FLORIDA DEPARTMENT OF FINANCIAL SERVICES TOM GALLAGHER D CHIEF FINANCIAL OFFICER F I L E STATE OF FLORIDA NOV 30. 2004 IN THE MATTER OF: Bockeied wy Uh CASE NO.: 76181-04-AG EILEAN WEBB ADMINISTRATIVE COMPLAINT TO: EILEAN WEBB DS O0Y0 PL 7342 Bordwine Drive Orlando, Florida 32818 EILEAN WEBB EW & Associates of Central Florida, Inc. eo, 6905 West Colonial Drive Orlando, Florida 32818 You, EILEAN WEBB, license LD. #4279497, 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, EILEAN WEBB, are currently licensed in this state as a Life Including Variable Annuity & Health Agent (2-15), Life Agent (2- 16), Life & Health Agent (2-18), Variable Annuity Agent (2-19), and General Lines Agent (2- 20). 2. At all times pertinent to the dates and occurrences referred to herein, you, EILEAN WEBB, were licensed in this state as an insurance agent. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services has jurisdiction over your insurance licenses and appointments. 4. At all times pertinent to the dates and occurrences referred to herein, you, EILEAN WEBB, were listed as the president and owner of EW & Associates of Central Florida, Inc. (“EW & Associates”), located at 6905 West Colonial Drive, Orlando, Florida 32818. 5. Pursuant to Section 626.734, Florida Statutes, any insurance agent who is an officer, director, or stockholder of an incorporated insurance agency shall remain personally and fully liable and accountable for any wrongful acts, misconduct, or violations committed by any person under her direct supervision and control while acting on behalf of the corporation. 6. As the president of EW & Associates, you, EILEAN WEBB, knew or should have known of the activities of employees under your direct supervision and control. Therefore, you are personally and fully liable for all of the activities of the staff at EW & Associates for the times and occurrences as hereafter presented. 7. You, EILEAN WEBB, conducted insurance business at EW & Associates, without designating a primary agent for the agency location. 8. At all times pertinent to the dates and occurrences referred to herein, Yagwattie Krishna, a.k.a. Sapna, and hereinafter referred to as “Sapna,” was an employee of EW & Associates. Sapna did not then hold a Florida insurance license, but you, EILEAN WEBB, allowed her to transact insurance business on behalf of the agency. 9. At all times pertinent to the dates and occurrences referred to herein, Leslie Lowe was an employee of EW & Associates. Ms. Lowe did not then hold a Florida insurance license, but you, EILEAN WEBB, allowed her to transact insurance business on behalf of the agency. 10. You, EILEAN WEBB, allowed Leslie Lowe and Sapna to hold themselves out to be, and act as Insurance Customer Representatives or Insurance Agents, with the authority to effect the insurance coverage that customers thought they were purchasing. Leslie Lowe and Sapna were regularly involved in administering policy changes for insurance customers, and you were cognizant of their involvement. 11. 626.112(1)(a), Florida Statutes, prohibits any person from holding himself out to be a Customer Representative, unless he is currently licensed by the department and appointed by one or more insurers. 12. You, EILEEN WEBB, are listed as a signor on the EW & Associates agency account numbered 003736038398 at Bank of America, N.A. to which the sums hereafter described were deposited and withdrawn pursuant to your control and direction. COUNT I 13. The above general allegations are hereby realleged and fully incorporated herein by reference. 14. | Onor about April 4, 2003, H.T. visited EW & Associates to purchase commercial motor vehicle insurance. Sapna did not then hold a Florida insurance license, but you, EILEAN WEBB, allowed her to handle H.T.’s insurance transaction. 15. Sapna quoted a premium of $2,647.00, instructed H.T. to sign an application, and obtained payment from him. 16. | You, EILEAN WEBB, reviewed H.T.’s application, and issued him Certificates of Insurance, that listed Canal Insurance Company as the insurer affording coverage. H.T. was told that his policy would arrive in the mail within thrity (30) days. H.T. received his policy seventy-five (75) days later. 17. On or about May 19, 2003, Dale Travis and Lisa Fischer, of the Bureau of Investigations, visited EW & Associates, and witnessed Sapna, an unlicensed employee, handling new insurance policies. Mr. Travis advised you, EILEAN WEBB, that no employee could transact insurance without being licensed. 18. Onor about August 4, 2003, H.T. received a letter from Shelly, Middlebrooks & O'Leary, Inc. (“SM&O”), the managing general agent, indicating that his policy was going to be cancelled due to non-payment. In addition, SM&O maintained that it did not issue or authorize the Certificates of Insurance or vehicle identification cards H.T. obtained from EW & Associates, and that the policy number, 12564-CA, shown on H.T.’s vehicle identification cards, is not a Canal Insurance Company policy. . 19. Due to the incorrect vehicle information provided by Sapna, SM&O increased the premium due on H.T.’s policy by $2,300.00. 20. When H.T. contacted EW & Associates to resolve this issue, you, EILEAN WEBB, demanded that he pay an additional $2,300.00 in premium, and that the payment had to be in cash. 21. As the president and owner of EW & Associates, you, EILEAN WEBB, are personally and fully liable for any wrongful acts, misconduct, or violations committed by any person under your supervision and control, while acting on behalf of the corporation. IT IS THEREFORE CHARGED that you, EILEAN WEBB, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: (a) No person shall be, act as, or advertise or hold herself out to be an insurance agent, customer representative, solicitor, or adjuster unless she is currently licensed and appointed. [Section 626.112(1)(a), 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) 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]. COUNT I 22. The above general allegations are hereby realleged and fully incorporated herein by reference. 23. On or about September 1, 2003, H.N. visited EW & Associates to put in a claim on an existing policy he purchased on or about January 3, 2003. You, EILEAN WEBB, informed HN. that he had been without coverage since February 2003, because his insurer had “closed the binder.” You also stated that you did not know what “closed the binder” meant. 24. Sapna provided H.N. with a quote, prepared his application for mailing to the insurance carrier, completed the premium finance agreement, and collected the initial premium, without you, EILEAN WEBB, either being present, or exercising any supervision over the activities. In addition, you failed to maintain accurate insurance records, and as aresult, EW & Associates continued to accept payments from HN. for several months after his insurance was cancelled. 25. HLN. was refunded $2,283.88 by SM&O, the managing general agent, but he was never refunded the unearned commission that you received on the policy. Furthermore, H.N.’s policy was in effect for only two months, and therefore, the refund should have been $2,926.51. HN. is still owed approximately $834.63. 26. As the president and owner of EW & Associates, you, EILEAN WEBB, are personally and fully liable and accountable for any wrongful acts, misconduct, or violations committed by any person under your direct supervision and control, while acting on behalf of the corporation. IT IS THEREFORE CHARGED that you, EILEAN WEBB, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: Sections 626.1 12(1)(a), 626.611(7), 626.611(8), and 626.621(12), Florida Statutes, as more fully described under Count I above. COUNT III 27. The above general allegations are hereby realleged and fully incorporated herein by reference. 28. On or about August 20, 2003, F.C. visited EW & Associates to purchase commercial motor vehicle insurance. Sapna did not then hold a Florida insurance license, but you, EILEAN WEBB, allowed her to handle F.C.’s insurance transactions. 29. Anotice of binder, dated August 22, 2003, lists Sapna as the writing agent for F.C.’s policy. Sapna quoted a premium of $3,580.84, and F.C. gave her $900.00 in cash as a down payment. However, the down payment recorded by EW & Associates was $975.00, not $900.00 as indicated on F.C.’s receipt. 30. On or about August 25, 2003, F.C. again visited EW & Associates to obtain four Certificates of Insurance for additional insureds. Sapna again handled the transaction. 31. Sapna quoted a price of $400.00 for the additional four certificates. F.C. added two insureds to his policy, and paid Sapna $200.00 in cash. Sapna gave H.T. two Certificates of Insurance; however, she refused to give him a receipt. 32. F.C. received a letter from Gardner-Huffman Underwriters (“Huffman”), the managing general agent, indicating that they did not receive any requests from EW & Associates to issue Certificates of Insurance, or add to additional insureds to F.C.’s policy. In addition, Huffman maintained that EW & Associates had no authority to issue Certificates of Insurance. 33. You, EILEAN WEBB, breached your fiduciary duty to F.C. by failing to exercise the expected care in handling his liability exposures. 34. As the president and owner of EW & Associates, you, EILEAN WEBB, are personally and fully liable and accountable for any wrongful acts, misconduct, or violations committed by any person under your direct supervision and control, while acting on behalf of the corporation. IT IS THEREFORE CHARGED that you, EILEAN WEBB, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: Sections 626.112(1)(a), 626.611(7), 626.611(8), and 626.621(12), Florida Statutes, as more fully described under Count I above. COUNT IV 35. The above general allegations are hereby realleged and fully incorporated herein by reference. 36. | Onor about March 24, 2003, R.L. visited EW & Associates to request a change on an existing insurance policy. Leslie Lowe did not then hold a Florida insurance license, but you, EILEAN WEBB, allowed her to handle R.L.’s insurance transactions. 37. | Ms. Lowe stated that the adjustment would cost R.L. $700.00. R.L. gave Ms. Lowe a check in the amount of $700.00, and Ms. Lowe prepared and signed a Certificate of Insurance for R.L. 38. Onor about July 17, 2003, RL. visited EW & Associates to request another change to his insurance policy. Ms. Lowe prepared three Certificates of Insurance for R.L., dated July 18, 2003. Ms. Lowe assured R.L. that she would fax the certificates to the Greater Orlando Aviation Authority (“‘“GOAA”), the City of Orlando, and Port Canaveral. 39. Chelsea Surplus Underwriters, Inc. (“Chelsea”) ”), the managing general agent, declined to process the requested vehicle changes. You, EILEAN WEBB, failed to dispute the declination, even though Chelsea’s decision contradicted the policy definitions for additional or replacement vehicles under “Specifically Described Autos.” 40. On or about September 2, 2003, R.L. visited EW & Associates to review his insurance policy. Upon inspection, R.L. discovered that his policy did not list GOAA, the City of Orlando, or Port Canaveral as additional insureds. 41. RL. requested that Chelsea cancel the policy, effective September 30, 2003. Chelsea, however, did not cancel the policy until October 29, 2003. You, EILEAN WEBB, did not dispute the late cancellation, or the method used for calculating R.L.’s refund, even though the reasons cited by Chelsea do not coincide with the policy’s conditions under “Common Policy Conditions.” 42. The signatures on R.L.’s “Florida Uninsured Motorists Coverage Election Notice,” and “Commercial Auto Physical Damage Policy” are not R.L.’s signatures. In addition, the business address and territory listed on R.L.’s “Business Auto Application Form” are incorrect. 43. _ By failing to exercise the expected care in handling R.L.’s liability exposures, you, EILEAN WEBB, left R.L. uninsured for over two months, without his knowledge, while he was transporting passengers in his vehicle daily. In addition, R.L. incurred monetary fines because he failed to maintain the requisite liability insurance mandated by the City of Orlando. 44. RL. was refunded approximately $226.52 by Chelsea. You, EILEAN WEBB, have not refunded R.L. the unearned commissions received on the policy. R.L. should have received a refund totaling $1,081.17, leaving a balance owed to him of $854.65. 45. As the president and owner of EW & Associates, you, EILEAN WEBB, are personally and fully liable and accountable for any wrongful acts, misconduct, or violations committed by any person under your direct supervision and control while acting on behalf of the corporation. IT IS THEREFORE CHARGED that you, EILEAN WEBB, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: Sections 626.112(1)(a), 626.611(7), 626.611(8), and 626.621(12), Florida Statutes, as more fully described under Count I above. COUNT V 46. The above general allegations are hereby realleged and fully incorporated herein by reference. 47. On or about July 15, 2003, R.M. visited EW & Associates to obtain commercial motor vehicle insurance with a $300,000.00 liability limit. Leslie Lowe did not then hold a Florida insurance license, but you, EILEAN WEBB, allowed her to handle R.M.’s insurance transaction. 48. Ms. Lowe informed R.M. that the estimated premium for such a policy would be $2,600.00. Ms. Lowe then instructed R.M. to write a check for $300.00, and to leave the “payee” area of the check blank. Rachan Darity then prepared and signed four certificates of insurance, handed them to Ms. Lowe who, in turn, handed them to R.M. Ms. Lowe told R.M. that it would take approximately thirty (30) days for the policy to arrive. 49. — R.M. wrote a check for $300.00, and left the “payee” area of the check blank, to be filled in with the agency name. R.M. never filled out an application, and he never received a policy. 50. On or about July 25, 2003, R.M. returned to EW & Associates to add another vehicle to the policy. Sapna stated that the adjustment would cost $200.00. R.M. gave Sapna a check in the amount of $200.00, again leaving the “payee” area of the check blank, trusting that the funds would be credited to the EW & Associates account. Ms. Darity printed out a vehicle identification card, and prepared and signed a certificate of insurance for the additional vehicle. 51. Ms. Darity knowingly and willfully issued the above-described fraudulent certificates of insurance on a non-existent insurance policy. Ms. Darity also filled her name in as the “payee” on the R.M.’s $200.00 check. Ms. Darity then signed the check and exchanged it for cash, rather than applying it as a premium deposit on an insurance policy. 52. During August 2003, R.M. visited EW & Associates to obtain a copy of his insurance policy. You, EILEAN WEBB, informed R.M. that the cost of his policy had increased to $5,700.00, and that he owed an additional $2,900.00 in premium. R.M. could not afford the additional $2,900.00 in premium, and as a result, he was compelled to cancel the policy. 53. None of the money collected from R.M. was forwarded to the insurer, because the policy issued to him was fictitious. You, EILEAN WEBB, have not refunded R.M. the premiums payments you collected from him. IT IS THEREFORE CHARGED that you, EILEAN WEBB, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department which constitutes grounds for the suspension or revocation of your licenses and eligibility as an insurance agent: Sections 626.112(1)(a), 626.611(7), 626.611(8), and 626.621(12), Florida Statutes, as more fully described under Count I above. COUNT VI 54. The above general allegations are hereby realleged and fully incorporated herein by reference. 55. Pursuant to Section 626.592, Florida Statutes, an insurance agency location may not conduct the business of insurance unless a primary agent is designated at all times. 56. As president of EW & Associates, you, ELEAN WEBB, were required to designate a primary agent for the agency location. 57. You, EILEAN WEBB, conducted insurance business at EW & Associates without a primary agent designated for the agency location. IT IS THEREFORE CHARGED that you, EILEAN WEBB, 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) Each person operating an insurance agency shall designate a primary agent for each insurance agency location and shall file the name of the person so designated, and the address of the insurance agency location where he or she is primary agent, with the department, on a form approved by the department. [Section 626.592(1), Florida Statutes]. (b) An insurance agency location may not conduct the business of insurance unless a primary agent is designated at all times. [Section 626.592(7), Florida Statutes]. WHEREFORE, you, EILEAN WEBB, 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 10 626.611, 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 Y OUR 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) 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. 11 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 will discuss this matter with you until the response has been received by the Department of Financial Services. KAREN CHANDLER Deputy Chief Financial Officer 12 CERTIFICATE OF SERVICE IHEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been furnished to: EILEAN WEBB, 7342 Bordwine Drive, Orlando, Florida 32818; EILEAN WEBB, 6905 West Colonial Drive, ih Orlando, Florida 32818 by Certified Mail this 20" day of November , 2004. 13 David Busch Florida Bar Number 0140945 Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-0333 Phone: 850-413-4146

Docket for Case No: 05-000040PL