O(-4 45087. FILED THE TREASURER OF THE STATE OF FLORIDA OCT 19 ago TOM GALLAGHER DEPARTMENT OF INSURANCE Treasurer and - Docketed by: IN THE MATTER OF: RODOLFO PRIETO ; CASE NO.: 40828-01-AG : j ADMINISTRATIVE COMPLAINT TO: RODOLFO PRIETO 12705 SW 98" Court Miami, Florida 33176 ; RODOLFO PRIETO Insure Smart i 8835 SW 107" Avenue : Miami, Florida 33176 ‘" You, RODOLFO PRIETO, 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: F GENERAL ALLEGATIONS : ' 1. Pursuant to Chapter 626, Florida Statutes, you, RODOLFO PRIETO, are : currently licensed in this state as a residential Property casualty joint underwriters association and general lines agent and or currently so licensed, license number A211828. , 2. At all times pertinent to the dates and occurrences referred to herein, you, RODOLFO PRIETO, were licensed in this State as an insurance agent. ; 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Insurance E has jurisdiction over insurance licenses and appointments. hss ce coerce 4. At all times pertinent to the dates and occurrences referred to herein, you, RODOLFO PRIETO, collected and received insurance premiums from certain of your customers and failed thereafter to timely place the insurance coverage or remit the premiums therefore to the insurer. That you, RODOLFO PRIETO, individually, and through your company Gear 1, Inc. d/b/a Insure Smart collected inflated premium costs from certain of your customers and misappropriated those sums as well as premiums returned from the insurer, all as more particularly hereinafter set forth. COUNT I 5. The above general allegations are hereby realleged and fully incorporated by reference. 6. In or about October 1997, you, RODOLFO PRIETO, as a licensed insurance agent, through your company Insure Smart, obtained from Teresa Espinoza, a premium check in the amount of one thousand two hundred twenty nine dollars ($1,229.00) for purchase of home owner and flood insurance coverage. The intended homeowner policy was not issued by FPCJUA until August 2, 1998, and or was thereafter cancelled for underwriting reasons. Refund check was issued by FPCJUA payable to Carlos and Teresa Fspinoza which was deposited by you to account of Insure Smart and not thereafter returned to Teresa Espinoza. That at such initial meeting with the said Teresa Espinoza, you, RODOLFO PRIETO issued. to her sedge reflecting flood insurance coverage to be provided by U. s. ‘Security Insurance ‘Company. That a policy for flood insurance coverage was never issued iby this in insurer intervention of the Department of Insurance « did you then i issue a refund check t Tees Espinoza for the flood insurance premium previously collected and misappropriated by you. bi nder - That o ly after ere rere we oe ok: 7. IT IS THEREFORE CHARGED, that you, RODOLFO PRIETO, 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 eligibility as an insurance agent: (a) All premiums, return premiums, or other funds belonging to insurers or others received by an agent in transactions under his or her license are trust funds received by the licensee in a fiduciary capacity. [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]; (c) 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]; (d) 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]; (e) 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, or having otherwise shown himself or herself to be a source of injury or loss to the public or detrimental to the public interest. [Section 626.621(6), Florida Statutes]. COUNT II 8. The above general allegations are hereby realleged and fully incorporated by reference. seo pep ow RET CE RENEE CTR RT IE CO ere nn a ner ricer cage =e 9. On or about May 9, 1999, Maria Aguero purchased renewal automobile insurance from you through your company, Insure Smart, and paid to you the quoted premium cost therefore of three hundred twenty three dollars ($423.00) through debit on her credit card. Thereafter, she never received an insurance policy or any other information. Upon inquiry by her in August 1999, she was informed that you had failed to submit her application for insurance coverage. Not until August 20, 1999, after your admission to Maria Aguero that you had failed to secure insurance coverage for her the previous May, did you then submit an application to National Specialty Lines, Inc. on August 20, 1999, 10. IT IS THEREFORE CHARGED, that you, RODOLFO PRIETO, 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 eligibility as an insurance agent: . (a) All premiums, return premiums, or other funds belonging to insurers or others received by an agent in transactions under his or her license are trust funds received by the licensee in a fiduciary capacity. [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]; (c) 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]; (d) 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]; deepen “7 veer were ee nee Ce aan eile chi ae a-ak ee (e) 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, or having otherwise shown himself or herself to be a source of injury or loss to the public or detrimental to the public interest. [Section 626.621(6), Florida Statutes]. COUNT III 11. The above general allegations are hereby realleged and fully incorporated by reference. 12. On about July 24, 1998, Jaime Hernandez purchased from you through your company Insure Smart, a flood insurance policy on his newly acquired residence home to be issued by U.S. Security Insurance Co., Inc. Premium therefore was paid to you. Thereafter, the insurer did not except the application due to your failure to provide additional requested information which resulted in a return of the application together with a refund check in the sum of two hundred eighty five dollars ($285.00) payable to Jaime Hernandez. That check was deposited to the account of Insure Smart and not returned to the said Jaime Hernandez, nor was he otherwise in any way notified of this occurrence. Thereafter, and on or about June 1999, the said Jaime Hernandez discovered that he was without flood insurance on his property. He contacted you and only then did you return premium monies which had been misappropriated by you. 13. IT IS THEREFORE CHARGED, that you, RODOLFO PRIETO, 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 eligibility as an insurance agent: TORE TEE FE RE RRR eR TIRE APR ER RT ET (a) All premiums, return premiums, or other funds belonging to insurers or others received by an agent in transactions under his or her license are trust funds received by the licensee in a fiduciary capacity. [Section 626.561(1), Florida Statutes]; (6) | Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.61 1(7), Florida Statutes]; (c) 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]; (d) Willful failure to comply with, or willful violation of, any proper order or ‘Tule of . the department or willful violation of any provision of this code. [Section 626.61 1(13), Florida Statutes]; (e) 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, or having otherwise shown himself or herself to be a source of injury or loss to the public or detrimental to the public interest. [Section 626.621(6), Florida Statutes]. WHEREFORE, you, RODOLFO PRIETO, are hereby notified that the Treasurer and Insurance Commissioner intends to enter an Order suspending or revoking your licenses and eligibility for licensure as an insurance agent or to impose such lesser penalties as may be provided under the provisions of Chapter 626, 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. 7 cd Mictetecd: La 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 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 in 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 Ingen oe ee 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 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. day of _ OCTOBER __, 2001. OS op KENNEY SHIPLEY DATED and SIGNED this _ 19TH tee ; ' ; E b CERTIFICATE OF SERVICE SERIE ALE OF SERVICE BY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE I HERE COMPLAINT and ELECTION OF RODOLFO PRIETO, 12705 sw 9g" Insure Smart, 8835 SW 107" Avenu OCTOBER > 2001. RIGHTS Court, Mi ie, Miami, have been furnished by Certified Mail to: ami, Florida 33176 and RODOLFO PRIETO, Florida 33176 on this 19th day of DEAN ANDREWS Florida Bar No. 0001959 Division of Legal Services 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4242 i ili ee oe

Docket for Case No: 01-004450PL