TomM GALLAGHER CHIEF FINANCIAL OFFICER Docket B if D IN THE MATTER OF: 20 by CASE NO.: 64762-03-AG CHARLES EDWARD CROUSE ADMINISTRATIVE COMPLAINT TO: CHARLES EDWARD CROUSE CHARLES EDWARD CROUSE 390 Sorrento Court 1324 Half Moon Trail Punta Gorda, Florida 33950 Jacksonville, Florida 32223 CHARLES EDWARD CROUSE A-1] Affordable Insurance Agency 6409 Blanding Blvd. Jacksonville, Florida 32244 You, CHARLES EDWARD CROUSE, are hereby notified that the Chief Financial Officer of the State of Florida has caused to be made an investigation of your activities while licensed as an insurance agent in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, CHARLES EDWARD CROUSE, are currently licensed in this state as a resident Life & Health (2-18), General Lines, Property and Casualty (2-20), and Legal Expense Sales Representative (2-56) agent. Your license 1.D. number is A058382. 2. Atall times pertinent to the dates and occurrences referred to herein, you, CHARLES EDWARD CROUSE, were licensed in this state as an insurance agent. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department (hereinafter referred to as “Department”) has jurisdiction over your insurance license and appointments. 4. At all times relevant to the dates and occurrences referred to herein you, CHARLES EDWARD CROUSE, were the sole owner and the President of A-1] Affordable Insurance Agency, Inc. (“A-1 Insurance”). 5. At all times relevant to the dates and occurrences referred to herein you, CHARLES EDWARD CROUSE, were the sole owner and the President of TLC Benefits, Inc., a/k/a A-1 Towing & Rental, a/k/a A-1 T&R. 6. At all times relevant to the dates and occurrences referred to herein, all funds received by you, CHARLES EDWARD CROUSE, from consumers or on behalf of consumers representing premiums for insurance policies, were trust funds pursuant to Section 626.561(1), Florida Statutes, and were received ina fiduciary capacity and were to be accounted for and paid over to the insurer, insured or other persons entitled thereto in the regular course of business. 7. You, CHARLES EDWARD CROUSE, have converted, misappropriated, or wrongfully withheld fiduciary funds belonging to customers, including but not limited to, R.A. of Ft. McCoy, Florida and A.M. of Jacksonville, Florida, and insurance companies. 8. You, CHARLES EDWARD CROUSE, have sold specific ancillary coverage or insurance products without the informed consent of the customer, including but not limited to, T.W., of Jacksonville, Florida. COUNT I 9. The above general allegations are hereby realleged and fully incorporated herein by reference. 10. On February 29, 2000, in relation to the real estate closing of R.A., Network Closing Service, Inc. (“Network Closing”) issued a $501.00 check payable to A-1 Insurance for the annual premium for insurance. : 11. The Network Closing check was deposited into A-1 Insurance’s bank account. 12. Neither the insurance broker, Braishfield of Florida, or the insurance company, Caliber One Indemnity Company (“Caliber One”), ever received the premium. 13. You, CHARLES EDWARD CROUSE, without R.A.’s knowledge or consent, failed to remit the funds to Caliber One or any other insurer so entitled but rather used the moneys for your own use and benefit. You, CHARLES EDWARD CROUSE, failed to promptly remit the funds to an insurer or to return the funds to R.A. or anyone else so entitled. 14. The above mentioned funds represented trust funds received by you, CHARLES EDWARD CROUSE, in a fiduciary capacity for both the insured and an insurance company. 15. | You, CHARLES EDWARD CROUSE, have converted, misappropriated, or wrongfully withheld fiduciary funds belonging to R.A. and an insurance company. 16. | Asaconsequence of your action, R.A. did not have insurance coverage on said property. IT IS THEREFORE CHARGED that you, CHARLES EDWARD CROUSE, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitute grounds for the suspension or revocation of your license and appointments: (a) All premiums, return premiums, or other funds belonging to insurers or others received by an agent, customer representative, or adjuster in transactions under his or her license are trust funds received by the licensee in a fiduciary capacity; and the licensee in the applicable regular course of business shall account for and pay the same to the insurer, insured, or other person entitled thereto. [Section 626.561(1) Florida Statutes]; (b) If the license or appointment is willfully used, or to be used, to circumvent any of the requirements or prohibitions of this code. [Section 626.61 1(4), Florida Statutes]; (c) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.61 1(7), Florida Statutes]; (d) Misappropriation, conversion, or unlawful withholding of moneys belonging to insurers or insureds or beneficiaries or to others and received in conduct of business under the license or appointment. [Section 626.611(10), Florida Statutes.]; (e) 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]; (f) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; (g) 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]; (h) Violation of any provision of this code or of any other law applicable to the business of insurance in the coursé of dealing under the license or appointment. [Section 626.621(2), Florida Statutes]; (i) In the conduct of business under the license or permit, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part X of Chapter 626, Florida Statutes, 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]. COUNT II : 17. The above general allegations are hereby realleged and fully incorporated herein by reference. 18. On October 3, 2000, A-! furnished A.M., Jr. (‘A.M.”) a proof of insurance form indicating that insurance for the property involved in A.M.’s October 16, 2000 closing had been obtained through Lloyds Dwelling Insurance Company (“Lloyds”). 19. On October 16, 2000, in relation to the real estate closing of A.M., Oberdorfer & Barry, P.A. issued a $679.42 check payable to A-1 Insurance for the annual premium for insurance, 20. The Oberdorfer & Barry check was deposited into A-1 Insurance’s bank account. 21, Neither Lloyds or TAPCO Underwriters, Inc., Lloyds’ representative, ever received the premium, or any other documentation from A-1 Insurance related to A.M.’s October 16, 2000 closing. 22. You, CHARLES EDWARD CROUSE, without A.M.’s knowledge or consent, failed to remit the funds to Caliber One or any other insurer so entitled but rather used the moneys for your own use and benefit. You, CHARLES EDWARD CROUSE, failed to promptly remit the funds to an insurer or to return the funds to A.M.’s or anyone else so entitled. 23. The above mentioned funds represented trust funds received by you, CHARLES EDWARD CROUSE, in a fiduciary capacity for both the insured and an insurance company. 24. You, CHARLES EDWARD CROUSE, have converted, misappropriated, or wrongfully withheld fiduciary funds belonging to A.M. and an insurance company. 25. | Asaconsequence of your action, A.M. did not have insurance coverage on said property, and has suffered or will suffer a pecuniary loss of between $12,000 and $19,000 because of damage incurred to said property while not insured. . IT I§ THEREFORE CHARGED that you, CHARLES EDWARD CROUSE, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitute grounds for the suspension or revocation of your license and appointments: (a) All premiums, return premiums, or other funds belonging to insurers or others received by an agent, customer representative, or adjuster in transactions under his or her license are trust funds received by the licensee in a fiduciary capacity; and the licensee in the applicable regular course of business shall account for and pay the same to the insurer, insured, or other person entitled thereto. [Section 626.561(1) Florida Statutes]; (b) 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]; (c) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (4) Misappropriation, conversion, or unlawful withholding of moneys belonging to insurers or insureds or beneficiaries or to others and received in conduct of business under the license or appointment. [Section 626.611(10), Florida Statutes. ]; (e) 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]; (£) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes}; (g) 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]; (h) 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]; (i) In the conduct of business under the license or permit, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part X of Chapter 626, Florida Statutes, 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]. COUNT III 26. The above general allegations are hereby realleged and fully incorporated herein by reference. 27. You, CHARLES EDWARD CROUSE, failed to remit a total of approximately $2000 worth of unearned commissions which you, CHARLES EDWARD CROUSE, had collected on behalf of Southeast Fidelity Corporation (“SEFCO”), a premium finance company. 28. As of November 8, 2002, you, CHARLES EDWARD CROUSE, still had an outstanding debt of approximately $900 with SEFCO. IT IS THEREFORE CHARGED that you, CHARLES EDWARD CROUSE, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitute grounds for the suspension or revocation of your license and appointments: (a) All premiums, return premiums, or other funds belonging to insurers or others received by an agent, customer representative, or adjuster in transactions under his or her license are trust funds received by the licensee ina fiduciary capacity, and the licensce in the applicable regular course of business shall account for and pay the same to the insurer, insured, or other person entitled thereto. [Section 626.561(1) Florida Statutes}; (b) If the license or appointment is willfully used, or to be used, to circumvent any of the requirements or prohibitions of this code, [Section 626.61 1(4), Florida Statutes]; (c) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance, [Section 626.611(7), Florida Statutes]; (d) Misappropriation, conversion, or unlawful withholding of moneys belonging to insurers or insureds or beneficiaries or to others and received in conduct of business under the license or appointment. [Section 626.61 1(10), Florida Statutes.]; (e) 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]; (f) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes); (g) 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]; (hb) 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}; (i) In the conduct of business under the license or permit, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part X of Chapter 626, }'lorida Statutes, or having otherwise shown himself or herself to be a source of injury or loss 10 the public or detrimental to the public interest. [Section 626.621 (6), Florida Statutes]. COUNTIV. 29. The above general allegations are hereby realfeged and fully incorporated herein by reference. 40. Garry Chueng, when working at A-1 Insurance, held himself out as, and acted as, an insurance agent, service representative, customer representative, or limited customer service representative, a violation of section 626.112(1), Fla. Stat. 31, When working at A-1 Insurance, Garry Chueng’s activities included, but were not Jimited to: 1) comparing insurance products, advising customers as to insurance needs or insurance matters, or interpreting policies or coverages; 2) binding new, additional, or replacement coverage for new or existing customers, or binding coverage on or recording additional property under existing policies; and/or 3) soliciting the sale of insurance in person, and engaging in substantive discussion of insurance products. These activities constitute viclations of Rule 4-220.060, Fla. Admin. Code. 32. Garry Chueng was not licensed as an insurance agent, service representative, customer representative, or limited customer service representative. 33. You, CHARLES EDWARD CROUSE, knew Garry Chueng, when working at A-] Insurance, held himself out as, and acted as, an insurance agent, service representative, customer representative, or limited customer service representative. You, CHARLES EDWARD CROUSE, knew Garry Chueng, when working at A-1 Insurance, engaged in the activities outlined in paragraph 31. 34, You, CHARLES EDWARD CROUSE, knew Garry Chueng was not licensed as an insurance agent, service representative, customer representative, or limited customer service representative. 35, Nevertheless, you CHARLES [EDWARD CROUSE, allowed Garry Chueng to hold himself out as, and act as, an insurance agent, service representative, customer representative, or Jimited customer service representative. You, CHARLES EDWARD CROUSE, allowed Garry Chueng, when working at A-1 Insurance, to engage in the activities outlined in paragraph 31. IT 1S THEREFORE CHARGED that you, CHARLES EDWARD CROUSE, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitute grounds for the suspension or revocation of your license and appointments: (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) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. {Section 626.61 1(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 626.61 1(8). Florida Statutes]; 10 (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 of any other Jaw applicable to the business of insurance in the course of dealing under the license or appointment. [Section 626.621(2), orida Statutes]; (x) 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. [Section 626.621 (12), Florida Statutes]; (h) The following actions are never allowable by unlicensed personnel: (1) Comparing insurance products; advising as to insurance needs or insurance matters, or interpreting policies or coverages. (2) Binding new, additional, or replacement coverage for new or existing customers; or binding coverage on or recording additional property under existing policies. (3) Soliciting the sale of insurance by telephone, in person, or by other communication. Wowever, the unlicensed person may telephone persons to set appointments for licensed and appointed agents, customer representatives, or solicitors, or to obtain basic policy information as to existing insurance coverage. The unlicensed person may not engage in a substantive discussion of insurance products. [Rule 4-220.060, Fla. Admin. Code]. i COUNT V 36. The above general allegations are hereby realleged and fully incorporated herein by reference. 37. On or about February 28, 2001, you CHARLES EDWARD CROUSE, sold T.W. a specific ancillary coverage or insurance product, towing and rental coverage through A-1 ‘Yowing & Rental, without the informed consent of T.W. The towing and rental coverage cost TW. $75, and was not included in the cost of the motor vehicle insurance. 38. On or about September 24, 2001, you CHARLES EDWARD CROUSE, sold ‘TW. a specific ancillary coverage or insurance product, towing and rental coverage through Nation Safe Driver, without the informed consent of T.W. The towing and rental coverage cost TW. $36.94, and was not included in the cost of the motor vehicle insurance. IT IS THEREFORE CHARGED that you, CHARLES EDWARD CROUSE, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitute grounds for the suspension or revocation of your license and appointments: (a) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (b) Willful failure to comply with, or willful violation of, any proper order or rule of the Department or willful vidlation 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) In the conduct of business under the license or permit, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part X of Chapter 626, Eorida Statutes, 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]; (e) Charging an applicant for a specific ancillary coverage or product, in addition to the cost of the motor vehicle insurance coverage applied for, without the informed consent of the applicant. [Section 626.9541(1)(z)(3). Florida Statutes]. WHEREFORE, you, CHARLES EDWARD CROUSE, are hereby notified that the Chic? 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, and 626.9541 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 Jater 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. 13 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 procecding, you must provide information that complies with the requirements of Rule 28-107.004, Florida Administrative Code. As noted above, completion of the atlached 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 cornnmnication that the party has received from the agency. Ifa 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. Ifa proceeding is requested and there is no dispute of material fact, the provisions of section 120.572), 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, vou 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 adyninistrative 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 Novnbey_. 2003. KAREN Pe Deputy Chief Financial Officer CERTIFICATE OF SERVICE 1 HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING have been furnished to CHARLES EDWARD CROUSE, at the following addresses: 390 Sorrento Court, Punta Gorda, Florida 33950, 1324 Half Moon Trail, Jacksonville, Florida 32223, and A-1 Affordable Insurance Agency, 6409 Blanding Blvd., Jacksonville, Florida 32244, by restricted U.S. Certified Mail this . {21° day of November, 2003. Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-033 (850) 413-4106 Florida Bar Number 93947

Docket for Case No: 04-002019PL