- FILED JUL 21 2000 THE TREASURER OF THE STATE OF FLORIDA DEPARTMENT OF INSURANCE BIL. NELSON IN THE MATTER OF: CASE NO.: 34976-00-AG ROBERT LOUIS KRAUSE : / ADMINISTRATIVE COMPLAINT ROBERT LOUIS KRAUSE 3331 Thomas Butler Road Tallahassee, FL 32308 ROBERT LOUIS KRAUSE 3039 Crawfordville Highway Crawfordville, FL 32327 You, ROBERT LOUIS KRAUSE, 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 a bail bond agent in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 648, Florida Statutes, you, ROBERT LOUIS KRAUSE, currently the holder of a temporary limited surety agent license (2-34 T). 2. Pursuant to Chapter 648, Florida Statutes, the Florida Department of Insurance has jurisdiction over your insurance license and appointments. U U COUNT | 3. The above general allegations are hereby realleged and fully incorporated herein by reference. 4. On or about December 8, 1999, you, ROBERT LOUIS KRAUSE, submitted an application with the Department for a temporary limited surety/bail bond agent license. On the application you stated that your business address was 3039 Crawfordville Highway, Crawfordville, Wakulla County, Florida. 5. The address of 3039 Crawfordville Highway, Crawfordville, Wakulla County, Florida, has never been your, ROBERT LOUIS KRAUSE’S, business address. 6. On or about December 8, 1999, you, ROBERT LOUIS KRAUSE, stated on the application for a temporary limited surety/bail bond agent license that you were employed by Harrison Bail Bonds, located at 3039 Crawfordville Highway, Crawfordville, Wakulla County, Florida. 7. You, ROBERT LOUIS KRAUSE, have never been employed by Harrison Bail Bonds, located at 3039 Crawfordville Highway, Crawfordville, Wakulla County, Florida. 8. You, ROBERT LOUIS KRAUSE, were not employed at the time of application, and at all times throughout the existence of your temporary license, bya licensed and appointed supervising bail bond agent, managing general agent, or authorized insurer, who supervised your and was responsible for yourconduct in the bail bond business. VU UY 9. At all times relevant to the allegations in this Administrative Complaint, you, ROBERT LOUIS KRAUSE, have been doing business as, or on behalf of, a bail bonds business known as Krause Bonding and Insurance. 10. You, ROBERT LOUIS KRAUSE, have operated an agency separate from the location of the employer, supervising bail bond agent, managing general agent, or insurer as stated on your temporary limited surety agent license application. 11. You, ROBERT LOUIS KRAUSE, lack of one or more of the qualifications specified in Chapter 648 for a temporary limited surety agent license. 12. By falsely representing your business address and employment status on your application for licensure, you, ROBERT LOUIS KRAUSE, have made a material misstatement, misrepresentation, or fraud in obtaining a license or appointment, or in attempting to obtain a license or appointment. 13. On the aforementioned application, you, ROBERT LOUIS KRAUSE, in your answer statements regarding your business address and employment status, knew or should have known that your statements were false and a material misrepresentations of fact. 14. — Relying, in part, on your sworn statement that you were employed by a licensed and appointed limited surety agent, the Department did license you, ROBERT LOUIS KRAUSE, as temporary limited surety agent. IT IS THEREFORE CHARGED that you, ROBERT LOUIS KRAUSE, 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: VY YY (a) The applicant must be employed at the time of application, and at all times throughout the existence of the temporary license, by only one licensed and appointed supervising bail bond agent, managing general agent, or authorized insurer, who supervises the work of the applicant and is responsible for the licensee's conduct in the bail bond business. [Section 648.355(1) (e), Florida Statutes]; (a) The applicant's employer is responsible for the bail bonding acts of any licensee under this section. [Section 648.355(1) (h), Florida Statutes]; (b) A temporary licensee may not operate an agency or branch agency separate from the location of the supervising bail bond agent, managing general agent. or insurer by whom the licensee is employed. [Section 648.355(8), Florida Statutes]; (c) Lack of one or more of the qualifications specified in this chapter for a license or appointment. [Section 648.45(2)(a), Florida Statutes] (d) A cause for which issuance of the license or appointment could have been refused had it then existed and been known to the department. [Section 648.45(3)(a), Florida Statutes]; (e) Violation of any law relating to the business of bail bond insurance or violation of any provision of the insurance code. [Section 648.45(3)(c), Florida Statutes]: (f} Material misstatement, misrepresentation, or fraud in obtaining a license or appointment, or in attempting to obtain a license or appointment. [Section 648.45(2)(b), Florida Statutes]; (g) Demonstrated lack of fitness or trustworthiness to engage in the bail bond business. [Section 648.45(2) (e), Florida Statutes]; od Y (hn) 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 648.45(2)(j), Florida Statutes]; (i) Violation of any law relating to the business of bail bond insurance or violation of any provision of the insurance code. [Section 648.45(3)(c), Florida Statutes]. (j) Being found to be a source of injury or loss to the public or detrimental to the public interest or being found by the department to be no longer carrying on the bail bond business in good faith. [Section 648.45(3)(e), Florida Statutes]. COUNT II 15. The above general allegations are hereby realleged and fully incorporated herein by reference. 16. At all times relevant to the allegations in this Administrative Complaint, you, ROBERT LOUIS KRAUSE, have been doing business as, or on behalf of, a bail bonds business known as Krause Bonding and Insurance. 17. You, ROBERT LOUIS KRAUSE, did place or caused to be placed an advertisement for Krause Bonding and Insurance in the December 1999, Sprint yellow Pages. 18. The advertisement that you, ROBERT LOUIS KRAUSE, did place or caused to be placed for Krause Bonding and Insurance in the December 1999, Sprint Yellow Pages failed to include the address of record filed with the department. IT IS THEREFORE CHARGED that you, ROBERT LOUIS KRAUSE, have violated or are accountable under the following provisions of the Florida Insurance Y w) Code and Rules of the Department of Insurance which constitute grounds for the suspension or revocation of your licenses and appointments: (a) Any permissible advertising by a bail bond agent or agency must include the address of record filed with the department. [Section 648.44(7), Florida Statutes] (b) Demonstrated lack of fitness or trustworthiness to engage in the bail bond business. [Section 648,45(2) (e), 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 648.45(2)(j), Florida Statutes]: (d) Violation of any jaw relating to the business of bail bond insurance or violation of any provision of the insurance code. [Section 648.45(3)(c), Florida Statutes]. (€) Being found to be a source of injury or loss to the public or detrimental to the public interest or being found by the department to be no longer carrying on the bail bond business in good faith. [Section 648.45(3)(e), Florida Statutes}. WHEREFORE, you, ROBERT LOUIS KRAUSE, are hereby notified that the Treasurer and Insurance Commissioner intends to enter an Order suspending or “revoking your licenses and appointments as a limited surety agent or to impose such penalties as may be provided under the provisions of Sections 648.44, 648.45, 648.49, 648.52, and 648.53, Florida Statutes, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. Y oS) NOTICE OF RIGHTS Pursuant to Sections 120.569 and 120.57, Florida Statutes and Rule 28-1 06, Florida Administrative Code (F.A.C.), you have a 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 32399-0300. 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. 7 Y UY 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 majority of witnesses are located elsewhere the Department will request that the hearing be conducted in Tallahassee. If a hearing is requested, you have the right to be represented by counsel, or other qualified representative, to take testimony, to call and to 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. VY UU DATED and SIGNED this-)/ St dayof_.) w/ y__, 2000, e FS vata we ate L NELSON d ty Treasurer and Insurance Commissioner AN we | “ , 4 ‘3 YW CERTIFICATE OF SERVICE \/ | HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF RIGHTS has been furnished to: ROBERT LOUIS KRAUSE, 3331 Thomas Butler Road, Tallahassee, FL 32308; and to ROBERT LOUIS KRAUSE, 3039 Crawfordville Highway, Crawfordville, FL 32327, by Certified Mail this 3/ day of Wey , 2000. MIGUEL OXAMENDI Senior Attorney Division of Legal Services 612 Larson Building Tallahassee, Florida 32399-033 (850) 413-4130 10

Docket for Case No: 00-003538PL