THE TREASURER OF THE STATE OF FLORIDA, ¥ DEPARTMENT OF INSURANCE my BILLNELSON ~ A x IN THE MATTER OF: 00-Hab RICHARD LEE HOSKINS CASE NO.: 33174-99-AG ADMINISTRATIVE COMPLAINT TO: RICHARD LEE HOSKINS 7100 Sunset Way Apt 1204 Saint Pete Beach, FL 33706-3601 RICHARD LEE HOSKINS \ P.O. Box 40160 Saint Petersburg, FL 33743-0160 You, RICHARD LEE HOSKINS, 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, RICHARD LEE HOSKINS, are currently licensed in this state as a life and health agent and as a general lines property and casualty insurance agent. 2. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Insurance (hereinafter referred to as the “Department”) has jurisdiction over your insurance licenses and appointments. “ Cm Us 3. Atall times pertinent to the dates and occurrences referred to herein, you, RICHARD LEE HOSKINS, were licensed in this state as an insurance agent. 4. White-Hoskins Agency, Inc. is an incorporated insurance agency and you, RICHARD LEE HOSKINS, at all times pertinent, were a life and health agent and a general lines insurance agent for White-Hoskins Agency, Inc., 6821 Central Avenue, Saint Petersburg, Florida. As president and director of White-Hoskins Agency, Inc., you, RICHARD LEE HOSKINS, are personally and fully liable and accountable for any wrongful acts, misconduct and violation of any provisions of the insurance code committed by you or any person under your supervision and control while acting on behalf of the corporation pursuant to section 626.734, Florida Statutes. 5. References herein to you, RICHARD LEE HOSKINS, include persons under your supervision and control while acting on behalf of White-Hoskins Agency, Inc. 6. The Department conducted an investigation which included an examination of monies due policyholders for the period June 1997 through June 1998. The Department obtained statements covering the above period from USF&G Specialty Insurance Company and Auto Owners Insurance Company. The Department requested that the above insurers identify the twenty-five (25) insureds from White-Hoskins Agency, Inc. with the highest return premium for the period June 1997 through June 1998 for examination by the Department. 7. The Department’s investigation disclosed that return premium funds were credited to White-Hoskins Agency, Inc., of which you, RICHARD LEE HOSKINS, were, at all times pertinent, president and director. These funds were received by you, RICHARD LEE HOSKINS, in a fiduciary capacity pursuant to section 626.561(1), Florida Statutes, and, you, RICHARD LEE HOSKINS, failed to account for and pay the same to insureds. COUNTI 8. The above General Allegations are realleged and incorporated by reference herein. 2 UO U 9. In or about January 1998, you, RICHARD LEE HOSKINS, received from USF&G a return premium refund credit of two hundred sixty-one dollars ($261.00) for policyholders Olga and Angel Carrasco, which you, RICHARD LEE HOSKINS, kept for yourselfand failed to refund to Olga and Angel Carrasco. 10. You, RICHARD LEE HOSKINS, have mishandled return premium funds held in a fiduciary capacity by withholding funds belonging to insureds and by failing to return such funds in the regular course of business. IT IS THEREFORE CHARGED that you, RICHARD LEE HOSKINS, 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 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]; () If the license or permit is willfully used, or to be used, to circumvent any of the requirements or prohibitions or this code. [Section 626.611(4), Florida Statutes]; (c) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.61 1(7), Florida Statutes]; (d) 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]; (e) Fraudulent or dishonest practices in the conduct of business under the license or permit. [Section 626.611(9), Florida Statutes]; 3 ; i WU U (f) 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]; (g) 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]; (h) 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]; Gi) 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]; G) Knowingly aiding, assisting, procuring, advertising, 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]; (k) Ifthe insured or insurer cancels a policy of motor vehicle insurance, the‘insurer must return the unearned portion of any premium paid within thirty (30) days after issuance or receipt by the insurer of notice of cancellation. [Section 627.7283(1), Florida Statutes]. COUNT 11. The above General Allegations are realleged and incorporated by reference herein. 12. In or about September, 1997, you, RICHARD LEE HOSKINS, received from USF&G a return premium credit refund of five hundred eighty-seven dollars ($587.00) for policyholder Henry A. Dorr, which you, RICHARD LEE HOSKINS, Kept for yourself and failed to refund to Henry A. Dorr. LU U 13. You, RICHARD LEE HOSKINS, have mishandled premium funds held in a fiduciary capacity by withholding funds belonging to insureds and by failing to return such funds in the regular course of business. IT IS THEREFORE CHARGED that you, RICHARD LEE HOSKINS, 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 626.561(1), 626.611(4), 626.611(7), 626.611(8), 626.611(9), 626.611(10), 626.611(13), 626.621(2), 626.621(6), 626.621(12), and 627.7283(1), Florida Statutes, which are set forth specifically in Count I above and incorporated herein by reference. COUNTIII 14. The above General Allegations are hereby realleged and fully incorporated herein by reference. 15. In or about June 1997, you, RICHARD LEE HOSKINS, received from USF&G a return premium refund credit of five hundred thirty-five dollars ($535.00) for policyholder Marlene W. Thornley, which you, RICHARD LEE HOSKINS, kept for yourself and failed to refund to Marlene W. Thorley. 16. You, RICHARD LEE HOSKINS, have mishandled premium funds held in a fiduciary capacity by withholding funds belonging to insureds and by failing to return such funds in the regular course of business. IT IS THEREFORE CHARGED that you, RICHARD LEE HOSKINS, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitute grounds for the suspension or revocation of your license and appointments as an insurance agent: sections 626.561(1), 626.61 1(4), 626.61 1(7), 626.611(8), 626.611(9), 626.61 ass 1(13), 626.621(2), 626.621(6), oso, and 627.7283(1), Florida Statutes, which are set forth in Count I above and incorporated herein by reference. . COUNTIV 17. The above General Allegations are hereby realleged and fully incorporated herein by reference. 18. In or about June 1997, you, RICHARD LEE HOSKINS, received from USF&G a return premium refund of sixty-three dollars ($63.00) for policyholder Rufina S. Cappelli, which you, RICHARD LEE HOSKINS, kept for yourself and failed to return to Rufina S. Cappelli. 19. You, RICHARD LEE HOSKINS, have mishandled premium funds held in a fiduciary capacity by withholding funds belonging to insureds and failing to return such funds. IT IS THEREFORE CHARGED that you, RICHARD LEE HOSKINS, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitute grounds for the suspension or revocation of your license and appointments as an insurance agent: sections 626.561(1), 626.61 1(4), 626.61 1(7), 626.611(8), 626.611(9), 626.611(10), 626.611(13), 626.621(2), 626.621(6), 626.621(12), and 627.7283(1), F lorida Statutes, which are set forth in Count I above and incorporated herein by reference. COUNT V 20. The above General Allegations are hereby realleged and fully incorporated herein by reference. 21. In or about December 1997, you, RICHARD LEE HOSKINS, received from Auto Owners a return premium refund credit of three hundred twenty-five dollars ($325.00) for policyholder Inman Plumbing, Inc., which you, RICHARD LEE HOSKINS, kept for yourself and failed to return to Inman Plumbing, Inc. UO U 22. You, RICHARD LEE HOSKINS, have mishandled premium funds held in a fiduciary capacity by withholding funds belonging to insureds and by failing to return such funds in the regular course of business. IT IS THEREFORE CHARGED that you, RICHARD LEE HOSKINS, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitute grounds for the suspension or revocation of your license and appointments as an insurance agent: sections 626.561(1), 626.61 1(4), 626.61 1(7), 626.611(8), 626.61 1(9), 626.61 1(10), 626.61 1(13), 626.621(2), 626.621(6), 626.621(12), and 627.7283(1), Florida Statutes, which are set forth in Count I above and incorporated herein by reference. COUNT VI 23. The above General Allegations are hereby realleged and fully incorporated herein by reference. 24. In or about July 1997, you, RICHARD LEE HOSKINS, received from Auto Owners a refund of nine hundred sixty-one dollars ($961.00) for policyholder Nick Milins, which you, RICHARD LEE HOSKINS, kept for yourself. 25. You, RICHARD LEE HOSKINS, have mishandled premium funds held in a fiduciary capacity by withholding funds belonging to insureds and by failing to return such funds in the regular course of business. IT IS THEREFORE CHARGED that you, RICHARD LEE HOSKINS, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitute grounds for the suspension or revocation of your license and appointments as an insurance agent: sections 626.561(1), 626.61 1(4), 626.61 1(7), 626.611(8), 626.611(9), 626.61 1(10), 626.61 1(13), 626.621(2), 626.621(6), 626.621(12), and 627.7283(1), Florida Statutes, which are set forth in Count I above and incorporated herein by reference. U UW COUNT VII 26. The above General Allegations are hereby realleged and fully incorporated herein by reference. 27. In or about December 1997, you, RICHARD LEE HOSKINS, received from Auto Owners a refund of one thousand two hundred twenty-one dollars and zero cents ($1,221.00) for policyholders Eugene and Olga Milin, which you, RICHARD LEE HOSKINS, kept for yourself. 28. You, RICHARD LEE HOSKINS, have mishandled premium funds held in a fiduciary capacity by withholding funds belonging to insureds and by failing to return such funds in the regular course of business. IT IS THEREFORE CHARGED that you, RICHARD LEE HOSKINS, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitute grounds for the suspension or revocation of your license and appointments as an insurance agent: sections 626.561(1), 626.61 1(4), 626.61 1(7), 626.611(8), 626.611(9), 626.61 1(10), 626.61 1(13), 626.621(2), 626.621(6), 626.621(12), and 627.7283(1), Florida Statutes, which are set forth in Count I above and incorporated herein by reference. WHEREFORE, you, RICHARD LEE HOSKINS, are hereby notified that the Treasurer and Insurance Commissioner intends to enter an order revoking your license and appointments as an insurance agent or to impose such penalties as may be provided under the provisions of sections 626.561, 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. NOTICE OF RIGHTS Pursuant to sections 120.569 and 120.57, Florida Statutes and Rule Chapter 28-106, Florida Administrative Code, you have the right to request a proceeding to contest this action by 8 U Nw 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. 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 ofa 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 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 Chapter 28- 106, Florida Administrative Code, and contain a) A statement identifying with particularity the allegations of the Department which you dispute and the nature of the dispute; wy) YW 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 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. Pursuant to section 120.573, Florida Statutes, you are hereby notified that mediation 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. , i- DATED and SIGNED this QS _ day of , 2000. ee HOY yy 4 BIEL NELSON Treasurer and Insurance Commissioner y hy e a > x & ¢ ’ “4 fy, ww ng yay YU YU CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT has been furnished to: RICHARD LEE HOSKINS at 7100 Sunset Way, Apt. 1204, Saint Pete Beach, Florida 33706-3601, and P.O. Box 40160 Saint Petersburg, Florida F aad 33743-0160, by U.S. Certified Mail this as day of — fila 2000. Y% Carl B. Morstadt IH, Senior Attorney Division of Legal Services 612 Larson Building Tallahassee, F] 32399-0333 (904) 922-3110 Ext.4168 Ww wy) STATE OF FLORIDA DEPARTMENT OF INSURANCE IN THE MATTER OF: RICHARD LEE HOSKINS Case No: 33174-99-AG ; / ELECTION OF RIGHTS . I have received and have read the Administrative Complaint filed against me including the Notice of Rights contained therein and I understand my options. I am requesting disposition of this matter as indicated below. (Choose one) 1] I do not desire a proceeding. The Department may enter a final order revoking my license(s). 2.0] I do not dispute any of the Department's factual allegations and I hereby elect a 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 a hearing to be held in Tallahassee; or [] attend a hearing by way of a telephone conference call. 3. [J I do dispute the Department's factual allegations. I have attached to this form a statement indicating the specific issues of fact which are disputed and other required information indicated in the Notice of Rights. I hereby request a proceeding pursuant to Sections 120.569 and 120.57(1), Florida Statutes to be held before the Division of Administrative Hearings. DATE: Signature of Petitioner TO PRESERVE YOUR RIGHT TO A Name: PROCEEDING, YOU MUST RETURN THIS FORM WITHIN TWENTY-ONE Address: (21) DAYS OF RECEIPT TO THE DEPARTMENT OF INSURANCE AT THE ADDRESS INDICATED IN : ‘ THE NOTICE OF RIGHTS. Phone:

Docket for Case No: 00-003126PL