THE TREASURER OF THE STATE OF FLORIDA DEPARTMENT OF INSURANCE BILL NELSON IN THE MATTER OF: OO- le MANUEL CHAMIZO, JR. CASE NO.: 33057-99-AG / ADMINISTRATIVE COMPLAINT S TO: MANUEL CHAMIZO, JR. 604 84 Shore Drive, West \ ~ Miami, FL 33133-2620 w _ Fl MANUEL CHAMIZO, JR. = = Group 1 Insurance of Coral Gables o> 1425 Ponce De Leon Blvd _ Coral Gables, FL 33 134-4007 You, MANUEL CHAMIZO, JR., are hereby notified that the Insurance Commissioner 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, MANUEL CHAMIZO, R., are currently licensed in this state as a FRPCJUA agent, and as a general lines property and casualty insurance agent. — 2. At all ti times pursuant to the dates and occurrences 1s referred to herein, you, MANUEL CHAMIZO, JR., were licensed in this state as a FRPCJUA agent, and as a general lines property and casualty insurance agent. + mages! w | | wu 6 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Insurance has jurisdiction over your insurance licenses and appointments. 4. Atall times relevant hereto, you, MANUEL CHAMIZO, JR., were designated pursuant to section 626.592, Florida Statutes, the primary agent for Group 1 Insurance Agency. . 5. Pursuant to section 626.592, Florida Statutes, the primary agent shall be responsible and accountable for the acts of salaried employees under his or her direct supervision and control, while acting on behalf of the agency. 6. Pursuant to section 626.734, Florida Statutes, any general lines insurance agent who is an officer, director or stockholder of an incorporated general lines insurance agency shall remain personally and fully liable and accountable for violations of the insurance code by persons under his or her direct supervision and control. 7. At all times relevant to the dates and occurrences set forth in this Administrative Complaint, you, MANUEL CHAMIZO, JR., were director and sole officer of Group 1 Insurance of Coral Gables, Inc., 1425 Ponce De Leon Boulevard, Coral Gables, Florida 33134-4007. COUNT I 8. The above General Allegations are hereby realleged and fully incorporated herein by reference. = 9, On or aout hay, 1996, Ana Rasa Hemanez and Manel Rodriguez, 5 Gulteam __ Drive, Key Largo, Florida went to Group | Insurance of Coral Gables, Inc. located at 1425 Ponce De Leon Boulevard, Coral Gables, Florida. At the agency, Ana Rosa Hernandez and Manuel Rodriguez purchased a policy of insurance, No. UP-0000795483-00, issued by Union American Insurance Company. Ana Rosa Hernandez issued a premiam payment check in the amount of four hundred seventy-four dollars ($474.00) payable to the order of Group 1 Insurance and dated May 1, 1997. oom er w . vu 6 10. The premium check, number 861, was drawn on the account of Ana Rosa Hernandez and Manvel Rodriguez, at the First Union National Bank of Florida, Miami, Florida and was deposited into your corporate account, MANUEL CHAMIZO, JR., at Bankers Savings Bank, Coral Gables, Florida, account number 91130963, on May 12, 1997. 11. On or about August 4, 1997, Ana Rosa Hernandez and Manuel Rodriguez received a notice of cancellation of their insurance due to a three dollar ($3.00) premium non-payment. The cancellation was to take effect on August 20, 1997. 12. On or about August 5, 1997, Ana Rosa Hernandez issued check number 908, drawn on the account of Ana Rosa Hernandez and Manuel Rodriguez at the First National Bank of Florida, Miami, Florida, payable to Group 1 Insurance in the amount of three dollars ($3.00). 13. On or about August 12, 1997, the three dollar ($3.00) check, number 908, was deposited into your corporate account, MANUEL CHAMIZO, JR., at Bankers Savings Bank, Coral Gables, Florida, account number 91130963. 14. You, MANUEL CHAMIZO, JR., are the sole signatory party on the corporate bank account of Group 1 Insurance Agency at Bankers Savings Bank, Coral Gables, Florida, account number 91130963. | 15. You, MANUEL CHAMIZO, JR., failed to transmit the additional premium received by you from Ana Rosa Hemandez and Manuel Rodriguez to Union American Insurance Company. ‘16 AS. a | direct result of your failure, MANUEL CHAMIZO, JR., to transmit the additional premium to the cartier, policy number. UP- -0000795483- 00 was cancelled and return premium in the amount of one hundred twenty-six dollars and sixty-one cents ($126.61) was refunded to Group 1 Insurance Agency on behalf of insureds Ana Rosa Hernandez and Manuel Rodriguez. Ww 17. o Uo wae To date, you, MANUEL CHAMIZO, JR., have not returned to Ana Rosa Hernandez or Manuel Rodriguez the return premium from Union American Insurance Company. Instead, you, MANUEL CHAMIZO, JR., have kept the return premium for yourself. IT IS THEREFORE CHARGED that you, MANUEL CHAMIZO, JR., have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitute grounds for the suspension or revocation of your licenses and appointments as an insurance agent: @) (b) ©) All premiums, return premiums, or other funds belonging to insurers or others received by an agent, solicitor, or adjuster in transactions under his license shall be trust funds so received by the licensee in a fiduciary capacity; and the licensee in the applicable regular course of business shall account for and pay the same to the insurer, insured, or other person entitled thereto. [Section 626.561(1), Florida Statutes]; If the license or appointment is willfully used, or to be used, to circumvent any of the requirements or prohibitions of this code. [Section 626.611(4), Florida Statutes]; Demonstrated lack of fitness or trustworthiness to engage in business of insurance. . [Section 62 626. 611(7), Florida Statutes}; _@. engage in the transactions authorized by the license or * permit. [Section 626.611(8), Demonstrated lack of reasonably adequate knowledge and technical competence to Florida Statutes]; Fraudulent or dishonest practices in the conduct of business under the license or’ os permit. ‘Seaton 626. 6 1 16), Florida Statutes]; @ (g) (h) @ G) _ 18. ‘reference. 19. wv | vu Misappropriation, conversion, or unlawful withholding of moneys belonging to insurers or insureds or beneficiaries or to others and received in conduct of business under the license. [Section 626.611(10), Florida Statutes]; 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]; 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 permit. [Section 626.621(2), Florida Statutes]; Failure or refusal, upon demand, to pay over to any insurer he represents or has represented any money coming into his hands belonging to the insurer. [Section 626.621(4), Florida Statutes]; In the conduct of business under the license or permit, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part X of this chapter, or having otherwise shown himself to be a source of injury or loss to the public. [Section 626.621(6), Florida Statutes]; COUNT II _ The above General Allegations are hereby realleged and fully incorporated herein by On or about September 24, 1997, Edward Varga, 15010 Dumbarton Place, Miami Lakes, Florida, owner of Edward General Steel Erectors, Inc., paid to you, MANUEL CHAMIZO, JR., one thousand six hundred eighty-three dollars ($1,683.00) by check number 146, drawn on Barnett Bank, Miami Lakes, Florida for insurance on the trucks operated by Edward General Steel Erectors, Inc., a 1989 Chevy F-350 truck and a 1986 Ford F-250 truck. w wn 20. The premium payne check number 146, payable to the order of Group 1 Insurance, was deposited by you, MANUEL CHAMIZO, JR., into your corporate bank account for Group 1 Insurance Acquisition Corporation at United National Bank, account number 91 130963, on or about September 26, 1997. 21. You, MANUEL CHAMIZO, JR., are the sole signatory party for your corporate bank account number 91130963. 22. Mr. Varga never received insurance policies for his trucks which he bought and paid for because you, MANUEL CHAMIZO, JR., failed to transmit his premium payment to the insurance carrier. Instead, you, MANUEL CHAMIZO, JR., kept Mr. Varga’s premium payment for yourself. TT IS THEREFORE CHARGED that you, MANUEL CHAMIZO, JR., have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitute grounds for the suspension or revocation of your licenses and appointments as an insurance agent or to impose such penalties as may be provided "under the provisions of sections 626.561(1), 626.611(4), 626.611(7), 626.611(8), 626.611(9), 626.611(10), 626.611(13), 626.621(2), 626.621(4), 626.621(6), Florida Statutes, which are set — forth specifically in’ Count I above and are hereby realleged and fully incorporated herein by Administrative Complaint. COUNT Il 23. The above General Allegations are hereby realleged and fully incorporated herein by reference. 24. On or about September 22, 1997, Jose A. Nunez, 231 East 57" Street, Hialeah, Florida paid three hundred thirty-four dollars ($334.00) in cash to you, MANUEL CHAMIZO, JR., reference, and under the other referéniced ‘Sections Of the Florida Statutes as set out in this _ ie ea a ; wna and received a receipt for this cash premium payment. The premium payment was for renewal insurance for Mr. Nunez’s 1982 GMC Van with PD 010 and PIP 2000 IR coverage. 25. Mr. Nunez received a cancellation notice from Onxy Underwriters, Inc. on behalf of American Skyhawk Insurance Company shortly after the notice’s mailing date of October 20, 1997. 26. You, MANUEL CHAMIZO, JR., failed to transmit Mr. Nunez’s premium payment to the insurance carrier. You, MANUEL CHAMIZO, JR., instead kept the premium payment for yourself. IT IS THEREFORE CHARGED that you, MANUEL CHAMIZO, JR., have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitute grounds for the suspension or revocation of your licenses and appointments as an insurance agent or to impose such penalties as may be provided under the provisions of sections 626.561(1), 626.611(4), 626.611(7), 626.611(8), 626.611(9), 626.611(10), 626.611(13), 626.621(2), 626.621(4), 626.621(6), Florida Statutes, which are set forth specifically in Count I above and are hereby realleged and fully incorporated herein by reference, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. . oe aT Ae COUNTIV’ __ 27. The above General Allegations are hereby realleged and fully incorporated herein by reference. ee | | 28. On or about September 8, 1997, Jose Calvo, 2979 N.W. 100" Street, Miami, Florida paid three hundred forty-four dollars ($343.00) to you, MANUEL CHAMIZO, JR., for motor vehicle insurance on his 1988 Ford Van and on his 1997 Pontiac Grand Am. eee ener fi vw u & 29. You, MANUEL CHAMIZO, JR., issued to Mr. Calvo a receipt number 93-37691 for his cash premium payment on or about September 8, 1997. 30. Mr. Calvo’s vehicle policies were cancelled by American Skyhawk Insurance Company for non-payment of premium. 31. You, MANUEL CHAMIZO, JR., failed to transmit Mr. Calvo’s premium payment to the insurance carrier. Instead, you, MANUEL CHAMIZO, JR., kept Jose Calvo’s premium payment for yourself. IT IS THEREFORE CHARGED that you, MANUEL CHAMIZO, JR., have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitute grounds for the suspension or revocation of your licenses and appointments as an insurance agent or to impose such penalties as may be provided under the provisions of sections 626.561(1), 626.611(4), 626.611(7), 626.611(8), 626.611(9), 626.611(10), 626.611(13), 626.621(2), 626.621(4), 626.621(6), Florida Statutes, which are set forth specifically in Count I above and are hereby reaileged and fully incorporated herein by reference, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. , COUNT V ° 32;- The above General Allegations are hereby realleged and fully incorporated herein by 7 en : acd idee ms i : | » 33. On or about February 16, 1995, Pedro Beccera d/b/a Fragments on the Beach, 8901 NE. 108 Avenue, Miami, Florida purchased general liability coverage for his business from Group 1 Insurance Agency. Pedro Beccera issued his check number 11115 drawn on the Kislak National Bank in the amount of five hundred dollars ($500.00). He ake OG - ul 34, Check number Ws was deposited into your corporate bank account, MANUEL CHAMIZO, JR., for Group 1 Insurance Agency, on February 21, 1995. 35. On or about November 27, 1995, a second premium payment was made by Pedro Beccera, to you, MANUEL CHAMIZO, JR... The second premium payment was in the amount of five hundred ‘ninety-five dollars ($595.00) drawn on the Barnett Bank of Miami Lakes, Florida by check number 108. 36. Check number 108 was deposited by you, MANUEL CHAMIZO, JR., into your corporate bank account for Group 1 Insurance Agency on December 5, 1995. 37. On or about March 1, 1995, you, MANUEL CHAMIZO, JR., issued a certificate of insurance on an Acord Form 25(7/90) purporting to afford general liability coverage to Pedro Beccera d/b/a Fragments on the Beach, from American Fire and Marine Insurance Company. 38. You, MANUEL CHAMIZO, JR., failed to transmit Mr. Beccera’s application or. premium payment to American Fire and Marine Insurance Company, or any other insurance carrier. Instead, you, MANUEL CHAMIZO, JR., kept Mr. Beccera’s premium payments for yourself. . ITIS THEREFORE CHARGED that you, MANUEL CHAMIZO, JR. have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitute grounds. for the suspension or revocation’ of your —~ : licenses and appointments a as an insurance e agent or to impose suchi penalties a as ; may be provided under the provisions of sections 626.561(1), 626.611(4), 626611(7 626.611(8), 626.611(9), 626.611(10), 626.611(13), 626.621(2), 626.621(4), 626.621(6), Florida Statutes, which are set forth specifically in Count I above and are hereby realleged and fully incorporated herein by reference, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. a vy ul | COUNT VI 39. The above General Allegations are hereby realleged and fully incorporated herein by reference. 40. Onor about May 21, 1996, James E. Hunt of Dolphin Jet Ski Rental, 2921 Woodpine Court, Sarasota, Florida went to Group 1 Insurance Agency. At the agency, Jorge Chamizo, an unlicensed person, sold the business coverage to Mr. Hunt at a premium of two thousand three hundred fifty dollars ($2,350.00). This charge represents an over-charge in the amount of seven hundred twenty dollars ($720.00) as the total premium was only one thousand six hundred thirty dollars ($1,630.00). 41. Mr. Hunt’s premium check was made payable at the request of Jorge Chamizo to American Watersports Association, a Florida Corporation for which you, MANUEL CHAMIZO, JR., were a director and vice president before the corporation was administratively dissolved for failure to file its annual report with the Department of State. 42. James Hunt’s premium payment check was cashed by American Watersports Association. 43. Mr. Hunt was unable to obtain the necessary licenses from the City of Sarasota to operate his business, Dolphin Jet Ski Rental, so he requested of Jorge Chamizo, an unlicensed person at Group 1 Insurance Agency, that the ir insurance policy | be cancelled and a refund made. - | 44, After numerous _attempts to obtain a refund from Jorge Chamizo and Group 1 Insurance Agency with n no positive results, Mr. Hunt filed a consumer complaint with the Florida Department of Insurance before finally obtaining a refund. IT IS THEREFORE CHARGED that you, MANUEL CHAMIZO, JR., have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitute grounds for the suspension or revocation of your 10 eeunpeces merge ea Ww . ao) C licenses and appointments 2 as an insurance agent or to impose such penalties as may be provided under the provisions of sections - 626. 561(1), 626.611(4), 626. 611(7), 626.611(8), 626.611(9), 626.611(10), 626.611(13), 626.621(2), 626.621(4), 626.621(6), Florida Statutes, which are set forth specifically in Count I above and are hereby realleged and fully incorporated herein by reference, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. IT IS ALSO CHARGED that you, MANUEL CHAMIZO, JR., have violated or are accountable under the following provisions of the Florida Insurance Code which constitute for suspension or revocation of your licenses as an insurance agent in the state: (a) Knowingly aiding, assisting, procuring, advising, or abetting any person in the violation of or to violate a provision of the insurance code or any order or rule of the department. [Section 626.621(12), Florida Statutes] (b) Knowingly collecting as a premium or charge for insurance any sum in excess of or less than the premium or charge applicable to such insurance in accordance with the applicable classifications and rates as filed with and approved by the department, and as specified in the policy. [Section 626.9541(1), Florida Statutes] (c) Policyholders shall have the right to be serviced by a competent, honest insurance agent or t broker. [Section 626. -964(1)(E), Florida Statutes] ~ me a @ Unlawful activities by unlicensed i insurance agency personnel. The following actions are never allowable by unlicensed personnel: . (1) Comparing insurance products; advising as to insurance needs or insurance matters; or interpreting policies or coverages. . 2) Binding new, additional, or replacement coverage for new or existing customers; or binding coverage on or recording additional property under existing policies. 1 reer Crane eres (3) Soliciting the sale of insurance by telephone, in peison, or by other communication. The unlicensed person may not engage in a substantive discussion of insurance products. [Rule 4- 222.060, Florida Administrative Code] WHEREFORE, you, MANUEL CHAMIZO, R, are hereby notified that the Treasurer and Insurance Commissioner 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 626.561, 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. 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 Pursuant to sections 120.569 and 120.57, Florida Statutes and Rule Chapter 28-106, Florida Administrative Code, you have the right to request a proceeding to contest this action by the Department. You may elect a proceeding by completing the attached Election of Rights form or filing a Petition. Your Petition or Election of a proceeding must be in writing and must be filed with the General Counsel acting as the Agency Clerk, Department of Insurafice. If served “by U:S: Mail the Petition or Election should be addressed to the Florida Department of Insurance at 612 Larson Building, Tallahassee, Florida 32399-0333. If Express Mail or hand delivery is utilized, the Petition or Election should be delivered to 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 323 99-0333. The Petition or Election must be received by, and filed in the Department within twenty-o ne (1) days of the date of your receipt of this 1 notice. YOUR FAILURE TO RESPOND TO THIS ADMINISTRATIVE COMPLAINT WITHIN TWENTY-ONE (21) DAYS WILL CONSTITUTE A WAIVER OF YOUR RIGHT TO REQUEST A 12 an PROCEEDING oN THE MATTERS ALLEGED HEREIN AND AN ORDER OF REVOCATION WILL BE ENTERED AGAINST YOU. _ If a proceeding is requested and there is no dispute of fact the provisions of section 120.57(2), Florida Statutes would apply. In this regard you may submit oral or written evidence in opposition to the action taken by this agency or a written statement challenging the grounds upon which the agency 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. If you dispute material facts which are the basis for this agency's action you may request a proceeding pursuant to sections 120.569 and 120.57(1), Florida Statutes. If you request this type of proceeding, the request must comply with ail of the requirements of Rule Chapter 28- 106, Florida Administrative Code, and contain a) A statement identifying with particularity the allegations of the Department which you dispute and the nature of the dispute; b) An explanation of what relief you are seeking and believe you are entitled to; c) Any other information which you contend is material. 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. If you request a hearing, you have the right to be represented by counsel, or other qualified representative, to take testimony, to call and cross-examine witnesses, and to have subpoena and subpoena duces tecum issued on your behalf. w | w 6 Pursuant to section 120.573, Florida Statutes, you are hereby notified that mediation is not available. Failure to follow the procedure outlined with regard to your response to this notice may result in the request being denied. All prior correspondence in this matter shall be considered freeform agency action, and no such correspondence shall operate as a valid request for an administrative proceeding. Any request for 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. acd DATED and SIGNED this day of , 2000. BILL NELSON Treasurer and Insurance Commissioner w | uw 6 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT has been furnished to: MANUEL CHAMIZO, JR. at 84 Shore Drive West, Miami, Florida 33133-2620 and c/o Group 1 Insurance of Coral Gables at 1425 Ponce De Leon Boulevard, Coral Gables, Florida 33134-4007, by U.S. Certified Mail this day of 2000. Carl B. Morstadt III, Senior Attorney Division of Legal Services 612 Larson Building Tallahassee, Fl 32399-0333 (904) 922-3110 Ext.4168 veep enn ve owe

Docket for Case No: 00-001895