L40¥ re oe a) fe FILED Hh 15 \.) DEPARTMENT OF FINANCIAL SERVICES MOAN 18 20 Bop oe te t ° PM) ToM GALLAGHER CHIEF FINANCIAL OFFICER IN THE MATTER OF: CASE NO.: 70507-04-AG JOHN RANDALL BECK ADMINISTRATIVE COMPLAINT TO: JOHN RANDALL BECK Beck-De Pratter, Inc. 4505 Brentwood Avenue. Jacksonville, Florida 32206 JOHN RANDALL BECK John Beck Insurance, Inc. 8726 Atlantic Boulevard Jacksonville, Florida 32206-6117 JOHN RANDALL BECK 25100 Marsh Landing Parkway Ponte Vedra Beach, Florida 32082-2014 You, JOHN RANDALL BECK, 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 RANDALL BECK, currently are licensed in this state as a General Lines (Property & Casualty) (2-20) agent, and were so licensed at all times relevant to the dates and occurrences referenced herein. Your license identification number is A017253. 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 RANDALL BECK, were an officer of and, for purposes of transacting insurance business, were affiliated with Beck-De Pratter, Inc., (hereinafter “Beck-De Pratter”), in Jacksonville, Florida. 4. At all times relevant to the dates and occurrences referenced herein, pursuant to Section 626.734, Florida Statutes, you, JOHN RANDALL BECK, were personally and fully liable and accountable for any wrongful acts, misconduct, or violation of any provision of the Insurance Code committed either by you or anyone under your direct supervision and control while acting on behalf of the corporation. References to you, JONN RANDALL BECK, include persons acting under your direct supervision and control. COUNT I 5. The above General Allegations are hereby realleged and fully incorporated herein by reference. 6. On or about February 5, 2001, CLH, of Jacksonville, Florida, tendered two hundred twenty dollars ($220.00) to Beck-De Pratter as payment of premium on a personal auto insurance policy. 7. These funds were not received by the insurer, American Ambassador Casualty Company, until on or about February 21, 2001, and as a result of this delay, a car crash sustained by CLH on February 11, 2001, occurred while the policy was lapsed. IT IS THEREFORE CHARGED that you, JOHN RANDALL BECK, 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) 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]. (4) MisappropriationS 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) 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]. (63) 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). (g) Violation of any lawful order or rule of the department, commission, or office. [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) Any general lines insurance agent who is an officer, director, or stockholder of an incorporated general lines insurance agency shall remain personally and fully liable and accountable for any wrongful acts, misconduct, or violations of any provisions of this code committed by such licensee or by any person under his or her direct supervision and control while acting on behalf of the corporation. [Section 626.734, Florida Statutes]. COUNT II 8. The above General Allegations are hereby realleged and fully incorporated herein by reference. 9. On or about Novémber 25, 2002, the Department, by U.S. Certified Mail, requested that you provide certain, specified records for inspection by the Department. 10. You, JOHN RANDALL BECK, failed to respond adequately to this lawful request. IT IS THEREFORE CHARGED that you, JOHN RANDALL BECK, 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 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]. (c) 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]. (d) Violation of any lawful order or rule of the department, commission, or office. [Section 626.621(3), Florida Statutes]. (e) In the investigation by the department or office of alleged misconduct, the licensee shall, whenever so required by the department or office, cause his or her books and records to be open for inspection for the purpose of such inquiries. [Section 626.601(2), Florida Statutes). (f) Every person belitg examined or investigated, and its officers, attorneys, employees, agents, and representatives, shall make freely available to the department or office or its examiners or investigators the accounts, records, documents, files, information, assets, and matters in their possession or control relating to the subject of the examination or investigation. {Section 624.318(2), Florida Statutes]. (g) The licensee shall keep and make available to the department or office books, accounts, and records as will enable the department or office to determine whether such licensee is complying with the provisions of this code. [Section 626.561(2), Florida Statutes]. COUNT Il 11. The above General Allegations are hereby realleged and fully incorporated herein by reference. 12. On or about August 16, 2001, AJC, of Jacksonville, Florida, purchased personal auto insurance from Beck-De Pratter. 13. The individual with whom AJC transacted insurance business on this occasion was Sharon Taylor, an employee of Beck-De Pratter, who is not licensed by the Department to transact insurance business. IT IS THEREFORE CHARGED that you, JOHN RANDALL BECK, 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) Demonstrated la¢k 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) 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]. (e) 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]. (f) Violation of any lawful order or rule of the department, commission, or office. [Section 626.621(3), Florida Statutes]. (g) 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]. (h) Knowingly aiding, assisting, procuring, advising, or abetting any person in the violation of or to violate a provision of the insurance code or any order or rule of the department, commission, or office. [Section 626.621(12), Florida Statutes]. COUNT IV 14. The above General Allegations are hereby realleged and fully incorporated herein by reference. 15. On or about Apri7, 2003, SDC, of Jacksonville, Florida, purchased personal auto insurance from Beck-De Pratter. 16. The individual with whom SDC transacted insurance business on this occasion was Sharon Taylor, an employee of Beck-De Pratter, who is not licensed by the Department to transact insurance business. IT IS THEREFORE CHARGED that you, JOHN RANDALL BECK, 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) 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) 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]. (e) Violation of any provision of this code or of any other law applicable to the business of insurance in the coutse of dealing under the license or appointment. [Section 626.621(2), Florida Statutes]. (63) Violation of any lawful order or rule of the department, commission, or office. [Section 626.621(3), Florida Statutes]. (g) 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]. (h) Knowingly aiding, assisting, procuring, advising, or abetting any person in the violation of or to violate a provision of the insurance code or any order or rule of the department, commission, or office. [Section 626.621(12), Florida Statutes]. COUNT V. 17. The above General Allegations are hereby realleged and fully incorporated herein by reference. 18. On or about April 11, 2003, RLH, of Jacksonville, Florida, purchased personal auto insurance from Beck- De Pratter. 19. The individual with whom RLH transacted insurance business on this occasion was Sharon Taylor, an employee of Beck-De Pratter, who is not licensed by the Department to transact insurance business. IT IS THEREFORE CHARGED that you, JOHN RANDALL BECK, 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) 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) 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]. (e) 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]. (fp Violation of any lawful order or rule of the department, commission, or office. [Section 626.621(3), Florida Statutes]. (g) 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]. (h) Knowingly aiding, assisting, procuring, advising, or abetting any person in the violation of or to violate a provision of the insurance code or any order or rule of the department, commission, or office. [Section 626.621(12), Florida Statutes]. “ COUNT VI 20. The above General Allegations are hereby realleged and fully incorporated herein by reference. 21. On or about March 9, 2003, MTK, of Jacksonville, Florida, purchased personal auto insurance from Beck-De Pratter. 22. The individual with whom MTK transacted insurance business on this occasion was Sharon Taylor, an employee of Beck-De Pratter, who is not licensed by the Department to transact insurance business. IT IS THEREFORE CHARGED that you, JOHN RANDALL BECK, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, 10 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 624.1 1(1), 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) 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]. ~ (e) 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]. (69) Violation of any lawful order or rule of the department, commission, or office. [Section 626.621(3), Florida Statutes]. (g) 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]. 11 (h) Knowingly aiding, assisting, procuring, advising, or abetting any person in the violation of or to violate a provision of the insurance code or any order or rule of the department, commission, or office. [Section 626.621(12), Florida Statutes]. COUNT VII 23. The above General Allegations are hereby realleged and fully incorporated herein by reference. 24. On or about February 5, 2001, CLH, of Jacksonville, Florida, transacted insurance with Beck-De Pratter. 25. The individual with whom MTK transacted insurance business on this occasion was Sharon Taylor, an employee of Beck-De Pratter, who is not licensed by the Department to transact insurance business. IT IS THEREFORE CHARGED that you, JOHN RANDALL BECK, 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) 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]. 12 2 (@) 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]. (e) _ 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]. (63) Violation of any lawful order or rule of the department, commission, or office. [Section 626.621(3), Florida Statutes]. (g) 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]. (h) Knowingly aiding, assisting, procuring, advising, or abetting any person in the violation of or to violate a provision of the insurance code or any order or rule of the department, commission, or office. [Section 626.621(12), Florida Statutes]. COUNT VIII 26. The above General Allegations are hereby realleged and fully incorporated herein by reference. 27. At all times relevant to the dates and occurrences referenced herein you, JOHN RANDALL BECK, were the designated primary agent at Beck-De Pratter. 28. At times relevant to the dates and occurrences referenced herein you, JOHN RANDALL BECK, transacted insurance business also at John Beck Insurance, Inc., located at 8726 Atlantic Boulevard, Jacksonville, Florida 32211. 13 29. While you, JOHN RANDALL BECK, were absent from Beck-De Pratter, insurance business was transacted there by an unlicensed employee. IT IS THEREFORE CHARGED that you, JOHN RANDALL BECK, 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) 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 autltorized by the license or appointment. [Section 626.611(8), Florida Statutes]. (d) 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]. (e) 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]. (63) Violation of any lawful order or rule of the department, commission, or office. (Section 626.621(3), Florida Statutes]. 14 (g) When an agent conducts insurance transactions at two or more locations, a separate primary agent need not be designated at each location, provided that no insurance transactions occur at any location when the agent is not present and no unlicensed employee at the location has engaged in insurances activities requiring licensure. [Section 626.592(9), Florida Statutes]. COUNT IX 30. The above General! Allegations are hereby realleged and fully incorporated herein by reference. 31. Atall times relevant to the dates and occurrences referenced herein Beck-De Pratter was not licensed by the Department as an insurance agency. 32. | Onor about April 21, 1980, the Department revoked the insurance license of you, JOHN RANDALL BECK. IT IS THEREFORE CHARGED that you, JOHN RANDALL BECK, 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) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]. 15 (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) 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]. (e) 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]. (f) Violation of any lawful order or rule of the department, commission, or office. [Section 626.621(3), Florida Statutes]. (g) If any majority owner, partner, officer, or director of an insurance agency: has been denied a license relating tthe business of insurance, or has had his or her license to practice or conduct any regulated profession, business, or location relating to the business of insurance revoked or suspended, by this or any other state, any nation, any possession or district of the United States, or any court, or any lawful agency thereof; the insurance agency and any subsidiary or branch thereof shall obtain a license from the department pursuant to this section. [Section 626.172(1)(b)]. WHEREFORE, you, JOHN RANDALL BECK, are hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking your licenses and appointments as a General Lines (Property & Casualty) (2-20) agent, or to impose such penalties as may be provided under the provisions of Sections 624.15, 626.611, 626.621, 626.681, and 626.691, 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 69B (formerly 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; 17 (b) | Astatement 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 18 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 \l pa day of January, 2004. KAREN CHANDLER Deputy Chief Financial Officer 19 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and the following ELECTION OF PROCEEDING has been furnished to: Jed Berman, Infantino and Berman, P. O. Drawer 30, Winter Park, Florida 32790-0030, attorney for Respondent, by Certified Mail this [Le day of January, 2004. ad M an Greg arr 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 20

Docket for Case No: 04-000404PL

Orders for Case No: 04-000404PL