FILED SIN 6 2003 THE TREASURER OF THE STATE OF FLORIDA Treasurer and DEPARTMENT OF INSURANCE ice Commissioner TOM GALLAGHER Docketed by: IN THE MATTER OF: 075-0¥49 4, PL CASE NO.: 61938-02-AG ANITA IRIS PERLIS ADMINISTRATIVE COMPLAINT TO: ANITA IRIS PERLIS 10710 N.W. 54th Place Coral Springs, FL 33076 You, ANITA IRIS PERLIS, 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, ANITA IRIS PERLIS, License LD. #A204605, are currently licensed in this state as a Life Agent (2-16), Life & Health Agent (2-18), and Health Agent (2-40). 2. At all times pertinent to the dates and occurrences referred to herein, you, ANITA IRIS PERLIS, were licensed in this state as an insurance agent. 3. In or about the year 1989, you, ANITA IRIS PERLIS, met William Moskowitz, who was at that time seventy-two (72) years of age. Mr. Moskowitz became your client when you sold him a Medicare supplement policy that same year. 4. Following this insurance transaction, you, ANITA IRIS PERLIS, attempted to exploit Mr. Moskowitz’s trust by bringing him flowers, accompanying him to dinner, and otherwise entering into a non-business relationship with him in which Mr. Moskowitz expended large sums of money on your behalf, having no connection to business transactions. 5. In or about the years 1989 through 2000, you, ANITA IRIS PERLIS, were aware of the declining mental and physical health of your client, Mr. Moskowitz. 6. You, ANITA IRIS PERLIS, used your position as a licensed insurance agent and your business relationship with your client, William Moskowitz, to further exploit his trust in you by convincing him to sign a Durable Power of Attorney document, assigning to you, ANITA IRIS PERLIS, power of attorney over Mr. Moskowitz’s financial matters. You, ANITA IRIS PERLIS, falsely represented to Mr. Moskowitz that signing the aforementioned document would be in his best interests. 7. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Insurance has jurisdiction over your insurance licenses and appointments. COUNT I 8. The above General Allegations are hereby realleged and fully incorporated by reference. 9. In or about 1992, you, ANITA IRIS PERLIS, met with your client Mr. Moskowitz, in an effort to sell him an annuity. In order to induce him into purchasing an annuity, you, ANITA IRIS PERLIS, misrepresented the terms and conditions of the annuity by failing to explain to your client, Mr. Moskowitz, that surrender charges and withdrawal penalties might be associated with his investment. 10. On or about July 7th, 1992, you, ANITA IRIS PERLIS, sold William Moskowitz a single premium annuity, Number #7-61 1-688, written through Banker’s Life and Casualty Company of Chicago (hereinafter “Banker’s Life”) for an initial premium payment of $190,000. 11. Less than one year after purchasing the above annuity from you, ANITA IRIS PERLIS Mr. Moskowitz needed access to this money. On or about May 10th, 1993, Mr. Moskowitz was forced to make a partial withdrawal from the annuity in the amount of $19,974.84. Within another nine months, on or about February 15, 1994, your client, Mr. Moskowitz, needed to make an additional $150,000 withdrawal from his annuity. This withdrawal caused Mr. Moskowitz to be forced to incur substantial withdrawal penalties. 12. On or about December 12, 1994, you, ANITA IRIS PERLIS, sold your client, William Moskowitz, another Banker’s Life annuity, Number #7-639-618. At this time, Mr. Moskowitz was approximately seventy-seven (77) years of age. 13. Thereafter, on or about November 20th, 1995, you, ANITA IRIS PERLIS, caused both the first Banker’s Life annuity contract above described, Number #7-61 |- 688, and the second Banker’s Life annuity contract, Number #7-639-618, to be cancelled and replaced with another annuity, Number #LAR00202083, written through American National Insurance Company (hereinafter “American National”). This action also occasioned substantial surrender penalties for your elderly client, Mr. Moskowitz, while the total transaction episode generated significant agent commissions for you, ANITA IRIS PERLIS. 14. At the time of surrender of his first Banker's Life annuity contract, Number #7-611-688 for replacement with the American National annuity, Mr. Moskowitz had only $30,557.44 of his initial $190,000 investment remaining in surrender value. This was due to withdrawals, withdrawal penalties, and surrender charges Mr. Moskowitz was forced to incur during the less than three year period in which he owned the Banker’s Life annuity. 15. You, ANITA IRIS PERLIS, intentionally and fraudulently represented to your elderly client, Mr. Moskowitz, that surrendering his in-force Banker’s Life annuities for the purpose of purchasing another annuity with American National was in his best interests. You further represented to Mr. Moskowitz that he would receive a “premium enhancement bonus” from American National as a conditional bonus, in return for surrendering his Banker’s Life annuity contracts in favor of an American National annuity. In fact, the $5,137.31 “premium enhancement bonus” offered by American National was only a fraction of the more than $19,000 lost in penalties and surrender charges Mr. Moskowitz was forced to realize as a result of his surrender of his two Banker’s Life annuities (annuity contract Numbers #7-611-688 and #7-639- 618). 16. Additionally, this $5,137.31 bonus was subsequently forfeited when you, ANITA IRIS PERLIS, caused this American National annuity number #LAR0020283 to be surrendered to write another annuity with LifeUSA Insurance Company/Allianz Life Insurance Company of North America (hereinafter “LifeUSA/Allianz”). This surrender caused the loss of an additional $15,075.05 in penalties for early surrender, which included the initial $5,137.31 premium enhancement bonus. 17. The surrender of the aforementioned American National annuity and subsequent writing of the LifeUSA/Allianz annuity with the same funds caused Mr. Moskowitz a loss of $15,075.05 in early withdrawal penalties, but resulted in commissions to you, ANITA IRIS PERLIS, in the amount of $9,182.05. IT IS THEREFORE CHARGED, that you, ANITA IRIS PERLIS, have violated or are accountable under one or more of 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) If the license or appointment is willfully used, or to be used, to circumvent any of the requirements or prohibitions of this code. [Section 626.61 1(4), Florida Statutes]; (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]; (c) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (d) 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}; (e) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), 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 626.611(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) Violation of any lawful order or rule of the department [Section 626.621(3), Florida Statutes}; (a) Violation of the provision against twisting, as defined in Section 626.9541(1)(). [Section 626.621(5), Florida Statutes]; (j) 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 IX of this chapter, or having otherwise shown himself or herself to be a source of injury or loss to the public or detrimental to the public interest. [Section 626.621(6), Florida Statutes]; (k) If a life agent, violation of the code of ethics. [Section 626.621(9), Florida Statutes]; (I) Misrepresents the benefits, advantages, conditions, or terms of an insurance policy. [Section 626.954 1(1)(a)(6), Florida Statutes]; (m) 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]; (n) 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]; (0) 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. [Rule 4-215.210, Florida Administrative Code]; (p) Twisting is declared to be unethical. No person shall make any misleading representations or incomplete or fraudulent comparison of any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, or convert any insurance policy, or to take out a policy of insurance in another insurer. [Rule 4-215.215. Florida Administrative Code]; (q) Misrepresentations are declared to be unethical. No person shall make, issue, circulate, or cause to be made, issued, or circulated, any estimate, circular, or statement misrepresenting the terms of any policy issued or to be issued or the benefits or advantages promised thereby or the dividends or share of the surplus to be received thereon, or make any false or misleading statement as to the dividends or share of surplus previously paid on similar policies, or make any misleading representation or any misrepresentation as to the financial condition of any insurer, or as to the legal reserve system upon which any life insurer operates, or use any name or title of any policy or class of policies misrepresenting the true nature thereof. [Rule 4-215.230, Florida Administrative Code]. COUNT IT 18. The above General Allegations are hereby realleged and fully incorporated herein by reference. 19. On or about July 9th, 1993, you, ANITA IRIS PERLIS, caused to be purchased by your client William Moskowitz a single premium annuity contract, Number #7- 620-971, in the amount of $180,000, written through Banker’s Life. 20. Less than one month later, you, ANITA IRIS PERLIS, caused to be purchased by your client, William Moskowitz, another single premium annuity contract, Number #7-621-742, in the amount of $50,000, written through Banker’s Life. 21. After each of the above annuity contracts had passed the date of being in force one year, on or about December 12th, 1994, you, ANITA IRIS PERLIS, fraudulently represented to Mr. Moskowitz that it would be in his best interests to surrender his two in-force Banker’s Life annuities for purchase of a third annuity, also written through Banker’s Life. 22. You, ANITA IRIS PERLIS, without an objectively reasonable basis for believing that the replacement of Mr. Moskowitz’s two above referenced Banker’s Life annuities (Numbers #7-620971 and #7-621-742) would result in an actual and demonstrable benefit to your client, fraudulently represented that such a transactional event would in fact benefit him. Mr. Moskowitz was at that time seventy-seven (77) years of age. 23. On or about December 12th, 1994, you, ANITA IRIS PERLIS, caused to be purchased a third Banker’s Life annuity contract, Number #7-639-618, effecting the surrender of the previous two in-force Banker’s Life annuities (Numbers #7-620971 and #7-621-742) through 1035 exchange. IT IS THEREFORE CHARGED, that you, ANITA IRIS PERLIS, have violated or are accountable under one or more of 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) If the license or appointment is willfully used, or to be used, to circumvent any of the requirements or prohibitions of this code. [Section 626.611(4), Florida Statutes]; (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]; (c) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.61 1(7), Florida Statutes}, (d) 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]; (e) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), 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) Violation of any lawful order or rule of the department [Section 626.621(3), Florida Statutes]; (i) Violation of the provision against twisting, as defined in Section 626.9541(1)(1). [Section 626.621(5), Florida Statutes); Qj) In the conduct of business under the license or appointment, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part X of this chapter, or having otherwise shown himself or herself to be a source of injury or loss to the public or detrimental to the public interest. [Section 626.621(6), Florida Statutes]; (k) If a life agent, violation of the code of ethics. [Section 626.621(9), Florida Statutes]; (I) Is a misrepresentation for the purpose of inducing, or tending to induce, the lapse , forfeiture, exchange, conversion, or surrender of any insurance policy. [Section 626.9541(1)(a)(6), Florida Statutes]; (m) Knowingly making a false or fraudulent written or oral statement of 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]; 10 (n) Knowingly making any misleading representations or incomplete or fraudulent comparisons or fraudulent material omissions of or with respect to any insurance policies or insureres 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)(1), Florida Statutes]; (0) Churning is the practice whereby policy values in an existing life insurance policy or annuity contract, including but not limited to, cash, loan values, or dividend values, and in any riders to that policy or contract are utilized to purchase another insurance policy or annuity contract with that same insurer for the purpose of earnign additional premiums, fees, commissions, or other compensation: a. Without an objectively reasonable basis for believeing that the replacement or extraction will result in an actual and demonstrable benefit to the policyholder; [Section 626.954 1(aa)(1)(a), Florida Statutes]; b. Ina fashion that is fraudulent, deceptive, or othewise misleading or that involves a deceptive omission; [Section 626.9541 (aa)(1)(b); (p) Policyholders shall have the right to insurance advertising and other selling approaches that provide accurate and balanced information on the benefits and limitations of a policy. [Section 626.9641(1)(c), Florida Statutes]; (q) Policyholders shall have the right to be serviced by a competent, honest insurance agent or broker. [Section 626.9641(1)(e), Florida Statutes]; (r) Twisting is declared to be unethical. No person shall make any misleading il representations or incomplete or fraudulent comparison of any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, or convert any insurance policy, or to take out a policy of insurance in another insurer. [Rule 4-215.215. Florida Administrative Code]; (s) Misrepresentations are declared to be unethical. No person shall make, issue, circulate, or cause to be made, issued, or circulated, any estimate, circular, or statement misrepresenting the terms of any policy issued or to be issued or the benefits or advantages promised thereby or the dividends or share of the surplus to be received thereon, or make any false or misleading statement as to the dividends or share of surplus previously paid on similar policies, or make any misleading representation or any misrepresentation as to the financial condition of any insurer, or as to the legal reserve system upon which any life insurer operates, or use any name or title of any policy or class of policies misrepresenting the true nature thereof, [Rule 4-215.230, Florida Administrative Code]. COUNT HI 24. The above General Allegations are hereby realleged and fully incorporated herein by reference. 25. On or about July 5, 1993, you, ANITA IRIS PERLIS, sold Mr. Moskowitz a single premium annuity, Number #7-620-971, written through Banker’s Life, for an initial premium payment of $180,000. 26. You, ANITA IRIS PERLIS, while assisting Mr. Moskowitz with his application for this annuity contract, were aware that as the licensed agent of record for the sale of this annuity contract, you were ineligible to be listed as the beneficiary of any annuity contract 12 and at the same time be able to collect commissions on the sale of that annuity. Because of this, you, ANITA IRIS PERLIS, knowingly and fraudulently listed yourself as beneficiary of this annuity, and knowingly and fraudulently represented yourself, ANITA IRIS PERLIS, to be Mr. Moskowitz’s neice for the purpose of being able to collect the annuity death benefit in the event of Mr. Moskowitz’s death, and to be able to still collect commissions on the sale of the annuity. 27. You, ANITA JRIS PERLIS, named yourself as beneficiary on his annuity without the knowledge or consent of your client, Mr. Moskowitz. You were not then, nor have you ever been Mr. Moskowitz’s neice. 28. In addition to knowingly and fraudulently listing yourself, ANITA IRIS PERLIS, as the niece and beneficiary of record on the aforementioned annuity application, you further listed your own son and daughter as contingent beneficiaries of Mr. Moskowitz’s annuity, and knowingly and fraudulently represented them to be Mr. Moskowitz’s nephew and niece. 29. The following year, on or about November 23, 1994, you, ANITA IRIS PERLIS, again sold Mr. Moskowitz another single-premium annuity, Number #7-639-618, written through Banker’s Life, with an initial single premium payment of $230,097.41. 30. You, ANITA IRIS PERLIS, while completing the application for this annuity on Mr. Moskowitz’s behalf, and for the purpose of being able to collect an annuity death benefit in the event of Mr. Moskowitz’s death, again knowingly and fraudulently represented yourself to be Mr. Moskowitz’s niece on the application. You, ANITA IRIS PERLIS, by fraudulently misrepresenting yourself to be Mr. Moskowitz’s niece, were also able to also collect commission as the agent of record on the sale of this annuity. 31. You, ANITA IRIS PERLIS, further listed your own son and daughter as contingent beneficiaries on this application. 13 32. Between the years 1989 and 2000, you, ANITA IRIS PERLIS, used your insurance license for the purpose of soliciting the business of only one client, Mr. Moskowitz. During these years, the amount of premium writings represented by your sales to Mr. Moskowitz represented substantially in excess of the entire amount of premium writings during that same period sold by you to the general public. 33. In or about 1996, you, ANITA IRIS PERLIS, while his insurance agent and after previously having been involved in a non-business relationship with Mr. Moskowitz, exploited his trust in you by convincing him to sign the necessary paperwork to legally adopt you as his daughter. 34. During the years 1996 through 2000, you, ANITA IRIS PERLIS, as the legally adopted daughter of Mr. Moskowitz, used your insurance license substantially for the purpose of selling insurance products to Mr. Moskowitz alone. IT IS THEREFORE CHARGED, that you, ANITA IRIS PERLIS, have violated or are accountable under one or more of 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) If the license or appointment is willfully used, or to be used, to circumvent any of the requirements or prohibitions of this code. [Section 626.61 1(4), Florida Statutes]; (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]; (c) Demonstrated Jack of fitness or trustworthiness to engage in the business of insurance. [Section 626.61 1(7), Florida Statutes); (d) 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]; (e) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.61 1(9), Florida Statutes]; (f) Having obtain or attempted to obtain, or having used or using, a license or appointment as agent, customer representative, or solicitor for the purpose of soliciting or handling “controlled business” as defined in s. 626.730 with respect to general lines agents, s. 626.784 with respect to life agents, and s. 626.830 with respect to health agents. {Section 626.611(12), Florida Statutes]; (g) 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); (h) 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]; (i) Violation of any lawful order or rule of the department [Section 626.621(3), Florida Statutes]; q) In the conduct of business under the license or appointment, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part X of this chapter, or having otherwise shown himself or herself to be a source of injury or loss to the public or detrimental to the public interest. [Section 626.621(6), Florida Statutes]; (k) If a life agent, violation of the code of ethics. [Section 626.621(9), Florida Statutes]; (1) | Knowingly making a false or fraudulent written or oral statement of 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]; (m) 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. [Rule 4-215.210, Florida Administrative Code]. COUNT IV 35. The above General Allegations are hereby realleged and fully incorporated herein by reference. 36. While his insurance agent, you entered into a non-business relationship -with Mr. Moskowitz resulting in Mr. Moskowitz allowing you, ANITA IRIS PERLIS, to move into his home. 37. On or about November 20, 1995, you, ANITA IRIS PERLIS, sold Mr. Moskowitz the aforementioned single-premium annuity, contract Number #LAR0020283, 16 written through American National and effected through the surrender and 1035 exchange of two annuities, both owned by Mr. Moskowitz and written through Banker’s Life with you, ANITA IRIS PERLIS, as agent of record. 38. On or about September 9th, 1997, a cash withdrawal from the American National annuity was made in the amount of $23,000, and payment by check was sent to Mr. Moskowitz’s home address, where you, ANITA IRIS PERLIS, were living at the time. At that time, you also had durable power of attorney over Mr. Moskowitz’s affairs. 39. This $23,000 check payment from American National, check number E-046472-81 written to William Moskowitz, was endorsed by you, ANITA IRIS PERLIS, and deposited into your own personal checking account with Citibank. 40. On or about February 3rd, 1998, a second cash withdrawal from the American National annuity was made in the amount of $26, 834. Payment by check was sent to Mr. Moskowitz’s home address where you, ANITA IRIS PERLIS, resided at that time. 41. This $26,834 check payment from American National, check number E-055044-81 written to William Moskowitz, was endorsed by you, ANITA IRIS PERLIS, and deposited into your own personal checking account with Citibank. 42. On or about February 3rd, 2000, a third cash withdrawal in the amount of $23, 949 was made from the American National annuity. A letter was sent by you, ANITA IRIS PERLIS, requesting this withdrawal, and asking that the payment be sent as quickly as possible to you, ANITA IRIS PERLIS, at 10710 NW 54th Place, where you lived with Mr. Moskowitz. This letter was signed by you, ANITA IRIS PERLIS, under Power of Attorney designation. 43. At your request, this withdrawal was in fact processed and sent to the 17 address specified in your letter. Check number 10450981 written to William Moskowitz in the amount of $23,949 was endorsed by you, ANITA IRIS PERLIS, as Power of Attorney, and deposited into your own personal checking account at Washington Mutual Bank. 44, In or about May 8th, 2000, you caused the surrender of Mr. Moskowitz’s American National annuity number #LAR002083 by completing an application for an annuity with LifeUSA/Allianz, to be funded with the surrender value of the American National annuity. Prior to carrying out this surrender and transfer request, American National issued a warning letter to you as power of attorney for William Moskowitz, informing you, ANITA IRIS PERLIS, of the consequences of surrendering the American National annuity for replacement with another annuity, including penalties. 45. LifeUSA/Allianz also issued a notice regarding replacement of the existing American National annuity, which required signature of the proposed applicant. Mr. Moskowitz did not sign this disclosure notice. Rather, the notice is signed by you, ANITA IRIS PERLIS, using your married name HIGGINS as Power of Attorney, and is also signed by you as agent of record, 46. You, ANITA IRIS PERLIS, completed the application for this transaction without Mr. Moskowitz’s knowledge and consent. Although William Moskowitz is listed on the application as the proposed annuitant, the application is not signed by him. Rather, the “Proposed Annuitant’s Signature” reads ANITA HIGGINS, P.O.A.. Your married name is ANITA HIGGINS, and you signed this application under power of attorney designation. The “Licensed Agent Signature” on the application also reads ANITA PERLIS. 47. This transaction was effected by you, ANITA IRIS PERLIS, without the 18 knowledge and consent of Mr. Moskowitz and at substantial financial loss to him. You, ANITA IRIS PERLIS, completed the application, signed as the agent of record, and also signed on behalf of William Moskowitz without his knowledge or consent using your power of attorney designation. In addition to completing this application yourself, signing as proposed annuitant, and signing as agent of record, you, ANITA IRIS PERLIS, also listed yourself as beneficiary of the annuity. 48. This single transactional occurrence caused Mr. Moskowitz to suffer over $15,000 in losses due to early surrender penalties with his American National annuity, and generated commissions for you, ANITA IRIS PERLIS, from LifeUSA/Allianz in excess of $9,000. 49, The application for the above referenced LifeUSA/Allianz annuity was signed on or about May 8th, 2000. This annuity was to provide a conditional “Cash Bonus” of 14% interest for the first year it was in force. On the annuity application, you, ANITA IRIS PERLIS, requested that this “Cash Bonus” interest be paid in payments over the course of annuity’s first year in force. 50. On or about June 27, 2000, LifeUSA/Allianz sent you, ANITA IRIS PERLIS, a confirmation of your request that the “Cash Bonus” be paid in monthly installments, each in excess of $2,000, to begin with the July, 2000 payment. A July, 2000 payment by check, number #0002325555, in the amount of $2,142.48 was in fact mailed to Mr. Moskowitz, in care of you, in your married name of ANITA HIGGINS as Power of Attorney. You, ANITA IRIS PERLIS, endorsed this check for personal deposit without the knowledge or consent of Mr. Moskowitz. Mr. Moskowitz became aware of your actions after the July payment, and revoked your power of attorney designation before the additional payments you requested were sent to you. S1. You, ANITA IRIS PERLIS, further used your power of attorney designation assigned to you by your client, Mr. Moskowitz, to obtain credit cards which you used to make personal purchases totaling nearly $40,000. 52. You, ANITA IRIS PERLIS further exploited your elderly client’s trust in you by having him sign documents, which you falsely represented to him were documents for the purpose of helping him obtain a better interest rate for the mortgage on his home. In fact, these were legal documents for the purpose of adding your name as co-owner to the deed of Mr. Moskowitz’s $350,000 home in Coral Springs. IT IS THEREFORE CHARGED, that you, ANITA IRIS PERLIS, have violated or are accountable under one or more of 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) If the license or appointment is willfully used, or to be used, to circumvent any of the requirements or prohibitions of this code. [Section 626.61 1(4), 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 license or appointment. [Section 626.611(9), Florida Statutes]; (d) 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. [Section 626.61 1(10), Florida Statutes]; (e) Willful failure to comply with, or willful violation of, any proper order or 20 rule of the department or willful violation of any provision of this code. [Section 626.611(13), Florida Statutes]; (f) 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]; (g) Violation of any lawful order or rule of the department [Section 626.621(3), Florida Statutes]; (h) In the conduct of business under the license or appointment, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part X of this chapter, or having otherwise shown himself or herself to be a source of injury or loss to the public or detrimental to the public interest. [Section 626.621(6), Florida Statutes); (i) If a life agent, violation of the code of ethics. [Section 626.621(9), Florida Statutes]; qj) Knowingly making a false or fraudulent written or oral statement of 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); (k) 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 21 and competitors always placing the policyholder's interests first. [Rule 4-215.210, Florida Administrative Code]; WHEREFORE, you, ANITA IRIS PERLIS, 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, 626.692, and 626.9521, Florida Statutes, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. Additionally, you are notified that the Department intends to seek aggravation of the applicable statutes for the purposes of calculating the total penalty assessed against you, ANITA IRIS PERLIS, in consideration of the age and capacity of the victim. 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 22 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. 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. 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. 23 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 wil! 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 and SIGNED this_ ©th day of _ January , 2003. KAREN CHANDLER Deputy Insurance Commissioner 24 .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: ANITA IRIS PERLIS, £0710 N.W. 54th Place, Coral Springs, Florida, 33076, by Certified Mail this 6th day of January , 2003. 25, DAVID BUSCH Florida Bar Number 0140945 Division of Legal Services 612 Larson Building 200 East Gaines Street Tallahassee, Florida 32399-033 Phone: 850-413-4146 Fax: 850-487-4907

Docket for Case No: 03-000892PL