FILED EULED] sep ro 200 C131 PH IES THE TREASURER OF THE STATE HOF FiGae a DEPARTMENT OF INSURANDBY/ |S. OF Tom GALLAGHER ADM ian AWE VE HEARIRE IN THE MATTER OF ARTHUR LLOYD THORNTON CASE NO.: 42454-01-AG / ADMINISTRATIVE COMPLAINT TO: Arthur Lloyd Thornton 3375 Strickland Road Lakeland, Florida 33810 Arthur Lloyd Thornton 3342, Winter Lake Rd Lakeland, Florida 33803 YOU, ARTHUR LLOYD THORNTON, 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 i at a You, | ARTHUR LLOYD ' THORNTON, are currently licensed i in this state as a general lines (2-20) agent and legal e expense agent (2-56). “Your license number i is A264916. 2. At all times relevant to the dates and occurrences set forth herein, you, ARTHUR LLOYD THORNTON, were licensed as an insurance agent. 3. Pursuant to Chapter 626 and Chapter 642, Florida Statutes, the Dep of Insurance has jurisdiction over your insurance license and eligibility for licensure and appointment. 4. At all times relevant to the dates and occurrences set forth herein you, ARTHUR LLOYD THORNTON, were an officer and director of R-T Insurance Agency, a Florida corporation, located at 3342 Winter Lake Rd., Lakeland Florida 33803 (hereinafter referred to as “R-T”). | 5. At all times relevant to the to the dates and occurrences set forth herein, you, ARTHUR LLOYD THORNTON, were designated the primary agent for R-T. 6. As a corporate officer and designated primary agent of R-T you, ARTHUR LLOYD THORNTON, knew or should have known of the activities of employees under his direct supervision and control and were responsible and accountable for all of the activities of the ” staff of R-T for the times and occurrences as hereafter, presented. References to you, ARTHUR LLOYD THORNTON, include persons acting under your direct supervision and control at the agency described herein. 7. At all times relevant to the dates and occurrences set forth herein Richard Lee Rayborn (AKA Jerry Lee Rayborn) (hereinafter referred to as “Rayborn”) was an employee of R-T under your direct supervision and control. 8. You, ARTHUR LLOYD THORNTON, were listed as a signor on R-T’s agency accounts at Hunnington National Bank. COUNTI 9. ~ The above paragraphs numbered 1 through 8 are hereby realleged and fully incorporated herein by reference. 10. On or about November 30, 1998, Derek Beck of 749 Thompson Rd., Lithia, Florida, went to the office of R-T and met with Rayborn and purchased from him automobile insurance, policy number CF-0983486053. Coverage was placed through the Florida Automobile Joint Underwriters Association (hereinafter referred to as “FAJUA”) with Fortune Insurance Company (hereinafter referred to as “Fortune”). 11. Rayborn told Mr. Beck that the one-year premium for policy number CF- 0983486053 would be $1505, but the actual policy premium was $363. Mr. Beck gave to Rayborn check number 2532 in the amount of $1,505 as payment for the policy premium, which - was deposited into R-T’s account at Hunnington National Bank. 12. You, ARTHUR LLOYD THORNTON, knew or should have known that Mr. Beck was charged an amount in excess of the actual premium, the mailing address on the application, purported to be Mr. Beck’s mailing address, was not his mailing address and that the signatures on the application, purported to be Mr. Beck’s signatures, where not his signatures. IT IS THEREFORE CHARGED that you, ARTHUR LLOYD THORNTON, 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 insurance licenses: (a) All premiums, return premiums, or other funds belonging to insurers or others: received by an agent, solicitor, or adjuster in transactions under his or her license shall be trust funds 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) 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] (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes] (c) | Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.611(8), Florida Statutes] (d) _ Fraudulent or dishonest practice in the conduct of the business under a license or appointment. [Section 626.61 1(9), Florida Statutes] (e) 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 or appointment. [Section 626.611(10), Florida Statutes] (63) 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] . (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] . (h) In the conduct of business under the license of appointment, engaging 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 or herself to be a source of injury to the public. [Section 6 6. 621(6) Florida Statutes] () _No person shal engage i in n this state in 1 any y trade practice which i is ; defined in this part as, or nr determined pursuant to be an unfair or or deceptive act or practice involving the business ui of i insurance. “[Section 626. 9521 (1), Florida Statutes. ] Gg) 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] (k) Knowingly collecting as a premium or charge for insurance, which is not then provided, or is not in due course to be provided, subject to acceptance of the risk by the insurer, by the insurance policy issued by the insurer as permitted by this code. [Section 626.9541(1)(0)1, Florida Statutes] 0) Knowingly collecting as a premium or charge for insurance any sum in excess of or less than the premium or charge applicable to such insurance, in rates as filed with and approved by the department, and as specified in the policy. [Section 626.9541(1)(0)2, Florida Statutes] COUNT II 14. The above General Allegations numbered 1 through 8 and Paragraph number 10 are hereby realleged and fully incorporated herein by reference. 15. | Onor about November 24, 1999, Mr. Beck returned to R&T’s office and met with Rayborn. Rayborn sold to Mr. Beck automobile insurance policy number 24 ZAF : 0734, which was placed through the FJUA with The Hartford/Twin City Fire Insurance Company. He told Mr. Beck that the policy premium would be $1563, which Mr. Beck paid with chec' #2639 in the amount of $1563. The actual premium was $533. 16. You, ARTHUR LLOYD THORNTON, signed the FAJUA application for said policy as the “Producer.” The mailing address on the application, purported to be Mr.) Beck’s mailing address, was not his mailing address. Moreover, the signatures on the application, purported to be Mr. Beck’s signatures, were not his signatures. 17. On or about December 14, 1999 you, ARTHUR LLOYD THORNTON, signed premium finance agreement number 7554890, with Standard Premium Finance Management Corporation as the agent. The purpose of this agreement was to finance the premium on policy number 24 ZAF FL0734. The mailing address on the agreement, purported to be Mr. Beck’s mailing address, was not his mailing address. Moreover, the signatures on the agreement, purported to be Mr. Beck’s signatures, were not his signatures. 18. You, ARTHUR LLOYD THORNTON, knew or should have know the signatures on the application and the premium finance, purported to be Mr. Beck’s signatures, where not his signatures and that Mr. Beck was charged a premium in excess of the actual premium. IT IS THEREFORE CHARGED that you, ARTHUR LLOYD THORNTON, 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 insurance licenses: Sections 626.561(1), 626.621(5), 626.611(7), 626.611(8), 626.611(9), 626.611(10), 626.611(13) 626.621(2), 626.621(6), 626.9521(1), 626.9541(1)(k)1, 626 PS41(N(O} and 626.9541(1}(0)2, Florida Statutes, which are more fully set forth in Count I above and fully incorporated herein by reference. ii WHEREFORE, you, ARTHUR LLOYDTHORNTON, are hereby notified that the Treasurer and Insurance Commissioner intends to enter an Order suspending or revoking your licenses and appointments as an insurance agent or to impose such penalties as may be provided under the provisions of Sections 626.611, 626.621, 626.681, 626.691, 626.692, si 626.9521, Florida Statutes, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. You are further notified that any order entered in this case revoking or suspending any license or eligibility for licensure held by you shall also apply to all other licenses and eligibility held by you under the Florida Insurance Code. NOTICE OF RIGHTS Pursuant to Sections 120.569 and 120.57, Florida Statutes and Rule 28-106, Florida Administrat've 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 Fetition. 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, 200 East Gaines Street, 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 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 ard 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 notite may result in the request being denied. All prior correspondence in this matter shall be conpidered 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. DONE and ORDERED this (Od day of > & (Pea F961, KENNEY SHIPLEY Deputy Insurance Commissioner CERTIFICATE OF SERVICE ] HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT has been furnished to: ARTHUR LLOYD THORNTON, 10612 Highway 579, Thonotosassa, Florida 33592; and to: ARTHUR LLOYD THORNTON, 3306 Kilmer Drive, Plant City, Florida 33567; and to: ARTHUR LLOYD THORNTON, 3342 Winter Lake Rd., Lakeland, Florida 33805 by Certified U.S. Mail this /CUday of Seflindn, 2001. 2. ‘Article Number wi Fut 4575 1294 1255 £307 3. Service Type CERTIFIED MAIL D. Is delivery address different from i m 2 IFES, enter delivery address below: (Yes 4, Restricted Delivery? (Extra Fee) 7. Article Addressed to: AS0uy p | ARTHUR LLOYD THORNTON’ ™ HY &2 3S 19 | | 3342 WINTER LAKE ROAD LAKELAND “FE 33805 SENDER; RICHARD SANTURRI RE: 42454-01-A3 Domestic Return Receipt 7 PS Form 3811, June 2000

Docket for Case No: 01-004265PL