per att ee THE TREASURER OF THE STATE OF FLORIDA DEPARTMENT OF INSURANCE an BILL NELSON w 00-2020 z.4¢ go, if IN THE MATTER OF: CLP 4 STEPHEN EDWARD FREDERICK / Pope CASE NO. 331879846 ADMINISTRATIVE COMPLAINT TO: STEPHEN EDWARD FREDERICK 2237 Herschel Street Jacksonville, Florida 32204 ~ “STEPHEN EDWARD FREDERICK 480 Busch Drive Jacksonville, Florida 32218 You, STEPHEN EDWARD FREDERICK, are hereby notified that pursuant to Chapters made an investigation of your activities while licensed as an insurance agent in this state, as a result of which itis alleged that: ~ nee 8 _GENERALALLEGATIONS 1. You, STEPHEN EDWARD FREDERICK, are currently licensed in this state as a life, health, and variable annuity contracts salesman, life insurance agent and general lines insurance agent limited to Industrial Fire and Burglary. a ga pen cemnre memes cree sni rte fatale ye te wr) vom ao Ww 2. At all times relevant to the dates and cccurences alleged herein, you, STEPHEN EDWARD FREDERICK, were lensed in this state as an insurance agent. 3. Pursuant to Chapter 6 626, Florida Statutes, the Insurance Commissioner of the State of Florida and the Department of Insurance has jurisdiction over your insurance licenses and your eligibility for licensure and appointment. COUNTI 4. The above General Allegations numbered one (1) through three (3) are hereby realleged and fully incorporated herein by reference. 5. On or about December 7, 1998, you, STEPHEN EDWARD FREDERICK, visited the home of Redric Lands, age 70 of Hastings, Florida, for the purpose of soliciting the sale of insurance policies. . 6. As of December 7, 1998, a Gulf Life Insurance life insurance policy (n\k\a American . General) policy number 851 03545 was in full force and effect, Redric Lands, insured. 7. On or about March 7, 1998, you, STEPHEN EDWARD FREDERICK, were informed by Redric Lands that he did not desire to purchase any new life insurance policies. However, Redric Lands, did request that his above mentioned Gulf Life insurance policy be placed into a revocable trust that was being setting up ‘for estate purposes. : 8. You, STEPHEN EDWARD FREDERICK, failed to place the Gulf Life-insurance ; policy i into > the trust. Rather, you, ‘STEPHEN EDWARD FREDERICK, without Redric Lands knowledge 0 or informed consent, _ faulty caused his Gulf Life insurance policy to be surrendered and the cash value transferred to é a new American Genera Life life i insurance policy, policy m number | 98308291. ee ere eee ee _, insurance. [Section 626 61 1(7), Florida Statutes] 9. You, STEPHEN EDWARD FREDERICK, represented to Redric Lands that the Gulf Life insurance policy was being Placed into his trust. You, STEPHEN EDWARD FREDERICK, failed to disclose to Redric Lands at any time that his Gulf Life insurance policy had been surrendered and that'a new American General insurance policy had been taken out, despite his express instructionsto the contrary. These were false and material misstatements of fact. 10. The misleading and deceptive statements were made for the purpose of ‘obtaining a fee, commission, money or other benefit from an insurance company. IT IS THEREFORE CHARGED that you, STEPHEN EDWARD FREDERICK, have violated or are accountable under the following provisions of the Florida Insurance Code which constitute grounds for the suspension or revocation of your licenses as an insurance agent in the state: (a) If the license or appointment is willfully used, or to be used, to circumvent any of the requirements or prohibitions of this code. [Section 626.61 1(4), Florida Statutes] (b) Willful 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 626.61 1(5), Florida Statutes] (c) Demonstrated lack of fitness or trustworthiness to engage in the business of ~"(@) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.611(8), Florida Statutes] Mi anak Mladen. im, «tania, (e) . Fraudulent 0 or dishonest practices in the conduct of business under the license or appointment. [Section 626.61 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] (h) Violation of any lawful order or rule of the department. [Section 626.621(3), Florida Statutes] . @ 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. [Section 626.621(6), Florida Statutes} 6) Knowingly making, issuing, circulating, or causing to be made, issued, or circulated, any estimate, illustration, circular, statement, sales presentation, omission, or comparison, which iisrepresents ‘the benefits, advantages, conditions, or terms of any insurance policy. [Section 626. es41(Nt Florida Statutes] . () Koowing: oo. . a Filing. with any: supervisory or other public official, b. Making, publishing, disseminating, circulating, a e Delivering to any person, — a Placing before the public, cone eee ee aed ll i e. Causing, directly or indirectly, to be made, published, disseminated, circulated, -- delivered to any person, or placed before the public, any false material statement. [Section 626.9541(1)(e) 1, Florida Statutes] f. Knowingly making any misleading representations or incomplete or fraudulent comparisons or fraudulent material omissions of or with respect to any insurance policies or insurers for the purpose of inducing any person to surrender any insurance policy, or take out a policy of insurance in another insurer. [Section 626.9541(1)(), Florida Statutes] COUNTTI 11. The above General Allegations numbered one (1) through three (3) are hereby realleged and fully incorporated herein by reference. 12. On or about December 2, 1998, you, STEPHEN EDWARD FREDERICK, visited the home of Robert Duncan of St. Augustine, Florida for the purpose of soliciting the sale of insurance policies. 13. On or about December 2, 1998, you, STEPHEN EDWARD FREDERICK, solicited and sold to Robert Duncan an American General Life Insurance Company life insurance policy. 14. Question 19b of the application submitted by you, STEPHEN EDWARD FREDERICK, asks if the applicant has ever “been medically diagnosed as having or been treated for cancer, tumor, ect”. This question is answered “No”. The response to question 19b is false and a material misstatement of fact. Robert Duncan has been treated in the past for cancer of the throat. You, STEPHEN EDWARD DUNCAN, were aware or should have been aware of this fact. ere eg 15. If Robert Dunc insurance policy would not have been issued. You, STEPHEN EDWARD FREDERICK, were aware of this fact. As a result of your misrepresentations, the insurance company rescinded the policy and Robert Duncan has lost his insurance coverage. 16. The misleading and deceptive statements were made for the purpose of obtaining a fee, commission, money or other benefit from an insurance company. IT IS THEREFORE CHARGED that you, STEPHEN EDWARD FREDERICK, have violated or are accountable under the following provisions of the Florida Insurance Code which constitute grounds for the suspension or revocation of your licenses as an insurance agent in the state: Sections 626.611(4); 626.611(5); 626.611(7); 626.611(8); 626.611(9); 626.611(13); 626.621(2): 626.621(3); 626.621(6); 626.9541(1)(a)1 ‘and 626.9541(1)}(e)1, Florida Statutes, as more particularly alleged in Count I above. COUNT Il 17. The above General Allegations numbered one (1) through three (3) are hereby realleged and fully incorporated herein by reference. 18. On or about October 10, 1998, you, STEPHEN EDWARD FREDERICK, visited the home of Eugene M of Elkton, Florida for the purpose of soliciting the sale of insurance _ - policies. ber 10, 1998, you, STEPHEN EDWARD FREDERICK, solicited FREDERICK, asks if the applicant has ever 6 1°s true medical condition had been disclosed to the insurer, the “been medically diagnosed as having or been treated ape ene ep ping epee peg eee re cements eo ceeeewe ee pemgees for cancer, tumor, ect”. This question is answered “No”. The response to question 19b is false and a material misstatement of fact. Eugene Murray has been treated in the past for cancer of the prostate. You, STEPHEN EDWARD DUNCAN, were aware or should have been aware of this fact. 21. If Eugene Murray’s true medical condition had been disclosed to the insurer, the insurance policy would not have been issued. You, STEPHEN EDWARD FREDERICK, were aware of this fact. 22. The misleading and deceptive statements were made for the purpose of obtaining a fee, commission, money or other benefit from an insurance company. IT IS THEREFORE CHARGED that you, STEPHEN EDWARD FREDERICK, have violated or are accountable under the following provisions of the Florida Insurance Code which constitute grounds for the suspension or revocation of your licenses as an insurance agent in the state: Sections 626.61 1(4); 626.611(5); 626.611(7); 626.611(8); 626.611(9); 626.611(13); 626.621(2); 626.621(3); 626.621(6); 626.9541(1)(a)1 and 626.9541(1)(e)1, Florida Statutes, as more particularly alleged in Count I above. . NOTICE OF RIGHTS Pursuant to Sections 120.569 and 120.57, Florida Statutes and Rule ‘Chapter 28-106, Florida Administrative Code . AC. yy ‘you have a right to request a proveeding to contest this action by the Department. ‘You may elect a proceeding by completing the attached Blection 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 US Mail the Petition or Election should be addressed to the Florida Department of Insurance at 612 7 wo Lo . ( a =, ~ 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 fiwenty-one (1) days of the date of y your ar 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 normaily n not required i 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 Section 120.569 and 120.57(1), Florida Statutes. If you request this type of proceeding, the request must comply with all ements of Rule Chapter 28-106, FAC. ; and contain : a A “statement i identifying with particularity the allegations of the Department ‘which you dispute and the nature of 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. a ene | / wo . Ww 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. 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 set out above. DATED and SIGNED this 3) Sfday of TV lay , 2000. BILL NELSON Treasurer and Insurance Commissioner Me . STATE OF FLORIDA DEPARTMENT OF INSURANCE INTHEMATTEROF: STEPHEN EDWARD FREDERICK CASE NO.: 33187-99-AG / ELECTION OF RIGHTS I have received and have read the Administrative Complaint filed against me including the Notice of Rights contained therein and J understand my options. I am requesting disposition of this matter as indicated below. (Choose one) 1. [ ] Ido not desire a proceeding. The Department may enter a final order revoking my license(s). 2. I do not dispute any of the Department's factual allegations and I hereby elect an informal proceeding to be conducted in accordance with section 120.57(2), Florida Statutes. In this regard I desire to (Choose one): {] “submit a written statement and documentary evidence [] attend an informal hearing to be held in Tallahassee; or [ ] attend an informal ‘hearing by way of a telephone conference call. 3. [ ] Ido dispute the Department's factual allegations. I have attached to this form a Statements indicating the specific issues of fact which are disputed and other required information indicated in the Notice of Rights. I hereby request a formal _ady proceeding pursuant to Section 120. .57(1), Florida Statutes to be held before e Division of Administrative earings. DATE: - Signature of Petitioner _TO PRESERVE YOUR RIGHT TO A _ Name: WITHI Address: ; (21) DAYS OF enero TO THE — DEPARTMENT OF INSURANCE AT. THE ADDRESS] INDICATED IN THE NOTICE OF RIGHTS. Phone: es 10 wpe ge ee weep ow eee CERTIFICATE OF SERVICE I HEREBY CERTIF Y that a true and correct copy of the foregoing Administrative Complaint has been furnished by certified United States Mail to: STEPHEN EDWARD FREDERICK, 2237 Herschel Street, Jacksonville, Florida 32204 and STEPHEN EDWARD FREDERICK, 480 Busch Drive, Jacksonville, Florida 32218, this . St day of aH ,2000. JAMES A. BOSSART, ESQUIRE \ ape of Legal Services ~612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4124 “RE: ADMINISTRATIVE COMPLAINT - 5- 31+ oc RE: ADMINISTRATIVE COMPLAINT - 5-31-00 SENDER: JAMES A BOSSART ESQU SENDER: JAMES A BOSSART ESQU { also wish to receive the following service (for an extra fee): RESTRICTED (sj DELIVERY Consult postmaster for fee. 3. Article “pddressed to: | 3. Article Addressed to: MR STEPHEN EDWARD MR STEPHEN E FREDERICK FREDERICK : 480 BUSCH DRIVE 2237 HERSCHEL STREET : JACKSONVILLE FLORIDA 32218 JACKSONVILLE FLORIDA 32204 : ole oi uid feceived By: (Print Name) | Si ature: (Addressee or Agent) 4a. Article Number P4975 974 ab0 ~OEA [4b. Service Type [XX] CERTIFIED 7. Date of Delivery 8, Addressee’s Address GO hint. ge i = 3811, December 1994 Domestic Return Rece

Docket for Case No: 00-002620