OU) PL “were FILED . QCT 19 2001 THE TREASURER OF THE STATE OF FLORIDA DEPARTMENT OF INSURANCE Freasurer and TOM GALLAGHER ineqrence Comnfissionss Docketed by: aa IN THE MATTER OF: BRUCE PAUL KARLIN CASE NO.: 41444-01-AG “ / ADMINISTRATIVE COMPLAINT | TO: BRUCE PAUL KARLIN 5009 NW 24" Circle Boca Raton, Florida 33431 BRUCE PAUL KARLIN South Florida Financial Group, Inc. 9045 La Fontana Boulevard, Suite Cl Boca Raton, Florida 33434-5633 You, BRUCE PAUL KARLIN, 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: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, BRUCE PAUL KARLIN, are currently licensed in this state as a life, health and variable annuity insurance agent. 2. Atall times pertinent to the dates and occurrences referred to herein, you, BRUCE PAUL KARLIN, were licensed in this state as an insurance agent. 3. In or about the years 1998 through 2000, you, BRUCE PAUL KARLIN, as a licensed insurance agent in the State of Florida, exploited numerous elderly individuals through misrepresentations concerning terms and conditions of annuities in order to induce these elderly consumers to purchase new annuities or replace existing policies which caused sale of policies not in the best interest of the insured, but yielding to you substantial commissions therefor. 4. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Insurance has jurisdiction over your insurance licenses and appointments. COUNT I 5. The above General Allegations are hereby realleged and fully incorporated by reference. 6. At a time prior to August 1998, you, BRUCE PAUL KARLIN, as a licensed insurance agent in the State of Florida conferred with John P. Gillice, an eighty-year old widower, in an effort to sell him certain annuity policies. You convinced him to liquidate certain mutual fund accounts and certificates of deposit in order to gain funds for annuity premium costs. 7. On or about August 12, 1998, you, BRUCE PAUL KARLIN, caused purchase by John P. Gillice of contract number 0N715410 written through Conseco Annuity Assurance Company for an initial premium payment of $11, 774.00 which provided to you an agent’s commission of $1, 177.32. On or about August 24, 1998, you, BRUCE PAUL KARLIN, caused John P. Gillice to purchase contract number 0N715411 written through Conseco Annuity Assurance Company for an initial premium payment of $35, 425.38 which provided to you an agent’s commission of $3,542.55. 8. Thereafter, on or about March 3, 2000, you, BRUCE PAUL KARLIN, caused the annuity contracts above described to be cancelled and replaced with annuity number 049807 and annuity number 049808 written through American Equity Investment Life Insurance Company. . This action occasioned surrender penalties of $14,892.55 to be charged to your insured, John P. Gillice, while the total transaction episode generated agency total commissions for you of $27, 092.47. IT IS THEREFORE CHARGED, that you, BRUCE PAUL KARLIN, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: (a) | Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (b) 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]; : : (c) Willful failure to comply with, or willful violation of, any proper order or rule of i the department or willful violation of any provision of this code. [Section 626.611(13), Florida Statutes]; (d) In the conduct of business under the ficénse 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 to be a source of injury or loss to the public ' interest. [Section 626.621(6), Florida Statutes]; (e) 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 (3), Florida Statutes]; . (f) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; (g) | Knowingly making any misleading representation or incomplete or fraudulent comparisons or fraudulent material omissions of or with respect to any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on, or convert any insurance policy or to take out a policy of insurance with another insurer. [Section 626.9541(1)(1), Florida Statutes]. COUNT II 9. The above General Allegations are hereby realleged and fully incorporated by reference. 10. In or about March 2000, you, BRUCE PAUL KARLIN, called upon Frieda Friend, an eighty-year old woman, and gained entry into her residence by falsely asserting that you were a representative from a seminar which she had previously attended concerning home health care. She informed you that she had an established investment account with Paine Webber. You, then and there, convinced her to liquidate this account and to use the proceeds to purchase an annuity contract of insurance, | 11. Onor about March 10, 2000, you sold her an annuity policy upon representation, among other things, that she could at anytime withdraw ten percent without penalty. You then filled out her check payable to American Equity and caused her to execute same. You did not present her with copies of her application or any other form which you caused her to sign. You received an agent’s commission of $1, 400.00 for the sale of this annuity to Frieda Friend. Thereafter, and upon receipt of her annuity policy written through American Equity Investment Insurance Company, Frieda Friend then discovered that her policy was written for a period of fifteen years and upon inquiry to you as to why an eighty-year woman would have need of a fifteen year policy you advised her not to be concerned. Thereafter, Frieda Friend discovered that she could not withdraw ten percent without penalty as you had otherwise represented to her and she contacted the company to rescind the policy. The company agreed to rescind such policy but only upon payment of a twenty percent penalty. Frieda Friend then made complaint to the Department of Insurance and only upon its intervention, was full refund then accorded Frieda Friend. ITIS THEREFORE ALLEGED, that you, BRUCE PAUL KARLIN, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which:constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: (a) | Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (b) 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]; . (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 626.611(13), Florida Statutes]; (d) Inthe 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 to be a source of injury or loss to the public interest. [Section 626.621(6), Florida Statutes]; (e) 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]; ( Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611 (9), Florida Statutes]; (g) | Knowingly making any misleading representation or incomplete or fraudulent comparisons or fraudulent material omissions of or with respect to any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on, or convert any insurance policy or to take out a policy of insurance with another insurer. [Section 626.9541(1)(), Florida Statutes]. ' COUNT Il 12, The above General Allegations are hereby realleged and fully incorporated by reference. 13. On or September 16, 1999, you, BRUCE PAUL KARLIN, as a licensed insurance agent in the State of Florida, consulted with Leslie Wellisch, and eighty-three year old woman. You learned that she had an existing annuity contract number 022118-OW issued though Golden American Life Insurance Company which had previously become effective on February 16, 1999. You then and there caused her to sign an application form to terminate such existing annuity policy and to replace same through a policy to be issued through you by American Investors Life Insurance Company. This was accomplished in spite of telephonié advise from the daughter of Leslie Wellisch, one Harriet MacFarlan, that her mother did not wish to make any changes to her existing annuity account. Nonetheless, you thereafter caused the existing annuity policy issued by Golden American Life Insurance Company to be cancelled and replaced by annuity contract number 335815 issued by American Investors Life Insurance Company to be effective October 1, 1999, at a premium cost of $67, 399.40. Thereafter, upon understanding what you had caused her to do, Leslie Wellisch, requested reinstatement of her original annuity policy with Golden "American Life Insurance Company for which a refund check of $67, 399.40 was ultimately repaid by American Investors Life Insurance Company to Golden American Life Insurance Company. IT IS THEREFORE ALLEGED, that you, BRUCE PAUL KARLIN, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: . (a) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (b) 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]; . (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) 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 to be a source of injury or loss to the public interest. [Section 626.621(6), Florida Statutes]; (e) 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]; (63) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; . (g) | Knowingly making any misleading representation or incomplete or fraudulent comparisons or fraudulent material omissions of or with respect to any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on, or convert any insurance policy or to take out a policy of insurance with another insurer. [Section 626.9541(1)(), Florida Statutes]. COUNT IV 14. The above General Allegations are hereby realleged and fully incorporated by reference. 15. | Onor about February 18, 2000, you, BRUCE PAUL KARLIN, as a licensed insurance agent by the State of Florida, consulted with Bertha Kesten, an eighty-three year old woman, to discuss benefits which she might receive through purchase of an annuity. You informed her that upon and after purchase of an annuity, if she should change her mind for any reason she could cancel the contract and gain full refund of that premium so long as the request was made within thirty days. You convinced her to purchase a ten-year annuity, which she did by ORNS Pr mer omg delivering to you her check in the sum of $20,000.00 payable to American Investors Life Insurance Company as premium cost therefor. Thereafter, and upon receipt of the policy, she discovered that it had been written for a term of twenty years, not ten years as you had otherwise represented to her. She decided that at the age of eighty-three she did not need a ten-year annuity contract, let alone twenty years. On or about March 12, 2000, she made written request to American Investors Life Insurance Company to cancel the annuity. She was then informed that she could not gain full refund of her $20,000.00 premium payment because the cancellation period for that occurrence was ten days and not thirty days as you had otherwise represented to her. Only after her complaint to the Department of Insurance did she did obtain full refund of her $20,000.00. IT IS THEREFORE ALLEGED, that you, BRUCE PAUL KARLIN, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: (a) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (b) | 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]; . | (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]; gee ree re reese eee ange e- (d) 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 to be a source of injury or loss to the public interest. [Section 626.621(6), Florida Statutes]; (e) 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]; (63) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.61 1(9), Florida Statutes]; (g) Knowingly making any misleading representation or incomplete or fraudulent comparisons or fraudulent material omissions of or with respect to any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on, or convert any insurance policy or to take out a policy of insurance with another insurer. [Section 626.9541(1)(), Florida Statutes]. COUNT V 16. The above General Allegations are hereby realleged and fully incorporated by reference. . 17. On or about November 12, 1999, you, BRUCE PAUL KARLIN, as a licensed insurance agent by-the State of Florida, consulted with Ruth Weisbord, a ninety-one year old woman, for purpose of selling her a home health care policy. She furnished you checks in the total sum of $900.00 as premium cost therefor, and you thereafter caused issuance of a policy through Life and Health of America Insurance Company, policy number 99H08099. Shortly thereafter, it was determined that Ruth Weisbord was no longer able to live alone and she was 10 weer ONS gees moved to an assisted living facility. In these circumstances, and on or about December 9, 1999, she requested the company to cancel her policy and was advised it would do so with a full refund of her premium. In or about the first week of January 2000, you, BRUCE PAUL KARLIN, contacted Ruth Weisbord in an attempt to reinstate the policy which you had sold to her. She referred you to her son-in-law, Edward M. Ziskin, for a decision in the matter. On or about January 8, 2000, you came to the home of Ruth Weisbord in further effort to gain reinstatement of the policy and she telephoned Edward M. Ziskin who spoke with you and informed any decision on reinstatement would be later determined. Thereafter, upon further contact with Life and Health of America Insurance Company, information was provided that you, BRUCE PAUL KARLIN, had furnished a fax to the company on January 7, 2000, signed by Ruth Weisbord . requesting reinstatement of the policy. All attempts to contact you thereafter on behalf of the said Ruth Weisbord, by her son-in-law, Edward M. Ziskin, were without result. IT IS THEREFORE ALLEGED, that you, BRUCE PAUL KARLIN, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: (a) . Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (b) 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]; cgere—rar- (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 626.611(13), Florida Statutes]; (d) 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 to be a source of injury or loss to the public interest. [Section 626.621(6), Florida Statutes]; (e) 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]; (f) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; (g) | Knowingly making any misleading representation or incomplete or fraudulent comparisons or fraudulent material omissions of or with respect to any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on, or convert any insurance policy or to take out a policy of insurance with another insurer. [Section 626.9541(1)(), Florida Statutes]. COUNT VI 18. The above General Allegations are hereby realleged and fully incorporated by reference. 19. On or about June 15, 2000, you, BRUCE PAUL KARLIN, as a licensed insurance agent by the State of Florida, consulted with Harry Axelrod, a 79-year old man, for purpose of selling to him a home care service contract written through Life Guardian, Inc. At such time, 12 ewe pees RRR ree camer Harry Axelrod had already suffered a stroke which effected his right side and diminished his mental capacity. He was at that time receiving eight-hour daily services from a care-giver in addition to services of a cleaning person to take care of his home. Notwithstanding these circumstances, you, BRUCE PAUL KARLIN, informed Harry Axelrod that you had spoken with his treating physician who had approved the plan which you proposed to sell to him. Based on that representation, Harry Axelrod signed an application and presented to you his check in the sum of $2,775.00, as a yearly fee therefore. Subsequent to that occurrence, Marily R. Joseph, daughter of Harry Axelrod, discovered the purchase of such plan and determined that it appeared to be a duplication of the services already afforded to her father. She then contacted the offices of Dr. Kravitz, to verify the advice which you had provided to her father regarding approval of your plan to be informed that there was no record of any inquiry nor had any one spoken to any insurance agent by telephone to condone purchase of any home care service contract. Thereafter, all attempts to contact you and gain return of the $2,775.00 were without result. You failed and refused to return numerous telephone calls. | IT IS THEREFORE ALLEGED, that you, BRUCE PAUL KARLIN, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: (a) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; ; - ©) 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]; (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 626.611(13), Florida Statutes]; (d) 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 to be a source of injury or loss to the public interest. [Section 626.621(6), Florida Statutes]; (e) 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]; ( Fraudulent or dishonest practices in the conduct of business under the license or _ . appointment. [Section 626.611(9), Florida Statutes]; (g) | Knowingly making any misleading representation or incomplete or fraudulent comparisons or fraudulent material omissions of or with respect to any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on, or convert any in insurance policy or to take out a policy of insurance with another insurer. [Section 626. 9541(1)(0, “Florida Statutes]. COUNT VII 20. The above General Allegations are hereby realleged and fully incorporated by reference. 21. Onor about June 21, 2000, Muriel G. Baron, an eighty-three year old woman, sent for information concerning assisted living in response to a television advertisement. Several days thereafter, on or about June 26, 2000, you, BRUCE PAUL KARLIN, as a licensed insurance 14 agent by the State of Florida appeared at the residence of Muriel G. Baron to sell to her an assisted living services agreement to be written through Life Guardian, Inc. You convinced her to purchase same. She provided to you her check #1715 in the sum $1,406.84 as the cost therefor. Within several days, Muriel G. Baron realized she did not need a “home care policy.” She attempted to contact you to cancel the plan but you failed and refuse to return her telephone calls. She then contacted the company, Life Guardian, Inc., to canceled the plan but was informed she could not do so. IT IS THEREFORE ALLEGED, that you, BRUCE PAUL KARLIN, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: (a) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (b) | 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]; (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 626.611(13), Florida Statutes]; (d) - Inthe 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 to be a source of injury or loss to the public interest. [Section 626.621(6), Florida Statutes]; 15 (e) 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]; (f) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.61 1(9), Florida Statutes]; (g) | Knowingly making any misleading representation or incomplete or fraudulent comparisons or fraudulent material omissions of or with respect to any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on, or convert any insurance policy or to take out a policy of insurance with another insurer. [Section 626.9541(1)(1), Florida Statutes]. | COUNT VII 22. The above General Allegations are hereby realleged and fully incorporated by reference. 23. On or about May 31, 2000, you, BRUCE PAUL KARLIN, as a licensed insurance agent by the State of Florida consulted with Harvey Chamberlain, a ninety-four year old man, for the purpose for selling him a home care plan which you informed would help him and his ninety- six year old spouse with their special needs. Harvey Chamberlain then informed you that he was almost totally blind, and that he and his spouse needed help with transportation for grocery shopping, banking, and to and from doctor’s appointments. You advised him that such specific services were set forth in the contract. You caused him to purchase an assisted living plan written through Life Guardian, Inc. and indeed, made out his check payable to Life Guardian, Inc. in the some of $1,859.08 which he executed upon your instruction, Thereafter, on or about June 3, 2000, the contract was received by Harvey Chamberlain and his spouse then read to him the terms 16 a EEE eer pege ore and conditions set forth. He then realized that you, BRUCE PAUL KARLIN, had failed to explain that in order to receive any services thereunder to assist him in normal everyday activities, it would be necessary for him to be house bound or bedridden in order to gain assistance. Accordingly, on that date he immediately telephoned you to cancel the plan and gain the return of his $1,859.08. Unable to speak with you personally, he informed your receptionist of his desire to cancel the plan. Later in the day, he again telephoned your office to be informed by your receptionist that she had spoken with you and you had said to inform him “don’t worry, the contract is cancelled and you would get a full refund.” Thereafter, and not having received any refund, Harvey Chamberlain again called your office to be informed by your receptionist that he needed to fill out a request for cancellation form, which he then subsequently did, furnishing same to your office. Thereafter, on or about June 20, 2000, Harvey Chamberlain received a letter from Life Guardian, Inc. informing that his request to cancel same was denied since he had failed to request the cancellation within the required time period of three days after purchase of the contract. IT IS THEREFORE ALLEGED, that you, BRUCE PAUL KARLIN, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: (a) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (0) 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]; 17 | ' | (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 626.611(13), Florida Statutes]; (d) 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 to be a source of injury or loss to the public interest. [Section 626.621(6), Florida Statutes]; | (e) 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]; (69) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; (g) Knowingly making any misleading representation or incomplete or fraudulent comparisons or fraudulent material omissions of or with respect to any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on, or convert any insurance policy or to take out a policy of insurance with another insurer. [Section 626.9541(1)(l), Florida Statutes]. COUNT IX 24. The above General Allegations are hereby realleged and fully incorporated by reference. . | . 25. On or about February 22, 2000, you, BRUCE PAUL KARLIN, as an insurance agent licensed by the State of Florida, consulted with Raye Landow, a ninety-one year old woman, where she informed you of her interest in obtaining a “home health care policy.” You, 18 | j ' ee BRUCE PAUL KARLIN, advised that you could provide such a contract which would yield to her $100.00 per month so long as she needed it. She delivered to you her check #491 in the sum of $930.54, payable to Life Guardian, Inc., as the annual cost therefor. Approximately three weeks later she received copy of her contract to then discover there was no custodial care afforded which would otherwise allow her to undertake such tasks as going to get groceries. She concluded you had sold her “the wrong policy” and immediately contacted you to gain only an angry response. She then directly contacted Life Guardian, Inc. and ultimately obtained a refund of her $930.54. IT IS THEREFORE ALLEGED, that you, BRUCE PAUL KARLIN, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: (a) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (b) | 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]; (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) _ 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 19 ORME REE roe eer ee this chapter, or having otherwise shown himself to be a source of injury or loss to the public interest. [Section 626.621(6), Florida Statutes]; (e) 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]; @ Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes}: (g) Knowingly making any misleading representation or incomplete or fraudulent comparisons or fraudulent material omissions of or with respect to any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on, or convert any insurance policy or to take out a policy of insurance with another insurer. [Section 626.9541(1)(), Florida Statutes]. COUNT X 25. | The above General Allegations are hereby realleged and fully incorporated by reference. 27. On or about August 31, 1999, you, BRUCE PAUL KARLIN, as an insurance agent licensed by the State of Florida, consulted with Claire Goldberg, an eighty year old woman suffering from severe dementia. The purpose was to sell her a home care contract agreement. At such time, she already had existing a long term care policy. You, BRUCE PAUL KARLIN, obtain from her a check payable to Life Guardian, Inc. in the sum of $2,811.48 as and for annual cost of a home care contract. Subsequent to that occurrence, Cheryl Rudin, daughter of Claire Goldberg, discovered that the coverage which you had sold her mother involved only ninety home care days per year with only four hours per day and it did not take effect for a period of one year. 20 oper FECES re mem comers Life Guardian, Inc. was thereupon contacted and informed that the coverage sold by you was unconscionable, which involved an elderly woman suffering from dementia who had a full time aide at the time of sale, who was not in need of the coverage sold by you and more particularly for any coverage which would not become effective for a period of one year. IT IS THEREFORE ALLEGED, that you, BRUCE PAUL KARLIN, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: (a) | Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (b) | 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]; (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 626.611(13), Florida Statutes]; (d) 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 to be a Source of injury or loss to the public interest. [Section 626.621(6), Florida Statutes]; (e) 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]; 21 ee (63) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; (g) | Knowingly making any misleading representation or incomplete or fraudulent comparisons or fraudulent material omissions of or with respect to any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on, or convert any insurance policy or to take out a policy of insurance with another insurer. [Section 626.9541(1)(l), Florida Statutes]. WHEREFORE, you, BRUCE PAUL KARLIN, are hereby notified that the Treasurer and Insurance Commissioner intends to enter an Order 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, and 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 Administrative Code G AC), you have the right to request a proceeding t to contest this action by the Department. * You may el elect a a proceedin b completing the attached Election of ‘Rights form or filing a Petition Your Petition or Election ofa proceeding 1 must bei in writing and must be filed with the General Counsel acting as s the Agency Clerk, Department of Insurance. if served by US. Mail, the Petition o or Election should be addressed to the Florida Department of of Insurance at 612 Larson Building, Tallahassee, Florida 32399-0333. If Express Mail or hand delivery is utilized, 22 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 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 ne Department which you dispute and the nature of the dispute, (b) = An 1 explanation of what relief you are secking and believe you are entitled to; (c) Any other information which you contend is is material. 23 , | | , | | | 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. Ifyou 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. DATED and SIGNED this __19TH day of OCTOBER _, 2001. 24 IE RET OTR ET Sparen 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: BRUCE PAUL KARLIN, 5009 NW 24" Circle, Boca Raton, Florida 33431 and BRUCE PAUL KARLIN, South Florida Financial Group, Inc., 9045 La Foritdtia Boulevard, Suite C1, Boca Raton, Florida 33434-5633 on this_19TH day of OCTOBER , 2001. — DEAN ANDREWS, ESQUIRE Florida Bar No. 0001959 Division of Legal Services 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4242 25 pepe cee ee cage wees -peecmpeee compe pe ORCI es rere neserp ee eieriny ser

Docket for Case No: 01-004461PL