FILED THE TREASURER OF THE STATE OF FLORIDA DEPARTMENT OF INSURANCE BILL NELSON So 2472 IN THE MATTER OF: do a : CASE NO. 31817-99-AG LUCIA ESTRELLA / ADMINISTRATIVE COMPLAINT TO: LUCIAESTRELLA Midwestern Brokers & Associates, Inc. fons] ao > on 8150 SW 8" Street So = Miami, FL 33144 me< == Boe oS al r LUCIA ESTRELLA we 2 71 311 NW 43° Place eas 2 Oo Miami, FL 33126 s 2 LUCIA ESTRELLA Midwestern Brokers & Associates, Inc. 10975 SW 40" Street, Suite #449 Miami, FL 33165 LUCIA ESTRELLA 13760 SW 49" Street Miami, FL 33175 You, LUCIA ESTRELLA, are hereby notified that the Insurance Commissioner of the State of Fiorida 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, LUCIA ESTRELLA, are . currently licensed in this state as a general lines agent (2-20) and health agent (2-40). WU 7] 2. At all times pertinent to the dates and occurrences referred to herein, you, LUCIA ESTRELLA, were licensed in this state as an insurance agent. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Insurance (hereinafter “the Department”) has jurisdiction over your insurance licenses and appointments. 4. At all times relevant to the allegations in this Administrative Compiaint you, LUCIA ESTRELLA, were doing business as or on behalf of Midwestern Brokers & Associates. 5. At all times relevant to the allegations in this Administrative Complaint, you, LUCIA ESTRELLA, were appointed by Interstate Fire & Casualty Insurance Company as its insurance agent. 6. At all times relevant to the allegations in this Administrative Complaint, you, LUCIA ESTRELLA, were appointed by Union American Insurance Company as its insurance agent. COUNT I 7. The above general allegations are hereby realleged and fully incorporated herein by reference. 8. On or about March 1998 you, LUCIA ESTRELLA, sold to Gladys Carrero, also known as Gladys Loreto, a homeowners insurance policy from Interstate Fire & Casualty Insurance Company. 9. The premium for one year of homeowner's insurance coverage was eight hundred forty nine dollars and thirty five cents ($849.35), which was paid in full by 2 U VU Norwest Mortgage on behalf of Gladys Carrero by bank check payable to Interstate Fire & Casualty Insurance Company. Norwest Mortgage sent the full first year premium to Midwestern Brokers & Associates. 10. You, LUCIA ESTRELLA, deposited, or caused to deposited, into Midwestern Brokers & Associates’ bank account the eight hundred forty nine dollars and thirty-five cents ($849.35) in annual homeowner's insurance premium received from Norwest Mortgage. 11. You, LUCIA ESTRELLA, financed Gladys Carrero’s first year premium through Convenient Finance Corporation, a premium finance company, despite having received the full annual premium for Gladys Carrero’s homeowner's insurance from Norwest Mortgage. 12. You, LUCIA ESTRELLA, financed Gladys Carrero’s first year premium through Convenient Finance Corporation without Gladys Carrero’s consent to finance the premium. 13. On or about June 8, 1998, Burns and Wilcox, Ltd., a licensed broker and managing general agent for interstate Fire & Casualty Insurance Company, mailed a cancellation notice to Gladys Carrero because of non-payment of the premium. Gladys Carrero received a second cancellation notice on or about September 21, 1998. 14. After repeated unsuccessful attempts to contact you, LUCIA ESTRELLA, Gladys Carrero contacted the Convenient Finance Corporation and was told that the finance contract had been cancelled. She requested a copy of the finance contract and upon review of the contract determined that her signature on the contract had been 3 U U forged and that the telephone number and address on the finance company’s records were not hers. 15. You, LUCIA ESTRELLA, forged or caused to be forged Gladys Carrero’s signature on the premium finance contract with Convenient Finance Corporation. 16. You, LUCIA ESTRELLA, submitted a forged and falsified premium finance contract to Convenient Finance Corporation to finance Gladys Carrero's homeowner's insurance. 17. You, LUCIA ESTRELLA, failed to timely remit to Interstate Fire & Casualty Insurance Company the eight hundred forty nine dollars and thirty five cents ($849.35) in annual mortgage insurance premium you received from Norwest Mortgage for Gladys Carrero’s homeowner's insurance. 18. You, LUCIA ESTRELLA, misappropriated and converted for your own use and benefit the eight hundred forty nine dollars and thirty five cents ($849.35) in annual mortgage insurance premium you received from Norwest Mortgage to pay the annual premium on Gladys Carrero’s homeowners insurance. IT iS THEREFORE CHARGED that you, LUCIA ESTRELLA, 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: (a) 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 4 UU UY (h) 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]; (i) No person shall engage in this state in any trade practice which is defined in this part as, or determined pursuant to Section 626.951 or Section 626.9561 to be an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance. [Section 626.9521(1), Florida Statutes]; (j) Any person who violates any provision of this part shall be subject to a fine in an amount not greater than $2,500 for each nonwiilful violation and not greater than $20,000 for each willful violation. Fines under this subsection may not exceed an aggregate amount of $10,000 for all nonwillful violations arising out of the same action or an aggregate amount of $100,000 for all willful violations arising out of the same action. The fines authorized by this subsection may be imposed in addition to any other ‘applicable penalty. [Section 626.9521(2), Florida Statutes]; {k) Knowingly collecting any sum as a premium or charge for insurance, which is not then provided, or is not in due course to be provided, subject to acceptance of the risk by the insurer, by an insurance policy issued by an insurer as permitted by this code. [Section 626.954 1(1)(o) 1]. COUNT II 19. The above general allegations are hereby realleged and fully incorporated herein by reference. 1) UW 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]; (b) Any agent, customer representative, solicitor, or adjuster who, not being lawfully entitled thereto, either temporarily or permanently diverts or misappropriates such funds or any portion thereof or deprives the other person of a benefit therefrom commits the offense specified below. [Section 626.561(3), Florida Statutes]. If the funds diverted or misappropriated are more than $300, but less than $20,000, a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084. [Section 626.561(3)(b), Florida Statutes}; (c) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.61 1(7), Florida Statutes]; | (da) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.61 1(9), Florida Statutes]; (e) 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}; (f) 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]; (g) 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 appointment. [Section 626.621(2), Florida Statutes}; UW UY 20. Onor about April 27, 1998, you, LUCIA ESTRELLA, sold to Silvestre Martinez personal injury protection and property damage (PIP) annual coverage from Union American Insurance Company. You represented to Silvestre Martinez that the annual premium for this coverage was three hundred seventy three dollars ($373.00). 21. On or about April 27, 1998, Silvestre Martinez gave to you, LUCIA ESTRELLA, three hundred seventy three dollars ($373.00) as the annual premium for the insurance that you sold to him. 22. You, LUCIA ESTRELLA, gave Silvestre Martinez a proof of insurance card indicating an insurance inception date of April 27, 1998. 23. On or about July 31, 1998, you, LUCIA ESTRELLA, sold additional PIP coverage to Silvestre Martinez’s to include his daughter, Dianelys Martinez, as an authorized driver on his vehicle. You represented to Silvestre Martinez that the additional coverage was also for a one-year term and that the additional annual premium was one hundred thirty eight dollars and thirty four cents ($138.34). 24. On or about July 31, 1998, Silvestre Martinez gave to you, LUCIA ESTRELLA, one hundred thirty eight dollars and thirty four cents ($138.34) as the annual premium for the additional insurance coverage that you sold to him to include his daughter, Dianelys Martinez, as an authorized driver on his vehicle. 25. You, LUCIA ESTRELLA, gave Silvestre Martinez a proof of insurance card indicating an insurance inception date of April 27, 1998, and an expiration date of April 27, 1999, for the additional coverage for his daughter, Dianelys Martinez, as an authorized driver on his vehicle. U UY 26. You, LUCIA ESTRELLA, misrepresented to Silvestre Martinez the period of PIP insurance coverage, including its inception and expiration dates. Contrary to your representations to Silvestre Martinez, the PIP insurance, including the additional coverage for his daughter, that you sold to him had six-month term, an inception date of August 3, 1998, and an expiration date of February 2, 1999. 27. The PIP insurance coverage that you, LUCIA ESTRELLA, sold to Silvestre Martinez, including the additional coverage for Dianelys Martinez, was not bound until August 3, 1998. Consequently, Silvestre Martinez and Dianelys Martinez went for a period of approximately three months without PIP insurance coverage because of your misrepresentation. 28. You, LUCIA ESTRELLA, temporarily misappropriated and converted for your own use and benefit the five hundred eleven dollars and thirty four cents ($511 .34) given to you by Silvestre Martinez for the annual premium on the PIP insurance coverage for himself and Dianelys Martinez by not promptly binding the coverage and remitting the policy and premium to Union American Insurance Company. IT IS THEREFORE CHARGED that you, LUCIA ESTRELLA, 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: (a) 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 8 VU U 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]; (b) Any agent, customer representative, solicitor, or adjuster who, not being lawfully entitled thereto, either temporarily or permanently diverts or misappropriates such funds or any portion thereof or deprives the other person of a benefit therefrom commits the offense specified below. [Section 626.561(3), Florida Statutes]. If the funds diverted or misappropriated are more than $300, but less than $20,000, a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084. [Section 626.561(3)(b), Florida Statutes]; (c) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes}: (d) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; (e) 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}: (f) 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]; (9) 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 appointment. [Section 626.621(2), Florida Statutes]; (h) 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]; (i) No person shall engage in this state in any trade practice which is defined in this part as, or determined pursuant to Section 626.951 or Section 626.9561 to be an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance. [Section 626.9521(1), Florida Statutes]; (j) Any person who violates any provision of this part shall be subject to a fine in an amount not greater than $2,500 for each nonwillful violation and not greater than $20,000 for each willful violation. Fines under this subsection may not exceed an aggregate amount of $10,000 for all nonwillful violations arising out of the same action or an aggregate amount of $100,000 for all willful violations arising out of the same action. The fines authorized by this subsection may be imposed in addition to any other applicable penalty. [Section 626.9521(2), Florida Statutes]; (k) Knowingly collecting any sum as a premium or charge for insurance, which is not then provided, or is not in due course to be provided, subject to acceptance of the risk by the insurer, by an insurance policy issued by an insurer as permitted by this code. [Section 626.9541(1)(o)1]. COUNT III 29. The above general allegations are hereby realleged and fully incorporated herein by reference. 10 U VU 30. You, LUCIA ESTRELLA, collected four hundred eighty-five dollars and seventy-five cents ($485.75) in premiums and retained as commissions that you were required to return to Auto Premium Finance Corporation, a premium finance company, as unearned commissions. 31. | Auto Premium Finance Corporation is entitled to return by you of the four hundred eighty-five dollars and seventy-five cents ($485.75) in premiums that were retained by you as commissions. 32. You, LUCIA ESTRELLA, failed to return to Auto Premium Finance Corporation unearned commissions retained by you in the amount of four hundred eighty-five dollars and seventy-five cents ($485.75). 33. You, LUCIA ESTRELLA, have failed to return the unearned commissions after repeated demands by Auto Premium Finance Corporation. 34. You, LUCIA ESTRELLA, misappropriated and converted for your own use and benefit four hundred eighty-five dollars and seventy-five cents ($485.75) in unearned commissions collected and retained by you that should have been returned to Auto Premium Finance Corporation. IT IS THEREFORE CHARGED that you, LUCIA ESTRELLA, 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: 11 YU Y (a) 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]; (b) Any agent, customer representative, solicitor, or adjuster who, not being lawfully entitled thereto, either temporarily or permanently diverts or misappropriates such funds or any portion thereof or deprives the other person of a benefit therefrom commits the offense specified below. [Section 626.561(3), Florida Statutes]. If the funds diverted or misappropriated are more than $300, but less than $20,000, a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084. [Section 626.561(3)(b), Florida Statutes]; (c) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.61 1(7), Florida Statutes]; (d) | Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.61 1(9), Florida Statutes}; (e) _ Misappropriation, conversion, or untawful withholding of moneys belonging to insurers or insureds or beneficiaries or to others and received in conduct of business under the license. [Section 626.61 1(10), Florida Statutes]; (f) 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]; 12 WU Nw] (g) 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 appointment. [Section 626.621(2), Florida Statutes]; (h) 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]; (i) No person shall engage in this state in any trade practice which is defined in this part as, or determined pursuant to Section 626.951 or Section 626.9561 to be an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance. [Section 626.9521(1), Florida Statutes]; @ Any person who violates any provision of this part shall be subject to a fine in an amount not greater than $2,500 for each nonwillful violation and not greater than $20,000 for each willful violation. Fines under this subsection may not exceed an aggregate amount of $10,000 for all nonwillful violations arising out of the same action or an aggregate amount of $100,000 for all willful violations arising out of the same action. The fines authorized by this subsection may be imposed in addition to any other applicable penalty. [Section 626.9521(2), Florida Statutes]; . {k) Knowingly collecting any sum as a premium or charge for insurance, which is not then provided, or is not in due course to be provided, subject to acceptance of the risk by the insurer, by an insurance policy issued by an insurer as permitted by this code. [Section 626.9541(1)(0)1]. 13 vu UY COUNT IV 35. | The above general allegations are hereby realleged and fully incorporated herein by reference. 36. At all times relevant to the allegations in this Administrative Complaint the Department's records indicate that your, LUCIA ESTRELLA’S, business’ street and mailing address was 10975 SW 40" Street, Miami, Florida 33165. 37. On or about May 1998, your, LUCIA ESTRELLA'S, business street and mailing address was changed to 8150 SW 8" Street, Miami, Florida 33144. 38. You, LUCIA ESTRELLA, failed to notify the Department in writing within 30 days after a change of name, residence address, principal business street address, or mailing address. IT IS THEREFORE CHARGED that you, LUCIA ESTRELLA, 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: (a) Every licensee shall notify the department in writing within 30 days after a change of name, residence address, principal business street address, or mailing address. Any licensed agent who has moved his or her residence from this state shall have his or her license and all appointments immediately terminated by the department. [Section 626.551, Florida Statutes]; (b) | Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.61 1(7), Florida Statutes]; 14 YU UY (c) 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]; (d) 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 appointment. [Section 626.621(2), Florida Statutes]. WHEREFORE, you, LUCIA ESTRELLA, 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 penaities 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 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 15 YY VU 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 32399-0333. The Petition or Election must be 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. 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; 16 U U 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 Departmentwill 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. DATED and SIGNED this 2/st_ day of Apr. | , 2000. BILL NELSON Treasurer and Insurance Commissioner 17 YU VU CERTIFICATE OF SERVICE | HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT has been furnished to LUCIA ESTRELLA, Midwestem Brokers & Associates, Inc., 8150 SW 8" Street, Miami, FL 33144; LUCIA ESTRELLA, 311 NW 43” Place, Miami, FL 33126; LUCIA ESTRELLA, Midwestern Brokers & Associates, Inc., 10975 SW 40” Street, Suite #449, Miami, FL 33165; and LUCIA on ESTRELLA, 13760 SW 49" Street, Miami, FL 33175, by Certified Mail this 2h day of Ape! a , 2000. ZZ. Miguel Oxamendi, Senior Attorney Division of Legal Services 612 Larson Building Tallahassee, FL 32399-0333 (904) 922-3110 Ext. 4149 18

Docket for Case No: 00-002492