FILED MAY 28 25 DEPARTMENT OF FINANCIAL SERVICES eu by. Tom GALLAGHER ” CHIEF FINANCIAL OFFICER IN THE MATTER OF: CASE NO.: 64782-03-AG prs 7 30PS STEVEN MARC AXE ADMINISTRATIVE COMPLAINT TO: STEVEN MARC AXE 8075 Mizner Lane Boca Raton, FL 33433 You, STEVEN MARC AXE, are hereby notified that, pursuant to Chapter 626: lords 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. Pursuant to Chapter 626, Florida Statutes, at all times pertinent to the dates and occurrences referred to herein, you, STEVEN MARC AXE, License #A010407, were licensed in this state as a life insurance agent, life and health insurance agent, and health insurance agent. 2. At all times pertinent to the dates and occurrences referred to herein, you, STEVEN MARC AXE, 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. eee nae ee COUNT I 4. The above general allegations are realleged and incorporated here and fully by reference, 5. On or about January 4, 2002, you, STEPHEN MARC AXE, fraudulently induced R.M. of Hollywood, Florida to purchase a Protective Life Insurance life insurance policy by representing to R.M. that purchase of the life insurance policy was a prerequisite to obtain the State General Insurance health insurance policy that she did desire to purchase. At no time was the purchase of a life insurance policy a prerequisite to the purchase of the States General health insurance policy. R.M. would not have purchased the life insurance policy but for your misrepresentations. You, STEPHEN MARC AXE, were aware of this fact. 6. You, STEPHEN MARC AXE, misrepresented to R.M. that the Protective Life Insurance life insurance policy would only cost $100 for the life of the policy. In fact, the policy has an annual premium significantly in excess of $100 depending on the amount of coverage purchased. You, STEPHEN MARC AXE, were aware of this fact. 7. You, STEPHEN MARC AXE, misrepresented to R.M. the benefits and provisions of the States General health insurance policy including, but not limited to, the monetary amount of the policy deductibles and the prescription cost benefit. 8. You, STEPHEN MARC AXE, without R.M.’s knowledge or informed consent, enrolled her into the National Benefit Advisory Association (NBAA) at a cost of $30 a month, 9. Your misrepresentations to R.M., both of commission and omission, were false and material misrepresentations of fact. R.M. would not have purchased the health insurance policy and life insurance policy but for these representations. Her purchase of the life insurance policy was unnecessary and not in her best interest. These misrepresentations were done for the To a eee ee mene Se ere SRST 4: msi MLO? sole purpose of receiving a commission, which you, STEPHEN MARC AXE, did receive. You, STEPHEN MARC AXE, were aware of these facts. 10. As aresult of your misrepresentations, R.M. purchased the Protective Life life insurance policy and the States General health insurance policy. She has failed to receive the insurance as represented and suffered a significant financial loss as a result. IT IS THEREFORE CHARGED, that you, STEPHEN MARC AXE, have violated and 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 eligibility as an insurance agent: (a) 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 626.611 (5), Florida Statutes]; (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.61 1(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) 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]; (e) In the conduct of business under the license or permit, 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 to be a source of injury or loss to the public, [Section 626.621(6), Florida Statutes] ae re ee [FL VS SER Rh em ioe mves neve: () 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)1, 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]; COUNT II 11. The above general allegations are realleged and incorporated here and fully by reference, 12, On or about January 24, 2002, you, STEPHEN MARC AXE, fraudulently induced MS. of Deerfield Beach, Florida to purchase a Protective Life Insurance life insurance policy by representing to M.S, that purchase of the life insurance policy was a prerequisite to obtain the State General Insurance health insurance policy that she did desire to purchase. At no time was the purchase of a life insurance policy a prerequisite to the purchase of the States General health insurance policy. M.S. would not have purchased the life insurance policy but for your misrepresentations. You, STEPHEN MARC AXE, were aware of this fact. (nee eee ac a SR MRERG Sh NO emt Hetero 13. You, STEPHEN MARC AXE, misrepresented to M.S. that the Protective Life Insurance life insurance policy would only cost $200 for the life of the policy. In fact, the $200 represented only an initial down payment and the policy has an annual premium significantly in excess of $200 depending on the amount of coverage purchased. You, STEPHEN MARC AXE, were aware of this fact. 14. You, STEPHEN MARC AXE, misrepresented to M.S. the benefits and provisions of the States General health insurance policy including, but not limited to, the monetary amount of the policy deductibles and the prescription cost benefit. 15. You, STEPHEN MARC AXE, without M.S.’s knowledge or informed consent, enrolled her into the National Benefit Advisory Association (NBAA) at a cost of $30 a month. 16. Your misrepresentations to M.S., both of commission and omission, were false and material misrepresentations of fact. M.S. would not have purchased the health insurance policy and life insurance policy but for these representations. Her purchase of the life insurance policy was unnecessary and not in her best interest. These misrepresentations were done for the sole purpose of receiving a commission, which you, STEPHEN MARC AXE, did receive, You, STEPHEN MARC AXE, were aware of these facts. 17. As a result of your misrepresentations, M.S. purchased the Protective Life life insurance policy and the States General health insurance policy. She has failed to receive the insurance as represented and suffered a significant financial loss as a result. IT IS THEREFORE CHARGED, that you, STEPHEN MARC AXE, have violated and 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 eligibility as an insurance agent: Sections 626.611(5); 626.61 1(7); 626.611(9); mene meme Se NNN GORE DU ms 0 Wehner 626.621(2); 626.621 (6); 626.9541(1)(e)1; and 626.9541(1)(k)1, Florida Statutes, as more particularly alleged in Count I above. COUNT III 18. The above general allegations are realleged and incorporated here and fully by reference. 19, On or about J anuary 4, 2002, you, STEPHEN MARC AXE, fraudulently induced K.A. and L.A. of Coral Springs, Florida to purchase a Protective Life Insurance life insurance policy by representing to K.A. and L.A. that purchase of the life insurance policy was a prerequisite to obtain the State General Insurance health insurance policy that they did desire to purchase. At no time was the purchase of a life insurance policy a prerequisite to the purchase of the States General health insurance policy. K.A. and L.A. would not have purchased the life insurance policy but for your misrepresentations. You, STEPHEN MARC AXE, were aware of this fact. 20. You, STEPHEN MARC AXE, misrepresented to K.A. and L.A. that the Protective Life Insurance life insurance policy would only cost $100 for the life of the policy. In fact, the policy has an annual premium significantly in excess of $100 depending on the amount of coverage purchased. You, STEPHEN MARC AXE, were aware of this fact. 21. You, STEPHEN MARC AXE, misrepresented to K.A. and L.A. the benefits and provisions of the States General health insurance policy including, but not limited to, the monetary amount of the policy deductibles and the prescription cost benefit. 22. You, STEPHEN MARC AXE, without K.A. or L.A.’s knowledge or informed consent, enrolled them into the National Benefit Advisory Association (NBAA) at a cost of $30 a month. I erenere ere eee rset SS SSE AEN ox ars 23. Your misrepresentations to K.A. and L.A., both of commission and omission, were false and material misrepresentations of fact. K.A. and L.A. would not have purchased the health insurance policy and life insurance policy but for these representations. Their purchase of the life insurance policy was unnecessary and not in their best interest. These misrepresentations were done for the sole purpose of receiving a commission, which you, STEPHEN MARC AXE, did receive. You, STEPHEN MARC AXE, were aware of these facts. 24. Asaresult of your misrepresentations, K.A. and L.A. purchased the Protective Life life insurance policy and the States General health insurance policy. They have failed to receive the insurance as represented and suffered a significant financial loss as a result. IT IS THEREFORE CHARGED, that you, STEPHEN MARC AXE, have violated and 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 eligibility as an insurance agent: Sections 626.611(5); 626.61 1(7); 626.611(9); 626.621(2); 626.621(6); 626.9541(1)(e)1; and 626.9541(1)(k)1, Florida Statutes, as more particularly alleged in Count I above. WHEREFORE, you, STEPHEN MARC AXE, are hereby notified that the Chief Financial Officer 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. ii NOTICE OF RIGHTS You have the right to Tequest 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 Tequest. The request must be filed with the General Counsel as acting Agency Clerk, at the Florida Department of Financial Services, 612 Larson Bui Iding, 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 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, ere eens neat mmmeranemag Se Na eS 1A eye ME Reeve nan: 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. Tf'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. 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 and SIGNED this 28th day of May , 2003. KAREN CHANDLER Deputy Chief Financial Officer Ta aa eee ees mn Soca ee Ne RENE NS a ete etre, CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMIN ISTRATIVE COMPLAINT and has been furnished by Certified Mail to: STEPHEN MARC AXE at 8075 Mizner Lane, Boca Raton, Florida 33433 on this <°t day of __May , 2003. ivjsion of Legal Services 612 Larson Building 200 East Gaines Street Tallahassee, Florida 32399-033 Phone: 850 413 4124 STATE OF FLORIDA ET SPY DEPARTMENT OF FINANCIAL SERVICES nied 03 JUL 24 PM 4:55 IN THE MATTER OF: DIVIS. CHL ISTRAL SS CASE NO.: 64782-03-40 acer STEVEN MARC AXE / ELECTION OF PROCEEDING Thave received and have read the Notice of the ADMINISTRATIVE COMPLAINT filed against me, including the Notice of Rights contained therein, and I understand my options. I am requesting disposition of this matter as indicated below. (Choose one) 1. [J I do not dispute any of the Department’s factual allegations and I do not desire a hearing. I understand that by waiving my right to a hearing, the Department may enter a final order that adopts the Administrative Complaint and imposes the sanctions sought, including revoking my licenses and appointments as may be appropriate. 2. T do not dispute any of the Department's factual allegations and [ hereby elect a proceeding to be conducted in accordance with section 120.57(2), Florida Statutes. In this regard, I desire to (Choose one): {] Submit a written statement and documentary evidence in lieu of a hearing; or [] Personally attend a hearing conducted by a department hearing officer in Tallahassee; or {] Attend that same hearing by way of a telephone conference call, 3. [ ] I do dispute one or more of the Department's factual allegations. | hereby request a hearing pursuant to section 120.57(1), Florida Statutes, to be held before the Division of Administrative Hearings. TO PRESERVE YOUR RIGHT TO A HEARING, YOU MUST FILE YOUR RESPONSE WITH THE DEPARTMENT OF FINANCIAL SERVICES WITHIN TWENTY-ONE (21) DAYS OF YOUR RECEIPT OF ADMINISTRATIVE COMPLAINT. The address for filing is: General Counsel as acting agency clerk, Florida Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333, Signature Print Name Date: Address: Phone No.: 12

Docket for Case No: 03-002720PL