(J AP FILED DEPARTMENT OF FINANCIAL SERVICES MAR 10 2006 , Tom GALLAGHER CHIEF FINANCIAL OFFICER Docketed wy Ee IN THE MATTER OF: TODD L. MIDDLETON CASE NO. 71617-04-AG ADMINISTRATIVE COMPLAINT TO: TODD L. MIDDLETON 1203 15™ Avenue N. Jacksonville, Florida 32250 TODD L. MIDDLETON 1079-8 Atlantic Blvd. Atlantic Beach, Florida 32233 YOU, TODD L. MIDDLETON, are hereby notified that pursuant to Chapters 624 and 626, Florida Statutes, 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 that: GENERAL ALLEGATIONS 1. | ~ You, TODD L. MIDDLETON, are currently licensed in this state as a life and variable annuity contracts salesman, life, health and variable annuity contracts salesman, life insurance agent, and life and health insurance agent. 2. At all times relevant to the dates and occurrences alleged herein, you, TODD L. MIDDLETON, were licensed in this state as an insurance agent. 3. Pursuant to Chapter 626, Florida Statutes, the Chief Financial Officer of the State of Florida and the Department of Financial Services has jurisdiction over your insurance licenses and your eligibility for licensure and appointment. 4. At all times relevant to the dates and occurrences alleged herein you, TODD L. MIDDLETON, were appointed as a life insurance agent to represent Ohio State Life Insurance Company. COUNTI 5. The above General Allegations numbered one (1) through four (4) are hereby realleged and fully incorporated herein by reference. 6. On or about December 7, 1998, you, TODD L. MIDDLETON, did personally solicit WM, an employee of the Duval County School System of Jacksonville, Florida, for the purported purpose of setting up a private retirement savings plan. 7. Throughout your solicitation, you, TODD L. MIDDLETON, concealed the fact that you were selling a life insurance policy. Instead, through misleading statements, including deceptive omissions, you caused the prospective applicants to believe that you were soliciting an application for a retirement savings plan, which each employee desired to purchase. 8. “Based in part on your misleading and deceptive statements, employee WM signed what she believed to be an application for a retirement savings plan, but which was in fact an application for an Ohio State Life life insurance policy. 9. Atno time pertinent to the dates and occurrences referred to herein did you, TODD L. MIDDLETON, disclose to WM that you were soliciting a life insurance policy, nor did you disclose the terms, benefits and conditions of the life insurance policy. Furthermore, you, TODD L. MIDDLETON, specifically and knowingly misrepresented the amount of money in retirement savings that would accumulate in the Ohio State policy and that would be available upon retirement. 10. Your representations to WM were false and a material misstatement of fact. She would not have knowingly purchased the life insurance policy except for your misleading and deceptive statements. 11. The misleading and deceptive statements were made by you for the purpose of obtaining a fee, commission, money or other benefit from Ohio State Life Insurance Company. IT IS THEREFORE CHARGED that you, TODD L. MIDDLETON, have violated or are accountable under the following provisions of the Florida Insurance Code which constitute grounds for the suspension or revocation of your licenses as an insurance agent in the state: (a) If the license or appointment is willfully used, or to be used, to circumvent any of the requirements or prohibitions of this code. [Section 626.611(4), 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 626.61 1(9), Florida Statutes} ( 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. [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 X of this chapter. [Section 626.621 (6), Florida Statutes] (i) Knowingly making, issuing, circulating, or causing to be made, issued, or circulated, any estimate, illustration, circular, statement, sales presentation, omission, or comparison which misrepresents the benefits, advantages, conditions, or terms of any insurance policy. [Section 626.9541 (1)(a)1, Florida Statutes] (j) Knowingly making, issuing, circulating, or causing to be made, issued, or circulated, any estimate, illustration, circular, statement, sales presentation, omission, or comparison which uses any name or title of any insurance policy or class of insurance policies misrepresenting the true nature thereof. [Section 626.9541(1)(a)5, Florida Statutes] (k) Knowingly making, publishing, disseminating, circulating, or placing before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public: in a newspaper, magazine, or other publication, in the form of a notice, circular, pamphlet, letter or poster, over any radio or television station, or in any other way, an advertisement, announcement, or statement containing any assertion, representation, or statement with respect to the business of insurance, which is, deceptive or misleading. [Section 626.9541(1)(b), Florida Statutes] (1) Knowingly making a false or fraudulent written or oral statement or representation on, or relative to, an application or negotiation for an insurance policy for the purpose of obtaining a fee, commission, money, or other benefit from any insurer, agent, broker, or individual. [Section 626.9541(1)(k)1, Florida Statutes] COUNT II 12. The above General Allegations numbered one (1) through four (4) are hereby realleged and fully incorporated herein by reference. 13. Onor about April 19, 2000, you, TODD L. MIDDLETON, did personally solicit VR, an employee of the Duval County School System of Jacksonville, Florida, for the purported purpose of setting up a private retirement savings plan. 14. Throughout your solicitation, you, TODD L. MIDDLETON, concealed the fact that you were selling a life insurance policy. Instead, through misleading statements, including deceptive omissions, you caused the prospective applicants to believe that you were soliciting an application fora retirement savings plan, which each employee desired to purchase. 15. : Based in part on your misleading and deceptive statements, employee VR signed what he believed to be an application for a retirement savings plan, but which was in fact an application for an Ohio State Life life insurance policy. 16. Atno time pertinent to the dates and occurrences referred to herein did you, TODD L. MIDDLETON, disclose to VR that you were soliciting a life insurance policy, nor did you disclose the terms, benefits and conditions of the life insurance policy. Furthermore, you, TODD L. MIDDLETON, specifically and knowingly misrepresented to VR the amount of money in retirement savings that would accumulate in the Ohio State policy and that would be available to her upon her retirement. 17. Your representations to VR were false and a material misstatement of fact. He would not have knowingly purchased the life insurance policy except for your misleading and deceptive statements. 18. The misleading and deceptive statements were made by you for the purpose of obtaining a fee, commission, money or other benefit from Ohio State Life Insurance Company. IT IS THEREFORE CHARGED that you, TODD L. MIDDLETON, have violated or are accountable under the following provisions of the Florida Insurance Code which constitute grounds for the suspension or revocation of your licenses as an insurance agent in the state: 626.611(4); 626.61 1(5); 626.611(7); 626.611(8); 626.611(9); 626.621(2), 626.621(3); Section 626.621(6), 6269541(1)(a)1; 626.9541(1)(a)5; 626.9541(1)(b); and 626.9541(1)(k)1, Florida Statutes as more particularly alleged in Count T above. WHEREFORE, you, TODD L. MIDDLETON, 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 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 fequest a proceeding, you must provide information that complies with the requiremerits 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 wil! discuss this matter with you until the response has been received by the Department of Financial Services. DATED and SIGNED this io day of Mor ch , 2004. AG Lachle N CHANDLER Deputy Chief Financial Officer CERTIFICATE OF SERVICE IL HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDINGS have been furnished to: TODD L. MIDDLETON, 1203 15th Avenue North, Jacksonville, FL 32250; TODD L. MIDDLETON, 1079-8 Atlantic Blvd., Atlantic Beach, FL 32233 by Certified Mail this jo* day of March 2004. Division of Legal Services 612 Larson Building 200 East Gaines Street Tallahassee, Florida 32399-0333 Phone: (850) 413-4124 Fax: (850) 487-4907 (Cs A. BOSSART, Esquire 10

Docket for Case No: 04-001293PL