FILED THE TREASURER OF THE STATE of FAORIDS AM: 94 DEPARTMENT OF INSURANCE : “4 TOM GALLAGHER mt NOIM ee MAR 6 2002 . Treasurer and insurance Cony ner IN THE MATTER OF: Docketed by: pena CASE NO. : 40483-02-AG RICHARD ROSENBLUM ADMINISTRATIVE COMPLAINT TO: RICHARD ROSENBLUM 9764 NW 66 Place Parkland, Florida 33076 RICHARD ROSENBLUM c/o Richard B. Luire & Associates & Assoc. 1641 NE 163 Street North Miami Beach, Florida 33162-4724 You, RICHARD ROSENBLUM, 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 1. Pursuant to Chapter 626, Florida Statutes, you, RICHARD ROSENBLUM, are currently licensed in this state as a residential property and casualty joint underwriters association agent (0-17); and a general lines (2-20) agent. Your license identification number is A226094. 2. At all times relevant to the dates and occurrences alleged herein, you, RICHARD ROSENBLUM, were licensed in this state as an insurance agent. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Insurance (hereinafter referred to as the “Department”) has jurisdiction over your licenses and appointments. 4. At all times relevant hereto, you, RICHARD ROSENBLUM, were an officer/director of Richard B. Luire & Associates (hereinafter referred to as “Luire & Associates”), located at 1641 NE 163 Street, North Miami Beach, Florida 33162-4724, which is an entity incorporated under the laws of Florida and an insurance agency as defined pursuant to Section 626.094, Florida Statutes. 5. At all times relevant hereto, you, RICHARD ROSENBLUM, were the primary agent for Luire & Associates. 6. At all times relevant hereto, Ida Rico, of 8849 NW 119" Street, Hialeah, Florida was an employ of Luire & Associates. Ms. Rico was and is not licensed by the Department of Insurance. 7. At all times relevant hereto, you, RICHARD ROSENBLUM, were an officer/director of ACE 11, Inc., (hereinafter referred to as “ACE 11”) located at 2732 North Andrews Avenue, Wilton Manors, Florida 3331 1, which is an entity incorporated under the laws of Florida and an insurance agency as defined pursuant to Section 626.094, F lorida Statutes. 8. At all times relevant hereto, you, RICHARD ROSENBLUM, were an officer/director of Allkinds Insurance Agency, Inc., (hereinafter referred to as “Allkinds”), located 1422 Alton Road, Miami Beach, Florida 33139, which is an entity incorporated under the laws of Florida and an insurance agency as defined pursuant to Section 626.094, Florida Statutes. SSS Ass eee aseeemeeneeneee” 9. As an officer or director of Luire & Associates, ACE 11, and Allkinds you, RICHARD ROSENBLUM, are responsible for the actions of employees under your direct supervision and control. 10. As a primary agent for Luire & Associates for you, RICHARD ROSENBLUM, are responsible for the actions of employees under your direct supervision and control. 11. As and officer/director of Luire & Associates, ACE 11, and Allkinds, and a primary agent for Luire & Associates you, RICHARD ROSENBLUM, are responsible and accountable for all of the activities of the staff at the agency locations described above for the times and occurrences as hereafter presented. References to you, RICHARD ROSENBLUM, include persons acting under your direct supervision and control at the agencies described herein. 12. At all time relevant hereto you, RICHARD ROSENBLUM, were listed as a signor on the Luire & Associates agency accounts at SunTrust Bank in Miami. 13. At all times relevant to the dates and occurrences referred to herein, pursuant to Section 626.734, Florida Statutes, you, RICHARD ROSENBLUM, were and still continue to be personally liable and accountable for any wrongful acts, misconduct, or violation of any provision of the Insurance Code committed either by you or anyone under your direct supervision and control. 14. Atall times relevant to the dates and occurrences referred to herein, and pursuant to Section 626.561(1), Florida Statutes, all premiums, return premiums, or other funds belonging to others received by Luire & Associates, ACE 11, Allkinds and/or you, RICHARD ROSENBLUM, constituted trust funds, received in a fiduciary capacity, and you, RICHARD ROSENBLUM, were and remains obligated to account for and pay such funds to the insurer, insured, or other persons lawfully entitled thereto in the applicable regular course of business. COUNT I 15. The above general allegations contained in Paragraph | through 14, are hereby realleged and fully incorporated herein by reference. 16. On or about March 31, 1997, Mr. Norm Block of 925 NW 98" Street, Miami Shores, Florida, gave to you, RICHARD ROSENBLUM, or someone under your direct supervision and control, check #3088 in the amount of $599 payable to Luire & Associates as payment for a one-year PIP and PD insurance policy on a 1989 Ford Escort. You, RICHARD ROSENBLUM, were to obtain said policy from American Skyhawk Insurance Company (policy #970816) through Onyx Underwriters Inc, acting as the managing general agent (“MGA”). 17.. Check #3088 was deposited in to Luire & Associates’ account # 0801001018010 at SunTrust Bank of Miami, but the premium payment was never forwarded to the MGA or the insurer and, as a result, Mr. Block was left without insurance coverage on the vehicle. 18. As a primary agent and corporate officer of Luire & Associates you, RICHARD ROSENBLUM, are responsible and accountable for all funds received by the agency as premium payments and for the forwarding of those funds to insurers. IT IS THEREFORE CHARGED that you, RICHARD ROSENBLUM, 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 this state: (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]; a cc ce Sees senses (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 626.61 1(5), Florida Statutes]; (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.61 1(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]; (f) 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]; (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 IX of this chapter, or having otherwise shown himself or herself to be a source of injury to the public. [Section 626.621(6), Florida Statutes]; aac hee eases stents. (i) No person shall engage in this state in any trade Practice, which is defined in this Part as, or determined pursuant to be an unfair or deceptive act or practice involving the business of 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]; cs, . moe (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 tisk by the insurer, by the insurance policy issued by the insurer as permitted by this code. [Section 626.9541(1)(0)1, Florida Statutes]; dd) 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 19. The above general allegations contained in Paragraph 1 through 14, are hereby realleged and fully incorporated herein by reference. 20. On or about August 13, 1996, Mr. Norm Block, gave to you, RICHARD ROSENBLUM, or someone under your direct supervision and control, check #2842 payable to Luire & Associates in the amount of $3,723. This check was to be used as a premium payment for a six-month insurance policy on a 1987 Volkswagen Fox, a 1992 Ford Escort and a 1987 — SS SSeS Volkswagen van. Coverage was to be obtained from Bankers Insurance Company (policy # 961950). 21. Check #2842 was deposited in to Luire & Associates’ account # 0801001018010 at SunTrust Bank of Miami, but the premium payment was never forwarded to the insurer and, as a result, Mr. Block was left without insurance coverage. 22. As a primary agent and corporate officer of Luire & Associates you, RICHARD ROSENBLUM, are responsible and accountable for all funds received by the agency as premium payments and are responsible for the forwarding of those funds to insurers. IT IS THEREFORE CHARGED that you, RICHARD ROSENBLUM, 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, registrations, and appointments as an insurance agent: Sections 626.561(1), 626.621(5), 626.611(7), 626.61 1(8), 626.611(9), 626.61 1(10), 626.611(13) 626.621(2), 626.621(6), 626.9521(1), 626.9541(1)(k)1, 626.9541(1)(0)1 and 626.9541(1)(0)2, Florida Statutes, which are more fully set forth in Count I above and fully incorporated herein by reference. COUNT II 23. The above general allegations contained in Paragraph 1 through 14, are hereby realleged and fully incorporated herein by reference. 24. On or about March 25, 1996, Mr. Norm Block, gave you, RICHARD ROSENBLUM, or someone under your direct supervision and control, check #2666 payable to Luire & Associates, in the amount of $601 and on or about August 12, 1996, Mr. Brock gave to "a | ea es aeessenstauassenesnsancssssenne you RICHARD ROSENBLUM, or someone under you direct supervision and control, check #2840, payable to Luire & Associates, in the amount of $144, 25. Checks #666 and #2840 were to be used as a premium payment for policy # PI- 000007492633-00 with American Skyhawk Insurance Company, which was for automobile insurance on a 1989 Ford Escort belonging to Gregg Block. The policy period was April 25, 1996 to April 25, 1997. 26. You, RICHARD ROSENBLUM, or someone under your direct supervision an control, were paid by Mr. Block a total of $745 for policy # PI-000007492633-00, but the actual total policy premium was $715. Mr. Brock overpaid the policy by $30, but the money was never refunded to him. 27. As a primary agent and corporate officer of Luire & Associates you, RICHARD ROSENBLUM, are responsible and accountable for all funds received by the agency as premium payment and are responsible to returning overpayments to the consumer, which you failed to do. IT IS THEREFORE CHARGED that you, RICHARD ROSENBLUM, 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, registrations, and appointments as an insurance agent: Sections 626.611(4), 626.61 1(5), 626.611(7), 626.61 1(8), 626.611(9), 626.61 1(13) 626.621(2), 626.621(2), 626.621(3), 626.621(6), 626.9521(1), 626.9541(1)(e), and 626.9541(1)(k) Florida Statutes, which are more fully set forth in Count I above and fully incorporated herein by reference. COUNT IV 28. The above general allegations contained in Paragraph 1 through 14, are hereby realleged and fully incorporated herein by reference. 29. On or about March 18, 1995, Mr. Norm Block gave to you RICHARD ROSENBLUM, or someone under your direct supervision and control check #2637, payable to Luire & Associates, in the amount of $415. On or about June 8, 1995, Mr. Brock gave to you or someone under your direct supervision and control check #2332 made payable to Bankers -& Shipers Insurance Company, in the amount of $94. Checks #2637 and #2332 were to be used as the total premium payment for automobile insurance policy #SFL 8655661 from Integon ; National Insurance Company. The total amount paid by Mr. Block for this policy $509, but the actual policy premium was $484. 30. Asa primary agent and corporate officer of Luire & Associates you, RICHARD ROSENBLUM, are responsible and accountable for all funds received by the agency as premium payments and are responsible for returning any Overpayments to the consumer, which you failed to do. IT IS THEREFORE CHARGED that you, RICHARD ROSENBLUM » 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, registrations, and appointments as an insurance agent: Sections 626.61 1(4), 626.611(5), 626.61 1(7), 626.611(8), 626.61 1(9), 626.611(13) 626.621(2), 626.621(2), 626.621(3), 626.621(6), 626.9521(1), 626.9541(1)(e), and 626.9541(1)(k) Florida Statutes, which are more fully set forth in Count I above and fully incorporated herein by reference, COUNT V 31. The above general allegations contained in Paragraph 1 through 14, are hereby realleged and fully incorporated herein by reference. 32. On or about August 15, 1995, Mr. Norm Block paid for and obtained from you, RICHARD ROSENBLUM, or Someone under your direct supervision and control, insurance policy #FP-0000274095 from U.S. Security Insurance Company. The issue premium for the ~ policy was $1,058. 33. On or about December 7, 1995, the policy was cancelled and a check in the amount $577.15 was sent to Luire & Associates by U.S. Security Insurance Company as a refund for unearned premiums, which should have been refunded to the consumer.~ In addition, Mr. Block was entitled to receive a refund of an additional $109.20, representing unearned commissions on the policy. 34. Asa primary agent and corporate officer of Luire & Associates you, RICHARD IT IS THEREFORE CHARGED that you, RICHARD ROSENBLUM, 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, registrations, and appointments as an insurance agent: are. ie Settee Sections 626.611(4), 626.611(5), 626.611(7), 626.611(8), 626.611(9), 626.611(13) 626.621(2), 626.621(2), 626.621(3), 626.621(6), 626.9521(1), 626.9541(1)(e), and 626.9541(1)(k) Florida Statutes, which are more fully set forth in Count I above and fully incorporated herein by reference, COUNT VI 35. The above general allegations contained ‘in Paragraph 1 through 14, are hereby realleged and fully incorporated herein by reference. 36. On or about March 16, 1999, Fernando Alvarez, of 9316 Harding Avenue, Miami Beach, Florida, went to Luire & Associates office and did meet with an employee of the agency, Ida Rico. Ms. Rico completed an application for automobile insurance for 1992 Ford Aerostar a and Mr. Alverez gave to her a check in the amount of $2,479 as payment for the policy premium. Mr. Aleverez to lead to believe by Ms. Rico that he had insurance Coverage on the vehicle effective March 16, 1999, but coverage was not obtained until November 11, 1999, 37. Asa direct result of your actions or the actions of an employee under your direct supervision and control, Mr. Alverez was left without insurance coverage from March 16, 1999 until November 11, 1999, 38. When coverage was finally obtained for the vehicle the actual total premium was $1,336, not the $2,479, yet the overpayment was not refunded to Mr. Alverez. 39. Asa primary agent and Corporate officer of Luire & Associates you, RICHARD ROSENBLUM, are responsible and accountable for all funds received by the agency as premium payments and are responsible for the forwarding of those funds to insurers, 40. You, RICHARD ROSENBLUM, had a duty to either obtain insurance coverage for Mr. Alverez or to notify him that coverage had not been obtained, 41. You, RICHARD ROSENBLUM, were responsible for returning any overpayments back to the consumer, which you failed to do. IT IS THEREFORE CHARGED that you, RICHARD ROSENBLUM, 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, registrations, and appointments as an insurance agent: Sections 626.611(4), 626.611(5), 626.61 1(7), 626.611(8), 626.611(9), 626.61 1(13) 626.621(2), 626.621(2), 626.621(3), 626.621(6), 626.9521(1), 626.9541(1)(e), and 626.9541(1)(k) Florida Statutes, which are more fully set forth in Count I above and fully incorporated herein by reference. COUNT VII 42. The above general allegations contained in Paragraph 1 through 14, are hereby realleged and fully incorporated herein by reference. 43. On or about July 22, 1998, Fernando Floris, of 515 NW 116 Street, Miami, Florida 33168-3416, went to Luire & Associates office and did meet with Ida Rico. Ms. Rico completed an application for insurance and charged Mr. Floris $697 as payment for one year of automobile insurance coverage. On year latter, on or about July 22, 1999, Mr. Floris learned that a policy had never been issued. 44. As a primary agent and corporate officer of Luire & Associates you, RICHARD ROSENBLUM, are responsible and accountable for all funds received by the agency as premium payments whether those fund are received by you or by an employee under your direct supervision and control. As a direct result of your actions or the actions of someone under your a Sc Se! Sc ¢ nies seuss direct supervision and control, Mr. Floris was left without insurance coverage, which he paid for and was lead to believe that he had. IT IS THEREFORE CHARGED that you, RICHARD ROSENBLUM, 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, registrations, and appointments as an insurance agent: Sections 626.611(4), 626.61 1(5), 626.611(7), 626.611(8), 626.611(9), 626.611(13) 626.621(2), 626.621(2), 626.621(3), 626.621(6), 626.9521(1), 626.9541(1)(e), and 626.9541(1)(k) Florida Statutes, which are more fully set forth in Count I above and fully incorporated herein by reference. WHEREFORE, you, RICHARD ROSENBLUM, 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, 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 You have the right to request a proceeding to contest this action by the Department pursuant to sections 120.569 and 120.57, Florida Statutes, and Rule 28-107, Florida Administrative Code. The proceeding request must be in writing, signed by you, and must be filed with the Department within twenty-one (21) days of your receipt of this notice. Completion a Les Sete ssstesesssnteneneen of the attached Election of Proceeding form and/or a petition for administrative hearing will suffice as a written request. The request must be filed with the General Counsel as acting Agency Clerk, at the Florida Department of Insurance, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. Your written response must be received by the Department no later than 5:00 p.m. on the twenty-first day after your receipt of this notice. Mailing the response on the twenty-first day will not preserve your right to a hearing. YOUR FAILURE TO RESPOND IN WRITING WITHIN TWENTY-ONE (21) DAYS OF YOUR RECEIPT OF THIS NOTICE WILL CONSTITUTE A WAIV ER OF YOUR RIGHT TO REQUEST A PROCEEDING ON THE MATTERS ALLEGED HEREIN AND AN ORDER OF REVOCATION WILL BE ENTERED AGAINST YOU. If, you request a proceeding, you must provide information that complies with the requirements of Rule 28-107.004, Florida Administrative Code. As noted above, completion of the attached Election of Proceeding form conforms to these Tequirements. Specifically, your response must contain: (a) The name and address of the party making the request, for purpose of service; (b) A statement that the party is requesting a hearing involving disputed issues of material fact, or a hearing not involving disputed issues of material fact; and (c) A reference to the notice, order to show cause, administrative complaint, or other communication that the party has received from the agency. If a hearing of any type is requested, you have the right to be represented by counsel or other qualified representative at your expense, to present evidence and argument, to call and cross-examine witnesses, and to compel the attendance of witnesses and the production of documents by subpoena. aca Sh eee If a proceeding is requested and there is no dispute of material fact, the provisions of section 120.57(2), Florida Statutes, apply. In this regard, you may submit oral or written evidence in opposition to the action taken by the Department or a written Statement challenging the grounds upon which the Department 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. However, if you dispute material facts which are the basis for the Department’s action, you must request an adversarial Proceeding pursuant to sections 120.569 and 120.57(1), Florida Statutes. 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, Florida. Failure to follow the procedure outlined with regard to your response to this notice may result in the request being denied. All prior oral communication or Correspondence in this matter shall be considered freeform agency action, and no such oral communication or correspondence shall operate as a valid request for an administrative proceeding. Any request for an 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. Mediation of this matter pursuant to section 120.573, Florida Statutes, is not available. No Department attorney will discuss this matter with you until the Tesponse has been received by the Department of Insurance. rt a ceases DATED this bit day of _ / } Wehr _ » 2002 eo Geagggests"?? RUD g CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF RIGHTS has been furnished to: RICHARD ROSENBLUM , 1370 Brookhill Dr., Fort Myers, Florida 33916-2198 and c/o Alrite Insurance Agency, 3476 Martin Luther King Jr. Blvd, Fort Myers, Florida 33916-4453 by Certified Mail this [pttaay of “Tels 2002. RICHA - SANTURRI Division of Legal Services 612 Larson Building Tallahassee, Florida 32399-033 (850) 413-4188

Docket for Case No: 02-001316PL