tee FILED MAR OY | 2000 THE TREASURER OF THE STATE OF FLORIDA DEPARTMENT OF INSURANCE INSURANCE COMMISSIONER BILL NELSON — BY IN THE MATTER OF: | O0- GY CASE NO.: 27866~-99-AG PATRICIA MARIE LORELLO / ADMINISTRATIVE COMPLAINT TO: PATRICIA MARIE LORELLO 5572 Park Blvd Pinellas Park, Florida 34665-3353 PATRICIA MARIE LORELLO 2477 Stag Run Blvd. Clearwater, FL 34625-1835 You, PATRICIA MARIE HORELLO, are hereby notified that the Insurance Commissioner of the State of Florida has ca sed to be ap ebetaur ie 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, PATRICIA MARIE LORELLO, are currently licensed ir State as a general lines agent (2-20) and you also hold a_.residential property and casualty JUA appointment (0-17). at rw) wich bees : rw) . 2. At all times pertinent to the dates and occurrences referred to herein, you, PATRICIA MARIE LORELLO, were a licensed and appointed insurance agent in the State of Florida. 3. At all times pertinent to the dates and occurrences referred to herein, you, PATRICIA MARIE LORELLO, acted in the capacity of primary agent for Aladdin Insurance Agency at the Pinellas Park location. In that position, you were responsible for the hiring and supervision of all individuals within that location who dealt with the public in the solicitation, negotiation and sale of insurance contracts or in the collection or accounting of moneys from the general public. as described in each of the counts of this complaint below. 4. As a primary agent in an unincorporated agency you, PATRICIA MARIE LORELLO, were responsible for the acts of salaried employees under your direct supervision and control, while acting on behalf of the agency, and you knew or should have known of the activities of those employees under your direct supervision and control, and you were responsible and accountable for all such activities of the staff at the agency locations described herein for the times and occurrences as hereafter presented. References to you, PATRICIA MARIE LORELLO, include persons acting under your direct supervision and control at the agencies described herein. ae 5. At all time pertinent to the dates and occurrences referred to herein, Just Premium Finance, Inc., headquartered in Pinellas Park, Florida, financed premiums for consumers who purchased insurance at Aladdin Insurance Agency. 6. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Insurance has -jurisdiction over your insurance licenses and appointments. COUNT _I 7. The above general allegations are hereby realleged and fully incorporated herein by reference. 8. On or about sune 29, 1998, after receiving a notice of renewal, Ms. Cruz A. Almonte went to the Aladdin Insurance Agency in Pinellas Park, Florida to renew her auto insurance policy which was due to expire on or about July 22, 1998. Ms. Almonte met with Aladdin agent Joseph John Scaglione, Jr., an individual whom you, PATRICIA MARIE LORELLO, supervised as primary agent. 9, Agent Scaglione quoted Ms. Almonte an annual premium of $435.00. Ms. Almonte gave the agent a cash down payment in the amount of $112 and signed a Just Premium Finance Agreement and Disclosure Statement for the balance of the premium. Scaglione caused Ms. Almonte, who does not speak or understand English well, to sign an Accident Medical Protection Plan (“AMPP”) application without Ms. Altmonte’s knowledge or consent. The charge for this AMPP, which was included in her total premium, was $100.00. Ms. Almonte never received a policy or other evidence of coverage regarding this AMPP, which was to be underwritten by Sphere Drake and she was unaware of the additional $100 charge for this medical policy. 10. The three insurers listed on the Accident Medical Protection Plan application sold to Ms. Almonte, as alleged in this count, are Omni, Integon and Dairyland. These insurers were not authorized to write medical insurance coverage other than by offering this insurance under the surplus lines provisions of the Florida Insurance Code. There was no documentation to confirm that a diligent effort had been made to seek coverage from and had been rejected by at least three authorized insurers currently writing this type of coverage. 11. You, PATRICIA MARIE LORELLO, knew that Omni, Integon and Dairyland were not authorized to write medical insurance coverage other than by offering this insurance under the surplus lines provisions of the Florida Insurance Code and yet you willfully agreed to and encouraged the agents under your supervision to sell such medical insurance products. 12. You, PATRICIA MARIE LORELLO, knew that agent Scaglione was selling Sphere Drake add-on insurance products without the w a - Y informed consent of insured and you willfully agreed to, allowed and encouraged such deceptive sales practice. IT IS THEREFORE CHARGED that you, PATRICIA MARIE LORELLO, have violated or are accountable under the following provisions of the Florida Tusurance 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: (a) A “primary agent” is responsible for the hiring and supervision of all individuals within an insurance agency location who deal with the public in the solicitation or negotiation of insurance contracts or in the collection or accounting of moneys from the general public. Section 626.592 (2) , Florida Statutes. (b) The primary agent in an unincorporated agency shall be responsible for the acts of Salaried employees under his or her direct Supervision and control, while acting on behalf of the agency. Section | 626. 59215 dy Florida Statutes. “(c) Surplus lines coverages may be procured From unauthorized : insurers only “if property and lability insurance. coverages of subjects resident, located, or, to be performed in this state cannot be procured from authorized insurers and the following conditions are met: PER ronnie step ae = (1) The insurance must be eligible for export under section 626.916 or section 626.917, Florida Statutes; (2) The insurer must be an eligible surplus lines insurer under section 626.918, Florida Statutes; (3) The insurance must be so placed through a licensed Florida surplus lines agent; and (4) The other applicable provisions of the Surplus Lines Law must be met. {Sections 626.913, 626.914(4). and 626.915, Florida Statutes]; (ad) No insurance coverage shall be eligible for export unless it meets all of the following conditions: (1) The full amount of insurance required must not be procurable, after a diligent effort has been made by the producing agent to do so, from among the insurers authorized to transact and actually writing that kind and class of insurance in this state, and the amount of insurance exported shall be only the excess over the amount so procurable from authorized insurers. Surplus lines agents must verify that a diligent effort has been made by requiring a properly documented statement of diligent effort from the retail or producing agent. However, to be in compliance with the diligent effort requirement, the surplus lines agent's reliance must be w ; Leagan J reasonable under the particular circumstances surrounding the export of that particular risk. Reasonableness shall be assessed by taking into account factors which include, but are not limited to, a regularly conducted program of verification of the information provided by the retail or producing agent. Declinations must be documented on a risk-by-risk basis. If it is not possible to obtain the full amount of insurance required by layering the risk, it is permissible to export the full amount. (2) The premium rate at which the coverage is exported shall not be lower than that rate applicable, if any, in actual and current use by a majority of the authorized insurers for the same coverage on a similar risk. (3) The policy or contract form, under which the insurance is exported ‘shall. not be more favorable to “the insured as to the “coverage, or rate than under similar contracts on file and in actual current use in this “state by _ fhe majority of authorized insurers actually writing similar “coverages on similar risks; except that a coverage may be exported under a unique form of policy designed for use with respect to a particular subject of insurance if a copy of such form is filed with the department by the surplus lines agent desiring to use the same and is subject to the disapproval of the department within 10 days of filing such form exclusive of Saturdays, Sundays, and legal holidays if it finds that the use of such special form is not reasonably necessary for the principal purposes of the coverage or that its use would be contrary to the purposes of this Surplus Lines Law with respect to _the reasonable protection of authorized insurers from unwarranted competition by unauthorized insurers. (4) Except as to extended coverage in connection with fire insurance policies and except as to windstorm insurance, the policy or contract under which the insurance is exported shall not provide for deductible amounts, in determining the existence or extent of the insurer's liability, other than those available under similar policies or contracts in actual and current use by one or more authorized insurers. (Section 626.916, Florida Statutes]; (e) When placing coverage with an eligible surplus lines insurer, the surplus lines agent must verify that a diligent effort has been made by requiring from the retail or producing 8 4 SE A RAI SRD i ene e fy ore one Y agent a properly documented statement of diligent effort on form Dif-1153 (7/94), “Statement of Diligent Effort”, which is hereby adopted and incorporated by reference. Declinations must be documented on a vrisk-by-risk basis [Rule 45-5.003, Florida Administrative Code]. “Diligent effort” means seeking coverage from and having been rejected by at least three authorized insurers currently writing this type of coverage and documenting these rejections. [Section 626.914 (3), Florida Statutes]; (£) Violation of any lawful order or rule of the Department. [Section 626.621(3), Florida Statutes]; (g) 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] ; (n) “willgul misrepresentation of any insurance policy or annuity contract or willful deception with regard to any such policy or contract, done either in person or by any form of dissemination of information or advertising [Section 626.611(5), Florida Statutes] ; sous pe tee i) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. {Section 626.611(7), Florida Statutes]; ow a (j) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or permit. [Section 626.611(8), Florida Statutes]; (k). Fraudulent or dishonest practices in the conduct of business under the license or permit. [Section 626.611(9), Florida Statutes]; (1) Violation of any provision of the Florida Insurance Code or of any other law applicable to the business of insurance in the course of dealing under the license or appointment. (Section 626.621(2), Florida Statutes] ; (m) 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 x 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]; (n} By sliding which is the practice of: 1. Representing to the applicant that a Specific ; ancillary coverage | or product _ is _ required PY law An. conjunction with the purchase of motor . vehicle required; insurance when such ‘coverage or product is not rw . ; : ww 2. Representing ‘to the applicant that a specific ancillary coverage or product is included in the motor vehicle policy applied for without an additional charge when such charge is required; or 3. Charging an applicant for a specific ancillary coverage or product, in addition to the cost of the motor vehicle insurance coverage applied for, without the informed consent of the applicant. [Section 626.9541(1) (z), Florida Statutes] COUNT IT 13. The above general allegations, paragraphs 1 through 6, are realleged and incorporated herein by reference. 14. On or about September 4, 1998 Mr. Jonathan C. Bailey contacted Aladdin Insurance Agency in Pinellas Park, Florida for the purpose of changing the vehicle listed on his insurance policy. Mr. Bailey met with a woman later determined to be Ann Klein, an individual whom you, PATRICIA MARIE LORELLO, supervised as the primary agent. 7 lein advised Mr. Bailey that it would b to write a new policy rather than process a change of vehicle endorsement . Mr. Bailey signed an application for auto insurance underwritten by Delta Casualty Insurance Company to be effective September 4, 1998 for-a total premium of $516.00. Mr. Bailey 1] ARE ~;-insurance agent: Sections 626.592(2); 626.592(5); 626.913- v moos eae ngy also signed a Just Premium Finance Agreement and Disclosure Statement and a Disclosure Form. Mr. Bailey believed he paid a down payment of $129 as reflected on the Premium Finance Agreement . 16. On November 13, 1998, Mr. Bailey discovered that he had been charged $100 for a Sphere Drake Policy. Mr. Bailey does not remember signing an application for the Sphere Drake policy. He was unaware of the coverage provided by the Sphere Drake policy. 17. You, PATRICIA MARIE LORELLO, knew that agent Klein was selling Sphere Drake add-on insurance products without the informed consent of insured and you willfully agreed to, allowed and encouraged such deceptive sales practice. IT IS THEREFORE CHARGED that you, PATRICIA MARIE LORELLO, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the suspension or revocation of your licenses and appointments as an 918; 626.611 (4); 626.611(5); 626.611(7); 626.611(8); 626.611(9); (2 1(3); 626.621(2); 626.62 626.621 (6) Statutes, as fully described under Count I above and incorporated in full here. j, and 626.9541(1) (z), Florida —~ ee # ee These three insurers were fot authorized to write WW . ad COUNT TIT 18. The above general allegations, paragraphs 1 through 6, are realleged and incorporated herein by reference. 19. On July 29, 1998, Thomas A. Bond went to Aladdin insurance Agency in Pinellas Park to obtain auto insurance on his 1986 Ford Escort. Mr. Bond dealt with Ms. Jean Fisherkeller, whose social security number 048-52-8390 appears on the Bond application for insurance. Mr. Bond explained to Ms. Fisherkeller that he wanted minimum limits. 20. Mr. Bond signed an application for insurance underwritten by Lyndon Property Insurance Company to be effective July 29, 1998. His annual premium was to be $340. Mr. Bond gave Ms. Fisherkeller a down payment of $88. Mr. Bond signed a Just Premium Finance Agreement and Disclosure Statement and Disclosure Form. 21. Mr. Bond was Unaware oF a 8100 charge for a Sphere Drake policy. “Although 1 medical insurance was never offered : or “nentioned, Mr. Bond signed | an Accident Medical Protection Plan Application, but he stated that he did not realize he was signing for such “neurance coverage The three insurers on the Accident ion Plan were Omni, Progressive and Delt medical insurance. fo vate naan esas tee Pen iBy te ceageet ae oo te 22. Ms. Fisherkeller told Mr. Bond to sign the applications without explaining to him what it was he was signing. Mr. Bond never received the Sphere Drake Policy. The ‘Department of Insurance has no licensed agent record for “J. Fisherkeller” with the social security number as described above. 23. You, PATRICIA MARIE LORELLO, knew that Omni, Progressive and Delta Casualty were not authorized to write medical insurance coverage other than by offering this insurance under the surplus lines provisions of the Florida Insurance Code and yet you willfully agreed to and encouraged the agents under your supervision to sell such medical insurance products. 24. You, PATRICIA MARIE LORELLO, supervised Ms. Fisherkeller and knew that she was selling Sphere Drake add-on insurance products without an insurance license and without the informed consent of insured and you willfully agreed to, allowed and encouraged such deceptive sales practice. IT Is THEREFORE CHARGED © that you, PATRICIA MARIE LORELLO, have violated or are accountable under the following provisions na 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: Sections 626.592(2); 626.592(5); 626.913-.918; 626.611(4); 626.611(5); 626.611(7) ; 626.611(8) ; 626.611(9); 626.621(2); oo 14 Deweakibe: me ART pe BR oP Insurance Company for an annual premium of $549, commencing on . v a, wy 626.621(3); 626.621(6); and 626.9541 (1) (z), Florida Statutes, ag fully described under Count I above and incorporated in full here. COUNT IV 25. The above general allegations, paragraphs 1 through 6, are hereby realleged and fully incorporated herein by reference. 26. On February 6, 1998, Ms. Karen Cambron went to Aladdin Insurance Agency in Pinellas Park, Florida to apply for auto insurance for her 1991 Dodge Dynasty. Ms. Cambron had been doing business with Aladdin Insurance Agency since December, 1997. On this occasion she dealt with a male agent later identified as Joseph John Scaglione. 27. Ms. Cambron directed the agent to provide her with the minimum insurance coverage necessary to drive her car in Florida. Since her car was financed, she also asked for physical damage coverage. At this February 6, 1998 meeting, Ms. Cambron signed an auto insurance application underwritten by Delta Casualty February 6, 1998. ft c 28 Ma Cambron gave, the agent a ‘down payment of $140 and signed a Just Premium finance Agreement and Disclosure Statement and Disclosure Form. Ms. Cambron also signed an Accident Medical Protection Plan Application and Confirmation of Coverage and cost Breakdown Forms. At the time Ms. Cambron signed these forms, she 15 was unaware that she was purchasing medical insurance and she was unaware that there was a premium charge of $100 for these unwanted Sphere-Drake add-on policies. Furthermore, the three insurers listed under the medical plan, Omni, Integron and Progressive, were not authorized to write such medical insurance. 29. You, PATRICIA MARIE LORELLO, knew that Omni, Integon and Progressive were not authorized to write medical insurance coverage other than by offering this insurance under the surplus lines provisions of the Florida Insurance Code and yet you willfully agreed to and encouraged the agents under your supervision to sell such medical insurance products. 30. You, PATRICIA MARIE LORELLO, knew that agent Scaglione was selling Sphere Drake add-on insurance products without the informed consent of insured and you willfully agreed to, allowed and encouraged such deceptive sales practice. IT IS THEREFORE CHARGED that you, PATRICIA MARIE LORELLO, 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: Sections 626.592(2); 626.592(5); 626.913-.918; 626.611(4); 626.611(5); 626.611(7); 626.611(8); 626.611(9); 626.621(2); eeaneecaanestin’ fis ett * we : mong 626.621(3); 626.621(6); and 626.9541(1) (z), Florida Statutes, as fully described under Count I above and incorporated in full here. COUNT _V 31. The above general allegations, paragraphs 1 through 6, are hereby realleged and fully incorporated herein by reference. 32. On August 25, 1998, Ms. Wanda I. Latorre went to Aladdin Insurance Agency in Pinellas Park, Florida to purchase auto insurance for her 1996 Nissan. Ms. Latorre dealt with customer representative Patrick Davis who asked her to sign an application for insurance underwritten by Amstar Insurance Company effective August 25, 1998. The annual premium was $1,333. 33. Ms. Latorre paid Davis a down payment of $287. Ms. Latorre also signed a Just Premium Finance Agreement and Disclosure Statement and Disclosure Form. Ms. Latorre was not advised that she was also being charged an additional $100 for a Sphere Drake add-on Policy. °34. Ms. Latorre did not request such medical insurance coverage nor was the Sphere Drake > policy ever mentioned to her. At ‘that, time Ms. atorre ‘had medical insurance coverage ‘provided by her employer. Ms. Latorre does not recall signing a Sphere Drake application and a a Sphere | Drake > Policy « was never received. 35. you, PATRICIA MARIE LORELLO, “knew that - Sphere Drake was not authorized to write medical insurance coverage other than by 2 pap CSE RE RE ab are hereby rea : Ww APMP ORE et ket : =) oo vis Sodas offering this insurance under the surplus lines provisions of the Florida Insurance Code and yet you willfully agreed to and encouraged Mr. Davis, a non-licensed agent under your supervision, to sell this medical insurance product. 36. You, PATRICIA MARIE LORELLO, knew that customer representative Davis was selling Sphere Drake add-on insurance products without being licensed as an insurance agent and without the informed consent of insured and you willfully agreed to, allowed and encouraged such deceptive sales practice. IT IS THEREFORE CHARGED that you, PATRICIA MARIE LORELLO, 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: Sections 626.592 (2); 626.592 (5); 626.913-.918; 626.611{4); 626.611(5); 626.611(7); 626.611(8); 626.611(9); 626.621(2); 626.621(3); 626-621 (6) ; and 626.9541(1) (z), Florida Statutes, as fully described under ‘Count I above nd in orporated in full here. 38. On May 15, 1998, Mr. Anthony R. Porter visited Aladdin Insurance Agency in Pinellas Park, Florida for a renewal quote on 18 epee omer bes | | cee er cee q oo eerie oe nnn ath et ES ER SE me ee eee en ee uv nn) his auto coverage. A man named “Jeff” with Aladdin had earlier quoted him a premium of around $700 on the telephone before the visit. 39. On May 15, 1998, Mr. Porter also met with a man named “Rick” or “Rich” at the Aladdin location. Mr. Porter signed an Application for Florida Personal Policy for auto insurance underwritten by Amstar, to be effective May 17, 1998 with a total premium of $751.00. wr. Porter did not notice that there was a cost of $40.00 appearing on a “Confirmation of Coverage Form and Cost Breakdown” form. Mr. Porter also signed a Just Premium Finance Agreement a Disclosure Statement and Disclosure Form and then gave the agent a cash down payment of $182.00, for which he received a receipt. 40. Mr. Porter was under the understanding that the entire $182.00 cash down payment would be applied toward his premium; however, he lat r discovered that only $132.00 had been applied thereto. Porter also signed, lottinite dda bean geSeel ls 2 without _ iis, . knowledge or consent, a Roadside Recovery Service contract costing him $40. 00. Mr. Porter aid Age. know that this charge, and a notary charge, com a rere would be taken from his S182. 00 down Payment . _Mr Porte id not ask for, aid not discuss with any agent, and did not want towing wv ; ; . w or roadside coverage and he was unaware that he was purchasing such product. 42. The agent’s social security number appearing on the Porter application belongs to you, PATRICIA MARIE LORELLO. The signature appearing on the finance agreement belongs to agent Joseph Scaglione. 43. You, PATRICIA MARIE LORELLO, knew that agent Scaglione was selling Sphere Drake add-on products without being licensed as an insurance agent. and without the informed consent of the insured and you willfully agreed to, allowed and encouraged such deceptive sales practice. IT IS THEREFORE CHARGED that you, PATRICIA MARIE LORELLO, 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: Sections 626. 592(2) i 626. 592 (5 5); (626.913-.918; 626. 611(4); 626. 611(s), 626.611(7); | 626.611(8); 626. 61119); 626. 621(2); i 626.621(3); 626.621(6); and 626. 9541(1) (z), Florida Statutes, as we fully described under, Count r above and incorporated in full here. CO 44, The above general allegations, paragraphs 1 chrough 6, t k are hereby realleged and fully incorporated herein by reference. 45. On September 17, 1998, Mr. John Podkulski went to Py Aladdin Insurance Agency in Pinellas Park, Florida to purchase auto insurance. He met with customer representative Melissa Mallette. Ms. Mallette gave Mr, Podkulski a quote of $867 for his annual premium. Mr. Podkulski signed an agreement based on that quote for insurance to be underwritten by Delta Casualty effective September 17, 1998. 46. Mr. Podkulski gave customer representative Mallette a down payment of $17C and signed a Just Premium Finance Agreement and Disclosure Statement. On February 3, 1999, Mr. Podkulski noticed a $100 charge for a Sphere Drake Policy, but did not agree to the purchase of such medical coverage. Mr. Podkulski has medical insurance through his employer and had no reason to purchase the Sphere Drake Policy from Ms. Mallette. In fact, Ms. Mallette had never mentioned such insurance coverage at the time Mr. Podkulski signed the group of insurance papers. ~47, Mr. Podkulski later discovered that his accident Medical protection Plan Application contained his signature, but he was completely unaware that he had signed for such coverage. The three insurers listed on the medical plan were Delta, Omni, and NIA. (Delta and Omnd. are not authorized to write medical insurance. NIA” stands for, the National Insurance Association Z and is not even an authorized Florida insurer. Furthermore, Ms. 3 , ‘ : . Insurance which constitute. grounds: for the Suspension or. wv Cg te rv Mallette does not have a 2-20 license; therefore, she was not qualified to write surplus lines business. Mr. Podkulski never received any Sphere Drake Policy. 48. You, PATRICIA MARIE LORELLO, knew that Delta, Omni, and “NIA” were not authorized to write medical insurance coverage other than by offering this insurance under the surplus lines provisions of the Florida Insurance Code and yet you willfully agreed to and encouraged Ms. Mallette, a non-licensed agent under your supervision, to sell such medical insurance products. 49. You, PATRICIA MARIE LORELLO, knew that customer representative Mallette was selling Sphere Drake add-on insurance products without being licensed as an insurance agent and without the informed consent of insured and you willfully agreed to, allowed and encouraged such deceptive sales practice. IT Is THEREFORE CHARGED that you, PATRICIA MARIE LORELLO, have violated or are accountable under the following provisions of. ce, | the Florida Insurance code and Rules of the _Pepartment of hot revocation of your dicenses and appointments as an insurance _ agent: Sections 626.592 (2); 626.592(5); 626.913-.918; 626.611(4); 626.611(5); 626.611(7); 626.611(8); 626.611(9); 626.621(2); 626.621(3); 626.621(6); and 626.9541(1) (z), Florida Statutes, as fully described under Count I above and incorporated in full here. 22 eta . ed Cpt wns i Statins ) COUNT VIII 50. The above general allegations, paragraphs 1 through é, are hereby realleged and fully incorporated herein by reference. 51. On June 30, 1998, Mr. Juan C. Pabon went to Aladdin Insurance Agency in Pinellas Park, Florida to review his auto insurance coverage. At the agency Mr. Pabon dealt with customer representative April Ribar who quoted him an annual premium of $883.00. Mr. Pabon then signed an application for auto insurance underwritten by Delta Casualty Insurance Company effective July 10, 1998 through agent Janie Rodriguez. 52. Mr. Pabon gave customer representative Ribar a down payment of $200.00. Mr. Pabon did not notice a Sphere Drake charge of $100 appearing on the forms at the time of signing. Mr. Pabon also apparently signed a Sphere Drake Accident Medical Protection Application. Mr. Pabon stated he did not know at the time it was for medical insurance. “53. . Pabon did not ‘discuss medical coverage with . oe BA customer representative Ribar including the Fact that the cost : _ for any, such coverage would be an additional $100. oo. 54. You, PATRICIA MARIE LORELLO, knew that Sphere-Drake was | not authorized to write medical insurance coverage other than by offering this insurance under the surplus lines provisions of the Florida Insurance Code and yet you willfully agreed to and 23 yer ot y encouraged Ms. Ribar, a non-licensed agent under your supervision, to sell such medical insurance products. 55.° You, PATRICIA MARIE LORELLO, knew that customer representative Ribar was selling Sphere Drake add-on insurance products without being licensed as an insurance agent and without the informed consent of insured and you willfully agreed to, allowed and encouraged such deceptive sales practice. IT IS THEREFORE CHARGED that you, PATRICIA MARIE LORELLO, 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: Sections 626.592(2); 626. 592(5); 626.913-.918; 626. 611(4); 626 .611(5); 626.611(7); 626.611(8); 626.611(9); | 626. 621 (2) 626 -621(3); 626 .621(6) ; and 626. 9541 (1) (2 ), Florida Stat fully sncorporated herein by reference. 53. On May 5, 1998, Ms. Gloria Valladares went to Aladdin wh Insurance Agency in Pinellas Park, Florida to purchase auto insurance. Customer Representative Melissa Mallette handled the coger ve 24 TES Ste er r transaction. Ms. Valladares requested the minimum amount of insurance as required by state law. 54. After receiving an annual premium quote of $551.00, Ms. Valladares signed a Brokering Agents Application for auto insurance underwritten by Lyndon Property Insurance Company effective May 2, 1998 at a premium of about $551.00. Ms. } Valladares gave Ms. Malette a cash down payment of $176 and was given a receipt for this amount. 55. Ms. Valladares signed a Just Premium Finance Agreement and Disclosure Statement and a Disclosure Form. Ms. Valladares did not then notice the presence of a Sphere Drake charge of $100 appearing on all three forms. Ms. Valladares believed the entire $176 down payment was going toward her annual premium, but in fact only $131.00 was So applied. 56. Ms. Valladares also signed a Roadside Recovery Service Contract, but did not comprehend what, _She was ‘Signing or ‘purchasing. Customer Representative Malette did not er Roadside Recovery Service. Plan with Ms. _ Valladares. __Ms. Valladares did not notice that a $40.00 charge for the roadside plan had been taken out of her down payment. 57. Ms. Valladares also signed an Accident Medical Protection Plan Application having an annual premium of $100.00, which increased her annual premium to $651. Ms. Malette did not 25 Fee eee allowed and encouraged such dece tive wd discuss the plan with her and she did not notice the premium was included on the Premium Finance Agreement. The two insurers listed on the Accident Medical Protection Plan application were Omni and Delta. These two insurers are not licensed to write medical coverage in Florida. Furthermore, Representative Malette does not have a 2-20 agent’s license; therefore, she is not qualified to write such surplus lines business. 58. You, PATRICIA MARIE LORELLO, knew that Omni and Delta were not authorized to write medical insurance coverage other than by offering this insurance under the surplus lines provisions of the Florida Insurance Code and yet you willfully agreed to and encouraged Ms. Malette, a non-licensed agent under your supervision, to sell such medical insurance products. 59. You, PATRICIA MARIE LORELLO, knew that customer representative Malette was selling Sphere Drake add-on insurance products without Peing licensed as an insurance agent and without the informed consent. of insured and you willfully agreed to, 1 practice. : IT IS THEREFORE CHARGED chat. You, PATRICIA MARTE LORELLO, 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 26 é 4 ; ww agent: Sections 626.592 (2); 626.592(5); 626.913-.918; 626.611 (4); 626.611(5); 626.611(7); 626.611(8); 626.611(9); 626.621(2); 626.621(3); 626.621(6); and 626.9541(1) (z), Florida Statutes, as fully described under Count I above and incorporated in full here. COUNT X 60. The above general allegations, numbered 1 through 6, are hereby realleged and fully incorporated herein by reference. 61. In May 1998, the mother-in-law of Ms. Chong Suk Woody, Jane Woody, called Aladdin Insurance Agency in Pinellas Park, Florida and received a quote of about $435.00 for auto insurance on behalf of Chong Suk Woody. Ms. Chong Suk Woody then visited the agency to renew her car insurance based on the quote of $435.00 given Jane Woody. 62. At the agency, Chong Suk Woody met with an agent and signed an application for insurance underwritten by Southern Group Indemnity effective ve May 24, 1998. The agent told Chong § Suk Woody — that the annual premium would be $535, 00, not $435.00. The agent said the extra $100. 00 was due toa recent rate increase. 63, Ms. Chong Suk Woody signed a Just Premium Finance Agreement and Disclosure Statement and gave the agent a down payment ‘of $102. “Agent Scaglione’ s signature appeared < on ‘the application as the writing agent. Ms. Chong Suk Woody thought Ww that the whole amount would go toward her annual premium, but in fact only $97.00 was actually applied to the premium. 64. Ms. Chong Suk Woody signed the Accident Medical Protection Plan Application, but did not understand she was purchasing health insurance. The agent never mentioned hospital or medical insurance. Furthermore, the three insurers listed on the Accident Medical Protection Plan were Omni, Progressive, and Integron. These insurers were not authorized to write medical insurance. 65. Ms. Chong Suk Woody also signed a Confirmation of Coverage and Cost Breakdown, but did not understand it included a $100 charge for medical insurance. Since her native language is Chinese, Ms. Chong Suk Woody does not speak or understand English well. 66. When Ms. Chong Suk Woody reviewed documents pertaining ‘to her expired coverage from 1996- 1997, she was surprised to see that she had purchased Roadside Recovery Service for $40.00. She was ‘unaware that she had made this purchase. An invoice showed that she made a down payment of $115.00, instead of the $75.00 required under the Policy. ‘this leaves a difference of $40, 00, that being the , charge for the Roadside Recovery Service. The writing agent for this May 24, 1997 transaction was Ms. April Ribar. 67. You, PATRICIA MARIE LORELLO, knew that Omni, Integon and Progressive were not authorized to write medical insurance coverage other than by offering this insurance under the surplus lines provisions of the Florida Insurance Code and yet you willfully agreed to and encouraged the agents under your supervision to sell such medical insurance products. 68. You, PATRICIA MARIE LORELLO, knew that agent Scaglione was selling Sphere Drake add-on insurance products without the informed consent of insured and you willfully agreed to, allowed and encouraged such deceptive sales practice. IT IS THEREFORE CHARGED that you, PATRICIA MARIE LORELLO, 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: Sections 626.592(2); 626.592(5); 626.913-.918; 626.611 (4); 626.611(5); 626.611(7); 626.611(8) ; 626.611(9); 626.621(2); 626.621(3); 626.621(6); and 626.9541(1)(z), Florida Statutes, as fully described under Count I above and incorporated in full here. COUNT XI 69. The above general allegations, numbered 1 though 6, are hereby realleged and fully incorporated therein by reference. 29 . ! | ; 70. On July 24, 1998, Mr. Gary Wurster visited Aladdin Insuiance Agency in Pinellas Park, Florida to purchase auto insurance. Mr. Wurster believed it was then time to renew his policy. 71. Mr. Wurster dealt with Customer Representative Melissa Mallette who gave him an annual quote of $368.00 underwritten by Lyndon Property Insurance Company. Mr. Wurster paid a $134 down payment. He did not realize at the time that by signing additional papers he was agreeing toa $25.00 payment for towing and road service. Mr. Wurster also signed a Just Premium Finance Agreement and Disclosure Statement and he signed an Accident Medical protection Plan Application for a charge of $150.00. The three insurers on the medical plan were Delta, Omni, and NIA. Delta and Omni are not authorized to write medical insurance according to the D artment of Insurance database. “NIA” is the National Insurance Association and is not a Florida insurer You,“ PATRICTA MARIE LORELLO, knew that Omni, Delta and “NIA” were not authorized to write medical insurance rage *SERSE than PY offering this insurance under the surplus lines creme oe 7 ; provisions of the Florida Insurance Code and yet you willfully agreed to and encouraged Ms. Mallette, a non- "licensed agent under ~ your “supervision, ‘to sell such medical insurance ‘products. Ok ee % £ p F) _-Ministrative Complaint . You are - further notified Ehat any order 73. You, PATRICIA MARIE LORELLO, knew that customer representative Malette was selling Sphere Drake add-on insurance products without being licensed as an insurance agent and without the informed consent of insured and you willfully agreed to, allowed and encouraged such deceptive sales practice. IT IS THEREFORE CHARGED that you, PATRICIA MARIE LORELLO, 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: Sections 626.592(2); 626.592(5); 626.913-.918; 626.611(4); 626.611(5); 626.611(7); 626.611(8); 626.611(9); 626.621(2); 626.621(3); 626.621(6); and 626.9541(1) (z), Florida Statutes, as fully described under Count I above and incorporated in full here. WHEREFORE, you, PATRICIA MARIE LORELLO, are hereby notified that the Treasurer and Tnsurance Commissioner intends to enter an te olan Lab Order suspending or revoking 3 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, and 626.9521, Florida Statutes, and under the other | referenced sections of the Florida Statutes as set out in n this ee eee nesipe kes ree entered in this case revoking | or suspending any license or 31 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 28-106, Florida Administrative Code (F.A.C.), 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 Insurance. 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, - The Petition or Electio _ received by, and filed in the Department within twenty-one (21) days of the date of your receipt of this notice. YOUR FAILURE TO RESPOND TO THIS ADMINISTRATIVE COMPLAINT WITHIN TWENTY-ONE _ (21) DAYS WILL CONSTITUTE A WAIVER oF ‘YOUR RIGHT TO REQUEST A PROCEEDING ON THE MATTERS ALLEGED HEREIN AND AN ORDER OF REVOCATION WILL BE ENTERED AGAINST you. , 32 Wee oes gee teen eeeeicenzwine Ste abet > ‘These proces gs fore | ate administrative law | Judge oe Ww 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 formal adversarial proceeding pursuant to Sections 120.569 and 120.57(1), Florida Statutes. If you request this type of proceeding, the request must comply with all of the requirements of Rule 28-106, F.A.C. 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 of the Division of Administrative Hearings. Unless the majority 33 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. You are hereby notified that mediation under Section 120.573, Florida Statutes, 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. March . os 7th DATED and SIGNED this day of BILL NELSON Treasurer and Insurance Commissioner Da aR ae RE Tea ve foregoing ADMINISTRATIVE COMPLAINT has been furnished to: i Ww ede Bo " ‘ Ww CERTIFICATE OF SERVICE I. HEREBY CERTIFY that a true and correct copy of the PATRICIA MARIE LORELLO, 5572 Park Blvd., Pinellas Park, Florida "34665-3353 and to PATRICIA MARIE LORELLO, 2477 Stag Run Blvd., 7th Clearwater, FL 34625-1835 by Certified U.S. Mail this day March of , 2000. David J. Busch Division of Legal Services 612 Larson Building Tallahassee, FL 32399-0307 (850) 413-4146

Docket for Case No: 00-001943