FILED MAR 6 2002 Treasuror and THE TREASURER OF THE STATE OF FLORIDA Com DEPARTMENT OF INSURANCE Tom GALLAGHER IN THE MATTER OF: ge CASE NO.: 42866-02-AG °° “, os ALBERT THOMAS SULLIVAN, SR. wee fl-Lbospe ADMINISTRATIVE COMPLAINT TO: ALBERT THOMAS SULLIVAN, SR. P.O. Box 151 Melrose, FL 32666-0151 ALBERT THOMAS SULLIVAN, SR. Western & Southern Life Insurance Co. Gainesville, FL 32608-3428 ALBERT THOMAS SULLIVAN, SR. c/o Middleton & Prugh, P.A. 303 State Rd. 26 Melrose, FL 32666 You, ALBERT THOMAS SULLIVAN, SR., license I.D. #A257606, 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, ALBERT THOMAS SULLIVAN, SR., are currently licensed in this state as a life agent, a health agent and a life and health agent. 2. At all times pertinent to the dates and occurrences referred to herein, you, ALBERT THOMAS SULLIVAN, SR., were licensed in this state as a life agent, a health agent and a life and health agent. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Insurance (hereinafter referred to as “Department”) has jurisdiction over your insurance license and appointments. 4. You, ALBERT THOMAS SULLIVAN, SR., have been the subject of prior administrative action. From August 24, 1983, to February 24, 1984, you were placed on six months suspension for misappropriating monies belonging to an insurer and making misstatements on an insurance application (case number 82-L137FD). From March 4, 1994, to August 4, 1994, you were placed on five months suspension, followed by one year probation and were required to pay $500.00 in administrative costs for misappropriating funds (case number 93-L633JB). You are hereby notified that the Department intends to seek aggravation of any penalties imposed should the following allegations be established. COUNT I 5. The above general allegations are hereby realleged and fully incorporated herein by reference. 6. On or about May 24, 1995, you, ALBERT THOMAS SULLIVAN, SR., sold a $5,000.00 Continental General Insurance Company (hereinafter referred to as “Continental”) whole life policy to Roy C. Dicks who was then age 82. 7. On or about June 7, 1997, you, ALBERT THOMAS SULLIVAN, SR., visited Roy C. Dicks, at his home at Rural Route 3, Box 153, Lake Butler, Florida 32054, telling him that you were there to collect the premium on his existing insurance policy with Continental because the company was late in sending out payment notices. 8. During the aforementioned visit in paragraph seven, you, ALBERT THOMAS SULLIVAN, SR., told Mr. Dicks and his wife that Continental had merged with Dixie National Life Insurance Company (hereinafter referred to as “Dixie”), and the premium check should be payable to Dixie. 9. At the time you made the statement to Mr. Dicks referenced in paragraph eight, Continental had not merged with Dixie, nor did they do so at any time thereafter, 10. During the aforementioned visit in paragraph seven, you, ALBERT THOMAS SULLIVAN, SR., received a check for $308.64 payable to Dixie from Mr. Dicks. 11. During the aforementioned visit in paragraph seven, you, ALBERT THOMAS SULLIVAN, SR., had Mr. Dicks sign what you told him was a receipt for his premium payment to Dixie. 12. The document signed by Mr. Dicks was in fact an application for a $1,000.00 whole life policy through Dixie, with a premium of $308.64, completed by you, ALBERT THOMAS SULLIVAN, SR., without Mr. Dicks’ knowledge. 13. Mr. Dicks did not want any additional life insurance and would not have knowingly purchased it. Your misrepresentations to Mr. Dicks were made for the purpose of receiving commissions from Dixie upon issuance of an insurance policy to Mr. Dicks. IT IS THEREFORE CHARGED that you, ALBERT THOMAS SULLIVAN, SR., have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the State Treasurer and Insurance Commissioner which constitute grounds for the suspension or revocation of your insurance licenses and eligibility for licensure: (a) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or permit. [Section 626.611(9), 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) Violation of any lawful order or rule of the department. [Section 626.621(3), 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 or having otherwise shown himself or herself to be a source of injury or loss to the public. [Section 626.621(6), Florida Statutes]; (f) False statements and entries.— 1. Knowingly: a. Filing with any supervisory or other public official, b. Making, publishing, disseminating, circulating, c. Delivering to any person, d. Placing before the public, e. Causing, directly or indirectly, to be made, published, disseminated, circulated, delivered to any person, or placed before the public, any false material statement. [Section 626.9541(1)(e), Florida Statutes]; (g) 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]; (h) Knowingly making any misleading representations 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 in another insurer. [Section 626.9541(1)(I)., Florida Statutes]; (i) False claims; obtaining or retaining money dishonestly — 1. Any agent, physician, claimant, or other person who causes to be presented to any insurer a false claim for payment, knowing the same to be false; or 2, Any agent, solicitor, collector, or other person who represents any insurer or collects or does business without the authority of the insurer, secures cash advances by false statements, or fails to turn over when required, or satisfactorily account for, all collections of such insurer, shall, in addition to the other penalties provided in this act, be guilty of a misdemeanor of the second degree and, upon conviction thereof, shall be subject to the penalties provided by ss. 775.082 or ss. 775.083. [Section 626.9541(1)(u), Florida Statutes]; (j) The Business of Life Insurance is hereby declared to be a public trust in which service all agents of all companies have a common obligation to work together in serving the best interests of the insuring public, by understanding and observing the laws governing Life Insurance in letter and in spirit by presenting accurately and completely every fact essential to a client's decision, and by being fair in all relations with colleagues and competitors always placing the policyholder's interests first. [Section 4-215.210, Florida Administrative Code]. COUNT It 14. The above general allegations are hereby realleged and fully incorporated herein by reference. 15. On or about October 25, 1987, you, ALBERT THOMAS SULLIVAN, SR., prepared, or assisted in preparing, application number SI 0000859-0 for a whole life insurance policy for Leroy Wilson, then age 74, through Colonial Penn Life Insurance Company (hereinafter referred to as “Colonial Penn”). 16. Application number SI 0000859-0 resulted in policy number $100008590, being issued to Leroy Wilson, effective November 6, 1987, which lapsed for nonpayment of premium effective November 6, 1988. 17. On or about February 6, 1988, you, ALBERT THOMAS SULLIVAN, SR., prepared, or assisted in preparing, application number $10001951-6 for a whole life insurance policy for Leroy Wilson through Colonial Penn. 18. You, ALBERT THOMAS SULLIVAN, SR., failed to indicate on the application that the policy was a replacement and failed to submit a replacement form(s) for the above transaction when you knew or should have known that application number $I0001951-6 was for a replacement for the policy you sold him the previous year. IT IS THEREFORE CHARGED that you, ALBERT THOMAS SULLIVAN, SR., have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the State Treasurer and Insurance Commissioner which constitute grounds for the suspension or revocation of your insurance licenses and eligibility for licensure: (a) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or permit. [Section 626.611(9), Florida Statutes]; (c) Willful failure to comply with, or wiliful 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) Violation of any lawful order or rule of the department. [Section 626.621(3), 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 or having otherwise shown himself or herself to be a source of injury or loss to the public. [Section 626.621(6), Florida Statutes]; (f) False statements and entries.— 1. Knowingly: a. Filing with any supervisory or other public official, b. Making, publishing, disseminating, circulating, c. Delivering to any person, d. Placing before the public, e. Causing, directly or indirectly, to be made, published, disseminated, circulated, delivered to any person, or placed before the public, any false material statement. [Section 626.9541 (1)(e), Florida Statutes]; (g) 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 benfit from any insurer, agent broker, or individual. {Section 626.9541(1)(k)1., Florida Statutes}; (h) Where replacement is or may be involved, the agent shall: (1) Present to the applicant, not later than at the time of taking the application, a "Notice to Applicant Regarding Replacement of Life Insurance" in the form as described in Exhibit A. The Notice must be signed by the applicant and the agent and left with the applicant. (2) Leave with the applicant the original or a copy of all Sales Proposals used for presentation to the applicant. (3) Submit to the replacing insurer with the application, a completed copy of the "Notice to Applicant Regarding Replacement of Life Insurance" (Exhibit A) and a copy of all Sales Proposals used for presentation to the applicant. [Section 4-151.006, Florida Administrative Code]; (i) Any insurer, agent, representative, officer or employee of such insurer failing to comply with the requirements of these rules and by so doing being in violation of any insurance statute of the State of Florida, as implemented by these rules, shall be subject to such penalties as may be appropriate under the applicable insurance statutes of this state. [Section 4-151.009, Florida Administrative Code]. COUNT I 19. The above general allegations are hereby realleged and fully incorporated herein by reference. 20. On or about February 6, 1988, you, ALBERT THOMAS SULLIVAN, SR., prepared, or assisted in preparing, application number $10001951-6 for a whole life insurance policy for Leroy Wilson through Colonial Penn. 21. Application number $10001951-6 resulted in policy number $100019516, being issued to Leroy Wilson, effective February 22, 1988, which lapsed for nonpayment of premium effective February 22, 1989. 22. On or about February 20, 1989, you, ALBERT THOMAS SULLIVAN, SR., prepared, or assisted in preparing, application number 821231366 for a whole life insurance policy for Leroy Wilson through National Old Line Insurance Company. 23. You, ALBERT THOMAS SULLIVAN, SR., failed to indicate on the application that the policy was a replacement and failed to submit a replacement form(s) for the above policy application when you knew or should have known that application number 821231366 was for a replacement for the policy you sold him the previous year. IT IS THEREFORE CHARGED that you, ALBERT THOMAS SULLIVAN, SR., have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the State Treasurer and Insurance Commissioner which constitute grounds for the Suspension or revocation of your insurance licenses and eli gibility for licensure: Sections 626.611(7), 626.611(9), 626.611(13), 626,621(3), 626.621(6), 626.9541(1)(e), 626.9541(1)(k), Florida Statutes, and Rules 4-151.006 and 4-151.009, Florida Administrative Code which are set forth fully in Count II above and are incorporated herein by reference. COUNT IV 24. The above general allegations are hereby realleged and fully incorporated herein by reference. 25. On or about February 6, 1988, you, ALBERT THOMAS SULLIVAN, SR., prepared, or assisted in preparing, application number $10001950-8 for a whole life insurance policy for Essie Wilson, then age 75, through Colonial Penn. 26. Application number $10001950-8 resulted in policy number $100019508, being issued to Essie Wilson, effective February 19, 1988, which lapsed for nonpayment of premium effective February 19, 1989, 27. On or about December 23, 1988, you, ALBERT THOMAS SULLIVAN, SR., prepared, or assisted in preparing, application number 821222710 for a whole life insurance policy for Essie Wilson through National Old Line Insurance Company. 28. You, ALBERT THOMAS SULLIVAN, SR., failed to indicate on the application that the policy was a replacement and failed to submit a replacement form(s) for the above policy application when you knew or should have known that application number 821222710 was for a replacement for the policy you sold her less than a year before. IT IS THEREFORE CHARGED that you, ALBERT THOMAS SULLIVAN, SR., have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the State Treasurer and Insurance Commissioner which constitute gtounds for the suspension or revocation of your insurance licenses and eligibility for licensure: Sections 626.611(7), 626.61 1(9), 626.611(13), 626.621(3), 626.621(6), 626.9541(1)(e), 626.9541(1)(k), Florida Statutes, and Rules 4-151.006 and 4-151 -009, Florida Administrative Code which are set forth fully in Count H above and are incorporated herein by reference. _ WHEREFORE, you, ALBERT THOMAS SULLIVAN, SR., 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 626.61 1, 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. 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 form 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 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 shal] 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 and SIGNED this 6th day of MARCH , 2002. WHOMRAGI Bee KENNEY SHIPLEY 2) Deputy Insurance Commissioner I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF RIGHTS has been furnished to: ALBERT THOMAS SULLIVAN, SR., P.O. Box 151, Melrose, FL 32666-0151; ALBERT THOMAS SULLIVAN, SR., Western & Southern Life Insurance Co., Gainesville, FL 32608-3428; ALBERT THOMAS SULLIVAN, SR., c/o Middleton & Prugh, P.A., 303 State Rd. 26, Melrose, FL 32666; by Certified Mail this 6th day of MARCH , 2002. DEAN ANDREWS Division of Legal Services 612 Larson Building 200 East Gaines St. Tallahassee, Florida 32399-0333 (850) 413-4242

Docket for Case No: 02-002665PL