FILED apa 29 2003 DEPARTMENT OF FINANCIAL SERVICES Docketed by ToM GALLAGHER CHIEF FINANCIAL OFFICER IN THE MATTER OF: CASE NO.: 62398-03-AG ERNEST WILLIAM NORMAN QO / CC >-l qq5 ft ADMINISTRATIVE COMPLAINT AUN LATS TO: ERNEST WILLIAM NORMAN 5644 Horseshoe Point Road Stuart, Florida 34997-2415 You, ERNEST WILLIAM NORMAN, are hereby notified that the Chief ‘Financial Officer 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, ERNEST WILLIAM NORMAN, are currently licensed in this state as a Life (2-16), Life & Health (2-18), and Health (2-40) agent, license I.D. #A193127. 2. At all times pertinent to the dates and occurrences referred to herein, you, ERNEST WILLIAM NORMAN, were licensed in this state as an insurance agent. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services has jurisdiction over your insurance licenses and appointments. 4. At all times material to the dates and occurrences herein, Employers Mutual, L.L.C. (“Employers Mutual”) was an entity that engaged in the business of insurance, or ostensibly operated as a Multiple Employer Welfare Arrangement (“MEWA”) in Florida. 5. At all times material herein, Employers Mutual was unauthorized to conduct insurance business in the State of Florida and unauthorized as a MEWA in Florida. COUNT I 6. The above general allegations are hereby realleged and fully incorporated herein by reference. 7. On or about April 2, 2001, you, ERNEST WILLIAM NORMAN, as a licensed insurance agent, contacted E.C. to sell him a health insurance plan with Employers Mutual. You furnished to him application forms which he completed and delivered to you together with his personal check in the sum of $296.00 payable to The Association of Retail Sellers, and representing an initial premium payment of $241.00 and application/membership fees of $55.00. Said plan purportedly became effective May 1, 2001. 8. E.C. paid a premium in the amount of $279.50 on June 8, 2001, to The Association of Retail Sellers. Thereafter, E.C. paid a premium in the amount of $293.50 per month between and including July 2001 and December 2001 for insurance coverage by Employers Mutual. 6. E.C. incurred claims between July and December 2001 totaling more than $40,000.00 for health care services. Employers Mutual failed to pay such claims. IT IS THEREFORE CHARGED that you, ERNEST WILLIAM NORMAN, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Financial Services which constitute grounds for the suspension or revocation of your licenses and appointments: (a) No person shall transact in this state, or relative to a subject of insurance resident, located, or to be performed in this state, without complying with the applicable provisions of this Code. [Section 624.11, Florida Statutes]; (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(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) Violation of any provision of this Code or any law applicable to the business of insurance in the course of dealing under the licensure or appointment. [Section 626.621(2), 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, as prohibited under Part X (re- designated as Part IX) of this chapter, 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) No person shall, from offices or by personnel or facilities located in this state... directly or indirectly act as an agent for, or otherwise represent or aid on behalf of another, any insurer not being authorized to transact such business in this state. [Section 626.901(1), Florida Statutes]. WHEREFORE, you, ERNEST WILLIAM NORMAN, are hereby notified that the Chief Financial Officer 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 626.901, Florida Statutes, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. wo 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 Financial Services, 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. Ifa 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 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 cal] upon your request. 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 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. the Department of F inancial Services, DATED and SIGNED this x 7 ies day of April, 2003. KAREN CHANDLER Deputy Chief Financial Officer wa CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been furnished to: ERNEST WILLIAM NORMAN, 5644 Horseshoe Point Road, Stuart o + AL aay of April, 2003. » Florida 34997-2415 by Personal Service this William W. Tharpe, Jr. Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4110 Florida Bar Number 31241] COMPLETE THIS SECTION ON DELIVERY i 2. Article Number | i | x a: D, Is delivery address different ffom item 17°: 7LbO 3901 9844 2700 425b 3. Service Type CERTIFIED MAIL ItYES, enter delivery address below: 4. Restricted Delivery? (Extra Fee) 1. Article Addressed to: ERNEST WILLIAM NORMAN 5644 HORSESHOE POINT ROAD STUART FL 34997-2415 RESTRICTED DELIVERY PS Form 3811, July 2001 Domestic Return Receipt 62399-03-AG 4/29/03 Tharpe AC

Docket for Case No: 03-001995PL