U7 35 Mo bL FILED AUG 22 2003 Dosketed by: uy. DEPARTMENT OF FINANCIAL SERVICES TOM GALLAGHER CHIEF FINANCIAL OFFICER IN THE MATTER OF: CASE NO.: 69677-03-AG LEONARD VINCENT SALVATORE ADMINISTRATIVE COMPLAINT TO: LEONARD VINCENT SALVATORE 4181 Sidewinder Trl. Middleburg, FL 32068-3246 You, LEONARD VINCENT SALVATORE, license 1.D. #4230427, 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, LEONARD VINCENT SALVATORE, are currently licensed in this state as a Life & Health Agent (2-18). 2. At all times pertinent to the dates and occurrences referred to herein, you, LEONARD VINCENT SALVATORE, were licensed in this state as a Life & Health Agent (2- 18). en 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services (hereinafter “Department”) has jurisdiction over your insurance licenses and appointments. 4, As of February 1, 2000, you, LEONARD VINCENT SALVATORE, were no longer an authorized broker for the group Great Southern Peterbilt. COUNT I 5. The above general allegations are hereby realleged and fully incorporated herein by reference. 6. During February of 2000, Av Med, Inc., (d/b/a Av Med Health Plan) (hereinafter “Av Med”), notified you, LEONARD VINCENT SALVATORE, of your removal as agent of record for Great Southern Peterbilt group health insurance plan. 7. Through October of 2001, you, LEONARD VINCENT SALVATORE, continued to receive overpayments from Av Med, for commissions on Great Southern Peterbilt group health insurance policy premiums. 8. Subsequent to your removal as agent of record for Great Southern Peterbilt group health insurance plan during February of 2000, Av Med conducted an internal audit of their records of broker payments, for you, LEONARD VINCENT SALVATORE. 9. According to the aforementioned audit, you, LEONARD VIN CENT SALVATORE, failed to remit a total of $13,533.44 worth of insurance policy commissions, which you, LEONARD VINCENT SALVATORE, were wrongfully paid by Av Med, and upon request by said company, failed to remit. 10. Av Med sent certified letters with return receipt requested on April 22, 2002, May 15, 2002, and July 8, 2002, to you, LEONARD VINCENT SALVATORE, at the address that the checks at issue had been previously mailed, 4184 Sidewinder Trail, Middleburg, FL 32068-3246, requesting reimbursement for the overpayment of commissions in the amount of $13,533.44 for the period in question. 11. As of the date of the filing of this Administrative Complaint, you, LEONARD VINCENT SALVATORE, still have an outstanding debt of $13,296.45 with Av Med. IT IS THEREFORE CHARGED that you, LEONARD VINCENT SALVATORE, 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 license and appointments: (2) All premiums, return premiums, or other funds belonging to insurers or others received by an agent, customer representative, solicitor, or adjuster in transactions under his or her license are trust funds received by the licensee in a fiduciary capacity. An agent shall keep the funds belonging to each insurer for which he or she is not appointed, other than a surplus lines insurer, in a separate account so as to allow the department to properly audit such funds. 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) —_ Lack of one or more of the qualifications for the license or appointment as specified in this code. [Section 626.61 1(1), Florida Statutes}; (c) 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}; (d) | Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.61 1(7), Florida Statutes]; (e) 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 or appointment. [Section 626.611(10), Florida Statutes.]; (63) 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]; (g) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.61 1(9), Florida Statutes]; (h) 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]; (i) 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]; (j) 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 Chapter 626, Florida Statutes, 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]. WHEREFORE, you, LEONARD VINCENT SALVATORE, 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 626.9521, 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-] 07, 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. 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. 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_ 4nd day of August , 2003. KAREN CHANDLER Deputy Chief Financial Officer 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: LEONARD VINCENT SALVATORE, 4181 Sidewinder Trl., Middleburg, FL 32068-3246, by Certified Mail this Wad day of August , 2003. a _ ; ° flliam W. Tharpe, Jr/ / Florida Bar Number0312411 u Division of Legal Services 612 Larson Building 200 East Gaines Street Tallahassee, Florida 32399-0333 Phone: (850) 413-4110 Fax: (850) 487-4907 i 2 Article Number Ut = - ferent from tet dress ddress below: XN Be 7 on LEON isi SIDEN WINDER SALVATORE DDLEBURG, FI, 32068-3246 69 r 677-03- i R ESTR i CTE ry) 8/22/03 *AG Fg Complaint& Settlement DELIVERY i PS Form 3811, duly 2007 Domestic Return Receipt STATE OF FLORIDA DEPARTMENT OF FINANCIAL SERVICES DIVISION OF LEGAL SERVICES IN THE MATTER OF: CASE NO.: 69677-03-AG LEONARD VINCENT SALVATORE / ELECTION OF PROCEEDING I have 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] 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. I do not dispute any of the Department's factual allegations and I 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. I 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 THE ADMINISTRATIVE COMPLAINT. THE RESPONSE MUST BE RECEIVED BY THE DEPARTMENT NO LATER THAN 5:00 P.M. ON THE TWENTY-FIRST DAY AFTER YOUR RECEIPT OF THE 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.:

Docket for Case No: 03-003576PL