FILED MAR 31 2004 DEPARTMENT OF FINANCIAL SERVICES bucketed me GP TOM GALLAGHER CHIEF FINANCIAL OFFICER (4 moT4 Pe IN THE MATTER OF: ; CASE NO: 60381-03-AG DAVID RUBIN / rom] vo = »~ = ry at Ome ADMINISTRATIVE COMPLAINT OS “vu om TO: DAVID RUBIN i 5201 NW 2" Avenue, Apt 112 - 3 Boca Raton, FL 33487-3801 5 DAVID RUBIN c/o Rubin & Associates 5201 NW 2" Avenue, Apt 112 Boca Raton, FL 33487-3801 You, DAVID RUBIN, license I-D. #A227704, are hereby notified that the Chief Financial Officer, f/k/a the Insurance Commissioner 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, DAVID RUBIN, are currently licensed in this state as a life,(2-16) agent, a life and health (2-18) agent and a health (2-40) agent. Your agent license number is A270047. 2. _ Atail times pertinent to the dates and occurrences referred to herein, you, DAVID RUBIN, were licensed in this state as an insurance agent. 3, Pursuant to Chapter 626, Florida Statutes, and the Florida Insurance Code, the Florida Department of Financial Services, f/k/a the Florida Department of Insurance, has jurisdiction over your insurance licenses and appointments. 4. During all times material to the allegations contained herein you, DAVID RUBIN, were an insurance agent at Better Quotes Insurance Brokers, Inc. hereinafter referred to as “Better Quotes Insurance.” 5. At all times pertinent to the allegations of this complaint, you, DAVID RUBIN, were an officer of Better Quotes Insurance. COUNT 1 6. The above general allegations are realleged and fully incorporated herein by reference. 7. On or about March 10, 1999, you, DAVID RUBIN, solicited insurance from J. G. of Pompano Beach, Florida. 8. J.G. provided you with the two checks payable to the Hospital and Leisure Industry Network in the amount of $130.95 and $60.00 for the purchase of health insurance. 9. J.G. also signed an authorization form authorizing the Hospital and Leisure Industry Network to automatically deduct $130.95 from her bank account for payment of her health insurance premium. 10. Without her informed consent, you, DAVID RUBIN, also charged J.G. for a life insurance policy that she did not want and did not need. 11. You, DAVID RUBIN, unlawfully arranged to have $68.09 automatically withdrawn from J.G.’s bank account for the purchase of a life insurance policy that J.G. did not want and did not ask for. 12. After J.G. realized that she was paying for a life insurance policy that she did not want and did not ask for, she stopped the automatic withdrawals from her bank account of premium payments for the life insurance policy and filed a complaint with the Florida Department of Financial Services. 13. Thus, you, DAVID RUBIN, made misrepresentations and/or omissions to J.G., which caused her to purchase a life insurance policy that she did not want and did not ask for. 14. Thus, you, DAVID RUBIN, charged J.G. additional monies for a life insurance policy without her informed consent. IT IS THEREFORE CHARGED that you, DAVID RUBIN, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance, n/k/a the Department of Financial Services, which constitute grounds for the suspension or revocation of your insurance licenses 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]; (bo) = Willful misrepresentation of any insurance policy or annuity contract or willful deception with regard to any such policy or contract, done wither in person or by any form of dissemination of information or advertising. [Section 626.61 1(5), Florida Statutes]; (c) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.61 1(7)); (d) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; (e) 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)]; (H 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]; (g) Violation of any provision of this code or of any other law applicable to the business of insurance in the course of dealing under the license or permit. [Section 626.621(2), Florida Statutes]; (h) 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 LX of this chapter, or having otherwise shown himself to be a source of injury or loss to the public. [Section 626.621(6), Florida Statutes]; (i) No person shall engage in this state in any trade practice which is defined in this part as, or determined pursuant to s. 626.951 ors. 626.9561 to be, an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance. [Section 626.9521, Florida Statutes]; q) Knowingly making any misleading representations or incomplete or fraudulent comparisons or fraudulent material omissions of or with respect to any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on, or convert any insurance policy or to take outa policy of insurance in another insurer. [Section 626.9541(1)(1), Florida Statutes]; COUNT II 15. | The above general allegations are hereby realleged and fully incorporated herein by reference. 16. On or about December 8, 1998, you, DAVID RUBIN, solicited insurance from E.S. of Pompano Beach, Florida. 17. E.S. provided you with a check in the amount of $190.95 payable to the Hospital and Leisure Industry Network for the purchase of health insurance. 18. You, DAVID RUBIN, then requested E.S. to sign an application for a policy, which you said was to cover administrative costs. As you requested, ESS. signed the application for the additional policy. However, E.S. was unaware that she was actually purchasing a life insurance policy that she did not want. 19. Without her informed consent, you, DAVID RUBIN, also charged E.S. for a life insurance policy that she did not want and did not need. 20. ES. received a copy of the life insurance policy only after she requested it from the insurance company, that is when she discovered that the policy you, DAVID RUBIN, represented to her was for administrative costs was actually a life insurance policy. 21. Thus, you, DAVID RUBIN, made misrepresentations and/or omissions to E.S., which caused her to purchase a life insurance policy that she did not want and did not ask for. IT IS THEREFORE CHARGED that you, DAVID RUBIN, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance, n/k/a the Department of Financial Services, which constitute grounds for the suspension or revocation of your licenses and appointments as a general lines insurance agent: (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 626.61 1(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 wither in person or by any form of dissemination of information or advertising. [Section 626.61 1(5), Florida Statutes]; (c) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.61 1(7)); (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]; (e) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.61 1(9), Florida Statutes]; (f) 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)]; (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 permit. [Section 626.621(2), Florida Statutes]; ¢)) 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 LX of this chapter, or having otherwise shown himself to be a source of injury or loss to the public. [Section 626.621(6), Florida Statutes]; (k) No person shall engage in this state in any trade practice which is defined in this part as, or determined pursuant to s. 626.951 or s. 626.9561 to be, an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance. {Section 626.9521, Florida Statutes]; (k) Knowingly making any misleading representations or incomplete or fraudulent comparisons or fraudulent material omissions of or with respect to any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on, or convert any insurance policy or to take outa policy of insurance in another insurer. [Section 626.9541(1)(]), Florida Statutes]; COUNT Il 22. The above general allegations are realleged and fully incorporated herein by reference. 23. Onor about February 17, 1999, A.V. of Margate, Florida decided to purchase a health insurance policy. A.V. contacted you, DAVID RUBIN, for the purchase of said health insurance and after consulting with you, A.V. decided to purchase a HMO policy through T otal Health Care. 24. You, DAVID RUBIN, then advised A.V. that he could not purchase health insurance without also purchasing a life insurance policy. Thus, you, DAVID RUBIN, advised A.V. to provide you with two ‘checks, one payable to the Hospital and Leisure Industry Network in the amount of $130.95 for the purchase of health insurance and the other check payable to National States Insurance Company $64.03 for the purchase of life insurance. 25, Thus, you, DAVID RUBIN, made misrepresentations and/or omissions to A.V., which caused him to purchase a life insurance policy that he did not want and did not ask for. Ir IS THEREFORE CHARGED that you, DAVID RUBIN, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance, n/k/a the Department of Financial Services, which constitute grounds | for the suspension or revocation of your licenses and appointments as a general lines insurance agent: (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 wither 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 626.61 1(7)); @ Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.611(8), Florida Statutes]; (e) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; (f) 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]; (g) Violation of any provision of this code or of any other law applicable to the business of insurance in the course of dealing under the license or permit. [Section 626.621(2), Florida Statutes}; (h) 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 IX of this chapter, or having otherwise shown himself to be a source of injury or loss to the public. [Section 626.621(6), Florida Statutes); (i) No person shall engage in this state in any trade practice which is defined in this part as, or determined pursuant to s. 626.951 or s. 626.9561 to be, an unfair method of — competition or an unfair or deceptive act or practice involving the business of insurance. [Section 626.9521, Florida Statutes]; qd) False statements and entries.- 1. Knowingly: a. Filing with any supervisory or other public official, b. Making, publishing, disseminating, circulating, c. Delivering to any person, d. Placing before the public, e. Causing, directly or indirectly, to be made, published, disseminated, circulated, delivered to any person, or placed before the public, any false material statement. [Section 626.9541(1)(e)1, Florida Statutes); (k) | Knowingly making any misleading representations or incomplete or fraudulent comparisons or fraudulent material omissions of or with respect to any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on, or convert any insurance policy or to take out a policy of insurance in another insurer. [Section 626.9541(1)(), Florida Statutes]; WHEREFORE, you, DAVID RUBIN, are hereby notified that the Chief Financial Officer, f/k/a the Treasurer and Insurance Commissioner, intends to enter an Order suspending or revoking your licenses and appointments as a general lines insurance agent or to impose such penalties as may provided under the provisions of Sections 626.611, 626.621, 626.681, and 626.691, Florida Statutes, under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint, and under the provisions of Rule Chapter 4-231, Florida Administrative Code. You are further notified that any order entered in this case revoking or suspending any license or eligibility for licensure held by you shall also apply to all other licenses and eligibility held by you under the Florida Insurance Code. NOTICE OF RIGHTS You have the right to request a proceeding to contest this action by the Department pursuant to sections 120.569 and 120.57, Florida Statutes, and Rule 28-107, Florida Administrative Code. The proceeding request must be in writing, signed by you, and must be filed with the Department within twenty-one (21) days of your receipt of this notice. Completion of the attached Election of Proceeding form and/or a petition for administrative hearing will suffice as a written request. The request must be filed with the General Counsel as acting Agency Clerk, at the Florida Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. Your written response must be received by the 10 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; (bv) 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. 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. 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 11 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 shal) 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 this Ad day of March , 2004. IN CHANDLER Deputy Chief Financial Officer 12 CERTIFICATE OF SERVICE LHEREBY CERTIFY that a copy of the foregoing Administrative Complaint has been furnished to: DAVID RUBIN 5201 NW 2™ Avenue, Apt 112 Boca Raton, FL 33487-3801 DAVID RUBIN c/o Rubin & Associates 5201 NW 2™ Avenue, Apt 112 Boca Raton, FL 33487-3801 by Certified Mail/Restricted Delivery this Sat day of rach , 2004. Mechele R. McBride, Esquire Fla. Bar. No. 0079197 Division of Legal Services 612 Larson Building 200 East Gaines Street Tallahassee, Florida 32399-0333 (850) 413-4114 13

Docket for Case No: 04-003074PL