THE TREASURER OF THE STATE OF FLORIDA DEPARTMENT OF INSURANCE BILL NELSON : . IN THE MATTER OF: CATHY KAY COSE / ADMINISTRATIVE COMPLAINT TO: CATHY KAY COSE 3914 N.- Lynn Avenue Tampa, Florida 33603 CATHY KAY COSE 1720 W. Martin Luther King Bivd. Tampa, Florida 33607 CATHY KAY COSE P.O. Box 151227 Tampa, Florida 33684 CATHY KAY COSE 15143 Fowler Avenue Tampa, Florida 33612 CASE NO. FILED WUL 17 2000 meus a onen 35056-00-AG Q Fag So xxl zp m>= § TT ouh , ES Ea e FO aos pa ara wii <7 ined Lo) _ You, CATHY KAY COSE, 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 result of which it is alleged: U oe U GENERAL ALLEGATIONS, 1. You, CATHY KAY COSE, are currently licensed in the state as a customer service representative and as a general lines insurance agent. 2. At all time pertinent to the dates and occurrences referred to in this Administrative Complaint you, CATHY KAY COSE, were licensed as a customer service representative in this state. 3. At all times pertinent to the dates and occurrences referred to in this Administrative Complaint, you, CATHY KAY COSE, were an officer, shareholder and director of Merritt-Scott Insurance Agency, a Florida incorporated insurance agency. You, CATHY ... . KAY COSE, were the sole authorized signatory on the corporate bank account and had sole control over the corporate bank account. 4. At all times pertinent to the dates and occurrences referred to herein, an agent’s agreement was in full force and effect between Merritt-Scott Insurance Agency and Jardine MacNeill, Inc. and Galway Insurance Company. Jardine MacNeill, Inc. is the managing general agent for Galway Insurance Company. 5. At all times pertinent to the dates and occurrences referred to in this Administrative Complaint all funds received by you, CATHY KAY COSE, 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 6. Paragraphs one through five are realleged and incorporated herein by reference. UY U 7. Pursuant to the agent’s agreement with Jardine MacNeill, Inc., and Galway Insurance Company, all funds collected by Merritt-Scott, Inc., and due the general agent as premiums for insurance policies were to be promptly remitted. . 8. An audit of the Merritt-Scott agent’s account, conducted by Jardine MacNeill, Inc., revealed an indebtness owed by Merritt-Scott, in the amount of $4641.94. 9. This sum represents unremitted premiums and unearned commissions received by the corporation from consumers and now due the insurer for insurance policies issued. 10. Demand has been made upon you, CATHY KAY COSE, and Merritt-Scott Inc., for payment but payment has been refused. 11. You, CATHY KAY COSE, have misappropriated, converted or unlawfully withheld for you own use and benefit moneys belonging to Jardine MacNeill, Inc. and Galway Insurance Company. IT IS THEREFORE CHARGED that you, CATHY KAY COSE, 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 or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; 3 Y Nw] (c) Fraudulent or dishonest practices in the conduct of business under the license or permit. [Section 626.611(9), Florida Statutes]; (d) | 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]; (e) Willful failure to comply with, or willful violation of, any proper order or rule of the department or willful violation of any provision of the Insurance Code. [Section 626.611(13), Florida Statutes}; -- (f) ” 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]; (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]; 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 4 U | VU 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 identifving 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. U U ” These proceedings aré 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 as set out above. DATED and SIGNED this 17th day of July, 2000. BILL NELSON Treasurer and Insurance Commissioner U | U CERTIFICATE OF SERVICE 1 HEREBY CERTIFY that a true and correct copy of the foregoing Administrative Complaint was mailed by certified mail to: CATHY KAY COSE, 3914 N. Lynn Avenue, Tampa, Florida, CATHY KAY COSE, 1720 W. Martin Luther King Blvd., Tampa, CATHY KAY COSE, P. O. Box 151227, Tampa, Florida 33684 and CATHY KAY COSE, 15143 Fowler Avenue, Tampa, Florida 33612, on this 17th day of July, 2000. ES A. BOSSART, ESQUI ivision of Legal Services 612 Larson Building Tallahassee, FL 32399-0333 vu UY STATEOFFLORIDA ~~ , Fy a DEPARTMENT OF INSURANCE 7) Z & We =O IN THE MATTER OF: ofr, ey CATHY KAY COSE Case No: 35056-00- WS 9h 0: 1% NGS 4 he 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. [ ] 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 i 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 adversarial proceeding pursuant to Section 120.57(1), Florida Statutes to be held before the Division of Administrative Hearings. DATE: Signature of Petitioner TO PRESERVE YOUR RIGHT TOA 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: 00-003261PL