FILED eRe ir wo JUN 30 9909 THE TREASURER OF THE STATE OF FLORIDA INSU! TREASURER AND DEPARTMENT OF INSURANCE boeketed oe COM BILL NELSON IN THE MATTER OF: oo, CASE NO: 35028-00-AG ae ee PAULA MAE EVERTON One ares 90-2905 ADMINISTRATIVE COMPLAINT TO: PAULA MAE EVERTON Paula Everton Agency 14949N. Florida Ave. Tampa, Florida 33613-1612 PAULA MAE EVERTON 1304 Parrilla de Avila Tampa, Florida 33613-1037 You, PAULA MAE EVERTON, are hereby notified that the Insurance Commissioner of the State of Florida has caused to be made an investigation of your activities while licensed as an insurance agent in this state, as a result of which it is alleged: : GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, PAULA MAE EVERTON, are currently licensed in this state as a life and variable annuity, life, life and health, and general lines agent. 2. At all times pertinent to the dates and occurrences referred to herein, you, PAULA MAE EVERTON, were licensed in this state as an insurance agent. LW wy) 3. Pursuant to Chapter 626, Florida Statues, the Florida Department of Insurance has jurisdiction over your insurance licenses and appointments. 4. At all times pertinent to the dates and occurrences referred to herein, you, PAULA MAE EVERTON were an agent for the Paula Everton Agency at 14949 N. Florida Avenue, Tampa, Florida 33613-1612. 5. From at least November, 1998 to the present, the Paula Everton Agency routinely used automobile sales personnel to solicit clients and collect premium monies for automobile insurance policies. These automobile sales personnel were not licensed to transact insurance by the State of Florida Department of Insurance. 6. If, while purchasing an automobile, an individual needed to arrange for automobile insurance, the automobile sales person would call either the Paula Everton Agency on behalf of the purchaser, and, in many cases, the automobile sales person would arrange for the coverage, note the binder number and accept a down payment, often in cash, from the applicant, who often did not even speak to the insurance agent. 7. From at least late 1998 through 1999, the automobile sales persons delivered the collected premium down payments to agents at the Chip Everton Agency and the Paula Everton Agency, while were collocated at 14949 N. Florida Ave., Tampa, Florida. The automobile sales persons were, there and then, paid $25.00 for each referral, and with the knowledge and consent of you, PAULA MAE EVERTON, employees of the Chip Everton Agency and the Paula Everton Agency actually delivered these monies to the automobile sales persons. 8. In or about January 2000, after the Chip Everton Agency opened an office at 3046 W. Bearss Avenue, Tampa, Florida. After that date, insurance agents employed by the Paula VY VA Everton Agency would stop by the automobile dealership and pick up the collected premium down payments, with the dealership sales person getting $25.00 for each referral. COUNTI 9. General allegations 1-8 are hereby realleged and fully incorporated herein by reference. . 10, On or about May 18, 1998, Andre Talien purchased an automobile from Car Credit, in Tampa, Florida, from a salesman who identified himself as Greg. 11. On that occasion Greg told Mr. Talien that auto insurance had to be purchased from Allstate before the car could leave the lot. 12, Greg then called an Paula Everton Agency, and after discussions between Greg and the agency, Greg was given a binder number for Mr. Talien. Mr. Talien did not talk to the agent. Greg told Mr. Talien the agent’s name was Paula Everton. Mr. Talien then gave Greg a check for the down payment on the auto insurance. Mr. Talien was not given a receipt. 13. You, PAULA MAE EVERTON, aided and abetted an unlicensed person in transacting insurance without a license. IT IS THEREFORE CHARGED that you, PAULA MAE EVERTON, 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) Knowingly aiding, assisting, procuring, advising, or abetting any person in the violation of or to violate a provision of the insurance code or any order or rule of the department. [Section 626.621(12), Florida Statutes]; ww) Nw) (b) “Transact” with respect to insurance includes any of the following, in addition to other applicable provisions of this code: (1) Solicitation or inducement, (2) Preliminary negotiations, (3) Effectuation of a contract of insurance, (4) Transaction of matters subsequent to effectuation of a contract of insurance and arising out of it. [Section 624.10, Florida Statutes]. (c) No person shall transact insurance in this state, or relative to a subject of insurance resident, located, or to be performed in this state, without complying with the applicable provisions of this code. [Section 624.11, Florida Statutes]. (d) With respect to any such insurance, no person shall, unless licensed as an agent: (a) Solicit insurance or procure applications therefor; (b) In this state receive or receipt for any money on account of or for any insurer, or receive or receipt for money from other persons to be transmitted to any insurer for a policy, contract, or certificate of insurance or any renewal thereof, although such policy, certificate, or contract is not signed by him or her as agent or representative of the insurer. [Section 626.041(2), Florida Statutes]. (e) No person shall be, act as, or advertise or hold himself or herself out to be an insurance agent, customer representative, solicitor, or adjuster unless he or she is currently licensed and appointed. [Section 626.112(1), Florida Statutes]. . COUNT II . 14. The above general allegations are hereby realleged and fully incorporated herein by reference. 15. On or about November 27, 1999, Sandra Hamlim purchased an automobile. The auto dealer sales person arranged the auto insurance through the Paula Everton Agency. Ms. Hamlin paid the sales person $125.00 as premium down payment on the auto insurance. YU WY 16. At the end of December 1999, Ms. Hamlin called you, PAULA MAE EVERTON, to ask why she had not received her policy. She learned from you that no policy had been issued at that time. 17. The automobile insurance policy written for Mr. Hamlin indicated that the $125.00 was applied against the policy on January 4, 2000 however, the policy had an effective date of November 27, 1999. 18. You, PAULA MAE EVERTON, failed to timely bind insurance coverage for Ms. Hamlin in violation of the Florida Insurance Code, and aided and abetted an unlicensed person in transacting insurance. IT IS THEREFORE CHARGED that you, PAULA MAE EVERTON, 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) Knowingly aiding, assisting, procuring, advising, or abetting any person in the violation of or to violate a provision of the insurance code or any order or rule of the department. [Section 626.621(12), Florida Statutes]; . (b) “Transact" with respect to insurance includes any of the following, in addition to other applicable provisions of this code: (1) Solicitation or inducement, (2) Preliminary negotiations, (3) Effectuation of a contract of insurance, (4) Transaction of matters subsequent to effectuation of a contract of insurance and arising out of it. [Section 624.10, Florida Statutes]. (c) No person shall transact insurance in this state, or relative to a subject of insurance resident, located, or to be performed in this state, without complying with the applicable provisions of this code. [Section 624.11, Florida Statutes]. UW UW (d) With respect to any such insurance, no person shall, unless licensed as an agent: (a) Solicit insurance or procure applications therefor; (b) In this state receive or receipt for any money on account of or for any insurer, or receive or receipt for money from other persons to be transmitted to any insurer for a policy, contract, or certificate of insurance or any renewal thereof, although such policy, certificate, or contract is not signed by him or her as agent or representative of the insurer. [Section 626.041 (2), Florida Statutes]. (e) No person shall be, act as, or advertise or hold himself or herself out to be an insurance agent, customer representative, solicitor, or adjuster unless he or she is currently licensed and appointed. [Section 626.112(1), Florida Statutes]. COUNT III 19. The above general allegations are hereby realleged and fully incorporated herein by reference. 20. On or about March 20, 2000, Roy Greer went to an Allstate Insurance Agency to make a payment on his auto policy. The local agent was not able to find any record of a policy for Mr. Greer even though he had an application with a control number dated a month earlier. Mr. Greer had made a $150 premium down payment. 21. You, PAULA MAE EVERTON, told the local agent that you would take care of the problem. 22. You, PAULA MAE EVERTON, applied the $150 payment to a new policy on March 23, 2000, however, put the effective date as February 22, 2000. 23. You, PAULA MAE EVERTON, failed to timely bind coverage in violation of the Florida Insurance Code. YY Nw] IT IS THEREFORE CHARGED that you, PAULA MAE EVERTON, 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) Willful misrepresentationof any insurance policy or willful deception with regard to such policy or contract. [Section 626.611(5), Florida Statutes]. COUNT IV 24. The above general allegations are hereby realleged and fully incorporated herein by reference. 25. Sharon Yvett Olds has been a customer of PAULA MAE EVERTON and the Paula Everton Agency for the past five years. 26. Sharon Yvett Olds has lived at 2906 Massachusetts, Tampa, Florida for the past 25 years. This address is in Hillsborough County. 27. Onor about September 11, 1999, Ms. Olds purchased a new vehicle. When she added the new vehicle to her auto insurance policy, PAULA MAE EVERTON, changed the vehicles (two) location code to indicate that the vehicles were located in Pasco County. The insurance rate for Pasco County is cheaper than Hillsborough County. 28. | PAULA MAE EVERTON misrated automobile insurance policies in order to offer customers’ lower insurance rates, lower down payments, and lower monthly payments, thus under cutting prices offered by competing agencies. 29. You, PAULA MAE EVERTON, knew or using due diligence should have known that misrating insurance polices is illegal under the unfair methods of competition and/or deceptive practices sections of the Florida Insurance Code. UW 7] IT IS THEREFORE CHARGED that you, PAULA MAE EVERTON, 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) Willful misrepresentation of any insurance policy or willful deception with regard to such policy or contract. [Section 626.611 (5), Florida Statutes]. COUNT V 30. | PAULA MAE EVERTON is the person operating the Paula Everton Agency at 14949 N. Florida Ave., Tampa, Florida. 31. A primary agent is the licensed agent responsible for the hiring and supervision of all individuals within the agency location. 32. | The Paula Everton Agency at 14949 N. Florida Ave., Tampa, Florida has not designated a primary insurance agent as required by the Florida Insurance Code. [Section 626.592, Florida Statutes]. IT IS THEREFORE CHARGED that you, PAULA MAE EVERTON, 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) Each person operating an insurance agency and each location of a multiple location agency shall designate a primary agent for each insurance agency location and shail file the name of the person so designated ... with the Department. [Section 626.592(1), Florida Statutes]. WY Ne (b) 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]; (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 permit. [Section 626.621(2), Florida Statutes]; (e) The primary agent in an unincorporated agency shall be responsible and accountable for the acts of salaried employees under his or her direct supervision and control, while acting on behalf of the agency. Nothing in this section shall be construed to render any person criminally liable or subject to any disciplinary proceedings for any act unless such person personally committed or knew or should have known of such act and of the facts constituting a violation of this chapter. [Section 626.592(5), Florida Statutes]. () An insurance agency location may not conduct the business of insurance unless a primary agent is designated at all times. Failure to designate a primary agent, on a form prescribed by the department, within 30 days after agency inception or change of primary agent designation, constitutes grounds for requiring that the agency obtain a license in accordance with Sections 626.112 and 626.172. [Section 626.592(7), Florida Statutes]. (g) The following are defined as unfair methods of competition and unfair or deceptive acts or practices: 1. 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 UY A acceptance of the risk by the insurer, by an insurance policy issued by an insurer as permitted by this code. 2. Knowingly collecting as a premium or charge for insurance any sum in excess of or less than the premium or charge applicable to such insurance, in accordance with the applicable classifications and rates as filed with and approved by the department, and as specified in the policy. [Section 626.9541(1)(0), Florida Statutes] WHEREFORE, you, PAULA MAE EVERTON, are hereby notified that the Treasurer and Insurance Commissioner intends to enter an Order suspending or revoking your licenses and appointments as an insurance agent or to impose such penalties as may be provided under the provisions of Sections 626.611, 626.621, 626.681, 626.691, and 626.9521, Florida Statutes, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. You are further notified that any order entered in this case revoking or suspending any license or eligibility for licensure held by you shall also apply to all other licenses and eligibility held by you under the Florida Insurance Code. NOTICE OF RIGHTS Pursuant to Sections 120.569 and 120.57, Florida Statutes, and Rule 28-106 Florida Administrative Code (F.A.C.), you have a right to request a hearing to contest this action by the Department. You may request a hearing by filing a Petition. The Petition must be in writing and signed by you. The Petition requesting a hearing must be directed to the General Counsel, acting as the Agency Clerk for the Department of Insurance. If you respond by U.S. Mail, the Petition 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 should be delivered to 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. The Petition must be received by the Department within twenty-one (21) days of the date of your WY Ne receipt of this notice. Mailing the Petition on the twenty-first day will not preserve your right to a hearing. YOUR FAILURE TO SO ENSURE THAT THE PETITION REPLYING TO THIS ADMINISTRATIVE COMPLAINT IS RECEIVED BY THE DEPARTMENT WITHIN TWENTY-ONE (21) DAYS WILL CONSTITUTE A WAIVER OF YOUR RIGHT TO REQUEST A HEARING ON THE MATTERS ALLEGED HEREIN AND AN ORDER OF REVOCATION WILL BE ENTERED AGAINST YOU. You may be entitled to a hearing on the proposed agency action pursuant to Sections 120.569 and 120.57, Florida Statutes. If the Petition requests a hearing, it must comply with all of the requirements of Rule 28-106, Florida Administrative Code, and must specifically contain: (a) The name and address of each agency affected and each agency's file or identification number, if known (See the Case No. on the Administrative Complaint); (b) The name, address, and telephone number of the petitioner (For the purpose of requesting hearing in this matter, you are the “petitioner”.); the name, address, and telephone number of the petitioner's representative, if any, which shall be the address for service purposes during the course of the proceeding; and an explanation of how the petitioner's substantial interests will be affected by the agency determination; (c) A statement of when and how the petitioner received notice of the agency decision (the Administrative Complaint to which your petition is responding); (d) A statement of all disputed issues of material fact. If there are none, the petition must so indicate; (e) A concise statement of the ultimate facts alleged, including the specific facts the petitioner contends warrant reversal or modification of the agency's proposed action; YY YW (63) A statement of the specific rules or statutes the petitioner contends require reversal or modification of the agency's proposed action; and (g) | Astatement of the relief sought by the petitioner, stating precisely the action petitioner wishes the agency to take with respect to the agency's proposed action. Your failure to substantially comply with any of those requirements will result in your petition being dismissed as provided for in Rule 28-106.201(4) F.A.C. ADDITIONAL RIGHTS Ifa hearing of any type is requested, you have the right to hire an attorney to represent you, to testify in your own behalf, to call and to cross-examine witnesses, and to compel the attendance of witnesses and the production of documents by subpoena. Failure to follow the procedure outlined with regard to your response to this notice may result in the request being denied. All prior oral communication or correspondence in this matter shall be considered freeform agency action, and no such oral communication or correspondence shall operate as a valid request for an administrative proceeding. Any request for an 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. Mediation of this matter is not available, and no department attorney will discuss this matter with you until the Petition has been received by the D. nt of Insurance. DONE and ORDERED this ey day of , 2000 . WETUEY Hy. ' ( J ats — BILL NELSON Treasurer and Insurance Commissioner Ww Nw) CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT was mailed by Certified Mail to: PAULA MAE EVERTON, Paula Everton Agency, 14949 N. Florida Ave., Tampa, Florida 33613-1612, and to PAULA MAE EVERTON, 1304 Parrilla de Avila, Tampa, Florida 33613-1037 this F° day of Fame . 2000. CHAEL H. DAVIDSON, Esq. WM. FRED WHITSON, Esq. Division of Legal Services 612 Larson Building OD Ren te etn Street : : 32399-0333 | also wish to receive the * ssonenno/A€ SENDER: FRED WHITSON following service (for an extra fee): Tb Jatoness° 2.Lylosuverr Consult postmaster for fee. 3. Article Addressed to: 4a. Article Number PAULA MAE EVERTON P yey OSS V5 - 1304 PARRILLA DE AVILA OOOO A A TAMPA, FLORIDA 336113-1037 P 975 O55 975 ULA MAE EVERTON P9979 055 976 ULA MAE EVERTON —={IP EVERTON AGENCY ipt 349 N. FLORIDA AVENUE o/AMPA, FLORIDA 33613-1612 RE: “sanen pe AC , ; weet te FRED WHITSON : following service (for a. “att fe) rl * 35028-00-AG : Tec TisonesS®™* 2, Jassmeres | “PAULA mare Seat — CHIP EVERTON areny PoI?9 OSS 97 (eR 14949 N. FLORIDA AVENUE ee a eee ——- POSTMARK OR DATE TAMPA, FLORIDA 33613-1612 4b: Service Type 7, Date of Delivery ‘ceipt for cs Addressee’s Addi P =e . and fee is pai) OY *requestedtified Mail S. Received By: (Print Name) Ye Coverage Provided i@ for international Mail Domestic Return Raxers

Docket for Case No: 00-002905PL