LA -(II1dI& FILED MAR 6 22 THE TREASURER OF THE STATE OF FLORIDA Treasurer and DEPARTMENT OF INSURANCE {naurance Commigeenet Tom GALLAGHER Docketed by? IN THE MATTER OF: ROBERT WILLIAM MALLOY I CASE NO.: 43744-02-AG a ADMINISTRATIVE COMPLAINT TO: ROBERT WILLIAM MALLOY I i 2536 Countryside Blvd., 6th Floor oa = Clearwater, Florida 34623-1 607 : = ROBERT WILLIAM MALLOY Il Post Office Box 15059 Clearwater, Florida 34629-5059 You, ROBERT WILLIAM MALLOY I, 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 4 result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, all at times pertinent to the dates and occurrences referred to herein, you, ROBERT WILLIAM MALLOY Il, were licensed in this state as a life and health, life, and health insurance agent, License A163301. 2. At all times pertinent to the dates and occurrences referred to herein, you. ROBERT WILLIAM MALLOY I, were licensed in this state as an insurance agent. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Insurance has jurisdiction over your insurance licenses and appointments. ‘ COUNTI 4. The above general allegations are hereby realleged and fully incorporated herein by reference. 5. On or about August 11, 1997, one Domineco A. Sack, then a licensed insurance agent and representing Ameri-Life, consulted with Lewis W. Chenoweth and Cordelia Chenoweth and caused them to purchase annuity insurance policies issued by American National Life Insurance Company on August 29, 1997, to wit, certificate numbers LARO0038614, LAR0038615, and LAR0038600, each in the respective amount of Five Thousand Two Hundred Seventy-Seven Dollars and Sixty-Seven Cents ($5,277.67), Five Thousand Two Hundred Seventy-Seven Dollars ($5,277.00), and Thirty-Six Thousand Dollars ($36,000.00). 6. Subsequent to that occurrence the said Lewis W. Chenoweth was diagnosed as suffering from Alzheimer’s disease and his wife Cordelia Chenoweth suffered from dementia. 7. On or about August 23, 2000, you, ROBERT WILLIAM MALLOY II, as a licensed insurance agent and representing Ameri-Life, consulted with the said Lewis W. Chenoweth and Cordelia Chenoweth to convince them to surrender their policies issued by American National Life Insurance Company as above described in paragraph 5, and to use the proceeds therefrom to purchase annuity coverage from Shenandoah Life Insurance Company. Notwithstanding obvious mental infirmities of the said Lewis W. Chenoweth and Cordelia Chenoweth, you prepared all necessary applications to accomplish your sale and furnished same to the respective companies. 8. Subsequent to submission of annuity application to Shenandoah Life Insurance Company by you, ROBERT WILLIAM MALLOY I, one Michael O’Brien as representative of that company informed you on September 8, 2000 that he had contacted Lewis W. Chenoweth to complete telephone interview and the said Lewis W. Chenoweth informed that he had not applied for the coverage and did not know you. 9. On or about July 23, 2001, and after extensive review, Shenandoah Life Insurance Company cancelled the policies effected by you, ROBERT WILLIAM MALLOY II, and refunded the sum Forty-Six Thousand Nine Hundred Twenty-Four Dollars and Fourteen Cents ($46,924.14) to Lewis W. Chenoweth. 10. All the foregoing caused significant monetary lost to Lewis W. Chenoweth plus the creation of a tax liability. 11. ITIS THEREFORE CHARGED that you, ROBERT WILLIAM MALLOY II, have violated and 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) 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); (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (c) Fraudulent or dishonest practices in the conduct of business under the licenses or appointment. [Section 626.611(9), 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 626.611(13), Florida Statutes]. TS Se # Sse sdnssSeinasesaa antennas ean WHEREFORE, you, ROBERT WILLIAM MALLOY IL, 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. 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 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 WAIVER 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 requirements. 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. Ifa 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. 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 a eenenen Sstesnssusssneceteenessene ee 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 response has been received by the Department of Insurance, DATED this 6th day of I HEREBY CERTIFY that a copy of the foregoing has been furnished to: ROBERT WILLIAM MALLOY IL, 2536 Countryside Blvd., 6th Floor, Clearwater, Florida 34623-1607 and ROBERT WILLIAM MALLOY Il, Post Office Box 15059, Clearwater, Florida 34629, by U.S. Certified Mail this 6th day of MARCH , 2002. __ DEAN ANDREWS, ESQUIRE Fla. Bar No.: 0001959 Florida Department of Insurance Division of Legal Services 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4242

Docket for Case No: 02-001339PL