THE TREASURER OF THE STATE OF FLORIDA DEPARTMENT OF INSURANCE en TOM GALLAGHER nae nmap IN THE MATTER OF: O Laqdey DL WILLIAM FRANK STEVENS CASE NO. 40998-01-AG / ADMINISTRATIVE COMPLAINT TO: WILLIAM FRANK STEVENS 1260 Peppertree Lane Port Charlotte, Florida 33952 WILLIAM FRANK STEVENS 22484 Sacramento Street Port Charlotte, Florida 33952 YOU, WILLIAM FRANK STEVENS, are hereby notified that pursuant to Chapters 624 and 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 that: GENERAL ALLEGATIONS 1. You, WILLIAM FRANK STEVENS, are currently licensed in this state as a life insurance agent and life and health insurance agent. 2. At all times relevant to the dates and occurrences alleged herein, you, WILLIAM FRANK STEVENS, were licensed in this state as an insurance agent. 3. Pursuant to Chapter 626, Florida Statutes, the Insurance Commissioner of the State of Florida and the Department of Insurance has jurisdiction over your insurance licenses and your eligibility for licensure and appointment. . 4, At ail times relevant to the dates and occurrences alleged herein you, WILLIAM FRANK STEVENS, were appointed as a life insurance agent to represent LifeUSA Insurance Company. COUNT I 5. The above General Allegations numbered one (1) through four (4) are hereby realleged and fully incorporated herein by reference. 6. On or about December 2, 1998, you, WILLIAM FRANK STEVENS did personally solicit the employees of the Anthony Williams Plumbing Company of Englewood, Florida, for the purported purpose of setting up a private retirement savings plan. 7. Throughout your solicitation, you, WILLIAM FRANK STEVENS, concealed the fact that you were selling a life insurance policy. Instead, through misleading statements, including deceptive omissions, you caused the prospective applicants to believe that you were soliciting an application for a retirement savings plan which each employee desired to purchase. 8. Based in part on your misleading and deceptive statements, employees Carol Runyon, Anthony Fleming and Vincent Tiscio signed what each individual believed to be an application for a retirement savings plan, but which was in fact an application for a LifeUSA life insurance policy. 9. At no time pertinent to the dates and occurrences referred to herein did you, WILLIAM FRANK STEVENS, disclose to Carol Runyon, Anthony Fleming and Vincent Tiscio that you were soliciting a life insurance policy, nor did you disclose the terms, benefits and conditions of the life insurance policy. 10. Your representations to the employees of Anthony Fleming Phimbing were false and a material misstatement of fact. They would not have knowingly purchased the life insurance policy except for your misleading and deceptive statements. 11. The misleading and deceptive statements were made by you for the purpose of ' obtaining a fee, commission, money or other benefit from LifeUSA Insurance Company. The misleading and deceptive statements were made by you for the purpose of obtaining a fee, commission, money or other benefit from-LifeUSA Insurance Company. IT IS THEREFORE CHARGED that you, WILLIAM FRANK STEVENS, 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: (a) If the license or appointment is willfully used, or to be used, to circumvent any of the requirements or prohibitions of this code. [Section 626.61 1(4), Florida Statutes] (b) 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 626.611(5), Florida Statutes] (c) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes] (d) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.61 1(8), Florida Statutes] (e) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes] # 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] (g) Violation of any lawful order or rule of the department. [Section 626.621(3), Florida Statutes] (h) _ In the-conduct of business under the license or appointment, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part X of this chapter. [Section 626.621(6), Florida Statutes] (i) Knowingly making, issuing, circulating, or causing to be made, issued, or circulated, any estimate, illustration, circular, statement, sales presentation, omission, or comparison which misrepresents the benefits, advantages, conditions, or terms of any insurance policy. [Section 626.9541(1)(a)1, Florida Statutes] Gj) Knowingly making, issuing, circulating, or causing to be made, issued, or circulated, any estimate, illustration, circular, statement, sales presentation, omission, or comparison which uses any name or title of any insurance policy or class of insurance policies misrepresenting the true nature thereof. [Section 626.9541(1)(a)5, Florida Statutes] (k) Knowingly making, publishing, disseminating, circulating, or placing before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public: in a newspaper, magazine, or other publication, in the form of a notice, circular, pamphlet, letter or poster, over any radio or television station, or in any other way, an advertisement, announcement, or statement containing any assertion, representation, or statement with respect to the business of insurance, which is, deceptive or misleading. [Section 626.9541( 1)(b), Florida Statutes] (1) Knowingly making a false or fraudulent written or oral statement or representation on, or relative to, an application or negotiation for an insurance policy for the purpose of obtaining a fee, commission, money, or other benefit from any insurer, agent, broker, or individual. [Section 626.9541(1)(k)1, Florida Statutes] (m) An agentshall inform the prospective purchaser, prior to commencing a life insurance sales presentation, that he is acting as a life insurance agent and shall inform the prospective purchaser of the full name of the insurance company which he is representing. In sales situations in which an agent is not involved, the insurer shall identify its full name. [Section 626.99(5)(b), Florida Statutes] (n) Misrepresentations are declared to be unethical. No person shall make, issue, circulate, or cause to be made, issued, or circulated, any estimate, circular, or statement misrepresenting the terms of any policy issued or to be issued or the benefits or advantages promised © thereby or the dividends or share of the surplus to be received thereon, or make any false or misleading statement as to the dividends or share of surplus previously paid on similar policies, or make any misleading representation or any misrepresentation as to the financial condition of any insurer, or as to the legal reserve system upon which any life insurer operates, or use any name or.title of any policy or class of policies misrepresenting the true nature thereof. [Rule 4-9.005(1), Florida Administrative Code] (0) No person shali make, publish, disseminate, circulate, or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter or poster, or over any radio or television station, or in any other way, any advertisement, announcement or statement containing any assertion, representation or statement with respect to the business of insurance or with respect to any person in the conduct of his insurance business, which is untrue, deceptive or misleading. [Rule 4-9.005(2), Florida Administrative Code] WHEREFORE, you,-WILLIAM FRANK STEVENS, 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, and 626.681, and 626.691, 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. Ifa 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 correspondencein 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. DATED and SIGNED this day_ 17th of July 2001. Lo ; KENNEY SHIPLEY Deputy Insurance Commissioner CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative Complaint has been furnished by United States Certified Mail, Return Receipt Requested, to WILLIAM FRANK STEVENS, at 1260 Peppertree Lane, Port Charlotte, FL 33952, and at 2248 Sacramento Street, Port Charlotte, FL 33952 this 17th day of July 2001. rhe LB (James A. Bossart, Esquire Division of Legal Services 612 Larson Building Tallahassee, Florida 32399-0333 (904) 922-3110, Ext. 4124 10

Docket for Case No: 01-003458PL