848(1), Florida Statutes.

On June 8, 2000, Petitioner timely filed exceptions to the Recommended Order. Petitioner excepted to the Recommendation. The Respondent did not file exceptions. Each exception is addressed below.

RULINGS ON PETITIONER'S EXCEPTIONS

1. Petitioner excepts to the recommendation that a penalty be imposed on Alliant Premium Finance Corporation in the amount

of $2,500.00 for the willful violation of section 627.832(1)(i), Florida Statutes, and in the amount of $250.00 for the non- willful violation of section 627.848(1), Florida Statutes, and Rule 4-196.002, Florida Administrative Code.

The Petitioner argues that the fine for the willful violation of section 627.832(1)(i), Florida Statutes, should be raised to the maximum penalty allowed by section 626.681(1), Florida Statutes, which is a $3,500.00 fine, due to the 1998 examination being a repeat offense of misappropriating refunds, due to insureds, for 5 to 67 days. The Administrative Law Judge's Recommended Order correctly finds that the refunds were not timely paid, as the Respondent admitted such during the hearing (Tr. 48). Out of the 11 files randomly reviewed by the Petitioner, 8 contained late refunds, which is close to 75% of the files reviewed. Petitioner's exception to the recommended penalty for willful violation of section 627.832(1)(i), Florida Statutes, is partially accepted and partially rejected.

Although the Respondent was able to procure letters from five of the affected insureds, their excusing the Respondent's lateness does not exonerate him or his company from violating the law and continuing with a business practice that is injurious to the public. The violation involved mishandling of money owed to insureds. (Tr. 22). The seriousness of such an offense warrants that the penalty be raised to $3,000.00.

The Petitioner argues that the non-willful violation of section 627.848(1), Florida Statutes and Rule 4-196.002, Florida Administrative Code, should be raised to the maximum penalty allowed by section 626.681, Florida Statutes, which is a $500.00 fine, due to the failure to maintain certificates of mailing in its file for notices of intent to cancel mailed to insureds occurring in every file reviewed. The Administrative Law Judge's Recommended Order correctly finds that the Respondent violated section 627.848(1), Florida Statutes, and Rule 4-196.002, Florida Administrative Code, however the Administrative Law Judge's recommendation only applies a $250.00 fine. Because the failure to maintain such notices occurred on a 100% basis, (Tr. 23), that violation, although deemed non-willful by the Administrative Law Judge, warrants payment of the maximum penalty of $500.00. The Petitioner's exception to the Recommendation is accepted as modified above.

Therefore, upon careful consideration of the entire record, the submissions of the parties and being otherwise fully advised in the premises, it is hereby ORDERED:

1. The Findings of Fact of the Administrative Law Judge are adopted in full as the Department's Findings of Fact.

2. The Conclusions of Law of the Administrative Law Judge are adopted in full as the Department's Conclusions of Law.

   
   

3. The Administrative Law Judge's recommendation that the Department enter a Final Order finding that Alliant Premium Finance Corporation violated sections 627.832(1)(i) and 627.848(1), Florida Statutes, is accepted as being the appropriate disposition of this case, but the Administrative Law Judge's penalty for the violations of sections 627.832(1)(i) and 627.848(1), Florida Statutes, is rejected. A $3,000.00 fine for violation of section 627.832(1)(i) and a $500.00 fine for violation of section 627.848(1) are imposed as being the appropriate disposition of this case.

ACCORDINGLY, Respondent, ALLIANT PREMIUM FINANCE CORPORATION

is found to have violated sections 627.832(1)(i) and 627.848(1), Florida Statutes and will pay a total penalty in the amount of

$3,500.00 within thirty (30) days of issuance of this Order pursuant to section 626.681, Florida Statutes.

NOTICE OF RIGHTS

Any party to these proceedings adversely affected by this Order is entitled to seek review of this Order pursuant to section 120.68, Florida Statutes, and Rule 9.110, Fla. R. App. P. Review proceedings must be instituted by filing a petition or notice of appeal with the General Counsel, acting as the agency clerk, at 612 Larson Building, 200 E. Gaines Street, Tallahassee, Florida, 32399-0333, and copy of the same and the appropriate filing fee with the appropriate District Court of Appeal within thirty (30) days of rendition of this Order.

DONE and ORDERED this 15th day of August, 2000.

BILL NELSON

Treasurer and Insurance Commissioner

Copies Furnished To:

The Honorable Susan B. Kirkland Administrative Law Judge

Division of Administrative Hearings 1230 Apalachee Parkway

Tallahassee, Florida 32399-3060

William J. Villari, President Alliant Premium Finance Company

303 Gardenia Street

West Palm Beach, Florida 33401

Christopher R. Hunt, Esquire Department of Insurance Division of Legal Services 612 Larson Building

200 E. Gaines Street Tallahassee, Florida 32399-0333

Docket for Case No: 99-005374

Orders for Case No: 99-005374