FILED JAN 19> 2001 THE TREASURER OF THE STATE OF FLORIDA DEPARTMENT OF INSURANCE TOM GALLAGHER IN THE MATTER OF: ~. 2 a JEAN ANN DORRELL CASE NO: 36639: eA OCAG a ADMINISTRATIVE COMPLAINT TO: JEAN ANN DORRELL 1867 Clearbrook Drive Clearwater, Florida 33760 JEAN ANN DORRELL 1110 94" Avenue N. St. Petersburg, Florida 33702 You, JEAN ANN DORRELL, 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 an insurance agent in this state as a result of which it is alleged that: GENERAL ALLEGATIONS 1. You, JEAN ANN DORRELL, are currently licensed in this state as a life insurance agent, life and health insurance agent, and health insurance agent, 2. At all times pertinent to the dates and occurrences referred to herein this Administrative Complaint, you, JEAN ANN DORRELL, were licensed in this state as an insurance agent. COUNT I 3. Paragraphs one and two are realleged and incorporated herein by reference. 4. On or about March 31, 1999, you, JEAN ANN DORRELL, visited the home of . Elmer and Elizabeth Pollock of Ft. Myers, Florida and induced the Pollocks to invest $45,000.00 of their personal retirement savings, $30,000 of which was accrued interest on annuities, into the purchase of a promissory note issued by First American Capital Trust, a Florida corporation. +5 You, JEAN ANN DORRELL, failed to inform the Pollocks that they would incur significant income tax penalties by withdrawing the $30,000 from their annuities, 6. You, JEAN ANN DORRELL, represented that the First American Capital Trust promissory notes offered a guaranteed 9.75% annual return. No interest income has been paid to date. Your representations were false and a material misstatement of fact. Elmer and Elizabeth Pollock would not have purchased the promissory notes, but for this representation. You, JEAN ANN DORRELL, were aware of this fact. 7. You, JEAN ANN DORRELL, failed to inform the Pollocks that the First American Capital Trust promissory notes were speculative and involved a high degree of risk and should not be purchased by anyone who could not afford the loss of his or her entire investment. 8. The First American Capital Trust promissory notes were not an appropriate investment for individuals of the Pollock's age, financial circumstances and investment experience. These transactions were neither necessary nor in the Pollock's best interest. You, JEAN ANN DORRELL were aware or should have been aware of these facts. 9. The First American Capital Trust promissory note that was purchased is now overdue and in default. First American Capital Trust has now filed for Chapter 7 bankruptcy and as an unsecured creditor, there is little likelihood that the investments will be recovered. Asa result, Elmer and Elizabeth Pollock have suffered a significant financial loss. IT IS THEREFORE CHARGED that you, JEAN ANN DORRELL, 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 license(s) and eligibility for licensure: (a) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes] (b) Fraudulent or dishonest practices in the conduct of business under the license or permit. [Section 626.611(9), 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 626.61 1(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) Violation of any lawful order or rule of the Department. [Section 626.621(3), Florida Statutes] (f) 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: a. Filing with any supervisory or other public official, b. Making, publishing, disseminating, circulating, fe) . Delivering to any person, d. Placing before the public, e. Causing, directly or indirectly, to be made, published, disseminated, circulated, delivered to any person, or placed before the public, any false material statement. [Section 626.9541(1)(e)1., Florida Statutes] COUNT II 10. Paragraphs one and two above are realleged and incorporated herein by reference. 11. On or about November 19, 1998, you, JEAN ANN DORRELL, visited the home of Elmer and Elizabeth Pollock of Ft. Myers, Florida for the purpose of soliciting the purchase of long term care health care insurance. 12. As of November 19, 1998, a Mutual Protective Long Term Care policy, policy number OP6940, Elmer Pollock, insured and a Bankers United Life Assurance Long Term Care policy, policy number 400547806, Elizabeth L. Pollock, insured, were in full force and effect. 13. On or about November 19, 1998, you represented to Elmer and Elizabeth Pollock that their insurance policies described in paragraph 12 did not offer long term care insurance. This representation was false and a material misstatement of fact. Both of the Pollock’s insurance policies extended long term care insurance. You, JEAN ANN DORRELL, were aware or should have been aware of this. fact. 14, On or about November 19, 1998, you, JEAN ANN DORRELL, as a result of your misrepresentations, solicited and sold to Elmer and Elizabeth Pollock, two Penn Treaty Life Insurance long term care insurance policies. 15. Question VI(6)of the applications submitted by you, JEAN ANN DORRELL, asks the question “Do you intend to replace any of your medical or health insurance with this policy? The question is answered “NO”. This response was false and a material misstatement of fact. Elmer and Elizabeth Pollock intended to replace their in-force Mutual Protective and Untied Bankers Life policies with the Penn Treaty policies. You, JEAN ANN DORRELL, were well aware of these facts. 16. You, JEAN ANN DORRELL, failed to advise Elmer and Elizabeth Pollock or the insurer that a replacement was to be involved, in violation of Rules 4-151.101; 4-151.104 and 4- 151.106, Florida Administrative Code. 17. Elmer and Elizabeth Pollock would not have purchased the Penn Treaty policies but for your misrepresentations. The policies were issued. 18. You, JEAN ANN DORRELL, made the misleading and deceptive statements, both of omission and commission, for the purpose of obtaining a fee, commission, money or other benefit from an insurance company. IT IS THEREFORE CHARGED that you, JEAN ANN DORRELL, have violated or are accountable under the following provisions of the Florida Insurance Code which constitute grounds for the suspension or revocation of your licenses as an insurance agent in the state: Sections 626.611(7); 626.611(9); 626.611(13); 626.621(2); 626.621(3); 626.621(6) and 626.9541(1)(e)1, 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 626.61 1(5), Florida Statutes] WHEREFORE, you, JEAN ANN DORRELL, are hereby notified that the Insurance Commissioner and Treasurer intends to enter an Order revoking or suspending your licenses and eligibility for licensure or to impose such penalties as may be proper under the provisions of Sections 626.611, 626.621, 626.681, 626.691, 626.692 and 626.9521 Florida Statutes, under the procedures and rules set forth 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 (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 US 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 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 Section 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, F.A.C. and contain a) A statement identifying with particularity the allegations of the Department which you dispute and the nature of 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 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 set out above. DONE and ORDERED this day 19th of_ January 2001. Ah UP ay, Tex TOM G HER Treasurer and Insurance Commissioner STATE OF FLORIDA DEPARTMENT OF INSURANCE IN THE MATTER OF: JEAN ANN DORRELL Case No: 36639-00-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. [ ] 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 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 statement 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 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: CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF RIGHTS have been furnished by Certified Mail to: JEAN | ANN DORRELL, 1867 Clearbrook Drive, Clearwater, Florida 33760 and JEAN ANN DORRELL, 1110 94" Avenue N., St. Petersburg, Florida 33702 on this_19trh day of January , 2001. Division of Legal Services 612 Larson Building Tallahassee, Florida 32399-0333 (904) 922-3110; ext. 4124

Docket for Case No: 01-000593PL