OY S04 C oon, iy ey y 13, DEPARTMENT OF FINANCIAL SERVICES” t PLE TOM GALLAGHER oe CHIEF FINANCIAL OFFICER ~ Dee 5 2003 IN THE MATTER OF: Docketed a a WILLIAM DOYLE PROFFITT we / . CASE NO.: 69672-03- AG ADMINISTRATIVE COMPLAINT TO: WILLIAM DOYLE PROFFITT WILLIAM DOYLE PROFFITT 12430 Brady Road 5836 Richard Street, Suite A Jacksonville, Florida 32223 Jacksonville, Florida 32216 You, WILLIAM DOYLE PROFFITT, 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 Statues, you, WILLIAM DOYLE PROFFITT, are currently licensed in this state as a resident Life (2-16); Life & Health (2-18); and Health (2- 40) Agent. Your license identification number is A212212. 2. Pursuant to Chapter 626, Florida Statutes, and the Florida Insurance Code, the Florida Department of Financial Services has jurisdiction over your resident insurance licenses and appointments. 3. You, WILLIAM DOYLE PROFFITT, in your position as an insurance agent, have committed violations of the Insurance Code in relation to the sale of The Ohio State Life Insurance Company insurance policies to, including but not limited to, S.D. of Middleburg, Florida, and B.R., G.M., B.S., G.N., QR. and D.S. of Jacksonville, Florida, as described in greater detail] below. COUNT I 4. Paragraphs one through three are hereby realleged and fully incorporated herein by reference. 5. On or about July 11, 2000, you, WILLIAM DOYLE PROFFITT, sold G.M. a life insurance policy issued by The Ohio State Life Insurance Company (“Ohio State Policy”). 6. However, G.M. did not want a life insurance policy. G.M. wanted to invest ina deferred compensation or investment plan. You, WILLIAM DOYLE PROFF ITT, knew G.M. wanted to invest in a deferred compensation or investment plan. 7. G.M. did not know or understand that the Ohio State Policy was only a life insurance policy, and not a deferred compensation or investment plan, because you, WILLIAM DOYLE PROFFITT, represented that the Ohio State Policy was also a deferred compensation or investment plan. 8. You, WILLIAM DOYLE PROFFITT, told G.M. that she would receive the face amount of the Ohio State Policy upon her retirement at age 65. 9. You, WILLIAM DOYLE PROFFITT, knew that the Ohio State Policy was not a deferred compensation or investment plan. You, WILLIAM DOYLE PROFF ITT, knew that G.M. would not receive the face amount of the Ohio State Policy upon her retirement at age 65. 10. Additionally, at no time did you, WILLIAM DOYLE PROFFITT, inform G.M. that surrender charges applied to the Ohio State Policy should G.M. cancel the Ohio State Policy. 11. You, WILLIAM DOYLE PROFFITT, knew that surrender charges applied to the Ohio State Policy should G.M. cancel the Ohio State Policy. ITIS THEREFORE CHARGED, based upon paragraphs 4-11, that you, WILLIAM DOYLE PROFFITT, 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 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) 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]; (f) Violation of any provision of this Code or any law applicable to the business of insurance in the course of dealing under the licensure or appointment. [Section 626.621(2), Florida Statutes); (g) Violation of any lawful order or rule of the department. [Section 626.621(3), Florida Statutes]; (h) 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]; (i) Ifa life agent, violation of the code of ethics. [Section 626.621(9), Florida Statutes]; (Gj) Misrepresentations are declared to be unethical. No person shall make, issue, circulate, or cause to be made, issued, or circulated, any estimate, circular, or statement misrepresenting the terms of any policy issued or to be issued or the benefits or advantages promised thereby or the dividends or share of the surplus to be received thereon, or make any false or misleading statement as to the dividends or share of surplus previously paid on similar policies, or make any misleading representation or any misrepresentation as to the financial condition of any insurer, or as to the legal reserve system upon which any life insurer operates, or use any name or title of any policy or class of policies misrepresenting the true nature thereof. [Rule 4-215.230(1), Fla. Admin. Code]; and (k) No person shall make, publish, disseminate, circulate, or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter or poster, or over any radio or television station, or in any other way, any advertisement, announcement or statement containing any assertion, representation or statement with respect to the business of insurance or with respect to any person in the conduct of his insurance business, which is untrue, deceptive or misleading. [Rule 4-215.230(2), Fla. Admin. Code]. COUNT II 12. Paragraphs one through three are hereby realleged and fully incorporated herein by reference. 13. Onor about April 13, 2000, you, WILLIAM DOYLE PROFF ITT, sold B.S. a life insurance policy issued by The Ohio State Life Insurance Company (“Ohio State Policy”). 14. However, B.S. did not want a life insurance policy. B.S. wanted to invest ina deferred compensation or investment plan. You, WILLIAM DOYLE PROFF ITT, knew B.S. wanted to invest in a deferred compensation or investment plan. 15. B.S. did not know or understand that the Ohio State Policy was only a life insurance policy, and not a deferred compensation or investment plan, because you, WILLIAM DOYLE PROFFITT, represented that the Ohio State Policy was also a deferred compensation or investment plan. 16, You, WILLIAM DOYLE PROFFITT, told B.S. that she would receive the face amount of the Ohio State Policy upon her retirement at age 65. 17. You, WILLIAM DOYLE PROFFITT, knew that the Ohio State Policy was not a deferred compensation or investment plan. You, WILLIAM DOYLE PROFF ITT, knew that B.S. would not receive the face amount of the Ohio State Policy upon her retirement at age 65. 18. Additionally, at no time did you, WILLIAM DOYLE PROFFITT, inform B.S. that surrender charges applied to the Ohio State Policy should B.S. cancel the Ohio State Policy. 19. You, WILLIAM DOYLE PROFFITT, knew that surrender charges applied to the Ohio State Policy should B.S. cancel the Ohio State Policy. IT IS THEREFORE CHARGED, based upon paragraphs 12-19, that you, WILLIAM DOYLE PROFFITT, 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 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 626.61 105), 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 626.61 1(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) 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]; (f) Violation of any provision of this Code or any law applicable to the business of insurance in the course of dealing under the licensure or appointment. [Section 626.621(2), Florida Statutes]; (g) Violation of any lawful order or rule of the department. [Section 626.621(3), Florida Statutes]; (h) 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]; (i) Ifa life agent, violation of the code of ethics. [Section 626.621(9), Florida Statutes]; G) Misrepresentations are declared to be unethical. No person shall make, issue, circulate, or cause to be made, issued, or circulated, any estimate, circular, or statement misrepresenting the terms of any policy issued or to be issued or the benefits or advantages promised thereby or the dividends or share of the surplus to be received thereon, or make any false or misleading statement as to the dividends or share of surplus previously paid on similar policies, or make any misleading representation or any misrepresentation as to the financial condition of any insurer, or as to the legal reserve system upon which any life insurer operates, or use any name or title of any policy or class of policies misrepresenting the true nature thereof. [Rule 4-215.230(1), Fla. Admin. Code]; and (k) No person shall make, publish, disseminate, circulate, or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter or poster, or over any radio or television station, or in any other way, any advertisement, announcement or statement containing any assertion, representation or statement with respect to the business of insurance or with respect to any person in the conduct of his insurance business, which is untrue, deceptive or misleading. [Rule 4-215.230(2), Fla. Admin. Code]. COUNT III 20. Paragraphs one through three are hereby realleged and fully incorporated herein by reference. , 21. On or about May 9, 2000, you, WILLIAM DOYLE PROFFITT, sold Q.R. a life insurance policy issued by The Ohio State Life Insurance Company (“Ohio State Policy”). 22. However, Q.R. did not want a life insurance policy. Q.R. wanted to invest ina deferred compensation or investment plan. You, WILLIAM DOYLE PROFFITT, knew Q.R. wanted to invest in a deferred compensation or investment plan. 23. Q.R. did not know or understand that the Ohio State Policy was only a life insurance policy, and not a deferred compensation or investment plan, because you, WILLIAM DOYLE PROFFITT, represented that the Ohio State Policy was also a deferred compensation or investment plan. 24. You, WILLIAM DOYLE PROFFITT, told Q.R. that she would receive the face amount of the Ohio State Policy upon her retirement at age 65. 25. You, WILLIAM DOYLE PROFFITT, knew that the Ohio State Policy was not a deferred compensation or investment plan. You, WILLIAM DOYLE PROFFITT, knew that Q.R. would not receive the face amount of the Ohio State Policy upon her retirement at age 65. 26. Additionally, at no time did you, WILLIAM DOYLE PROFFITT, inform Q.R. that surrender charges applied to the Ohio State Policy should Q.R. cancel the Ohio State Policy. 27. You, WILLIAM DOYLE PROFFITT, knew that surrender charges applied to the Ohio State Policy should Q.R. cancel the Ohio State Policy. IT IS THEREFORE CHARGED, based upon paragraphs 20-27, that you, WILLIAM DOYLE PROFFITT, 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 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 626.61 1(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) 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]; (f) Violation of any provision of this Code or any law applicable to the business of insurance in the course of dealing under the licensure or appointment. [Section 626.621(2), Florida Statutes]; (g) Violation of any lawful order or rule of the department. [Section 626.621(3), Florida Statutes]; (h) 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]; (i) Ifa life agent, violation of the code of ethics. [Section 626.621(9), Florida Statutes]; Gj) Misrepresentations are declared to be unethical. No person shall make; issue, circulate, or cause to be made, issued, or circulated, any estimate, circular, or statement misrepresenting the terms of any policy issued or to be issued or the benefits or advantages promised thereby or the dividends or share of the surplus to be received thereon, or make any false or misleading statement as to the dividends or share of surplus previously paid on similar policies, or make any misleading representation or any misrepresentation as to the financial condition of any insurer, or as to the legal reserve system upon which any life insurer operates, or use any name or title of any policy or class of policies misrepresenting the true nature thereof. [Rule 4-215.230(1), Fla. Admin. Code]; and (k) No person shall make, publish, disseminate, circulate, or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter or poster, or over any radio or television station, or in any other way, any advertisement, announcement or statement containing any assertion, representation or statement with respect to the business of insurance or with respect to any person in the conduct of his insurance business, which is untrue, deceptive or misleading. [Rule 4-215.230(2), Fla. Admin, Code]. COUNT IV 28. Paragraphs one through three are hereby realleged and fully incorporated herein by reference. 10 29. On or about May 17, 2001, you, WILLIAM DOYLE PROFF ITT, sold D.S. a life insurance policy issued by The Ohio State Life Insurance Company (“Ohio State Policy”). 30. However, D.S. did not want a life insurance policy. D.S. wanted to invest ina deferred compensation or investment plan. You, WILLIAM DOYLE PROFFITT, knew D.S. wanted to invest in a deferred compensation or investment plan. 31. D.S. did not know or understand that the Ohio State Policy was only a life insurance policy, and not a deferred compensation or investment plan, because you, WILLIAM DOYLE PROFFITT, represented that the Ohio State Policy was also a deferred compensation or investment plan. 32. You, WILLIAM DOYLE PROFFITT, told D.S. that she would receive the face amount of the Ohio State Policy upon her retirement at age 65. 33. You, WILLIAM DOYLE PROFFITT, knew that the Ohio State Policy was not a deferred compensation or investment plan. You, WILLIAM DOYLE PROFF ITT, knew that D.S. would not receive the face amount of the Ohio State Policy upon her retirement at age 65. 34, Additionally, at no time did you, WILLIAM DOYLE PROFFITT, inform D.S. that surrender charges applied to the Ohio State Policy should D.S. cancel the Ohio State Policy. 35. You, WILLIAM DOYLE PROFFITT, knew that surrender charges applied to the Ohio State Policy should D.S. cancel the Ohio State Policy. IT IS THEREFORE CHARGED, based upon paragraphs 28-35, that you, WILLIAM DOYLE PROFFITT, 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: 11 (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) 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]; (f) Violation of any provision of this Code or any law applicable to the business of insurance in the course of dealing under the licensure or appointment. [Section 626.621(2), Florida Statutes]; (g) Violation of any lawful order or rule of the department. [Section 626.621(3), Florida Statutes]; (h) 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]; (i) Ifa life agent, violation of the code of ethics. [Section 626.621(9), Florida Statutes]; G) Misrepresentations are declared to be unethical. No person shall make, issue, circulate, or cause to be made, issued, or circulated, any estimate, circular, or statement misrepresenting the terms of any policy issued or to be issued or the benefits or advantages promised thereby or the dividends or share of the surplus to be received thereon, or make any false or misleading statement as to the dividends or share of surplus previously paid on similar policies, or make any misleading representation or any misrepresentation as to the financial condition of any insurer, or as to the legal reserve system upon which any life insurer operates, or use any name or title of any policy or class of policies misrepresenting the true nature thereof. [Rule 4-215.230(1), Fla. Admin. Code]; and (k) No person shall make, publish, disseminate, circulate, or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter or poster, or over any radio or television station, or in any other way, any advertisement, announcement or statement containing any assertion, representation or statement with respect to the business of insurance or with respect to any person in the conduct of his insurance business, which is untrue, deceptive or misleading. [Rule 4-215.230(2), Fla. Admin. Code]. COUNT V 36. Paragraphs one through three are hereby realleged and fully incorporated herein by reference. 37. On or about January 12 , 2000, you, WILLIAM DOYLE PROFF ITT, sold B.R. a life insurance policy issued by The Ohio State Life Insurance Company (“Ohio State Policy”). 13 38. However, B.R. did not want a life insurance policy. B.R. wanted to invest ina deferred compensation or investment plan. You, WILLIAM DOYLE PROFFITT, knew B.R. wanted to invest in a deferred compensation or investment plan. 39. B.R. did not know or understand that the Ohio State Policy was only a life insurance policy, and not a deferred compensation or investment plan, because you, WILLIAM DOYLE PROFFITT, represented that the Ohio State Policy was also a deferred compensation or investment plan. 40. You, WILLIAM DOYLE PROFFITT, knew that the Ohio State Policy was not a deferred compensation or investment plan. You, WILLIAM DOYLE PROFFITT, knew that B.R. would not receive the face amount of the Ohio State Policy upon her retirement. 41. Additionally, at no time did you, WILLIAM DOYLE PROFFITT, inform B.R. that surrender charges applied to the Ohio State Policy should B.R. cancel the Ohio State Policy. 42. | You, WILLIAM DOYLE PROFFITT, knew that surrender charges applied to the Ohio State Policy should B.R. cancel the Ohio State Policy. IT IS THEREFORE CHARGED, based upon paragraphs 36-42, that you, WILLIAM DOYLE PROFFITT, 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 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]; 14 (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) 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]; (f) Violation of any provision of this Code or any law applicable to the business of insurance in the course of dealing under the licensure or appointment. [Section 626.621(2), Florida Statutes]; (g) Violation of any lawful order or rule of the department. [Section 626.621(3), Florida Statutes}; (h) 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]; (i) Ifa life agent, violation of the code of ethics. [Section 626.621(9), Florida Statutes]; () Misrepresentations are declared to be unethical. No person shall make, issue, circulate, or cause to be made, issued, or circulated, any estimate, circular, or statement misrepresenting the terms of any policy issued or to be issued or the benefits or advantages promised thereby or the dividends or share of the surplus to be received thereon, or make any false or misleading statement as to the dividends or share of surplus previously paid on similar 15 policies, or make any misleading representation or any misrepresentation as to the financial condition of any insurer, or as to the legal reserve system upon which any life insurer operates, or use any name or title of any policy or class of policies misrepresenting the true nature thereof. [Rule 4-215.230(1), Fla. Admin. Code]; and (k) No person shall make, publish, disseminate, circulate, or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter or poster, or over any radio or television station, or in any other way, any advertisement, announcement or statement containing any assertion, representation or statement with respect to the business of insurance or with respect to any person in the conduct of his insurance business, which is untrue, deceptive or misleading. [Rule 4-215.230(2), Fla. Admin. Code]. COUNT VI 43. Paragraphs one through three are hereby realleged and fully incorporated herein by reference. 44, On or about March 28, 2001, you, WILLIAM DOYLE PROFFITT, sold §.D. a life insurance policy issued by The Ohio State Life Insurance Company (“Ohio State Policy”). 45. However, S.D. did not want a life insurance policy. S.D. wanted to invest ina deferred compensation or investment plan. You, WILLIAM DOYLE PROFF ITT, knew S.D. wanted to invest in a deferred compensation or investment plan. 46. S.D. did not know or understand that the Ohio State Policy was only a life insurance policy, and not a deferred compensation or investment plan, because you, WILLIAM 16 DOYLE PROFFITT, represented that the Ohio State Policy was also a deferred compensation or investment plan. 47. You, WILLIAM DOYLE PROFFITT, knew that the Ohio State Policy was not a deferred compensation or investment plan. You, WILLIAM DOYLE PROFFITT, knew that S.D. would not receive the face amount of the Ohio State Policy upon her retirement. 48. Additionally, at no time did you, WILLIAM DOYLE PROFFITT, inform S.D. that surrender charges applied to the Ohio State Policy should S.D. cancel the Ohio State Policy. 49. You, WILLIAM DOYLE PROFFITT, knew that surrender charges applied to the Ohio State Policy should S.D. cancel the Ohio State Policy. IT IS THEREFORE CHARGED, based upon paragraphs 43-49, that you, WILLIAM DOYLE PROFFITT, 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 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 626.61 1(8), Florida Statutes]; (d) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; 17 (e) 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]; , (f) Violation of any provision of this Code or any law applicable to the business of insurance in the course of dealing under the licensure or appointment. [Section 626.621(2), Florida Statutes]; (g) Violation of any lawful order or rule of the department. [Section 626.621(3), Florida Statutes); (h) 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]; (i) Ifa life agent, violation of the code of ethics. [Section 626.621(9), Florida Statutes]; (Gj) Misrepresentations are declared to be unethical. No person shall make, issue, circulate, or cause to be made, issued, or circulated, any estimate, circular, or statement misrepresenting the terms of any policy issued or to be issued or the benefits or advantages promised thereby or the dividends or share of the surplus to be received thereon, or make any false or misleading statement as to the dividends or share of surplus previously paid on similar policies, or make any misleading representation or any misrepresentation as to the financial condition of any insurer, or as to the legal reserve system upon which any life insurer operates, or use any name or title of any policy or class of policies misrepresenting the true nature thereof. [Rule 4-215.230(1), Fla. Admin. Code]; and 18 (k) No person shall make, publish, disseminate, circulate, or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, ina newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter or poster, or over any radio or television station, or in any other way, any advertisement, announcement or statement containing any assertion, representation or statement with respect to the business of insurance or with respect to any person in the conduct of his insurance business, which is untrue, deceptive or misleading. [Rule 4-215.230(2), Fla. Admin. Code]. COUNT VII 50. Paragraphs one through three are hereby realleged and fully incorporated herein by reference. 51. On or about March 13, 2001, you, WILLIAM DOYLE PROFFITT, sold G.N. a life insurance policy issued by The Ohio State Life Insurance Company (“Ohio State Policy”). 52. | However, G.N. did not want a life insurance policy. G.N. wanted to invest in a deferred compensation or investment plan. You, WILLIAM DOYLE PROFFITT, knew G.N. wanted to invest in a deferred compensation or investment plan. 53. G.N. did not know or understand that the Ohio State Policy was only a life insurance policy, and not a deferred compensation or investment plan, because you, WILLIAM DOYLE PROFFITT, represented that the Ohio State Policy was also a deferred compensation or investment plan. 54. You, WILLIAM DOYLE PROFFITT, knew that the Ohio State Policy was not a deferred compensation or investment plan. You, WILLIAM DOYLE PROFFITT, knew that G.N. would not receive the face amount of the Ohio State Policy upon his retirement. 19 55. Additionally, at no time did you, WILLIAM DOYLE PROFFITT, inform G.N. that surrender charges applied to the Ohio State Policy should G.N. cancel the Ohio State Policy. 56. You, WILLIAM DOYLE PROFFITT, knew that surrender charges applied to the Ohio State Policy should G.N. cancel the Ohio State Policy. IT IS THEREFORE CHARGED, based upon paragraphs 50-56, that you, WILLIAM DOYLE PROFFITT, 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 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 626.61 1(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) 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]; 20 (f) Violation of any provision of this Code or any law applicable to the business of insurance in the course of dealing under the licensure or appointment. [Section 626.621(2), Florida Statutes}; (g) Violation of any lawful order or rule of the department. [Section 626.621(3), Florida Statutes]; (h) 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]; (i) Ifa life agent, violation of the code of ethics. [Section 626.621(9), Florida Statutes]; (Gj) Misrepresentations are declared to be unethical. No person shall make, issue, circulate, or cause to be made, issued, or circulated, any estimate, circular, or statement misrepresenting the terms of any policy issued or to be issued or the benefits or advantages promised thereby or the dividends or share of the surplus to be received thereon, or make any false or misleading statement as to the dividends or share of surplus previously paid on similar policies, or make any misleading representation or any misrepresentation as to the financial condition of any insurer, or as to the legal reserve system upon which any life insurer operates, or use any name or title of any policy or class of policies misrepresenting the true nature thereof. (Rule 4-215.230(1), Fla. Admin. Code]; and (k) No person shall make, publish, disseminate, circulate, or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter or poster, or over any radio or television station, or in any other way, any 21 advertisement, announcement or statement containing any assertion, representation or statement with respect to the business of insurance or with respect to any person in the conduct of his insurance business, which is untrue, deceptive or misleading. [Rule 4-215.230(2), Fla. Admin. Code]. WHEREFORE, you, WILLIAM DOYLE PROFFITT, 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. 22 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 23 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, 4 day of DeLembey _, 2003. KAREN CHANDLER Deputy Chief Financial Officer 24 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING have been furnished to WILLIAM DOYLE PROFFITT, at the following addresses: 12430 Brady Road, Jacksonville, Florida 32223, and 5836 Richard Street, Suite A, Jacksonville, Florida 32216, by restricted U.S. Certified Mail this day of December, 2003. Va Robert Alan Fox Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-033 (850) 413-4106 Florida Bar Number 93947 COMPLETE THIS SECTION ON DELIVERY R390) 9844 7722 879 -LIAM DOYLE PROFFITT RICHARD STREET, SUITE A ‘KSONVILLE, FL 32216 C) Agent 2. Article Number | | | | | CD) Addressee - is delivery address Mtterent m Clves , FULD QOL YH 7722 BPA || INE TMs Stony easese coon E}Ke 3901 9844 2700 9352 3. Service Type CERTIFIED MAIL LIAM DOYLE PROFFITT 30 BRANDY ROAD ‘KSONVILLE, FL 32223 ERY TE THIS SECTION ON DELIV! COMPLE B. Datg of Oplivery \ Ty Artidle Addressacl tan... +-sera0 7 2. Aricte Number | /ALIl ny ree we | (7) Agent TJaddressee Cl yes bm iterh 17 Ye e700 0. devon ease vom [ine von aBu4 | min 30h ie. 69672-03-AG | 3. Service Type CERTIFIED MAIL pense Ia Restricted Delivery? (Extra Fee) i 4, Article ‘Addressed to: WILLIAM DOYLE PROFFITT 12430 BRANDY ROA JACKSONVILLE, FL3 69672-03-AG 12/5/03-AC Fox POSTMARK OR DATE ipt Domestic Return Receip' . - i < : | + PS Form 3811, July 200 | cortig ior \ i No Insurance Coverage Provided 25 {Do Not Use for International Mail

Docket for Case No: 04-000103PL