SEP 29 2005 DEPARTMENT OF FINANCIAL SERVICES py cveted wn DURE TOM GALLAGHER CHIEF FINANCIAL OFFICER IN THE MATTER OF: canon CASE NO.: 70858-03-AG JOHN RAMKHALAWAN ADMINISTRATIVE COMPLAINT TO: JOHN RAMKHALAWAN 601 Northeast 56" Street Ft. Lauderdale, Florida 33334 * JOHN RAMKHALAWAN c/o American General Life & Accident Insurance Company 1936 South Andrews Avenue Ft. Lauderdale, Florida 33316 You, JOHN RAMKHALAWAN, 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 and as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, JOHN RAMKHALAWAN, currently are licensed in this state as a Life, Health & Variable Annuity (2-15), Life (2-16), Life & Health (2-18), and Industrial Fire & Burglary (2-33) agent, and were so licensed at all times relevant to the dates and occurrences referenced herein. Your license identification number is A309097. 2. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services (hereinafter referred to as the “Department”) has jurisdiction over your license and appointments. 3. At all times relevant to the dates and occurrences referenced herein you, JOHN RAMKHALAWAN, were employed with American General Life & Accident Insurance Company (hereinafter “American General”), in Ft. Lauderdale, Florida. COUNT I 4. The above general allegations are hereby realleged and fully incorporated herein by reference. 5. On or about May 30, 2002, you, JOHN RAMKHALAWAN, sold a Fortis Insurance Company (hereinafter “Fortis”) health insurance policy to KMT. During the completion of the application for this policy you were advised that the wife of KMT was seven months pregnant. The pregnant wife was present at the time the application was being completed. You, JOHN RAMKHALAWAN, informed KMT and his wife that the soon-to-be- born child would be covered under KMT’s policy as soon as he/she was born. 6. Once the baby was born and his medical bills were forwarded to Fortis for payment, Fortis terminated the insurance policy on the grounds that KMT had a pregnant wife when he applied for the policy. Fortis subsequently refunded the policy premium to KMT but has not paid the medical bills for the newborn child of KMT. 7. Fortis’ Agent’s Guide, provided to agents appointed to sell its policies, specifies that an application for health insurance will not be accepted if the applicant has a pregnant wife. Despite this proscription, you, JOHN RAMKHALAWAN, misrepresented to KMT that the application would be accepted and coverage provided. IT IS THEREFORE CHARGED that you, JOHN RAMKHALAWAN, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, which constitutes grounds for the suspension or revocation of your licenses as an insurance agent in this state: (a) No person shall transact insurance 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(1), Florida Statutes]. (b) 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]. (c) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]. (d) 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]. (e) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]. (63) Willful failure to comply with, or willful violation of, any proper order or rule of the department, commission, or office or willful violation of any provision of this code. [Section 626.611(13), Florida Statutes]. (g) 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]. (h) Violation of any lawful order or rule of the department, commission, or office. [Section 626.621(3), Florida Statutes]. (i 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 IX of this chapter, 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]. Gg) No person shall engage in this state in any trade practice which is defined in this part as, or determined pursuant to s. 626.951 or s. 626.9561 to be, an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance. [Section 626.9521(1), Florida Statutes]. . (k) Misrepresents the benefits, advantages, conditions, or terms of any insurance policy. [Section 626.9541(1)(a)1., Florida Statutes]. WHEREFORE, you, JOHN RAMKHALAWAN, are hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking your licenses and appointments as an agent or to impose such penalties as may be provided under the provisions of Sections 624.15, 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 and under the provisions of Rule Chapter 4-231, Florida Administrative Code. 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 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 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 thisey?+4 _ day of Seplembay- , 2003. Krk Deputy Chief Financial Officer CERTIFICATE OF SERVICE 1 HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and the following ELECTION OF PROCEEDING has been furnished to: JOHN RAMKHALAWAN, 601 Northeast 56" Street, Ft. Lauderdale, Florida 33334; and, to JOHN RAMKHALAWAN, c/o American General Life & Accident Insurance Company, 1936 South Andrews Avenue, Ft. Lauderdale, Florida 33316, by Certified Mail thiseg? 4 day of en ae 2. Artic mbe: PLbO 3901 9844 2700 PALO 3. Service Type CERTIFIED MAIL , 2003. COMPLETE THIS SECTION ON DELIVERY Greg S. Marr Florida Department of Financial Services Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-033 (850) 413-4180 Florida Bar Number 0131369 C1 Agent [_] Addressee if YES, enter delivery address below: 4. Restricted Delivery? (Extra Fee) Yes 1. Article Addressed to: JOHN RAMKHALAWAN 601 NE 56TH STREET FT, LAUDERDALE, FL 33334 PS Form 3811, July 2001 D. Is delivery addrass ditferest from item 17 Yes 70858-03-AG AC 09/29/2003 Marr eference Information Domestic Return Receipt STATE OF FLORIDA DEPARTMENT OF FINANCIAL SERVICES DIVISION OF LEGAL SERVICES IN THE MATTER OF: CASE NO.: 70858-03-AG JOHN RAMKHALAWAN 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 1 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. 1 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 o [] 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: 03-004522PL