FILED MAY 28 2003 Docketed by’ eth THE TREASURER OF THE STATE OF FLORIDA ¥ i) as DEPARTMENT OF INSURANCE Pw Tk TOM GALLAGHER “ ZA CHIEF FINANCIAL OFFICER ~ ¥ IN THE MATTER OF: Oy J 3b PC CASE NO. 60916-03-AG BRIAN NICHOLAS HOOKS ADMINISTRATIVE COMPLAINT TO: BRIAN NICHOLAS HOOKS 1151 Mary Kate Drive Gulf Breeze, Florida 32561 You, BRIAN NICHOLAS HOOKS, are hereby notified that pursuant to Chapter 626, Florida Statutes, 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. You, BRIAN NICHOLAS HOOKS, are currently licensed in the state as a health insurance agent. 2. At all time pertinent to the dates and occurrences referred to in this Administrative Complaint you, BRIAN NICHOLAS HOOKS, were licensed as an insurance agent in this state. 3. At all times pertinent to the dates and occurrences referred to in this Administrative Complaint, you, BRIAN NICHOLAS HOOKS, were an officer and director of Florida Preferred Care, Inc., a Florida corporation, doing business in this state as an insurance agency. Pursuant to Section 626.839, Florida Statutes, you, BRIAN NICHOLAS HOOKS, are personally and fully liable and accountable for any wrongful acts, misconduct, or violations of any provision of the Insurance Code committed by any person under your direct supervision and control while acting on behalf of the corporation. 4. Atall times pertinent to the dates and occurrences referred to herein, a contractual relationship existed between you, BRIAN NICHOLAS HOOKS, and American Fidelity and & Liberty Insurance Company, referred to hereafter as AF&L. 5. At all times pertinent to the dates and occurrences referred to in this Administrative Complaint all funds received by you, BRIAN NICHOLAS HOOKS, pursuant to Section 626.561, Florida Statutes, from consumers or on behalf of consumers were trust funds received in a fiduciary capacity and were to be paid over to persons entitled thereto in the regular course of business. COUNT I 6. Paragraphs one through five are realleged and incorporated herein by reference. 7. Pursuant to the agent’s agreement with AF&L, all funds collected by you, BRIAN NICHOLAS HOOKS, and Florida Preferred Care, as premium payments for insurance policies were fiduciary in nature and were to be promptly remitted to the insurance company. 8. An audit of Florida Preferred Care’s agency bank account by AF&L reveals an indebtness owed by you, BRIAN NICHOLAS HOOK, and Florida Preferred Care to AF&L in the approximate amount of $69,896.30. 9. This sum represents premiums for insurance policies that were received by Florida Preferred Care, but not remitted to AF&L. You, BRIAN NICHOLAS HOOKS, or someone under your direct supervision and control, failed to remit the funds to the insurance company or anyone else so entitled. AF&L has now either refunded the premium payment or issued an insurance policy to each consumer and is due the funds. 10. The above-mentioned premium payments represented trust funds received by you, BRIAN NICHOLAS HOOKS, from insurance consumers in a fiduciary capacity for AF&L. 11. You, BRIAN NICHOLAS HOOKS, have converted, misappropriated, or wrongfully withheld fiduciary funds belonging to AF&L. 12. | Demand has been made by AF&L for payment of the funds, but you, BRIAN NICHOLAS HOOKS, have refused. As a result, AF&L has suffered a significant financial loss. IT IS THEREFORE CHARGED that you, BRIAN NICHOLAS HOOKS, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitute grounds for the suspension or revocation of your insurance licenses and eligibility for licensure: (a) All premiums, return premiums, or other funds belonging to insurers or others received by an agent, solicitor, or adjuster in transactions under his license shall be trust funds so 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]; (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes}; we (c) Fraudulent or dishonest practices in the conduct of business under the license or permit. [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 626.611(10), Florida Statutes]; (e) Failure or refusal, upon demand, to pay over to any insurer he represents or has represented any money coming into his hands belonging to the insurer. [Section 626.621(4), Florida Statutes]; WHEREFORE, you, BRIAN NICHOLAS HOOKS, 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, 626.692, 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 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 form 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. 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. 6 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 Financial Services. DATED this 28th day of May , 2003. Hiray (Laudiler NN CHANDLER Deputy Chief Financial Officer CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative Complaint was mailed by certified mail to: BRIAN NICHOLAS HOOKS, at 1151 Mary Kate Drive, Gulf Breeze, Florida 32561 on this _28thday of May , 2003. Ah AMES A. BOSSART, ESQUIRE division of Legal Services 612 Larson Building Tallahassee, FL 32399-0333 (850) 413-4124

Docket for Case No: 03-002366PL