av) FILED MAY 18 2000 THE TREASURER OF THE STATE OF FLORIDA DEPARTMENT OF INSURANCE BILL NELSON IN THE MATTER OF: 00a TOY PL CASE NO. 32946-00-AG GERALD DANIEL PURPURA ADMINISTRATIVE COMPLAINT TO: GERALD DANIEL PURPURA 5105 SE 27" Street Ocala, Florida 34471 GERALD DANIEL PURPURA 6310 SW 121" Place Belleview, Florida 34420 You, GERALD DANIEL PURPURA, are hereby: notified that pursuant to Chapter 626, Florida Statutes 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 -.- yesult of which it is alleged: GENERAL ALLEGATIONS L. _ You, GERALD DANIEL PURPURA, are currently licensed in the state as a life and variable annuity contracts salesman and asa allife in insurance agent. wo WW 2. At all time pertinent to the dates and occurrences referred to in this Administrative Complaint you, GERALD DANIEL PURPURA, were licensed as an insurance agent in this state. 3. At all times pertinent to the dates and occurrences referred to in this. Administrative Complaint all funds received by you, GERALD DANIEL PURPURA, pursuant to Section 626.561, Florida Statutes, from consumers or on behalf of consumers were trust funds received in a fiduciary capacity and were to be paid over to persons entitled thereto in the regular course of business. COUNT I 4. Paragraphs one through three are realleged and incorporated herein by reference. ~ 5. On or about March 4, 1998, you, GERALD DANIEL PURPURA, in consideration for commissions and renewal payments based upon insurance policies sold, entered into a written manager’s agreement and a written management agreement with Life of Boston Insurance Company. 6. Pursuant to these above mentioned written agreements, you, GERALD DANIEL PURPURA, agreed to return any ‘compensation to the company that was received by you on premiums that were re subsequently returned to the policyholder or premiums which were subsequently p proven to be uncollecibe. 7. An auc by Lit of Boston Insurance Company revealed an indebtedness owed by ies you, GERALD DANIEL PURPURA, 2 as of October 6, 1998, of $21,922.50. This sum represented commissions advanced to you by Life of Boston on insurance policies that subsequently were cancelled and upon which premiums were uncollectible. ‘permit ‘Gee we ww 8. Demand has been made upon you, GERALD DANIEL PURPURA, for return of the commissions but you have failed to do so. 9. You, GERALD DANIEL PURPURA, have misappropriated, converted or unlawfully withheld for you own use and benefit moneys belonging to Life of Boston Insurance Company. 10. The insurer has made demand for return of the funds, but you, GERALD DANIEL PURPURA, have refused to return the funds. | IT IS THEREFORE CHARGED. that you, GERALD DANIEL PURPURA, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the State Treasurer and Insurance Commissioner which constitute grounds for the suspension or revocation of your insurance licenses and eligibility for licensure: (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) ‘Demonstrated lack of fitness 0 or trustworthiness to engage in the business of insurance. [Section 626. 61 10), Florida Statutes}; «(¢) Fraudulent or dishonest practices in the conduct of business under the license or 626.6119), Florida Statutes]; @ 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}; . 3 'w) : ~ (e) . Willful failure to comply with, or willful violation of, any proper order or rule of the department or willful violation of nay provision of this code. [Section 626.611(13), Florida Statutes]. (6) 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]. (g) 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]. COUNT IT 11. Paragraphs one through three are realleged and incorporated herein by reference. 12. Onor about May 15, 1998, you, GERALD DANIEL PURPURA, submitted a group enrollment application to Life of Boston Insurance Company purporting to enroll Dorothy Colwell of Ocala, Florida into a group insurance plan offering pre-need burial insurance. 13. Dorothy Colwell did not desire to be enrolled in the group insurance plan. The enrollment application was deceitfully submitted without Dorothy Colwell’s knowledge or informed consent and with her signature fraudulently affixed thereto. You, GERALD DANIEL PURPURA, were aware of ‘these facts. . 14. You, GERALD DANIEL PURPURA, submitted this false and fraudulent application to the insurer for the purpose of having a commission paid to you, which you did receive. 15. Life of Boston issued the policy to Dorothy Colwell. However, the policy was subsequently cancelled for non-payment of premium. Life of Boston has demanded a return of 4. ea! \e/ the commission paid on this policy, but you, GERALD DANIEL PURPURA, have failed to refund the commission. IT IS THEREFORE CHARGED that you, GERALD DANIEL PURPURA, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the s Treasurer and Insurance Commissioner which constitute grounds for the suspension or revocation of your insurance licenses and eligibility for licensure: Sections 626.561 (1); 626.611(7); 626.611(9); 626.61 1(10); 626.611(13); and 626.621(4), Florida Statutes, as more particularly alleged in Count I above and: (a) 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 626.611(5), Florida Statutes]; (b) 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 IX of this chapter. [Section 626.621(6), Florida Statutes]; (c) No person shall engage in this state in any trade practice which is defined in this part as, or determined pursuant to s. 626.9561 to be, an unfair method of competition or an unfair or. deceptive act or practice involving the business of insurance. Any person who violates any provision of this part shall be subject to the penalties provided in s. 627.381. [Section 626.9521, Florida Statutes]; — ; - . (d) Made false or fraudulent statements or representations on or relative to, an . application for an insurance policy for the purpose of obtaining a fee, commission, money or other benefit from any insurer, agent, broker or individual. [Section 626.9541(1)(k)1 , Florida Statutes]; w wy) COUNT I 16. Paragraphs one through three are realleged and incorporated herein by reference. 17. On or about June 24, 1998, you, GERALD DANIEL PURPURA, submitted a group enrollment application to Life of Boston Insurance Company purporting to enroll Steven B. Mace of Ocala, Florida into 2 group insurance plan offering pre-need burial insurance. The premiums of which were to be paid by the enrollee’s employer. 18. The application prepared by you, GERALD DANIEL PURPURA, represented that Steven B. Mace was employed by North Florida Emergency Equipment Service, Inc. of Ocala, Florida. The enrollment application was deceitfully submitted without the knowledge or informed consent of North Florida Emergency Equipment Service, Inc. Steven B. Mace is not and never has been an employee of North Florida Emergency Equipment Service, Inc. You, GERALD DANIEL PURPURA, were aware of these facts. . 19. You, GERALD DANIEL PURPURA, submitted this false and fraudulent. application to the insurer for the purpose of having a commission paid to you, which you did receive. 20.. Life of Boston issued the policy to Steven B. Mace. However, the policy was subsequently, cancelled when North Florida Emergency Equipment Service notified the insurer that Steven B. Mace v was not an an employee and ‘that the company would not pay the premium. Life of Boston has demanded a return of the commission mn paid on this s policy, but you, GERALD DANIEL PURPURA, have failed to refund the commission. IT Is ‘THEREFORE CHARGED that y you, , GERALD DANIEL PURPURA, have violated or are accountable ‘under the following provisions sof the Florida Insurance Code and Rules of the 5 Treasurer and Insurance Commissioner which | constitute grounds for the suspension or 6. VU WU revocation of your insurance licenses and eligibility for licensure: Sections 626.561(1); 626.611(7); 626.611(9); 626.611(10); 626.61(13); and 626.62104), Florida Statutes, as more particularly alleged in Count I above and Sections 626.611(5); 626.621(6); 626.9521; and 626.9541(1)(k)1, Florida Statutes, as more particularly alleged in Count II above. 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, 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. Ifa 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 1 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 wo baad 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 material. These proceedings are held before a State administrative law judge of the Division of Administrative Hearings. Unless the maj ority 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 Stattites, is not available. Failure to follow the procedure outlined with regard to your response to this notice may result i in the request being denied. All prior correspondence in this matter shall be considered freeform agency action, and no o such correspondence shall operate as a valid request for an administrative proceeding. Any request for administrative proceeding received prior to lye poemer er re y rr S 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 igen __ day of May, 2000. ILL NELSON Treasurer and Insurance Commissioner | | | cas | CERTIFICATE OF SERVICE IT HEREBY CERTIFY that a true and correct copy of the foregoing Administrative Complaint was mailed by certified mail to: GERALD DANIEL PURPURA, 5105 SE 27th Street, Ocala, Florida 34471 and GERALD DANIEL PURPURA, 6310 SW 121st Place, Belleview, Florida 34420 on this_18th day of May, 2000. oy A Mer (aes JAMES A. BOSSART, ESQUIRE / Division of Legal Services 612 Larson Building Tallahassee, FL 32399-0333 PRE: : A/C-#32946-00-AG. 7 oo ise nts uty nenstseiasintnnnnnanniee penencmrinnnnieete -AG-5/ "SENDER: “1M BOSSA as RE: 4 /C.#32946-00-AG-5/18/00 — “t ESQ. _ SENDER: JIM BOSSART, ESQ. following service (for an extra fee): RESTRICTED [x DELIVERY 3. Article Addressed to: : Consult postmaster for fee. -GERAED DAN; a ea cle mba 3. Article Addressed to: 5105 SE 27TH TH STROUP URA : GERALD DANIEL PURPURA P4975 975 905 OCALA, FLORIDA 3447 6310 SW 121ST PLACE NUL NA «._ BELLEVIEW, FLORIDA 34420 PO 4b. Service Type ix] CERTIFIED 7. Date of Delivery 3-23 OF 8. Addressee’s Address i‘ Domestic Return Receif oe rage eRe ree ope

Docket for Case No: 00-002764PL