STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

ROBIN DAWN ABRAHAMSON, )

)

Petitioner, )

)

vs. )

) DEPARTMENT OF INSURANCE, BUREAU ) OF LICENSING, )

)

Respondent. )

Case No. 00-1762

)

RECOMMENDED ORDER

Pursuant to notice, the Division of Administrative Hearings, by its duly-designated Administrative Law Judge, Mary Clark, held a formal hearing in the above-styled case by video conference on August 10, 2000. The parties, their attorneys, witnesses, and court reporter participated from Orlando, Florida; the Administrative Law Judge presided from Tallahassee, Florida.

APPEARANCES

For Petitioner: C. Michael Magruder, Esquire

203 South Clyde Avenue Kissimmee, Florida 34741

For Respondent: William Fred Whitson, Esquire

Department of Insurance Division of Legal Services

200 Gaines Street 612 Larson Building

Tallahassee, Florida 32399-0333

STATEMENT OF THE ISSUE

The issue for disposition is whether Petitioner's application for licensure as a limited surety (bail bond, type 2-34) agent should be granted.

PRELIMINARY MATTERS

On March 21, 2000, Respondent, the Department of Insurance (Agency), informed Petitioner (Ms. Abrahamson) that it was denying her application for licensure as a bail bond agent because she had committed several violations of Chapter 648, Florida Statutes, while licensed as a temporary bail bond agent. Ms. Abrahamson requested a formal administrative hearing and the case was referred to the Division of Administrative Hearings, where it was assigned and set for hearing as described above.

At the hearing Ms. Abrahamson testified on her own behalf and presented the testimony of her former employer, George Cox. The Agency presented testimony of these witnesses: Karen Nau, Lt. Mildred Judd, Marvin Johnson, Alton (A.D.) Miles, and Sally Burt. Without objection, Agency Exhibits Nos. 1-10 were received in evidence.

The Transcript of the proceeding was filed on September 8, 2000. The parties' Proposed Recommended Orders were filed on September 18, 2000, and (after an uncontested request for extension by Ms. Abrahamson's counsel) October 4, 2000.

FINDINGS OF FACT

1. Robin Abrahamson, 35 years old, resides in Kissimmee, Florida, and currently owns and operates a telephone answering service.

2. After she completed the necessary educational requirements Ms. Abrahamson was issued a temporary limited surety agent license by the Department of Insurance (Agency), effective June 30, 1999 to June 30, 2000.

3. Ms. Abrahamson was employed for approximately one year, from February 1999 until February 2000, with Central Florida Bonding, in Orlando, Florida. She had previously worked at Able Bail Bonds in Inverness, Florida. Her duties at Able Bail Bonds, and initially at Central Florida Bonding, were secretarial.

4. Ms. Abrahamson was interested in becoming a limited surety (bail bond) agent and her employer at Central Florida Bonding, George Cox, agreed to sponsor and supervise her training.

5. Ms. Abrahamson was not supervised or trained. Instead she was assigned to work weekends, Friday through Monday, mostly at night, with another recently-licensed agent, A.D. Miles.

6. Ms. Abrahamson did paper work and telephone calls and was paid $200 a week, minimum wage. She was not paid on a

   "point" system based on the number of bonds she handled. Mr. Miles was paid a salary and "points."

7. Because the office became very busy on weekends Mr.

   
   

   Miles began to rely more and more on Ms. Abrahamson to help. She was happy to do this because she thought she was learning the work. Ms. Abrahamson regularly drove from the Orlando office to Osceola County, to meet with clients and take collateral for bonds. At Mr. Mills' direction she signed his name to collateral receipts and returned to the office to complete the paperwork. Although she denies delivering bonds there is competent evidence from correctional officers at the Osceola County jail that Ms. Abrahamson would actually deliver the bonds to the jail on occasion.

8. These same correctional officers testified that Ms.

   
   

   Abrahamson held herself out and introduced herself as a bail bond agent. Ms. Abrahamson explained at hearing that she regularly identified herself as a "temporary agent," for which she was properly licensed. Because the witnesses had no real understanding of the license differences, it is entirely plausible that they considered only that Ms. Abrahamson was saying she was a bail bond agent.

9. On frequent occasions, "more than 20, less than 100," Ms. Abrahamson charged a $100 "transfer fee" for bonds that were

   delivered to counties other than Orange County by Central Florida Bonding.

10. After a client complained to the Agency that Ms.

    
    

    Abrahamson was charging illegal transfer fees, the Agency commenced an investigation of Central Florida Bonding. When the investigator, Toby Luke, told George Cox that the fees were illegal, Central Florida Bonding and Mrs. Abrahamson stopped charging the fees in or around November 1999.

11. Also in November 1999, Ms. Abrahamson applied to the Agency for her licensure as a limited surety agent. She was approximately one month away from completion of her six months as a temporary licensee.

12. After the agency investigation revealed allegations that Ms. Abrahamson was holding herself out as a bail bond agent and was signing bond documents, George Cox, allegedly at the direction of the investigator, asked Ms. Abrahamson to resign in February 2000. She then terminated her employment with Central Florida Bonding.

13. On March 22, 2000, the agency sent Ms. Abrahamson a certified letter denying her licensure as a limited surety agent. The letter described the reason for denial as her alleged violations of Chapter 648, Florida Statutes. Specifically, the letter alleged that she held herself out to be a bail bond agent and acted as a bail bond agent without proper

    licensure; that she illegally charged transfer fees; that she signed another bondsman's signature to bonds; and that she was currently not employed and supervised by a licensed bailbond agent as required.

14. As described in the preliminary statement, above, that letter was the basis for this proceeding.

15. After leaving Central Florida Bonding in February 2000, Ms. Abrahamson has provided telephone answering services and occasional secretarial work for Central Florida Bonding.

    CONCLUSIONS OF LAW

    
    

16. The Division of Administrative Hearings has jurisdiction in this proceeding pursuant to Sections 120.569 and 120.57(1), Florida Statutes.

17. As applicant, Ms. Abrahamson must affirmatively prove her entitlement to the licensure she seeks. However, when the basis for denial is alleged violation of regulatory laws and rules, the Agency must prove the violations with a preponderance of evidence. See Department of Banking and Finance v. Osborne- Stern, 670 So. 2d 935 (Fla. 1996).

18. The Department of Insurance is the agency designated by the Legislature to administer Chapter 648, Florida Statutes, regulating bail bond agents and runners. Section 648.26 (1), Florida Statutes.

19. A "limited surety agency," also called a "bail bond agent" (see Section 648.25(1), Florida Statutes), is defined as follows:

    648.25 Definitions.–

    
    

    The following words when used in this chapter have the meanings respectively ascribed to them in this section:

    
    

    (6) "Limited surety agent" means any individual appointed by an insurer by power of attorney to execute or countersign bail bonds in connection with judicial proceedings who receives or is promised money or other things of value therefor.

    
    

20. Section 648.355, Florida Statutes, governing temporary limited surety agent licenses provides in pertinent part:

    648.355 Temporary limited license as limited surety agent or professional bail bond agent; pending examination.–

    
    

    (1) The department may, in its discretion, issue a temporary license as a limited surety agent or professional bail bond agent, subject to the following conditions:

    
    

    * * *

    
    

    1. Within 4 years prior to the date of application for a temporary license, the applicant has successfully completed a basic certification course in the criminal justice system, consisting of not less than 80 hours of classroom instruction and has successfully completed a correspondence course for bail bond agents approved by the department.

       
       

    2. The applicant must be employed at the time of application, and at all times throughout the existence of the temporary

    license, by only one licensed and appointed supervising bail bond agent, managing general agent, or authorized insurer, who supervises the work of the applicant and is responsible for the licensee's conduct in the bail bond business..

    
    

    * * *

    
    

    (3) The temporary license shall be effective for a period of 1 year, subject to earlier termination at the request of the employer or if suspended or revoked by the department.

    
    

    * * *

    
    

    1. After licensure as a temporary licensee for at least 6 months, such licensee may file an application for and become eligible for a regular bail bond agent's license based on the licensee's experience in the bail bond business and education pursuant to paragraph (1)(d) and, if otherwise qualified, take the required bail bond agent's licensure examination.

       
       

    2. In no event shall a temporary licensee licensed under this section perform any of the functions for which a bail bond agent's license is required after expiration of the temporary license without having passed the written examination as for a regular bail bond agent's license.

       
       

    3. Under the temporary license, the licensee shall have the same authority conferred and authorized by the laws of this state upon a licensed bail bond agent which shall include presenting defendants in court, apprehending, arresting, and surrendering defendants to the proper authorities, and keeping defendants under necessary surveillance; however, a temporary licensee shall not have the authority to execute or sign bonds, handle collateral receipts, or deliver bonds to appropriate

       authorities. A temporary licensee may not operate an agency or branch agency separate from the location of the supervising bail bond agent, managing general agent, or insurer by whom the licensee is employed.

       
       

    4. The department shall not issue a temporary bail bond agent's license to any individual who has held such a temporary license in this state within 2 years after the expiration of such temporary bail bond agent's license.

    (emphasis added)

    
    

21. Rule 4-221.105, Florida Administrative Code, permits a transfer fee of up to $100 only when an additional bail bond agent located in a county different from the originating agent executes the bond. This was not the circumstance under which Ms. Abrahamson and her employer were collecting transfer fees.

22. Section 648.45(2), Florida Statutes, provides in pertinent part that the Agency shall deny a license to any person who had demonstrated lack of fitness or trustworthiness to engage in the bail bond business or has demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. Section 648.45(3), Florida Statutes, provides, in pertinent part, that the Agency may deny a license for violation of any law related to the business of bail bond insurance or any provision of the insurance code.

23. In this case Ms. Abrahamson failed to prove her entitlement to a limited surety agent license. The Agency

    proved that she charged illegal transfer fees and that she consistently acted beyond the scope of her authority as a temporary agent. Although her violations were committed through ignorance and lack of proper supervision and training, she is nonetheless unfit for licensure.

24. Counsel for Ms. Abrahamson suggests in his Proposed Recommended Order that she not be precluded in perpetuity from ever being licensed but rather that she be permitted to seek retraining and more experience and be allowed later to reapply for a permanent license.

25. It is premature to make that determination and it is beyond the scope of this proceeding to rule on Ms. Abrahamson's future eligibility. It appears that she would need not only formal education from which she has failed to benefit, but also the appropriate supervised experience that Central Florida Bonding failed to provide. Section 648.355(9), Florida Statutes, cited above, appears to prohibit the issuance of another temporary licensee for two years after the June 30, 2000, expiration of Ms. Abrahamson's prior license.

RECOMMENDATION

Based on the foregoing, it is hereby

RECOMMENDED: that the Department of Insurance issue its final order, denying Robin Abrahamson's application for licensure as a limited surety (bail bond) agent.

DONE AND ENTERED this 30th day of October, 2000, in

Tallahassee, Leon County, Florida.

MARY CLARK

Administrative Law Judge

Division of Administrative Hearings The DeSoto Building

1230 Apalachee Parkway

Tallahassee, Florida 32399-3060

(850) 488-9675 SUNCOM 278-9675

Fax Filing (850) 921-6847 www.doah.state.fl.us

Filed with the Clerk of the Division of Administrative Hearings this 30th day of October, 2000.

COPIES FURNISHED:

C. Michael Magruder, Esquire

203 South Clyde Avenue Kissimmee, Florida 34741

William Fred Whitson, Esquire Department of Insurance

200 East Gaines Street 612 Larson Building

Tallahassee, Florida 32399-0333

Honorable Bill Nelson Department of Insurance

State Treasurer and Insurance Commissioner The Capitol, Plaza Level 02

Tallahassee, Florida 32399-0300

Daniel Y. Sumner, General Counsel Department of Insurance

The Capitol, Lower Level 26 Tallahassee, Florida

NOTICE OF RIGHT TO SUBMIT EXCEPTIONS

All parties have the right to submit written exceptions within

15 days from the date of this Recommended Order. Any exceptions to this Recommended Order must be filed with the agency that will issue the Final Order in this case.

Docket for Case No: 00-001762

Orders for Case No: 00-001762