me FLORIDA _ FINANCIAL SERVICES TOM GALLAGHER, FILED STATE OF FLORIDA sep 3 ot 7 IN THE MATTER OF ~ = et P ANDY RODRIGUEZ CASE NO.: 75901-04-AG /{* \\5U f C Ant Os-OV | Of L ADMINISTRATIVE COMPLAINT TO: ANDY RODRIGUEZ 8240 SW 5° Street Miami, Florida 33144-3512 ANDY RODRIGUEZ 1441 W. Flagler Street Miami, FL 33135 YOU, ANDY RODRIGUEZ, license number A223618, are hereby notified that the Chief Financial Officer of the State of Florida (“the Department”), 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 l. Pursuant to Chapter 626, Florida Statutes, you, ANDY RODRIGUEZ, license identification numbér A229488, are currently licensed in this state as a Residential Property and Casualty Joint Underwriting Agent (“RCPJUA”), and as a general lines agent. 2. At all times pertinent to the dates and occurrence referred to herein, you, ANDY RODRIGUEZ, were licensed in this state to transact surplus lines (1-20), life (2-16), life & health (2-18), property and casualty (2-20), and health (2-40) insurance. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services has jurisdiction over your insurance licenses and appointments. 4. During all times material to the allegations contained in this complaint you, ANDY RODRIGUEZ, operated and were president of All Risk Insurance Underwriters, Inc. (“All Risk”) insurance agency at having a principal address listed with the Florida Secretary of State of P.O. Box 520096, Miami, Florida 33152. 5. U.S. Risk Financial Services, Inc. (“USRF”) is a subsidiary of U.S. Risk Insurance Group, Inc., a managing general agency performing underwriting and wholesale brokerage activities, You, ANDY RODRIGUEZ, acting on behalf of All Risk, signed a producer agreement with USRF that granted All Risk the ability, but not the right, to submit business for consideration by USRF. You, ANDY RODRIGUEZ, had no authority under that agreement to quote or bind USRF on insurance coverage. 6. At all times pertinent to the allegations of this complaint, you, ANDY RODRIGUEZ, as an officer of the All Risk agency, were personally and fully liable and accountable for any wrongful acts, misconduct, or violations of any provisions of the Florida Insurance Code committed by you or by any person under your direct supervision and control while acting on behalf of the corporation, specifically one Vicky Socarras who was neither a licensed nor — appointed insurance agent, but with your full knowledge and consent held herself out as such while employed with All Risk. [Sections 626.734, 626.795, 626.839 and 626.9295, Florida Statutes] 7. You, ANDY RODRIGUEZ, are an authorized signatory on Interamerican Bank account number 0014096994 and Commercebank account number 8200732106. 8. The Department has twice taken disciplinary action against the license of you, ANDY RODRIGUEZ; first, on July 16, 1996 for misappropriation of funds and again on May 15, 1998 when you were placed in the Settlement Stipulation Program. By reason of those prior actions, the Department intends to seek aggravation of any penalty imposed in this case pursuant to Rule 69B-23 1 .160(1)(1), Florida Administrative Code. COUNT I 9. The above General Allegations numbered one through eight are hereby realleged and fully incorporated herein by reference. 10. Angela Powers, owner of American Insurance Group, a retail insurance agency, has purchased Errors and Omissions liability insurance (E&O) coverage from you, ANDY RODRIGUEZ, since 1993. On or about August 14, 2002, Ms. Powers sought to renew her E&O coverage with Gulf Insurance Company through you, ANDY RODRIGUEZ, pursuant to a renewal notice issued by All Risk seeking payment in the amount of $3,661.00. 11. M&. Powers provided you, ANDY RODRIGUEZ, with both a completed application and a premium finance draft payment in the amount of $3,661.00. You, ANDY RODRIGUEZ, willfully and for the purpose of obtaining money, issued a bogus certificate of insurance to American Insurance Group as “Authorized Representative” for Gulf Insurance Company on an E&O policy thus indicating that coverage was bound, when you knew that it was not bound. 12. You, ANDY RODRIGUEZ, intentionally failed to forward both the application and the payment to the insurance company. Ms. Powers discovered this only by making inquiry with agency personnel at All Risk and following up with Gulf Insurance Company directly. 13. Specifically, Ms. Powers sent a copy of the certificate of insurance issued by All Risk on the E&O policy and was advised by Gulf Insurance Company that the certificate was not valid and that E&O coverage had expired on June 23, 2002 with the original policy, since the company never received a renewal premium. 14. Asaresult of your failure to properly renew Ms. Powers’ E&O coverage, you, ANDY RODRIGUEZ, exposed her to several years of having no retroactive liability insurance caused her to have to settle for a large deductible on her next policy, because of the lapse in E&O coverage caused by you. IT IS THEREFORE CHARGED that you, ANDY RODRIGUEZ, 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 as a life and health insurance agent: (a) All premiums, retum premiums, or other funds belonging to insurers or others received by an agent, solicitor, or adjuster in transactions under his license shall be trust funds so 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]; a (b) Any agent, solicitor, or adjuster who, not being lawfully entitled thereto, either temporarily or permanently diverts or appropriates such funds or any portion thereof to his or her own use or deprives the other person of a benefit therefrom. [Section 626.561(3), Florida Statutes]; (c) Willful use of an insurance license to circumvent any of the requirements or prohibitions of this code. [Section 626.61 1(4)]; (4) 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 626.61 1(5)]; (e) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (f) Fraudulent or dishonest practices in the conduct of business under the license or permit. [Section 626.611(9), Florida Statutes]; (g) | 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) Violation of any provision of the Florida Insurance 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 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}; G) 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]; (k) 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 Statues.]; (ly Knowingly collecting any sum as a premium or charge for insurance, which is not then provided, or is not in due course to be provided, subject to acceptance of the risk by the insurer, by an insurance policy issued by an insurer as permitted by this code. [Section 626.9541(1)(o)1., Florida Statutes]. COUNT II 15. The above General Allegations numbered one through eight are hereby realleged and fully incorporated herein by reference. 16. Kino Sakuma MacGregor, president and owner of All American Insurance Associates, Inc. (All American), a retail insurance agency, has purchased Errors and Omissions liability insurance (E&O) coverage from you, ANDY RODRIGUEZ, since 1997. On or about May 6, 2002, Ms. MacGregor received a renewal notice/statement from All Risk seeking payment of $7,619.00. 17. OnMay 21, 2002, Ms. MacGregor signed an application for All American’s renewal of E&O coverage through you, ANDY RODRIGUEZ, dealing with an individual at All Risk named Vicky Socarras, On or about October 15, 2002, Ms. MacGregor provided All Risk with a Del Rio Discount Corporation (“Del Rio”) premium finance draft in the amount of $7,619.00 made payable to All Risk as payment for her premium on an E&O policy. 18. | Ms. MacGregor never received a declarations page, although she continued to make inquiry of Ms. Socarras up to and including March 4, 2003. Although an application for E&O coverage was sent to USRF by All Risk on May 21, 2002, coverage was not bound because of All Risk’s failure to complete and return an updated application pursuant to directions received from USRF, despite follow-up calls requesting such. 19. All Risk did, however, deposit the Del Rio draft into its trust account. Finally, on or about April 1, 2003, you, ANDY RODRIGUEZ, came to Ms. MacGregor’s office and advised her that she had been without E&O coverage for the preceding several months. You, ANDY RODRIGUEZ, presented Ms. MacGregor with a refund check on April 11, 2003. 20. Asaresult of your failure to properly renew Ms. MacGregor’s E&O coverage, you, ANDY RODRIGUEZ, exposed her to a period of having no retroactive liability insurance and has caused her additional expense on her current E&O coverage, because of the lapse in E&O coverage caused by you, ANDY RODRIGUEZ. IT IS THEREFORE CHARGED that you, ANDY RODRIGUEZ, 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 insurance licenses: (a) No employee of an agent or agency may bind insurance coverage unless licensed and appointed as a general lines agent or customer representative. No employee of an agent or agency may initiate contact with any person for the purpose of soliciting insurance unless licensed and appointed as a general lines agent or customer representative. [Section 626.0428(2) and (3), Florida Statutes]; (b) No person may be, act as, or advertise or hold himself or herself out to be an insurance agent or customer representative unless he or she is currently licensed by the department and appointed by one or more insurers. No person may be, act as, or advertise or hold himself or herself out to be an insurance adjuster unless he or she is currently licensed by the office and appointed by one or more insurers. No agent or customer representative shall solicit or otherwise transact as agent or customer representative, or represent or hold himself or herself out to be an agent or customer representative as to, any kind or kinds of insurance as to which he or she is not then licensed and appointed. [Section 626.112(1)(a) and (2), Florida Statutes]; (c) All premiums, return premiums, or other funds belonging to insurers or others received by an agent, solicitor, or adjuster in transactions under his license shall be trust funds so 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]; (d) Any agent, solicitor, or adjuster who, not being lawfully entitled thereto, either temporarily or permanently diverts or appropriates such funds or any portion thereof to his or her own use or deprives the other person of a benefit therefrom. [Section 626.56] (3), Florida Statutes]; — (e) Willful use of an insurance license to circumvent any of the requirements or prohibitions of this code. [Section 626.611(4)]; (f) Willful misrepresentation of any insuranc4e 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)]; (g) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. {Section 626.611(7), Florida Statutes]; (h) Fraudulent or dishonest practices in the conduct of business under the license or permit. [Section 626.611(9), Florida Statutes]; i) 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)]; (i) 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]; (k) Violation of any provision of the Florida Insurance 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]; ¢)) 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, 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]; (m) 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]; (n) 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 Statues.}; (0) Knowingly collecting any sum as a premium or charge for insurance, which is not then provided, or is not in due course to be provided, subject to acceptance of the risk by the insurer, by an insurance policy issued by an insurer as permitted by this code. [Section 626.9541(1)(0)1., Florida Statutes]. COUNT IIT 21. Paragraphs one through eight are realleged and incorporated herein by reference. 22. Beatrice Estrada, president and owner of Buy Smart Insurance, Inc. d/b/a Great Rainbow Insurance (“Buy Smart”), a retail insurance agency, has purchased Errors and Omissions liability insurance (E&O) coverage from you, ANDY RODRIGUEZ, since 1989. On or about September 25, 2002, Ms. Estrada received a renewal notice/statement stating that her E&O coverage would expire on December 29, 2002. 23. On December 19, 2002, Ms. Estrada signed an application for Buy Smart’s renewal of E&O coverage through you, ANDY RODRIGUEZ, dealing with an individual named Vicky Socarras. Ms. Socarras verbally quoted a premium of $4,500.00, but did not provide anything in writing. Ms. Estrada completed an Elite Premium Finance (“Elite”) contract on or about January 8, 2003, the same day you, ANDY RODRIGUEZ, issued a certificate of insurance to Buy Smart indicating that Buy Smart was insured with National Union Fire Insurance Company (“National”) for E&O coverage. ae GAD ARIE: a Ie Am 24, On January 6, 2003, either you, ANDY RODRIGUEZ, or Vicky Socarras acting on your behalf with your consent, either actual or implied, signed and issued to All Risk a Certificate of Liability Insurance indicating that All Risk was insured with National Fire Insurance Company on an E&O policy. By reason of her unlicensed status, Ms. Socarras had no authority to issue such Certificate. 25. An Elite draft in the amount of $4,500.00 dated January 8, 2003 was made payable to All Risk and deposited to its account as premium payment on the E&O policy. This check was deposited into the All Risk bank account. 26. An Elite finance agreement dated January 8, 2003, indicates that the premium for the above insurance transaction was financed in large part by Elite on behalf of Buy Smart. 27. Upon inquiry by the Department as to the status of this insurance transaction, American International Companies (“AIG”) responded on behalf of National and advised that “we are unable to identify the Insured (All Risk) as one of ours by the policy number or name.” 28. As aresult of your failure to properly renew Ms. Estrada’s E&O coverage, you, ANDY RODRIGUEZ, exposed her to a period of having no retroactive liability insurance and has caused her additional expense on her current E&O coverage, because of the lapse in EXO coverage caused by you, ANDY RODRIGUEZ. IT IS THEREFORE CHARGED that you, ANDY RODRIGUEZ, have violated or are accountable under those provisions of the Florida Insurance Code and Rules of the Florida Department of Financial Services as described under Count II above which constitute grounds . . for the suspension or revocation of your licenses and appointments as a life and health insurance agent, COUNT IV 29. Paragraphs one through cight are realleged and incorporated herein by reference. 30. Manuel Fernandez, president and owner of International Insurance Advisors, Inc. (‘International Insurance”), a retail insurance agency, has purchased Errors and Omissions liability insurance (E&O) coverage from you, ANDY RODRIGUEZ, since 1994. On or about June 26, 2002, Mr. Femandez received a renewal notice/statement stating that his E&O coverage was due for renewal at a cost of $2,252.00. 31. On June 26, 2002, Mr. Fernandez signed an application for International Insurance’s renewal of E&O coverage through you, ANDY RODRIGUEZ, dealing with an individual named Vicky Socarras. On August 9, 2002, Mr. Femandez sent a check in the amount of $868.93 (that included a monthly premium finance payment) made payable to All Risk. Mr. Femandez had earlier completed a Security Premium Finance (“Security”) contract on or about June 28, 2002, to pay the balance of the total premium. That check was deposited to All Risk’s trust account, as was a check from Security to All Risk dated June 28, 2002 in the amount of $1,577.00. 32. On August 2, 2002, you, ANDY RODRIGUEZ, issued a certificate of insurance to International Insurance indicating that the company was insured with Gulf Insurance Company (“Gulf”) for E&O coverage. 33. In fact, International Insurance’s coverage with Gulf had terminated on June 28, 2002. The renewal application was not received until July 2, 2002. Although Gulf agreed to issue a quote on July 9, 2002, no binding instructions were received by Gulf, nor did Gulf receive any premium for a renewal policy. You, ANDY RODGRIGUEZ, issued a bogus certificate of insurance to Mr. Fernandez with an invalid Gulf policy number. 34. | Consequently Mr. Fernandez never received a policy. As a result of your failure to properly renew Mr. Fernandez’s E&O coverage, you, ANDY RODRIGUEZ, exposed him to a period of having no retroactive liability insurance and has caused him additional expense on his current E&O coverage, because of the lapse in E&O coverage caused by you, ANDY RODRIGUEZ. IT IS THEREFORE CHARGED that you, ANDY RODRIGUEZ, have violated or are accountable under those provisions of the Florida Insurance Code and Rules of the Department of Financial Services as describe under Count II above, which constitute grounds for the suspension or revocation of your licenses and appointments as a life and health insurance agent. WHEREFORE, you, ANDY RODRIGUEZ, are hereby notified that the Chief Financial Officer of the State of Florida, 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, 626.692, and 626.9521, Florida Statutes, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. 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; (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. 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 cal] 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 120.57(2), Florida Statutes, apply. In this regard, you may submit oral or written 14 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 wil] 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 and SIGNED this 3° day of Sepbmnber, 2004. CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDINGS have been furnished to: Andy Rodriquez, 8240 SW Sth Street, Miami, FL 33144-3512 and Andy Rodriquez, 1441 W. Flagler Street, Miami, FL 33135 by U. S. Certified Mail this 3'4 day of Seetem ber 2004. , Esquire Division of Legal Services 612 Larson Building 200 East Gaines Street Tallahassee, Florida 32399-0333 Phone: (850) 413-4146 Fax: (850) 487-4907

Docket for Case No: 05-000154PL