Oj FY FILED’ SN 8 2003 o DEPARTMENT OF FINANCIAL SERVICES \ i} nile Docketed by:. TOM GALLAGHER CHIEF FINANCIAL OFFICER IN THE MATTER OF: Oe CASE NO.: 65178-03-AG 2. JAMES SAMUEL SINGLETON, III cn ADMINISTRATIVE COMPLAINT TO: JAMES SAMUEL SINGLETON, III Singleton Insurance Agency 547 North Ridgewood Avenue Daytona Beach, FL 32114-2168 JAMES SAMUEL SINGLETON, III 22 Brian Lane Plam Coast, FL 32137-8743 You, JAMES SAMUEL SINGLETON, III, 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, JAMES SAMUEL SINGLETON, Ill, are currently licensed in this state as a Life (2-16), Life & Health (2-18), General Lines (Prop. & Cas. Ins.) (2-20) Agent and an All Lines Adjuster (5-20). Your license identification number is A244047. 2. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services has jurisdiction over your license and appointments. 3. At all times pertinent to the dates and occurrences referred to in this Administrative Complaint all funds received by you, JAMES SAMUEL SINGLETON, III, 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 4. Paragraphs one through three are realleged and incorporated herein by reference. 5. On or about January 31, 2002, JTV of Daytona Beach, Florida came to your insurance agency to purchase insurance on his 1966 Ford Mustang. JTV called your agency to obtain a price quote for the premium and was informed that the premium for one year would be $290.00. When JTV made application at your insurance agency to obtain coverage on the 1966 Ford Mustang, you, JAMES SAMUEL SINGLETON, III, quoted a premium price of $324.00. The additional charge was for a road service motor club membership that JTV did not want to purchase. 6. Upon reviewing the application for insurance, JTV noticed that the application described his car as a 1980 Ford. You, JAMES SAMUEL SINGLETON, IIL, struck through 1980 and wrote 1966 into the space calling for the model year of JTV’s automobile. However, the temporary insurance card you gave to JTV indicated that the insured automobile was a 1980 Mustang. JTV received notice from AIG Insurance Company that the coverage on the Mustang would be cancelled effective April 24, 2002 because the automobile was more than twenty-five years old. JTV was not eligible to purchase insurance coverage on an automobile twenty-five years old, a fact you, JAMES S. SINGLETON, III, knew or should have known. 7. Prior to leaving your office, you, JAMES SAMUEL SINGLETON, III, had JTV sign another application that was an application for the road service motor club membership. JTV did not request to purchase a motor club membership nor did he knowingly sign the application for a motor club member because you, JAMES SAMUEL SINGLETON, III, failed to inform JVT that the form he was signing was for a motor club membership. 8. On January 31, 2002, JTV paid you, JAMES SAMUEL SINGLETON, II, $324.00 as premiums for insurance coverage on his 1966 Mustang. The total premium for the coverage was $279.00 but you, JAMES SAMUEL SINGLETON, III, remitted only $239.00 of the said premium to AIG Insurance Company. The balance of the premium was retained for services and products that JTV did not wish to purchase or did not have to pay for including $10.00 as an inspection fee and $35.00 for the towing and road service contract. JTV was later billed $40.00 by the insurer for the insurance premium you failed to remit. IT IS THEREFORE CHARGED that you, JAMES SAMUEL SINGLETON, III, 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: (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 626.611 (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) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611 (9), Florida Statutes]; (ey) (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]; COUNT II 9. Paragraphs one through three are realleged and fully incorporated herein by reference. 10. On or about November 16, 2001, DN of Ormond Beach, Florida visited the Singleton Insurance Agency to purchase insurance on a 1991 Chevrolet. The application for insurance shows that the length of the insurance policy is twelve (12) months. The policy term printed by the Singleton Insurance Agency and the policy effective dates show the term of the policy effective dates to run from November 16, 2001 to May 16, 2002, a policy term of six months. 11. On November 16, 2001, DN wrote Singleton Insurance Agency a check for three hundred fourteen dollars ($314.00). This payment from DN was the full premium for a twelve-month policy. You, JAMES SAMUEL SINGLETON, III, sent one hundred fifty-four dollars and twenty cents ($154.20) to the insurer and retained the balance of the insurance premium DN paid to the Singleton Insurance Agency. A six-month insurance policy was issued to DN by the insurer and DN received notice from the insurer on or about May 1, 2002, stating that her insurance would expire on May 15, 2002, for failure to pay the premium on this insurance coverage. IT IS THEREFORE CHARGED that you, JAMES SAMUEL SINGLETON, III, 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. (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 626.611 (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) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611 (9), 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]; (f) False statements and entries.— 1. 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, 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. All premiums, return premiums, or other funds belonging to insurers or others received by an agent, customer representative, 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]. Count III 12. Paragraphs one through three are realleged and incorporated herein by reference. 13. Onor about February 13, 2002, TD of Daytona Beach, Florida came to the Singleton Insurance Agency to add a recently purchased automobile to her insurance policy. TD made a premium payment to the Singleton Insurance Agency of $191.00 on April 11, 2002. You, JAMES SAMUEL SINGLETON, III, failed to forward the premium payment of $191.00 to the insurer. The insurer cancelled TD’s insurance effective May 1, 2002. 14. | Onor about May 9, TD made another premium payment of $208.00. On this same day you informed TD that she owed another premium payment on the policy but failed to inform TD that the said policy had been cancelled effective May 1, 2002. When TD refused to make another premium payment, you, JAMES SAMUEL SINGLETON, III, wrote TD a check (number 15511) dated May 8, 2002, in the amount of two hundred eight dollars $208.00 as refund for the insurance premium paid to you on May 9, 2002. IT IS THEREFORE CHARGED that you, JAMES SAMUEL SINGLETON, III, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the department of Financial Services which constitutes grounds for the suspension or revocation of your insurance license and appointments: (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 626.611 (7), Florida Statute]; (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) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611 (9), 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]; (f) All premiums, return premiums, or other funds belonging to insurers or others received by an agent, customer representative, 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]. Count IV 15. Paragraphs one through three are realleged and incorporated herein by reference. 16. On or about August 12, 2002, WE, of Holly Hills, Florida came to the Singleton Insurance Agency to purchase insurance on his 1988 Ford Taurus. WE, informed you that he wanted only the insurance coverage required to obtain a tag for the automobile. You, JAMES SAMUEL SINGLETON, III, had WE, sign a number of forms and collected a premium payment of $172.00. 17. You, JAMES SAMUEL SINGLETON, III, gave WE, a premium financing document showing that a down payment of $101.00 with a balance due of $235.00. You JAMES SAMUEL SINGLETON, III, sold WE, a Motor Club Plan for $60.00 without the full knowledge of or intent of WE, to purchase or pay for a Motor Club Plan and retained the balance of the down payment as inspection fees. You, JAMES SAMUEL SINGLETON, III, obtained WE,’s signature on the motor club membership application without his knowledge and informed consent that he was purchasing a motor club membership. IT IS THEREFORE CHARGED that you, JAMES SAMUEL SINGLETON, III, 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: (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 626.611 (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) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611 (9), Florida Statutes]; Count V 18. Paragraphs one through three are realleged and incorporated herein by reference. 19. On or about September 20, 2002, EBA of Daytona Beach, Florida, came to the Singleton Insurance Agency to purchase automobile insurance and paid insurance premiums of nine hundred sixteen dollars ($916.00.). EBA later received an insurance declaration page for the automobile insurance and noted that the correct charge for the insurance was eight hundred seventy-three dollars ($873.00) or forty ($40.00) dollars less than the amount paid to you, JAMES SAMUEL SINGLETON, III, for the insurance coverage. 20. | EBA came back to your office to inquire about the additional $40.00 cost you, JAMES SAMUEL SINGLETON, III, charged for the insurance. You, JAMES SAMUEL SINGLETON, III, told EBA that she was incorrect about the cost for the insurance. Then you, JAMES SAMUEL SINGLETON, IH], visited EBA at her house and attempted to get EBA to sign a form to purchase a motor club. The said form was dated September 20, 2002, the date on which you sold the automobile insurance to EBA. The cost of the motor club coverage as reflected on the motor club application was $40.00. EBA refused to sign the form. 21. You, JAMES SAMUEL SINGLETON, III, subsequently reimbursed EBA $40.00, for a motor club membership that you had sold her without her informed consent and knowledge and by misrepresenting the cost of insurance. . IT IS THEREFORE CHARGED that you, JAMES SAMUEL SINGLETON, III, 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 appointment: (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 626.611 (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) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611 (9), Florida Statutes]; Count VI 22. Paragraphs one through three are realleged and incorporated herein by reference. 23. You, JAMES SAMUEL SINGLETON, III, are required to handle all insurance premiums in accordance with applicable statues and rules. Insurance contracts that are premium financed and cancelled before the terms or duration of the contract is met may require the return of agent commission funds that have been paid to you. 24, You, JAMES SAMUEL SINGLETON, III, assist some of your customers to premium finance their insurance contracts with Capital Premium Plan. You, JAMES SAMUEL SINGLETON, III, are notified by Capital when unearned commissions are to be returned from you for refund to specific insurance consumers who have financed their insurance contract. You, 10 JAMES SAMUEL SINGLETON, III, have failed to return unearned commission funds due to Capital upon demand in violation of Section 626.561, Florida Statutes. In November 2002, you JAMES SAMUEL SINGLETON, III, owed over $3,500.00 in unearned commission to Capital with overdue refunds dating back to July 2000. IT IS THEREFORE CHARGED that you, JAMES SAMUEL SINGLETON, III, 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. (a) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611 (7), Florida Statutes]; (b) 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]; (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 or appointment. [Section 626.611 (10) Florida Statutes]; (e) All premiums, return premiums, or other funds belonging to insurers or others received by an agent, customer representative, 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 11 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]; (f) Failure or refusal, upon demand, to pay over to any insurer he or she represents or has represented any money coming into his or her hands belonging to the insurer. [Section 626.621(4), Florida Statutes] Count VII 25. On July 26, 2002, the Department of Insurance, (N/K/A Department of Financial Services) issued a Consent Order in the matter of JAMES SAMUEL SINGLETON, II, Case No. 61679-02-AG. The said Consent Order accepted a Settlement Stipulation between you, JAMES SAMUEL SINGLETON, III, and the Department of Insurance (N/K/A Department of Financial Services) wherein a Department of Insurance investigation alleged that you, JAMES SAMUEL SINGLETON, III, failed to remit insurance premiums to an insurer and charged an unlawful fee on auto policies. 26. You, JAMES SAMUEL SINGLETON, III, were placed on probation pursuant to Section 626.631, Florida Statutes, for one year beginning July 26, 2002, and ordered to pay a $1,500 administrative penalty and ordered to Cease and Desist from charging unlawful fees in addition to the premium. Based on the conduct alleged above in Counts one through six inclusive, you JAMES SAMUEL SINGLETON, III, have continued to engage in the business of insurance in a manner heretofore prohibited by Order of the Department of Financial Services, the Insurance Code and Rules of the Department and other conduct which is injurious to the citizens of this state and in direct violation of the Insurance laws of this state. 12 IT IS THEREFORE CHARGED that you, JAMES SAMUEL SINGLETON, III, 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) 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]; (b) 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]; (c) Violation of any lawful order or rule of the department. [Section 626.621(3), Florida Statutes]; WHEREFORE, you, JAMES SAMUEL SINGLETON, III, 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 28-107, 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 13 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. 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 14 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 bases 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 3rd day of _ June , 2003. Korea las dil, N CHANDLER Deputy Chief Financial Officer 15 CERTIFICATE OF SERVICE 1 HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been furnished to: JAMES SAMUEL SINGLETON, III, Singleton Insurance Agency, 547 North Ridgewood Avenue, Daytona Beach, FL 32114-2168; JAMES SAMUEL SIN GLETON, II, 22 Brian Lane, Plam Coast, FL 32137-8743 by Certified Mail this _3rdday of _ June , 2003. Oke vision of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-033 Florida Bar Number 389780 16

Docket for Case No: 03-003844PL