FLORIDA FINANCIAL SERVICES TOM GALLAGHER CHIEF FINANCIAL OFFICER riLe D STATE OF FLORIDA DEC 29 2004 IN THE MATTER OF: pocketed by:____ UM CASE NO.: 79429-04-AG LINDA FAYE MURPHY / 2 (Ra ADMINISTRATIVE COMPLAINT IN TO: LINDA FAYE MURPHY 182 Highland Point Road Perry, Florida 32348 LINDA FAYE MURPHY ud 212 East Green Street Perry, Florida 32347 You, LINDA FAYE MURPHY, license I.D. #4187478, 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, LINDA FAYE MURPHY, are currently licensed in this state as a Life Including Variable Annuity & Health Agent (2 15), Life & Health Agent (2-18), and General Lines Agent (Prop. & Cas.) (2-20) 2. At all times pertinent to the dates and occurrences referred to herein, you, LINDA 3. FAYE MURPHY, were licensed in this state as an insurance agent 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, LINDA FAYE MURPHY, were an insurance agent for Pine Forest Underwriters (“Pine Forest”), d/b/a Ameriway of Perry, located at 212 East Green Street, Perry, Florida 32347. 5. From November 6, 2003 to August 8, 2004, Pine Forest was an appointed agent of Mendota Insurance Company (“Mendota”). Mendota is a subsidiary of the Saint Paul Travelers Insurance Company. 6. From November 6, 2003 to August 8, 2004, you, LINDA FAYE MURPHY, were an appointed agent of Mendota, under contract number 83809150. COUNT I 7. The above general allegations are hereby realleged and fully incorporated herein by reference. 8. You, LINDA FAYE MURPHY, sold auto insurance for Mendota, collected premium payments, and failed to deposit the premium payments into a bank account that Mendota could electronically access. 9. On five occasions between April 15, 2004 and August 8, 2004, Mendota attempted to access the Pine Forest Capital City Bank Account # 7470792801 to collect premium due from Pine Forest d/b/a Ameriway of Perry. In each instance Mendota received a message from the bank stating that the account contained insufficient funds for withdrawal. 10. Thereafter, Susan Bernard, Saint Paul Traveler’s Northern Florida Agent Manager, contacted you, LINDA FAYE MURPHY, to discuss the missing premium. During your conversation with Ms. Bernard, you stated that you were aware that premium was missing from the Pine Forest bank account, and that you would send Mendota a check for the missing premium money. Mendota never received payment for the missing premium money. 11. Onor about July 8, 2004, Ms. Bernard visited Pine Forest and met with you, LINDA FAYE MURPHY, to discuss the missing premium money. Over the course of the meeting, you stated that you were arranging a second mortgage on your home in order to pay back the missing premium money, and that you would forward a check to Mendota within one week. Mendota never received payment for the missing premium money. 12. On or about July 29, 2004, Ms. Bernard contacted you, LINDA FAYE MURPHY, regarding the missing premium money, and informed you that it now totaled approximately $27,903.49. You stated that your mortgage was closing, and that you would send Mendota the missing premium money no later than August 11, 2004. 13, On or about August 11, 2004, you, LINDA FAYE MURPHY, contacted Ms. Bernard and informed her that you were unable to obtain the mortgage, and did not have enough money to compensate for the missing premium money. 14. You, LINDA FAYE MURPHY, currently owe Mendota approximately $24,752.27 in missing premium payments you collected. IT IS THEREFORE CHARGED that you, LINDA FAYE MURPHY, 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) 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. An agent shall keep the funds belonging to each insurer for which he or she is not appointed, other than a surplus lines insurer, in a separate account so as to allow the department or office to properly audit such funds. 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]; (6) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (c) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; (d) Misappropriation, conversion, or unlawful withholdin g 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) 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]; (f) Failure or refusal, upon demand, to pay over to any insurer he or she represents or has represented any money coming into his or her hands belon ging to the insurer. [Section 626.621(4), Florida Statutes]; (g) 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]. WHEREFORE, you, LINDA FAYE MURPHY, are hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking your licenses and appointments as an insurance agent or to impose such penalties as may be provided under the provisions of Sections 626.611, 626.621, 626.681, 626.691, and 626.9521, Florida Statutes, and under the other referenced Sections of the Florida Statutes as set out in this Administrative Complaint. NOTICE OF RIGHTS You have the right to request a proceeding to contest this action by the Department pursuant to Sections 120.569 and 120.57, Florida Statutes, and Rule 28-107, Florida Administrative Code. The proceeding request must be in writing, signed by you, and must be filed with the Department within twenty-one (21) days of your receipt of this notice. Completion of the attached Election of Proceeding form and/or a petition for administrative hearing will suffice as a written request. The request must be filed with the General Counsel as acting Agency Clerk, at the Florida Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. Your written response must be received by the Department no later than 5:00 p.m. on the twenty-first day after your receipt of this notice. Mailing the response on the twenty-first day will not preserve your right to a hearing. YOUR FAILURE TO RESPOND IN WRITING WITHIN TWENTY-ONE (21) DAYS OF YOUR RECEIPT OF THIS NOTICE WILL CONSTITUTE A WAIVER OF YOUR RIGHT TO REQUEST A PROCEEDING ON THE MATTERS ALLEGED HEREIN AND AN ORDER OF REVOCATION WILL BE ENTERED AGAINST YOU. If you 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. 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 (his 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. DATED and SIGNED this 29M day of December, 2004. Kio $ La dlller KAREN CHANDLER Deputy Chief Financial Officer CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been furnished to: LINDA FAYE MURPHY, 182 Highland Point Road, Perry, FL 32348: LINDA FAYE MURPHY, 212 East Green Street, Perry, FL 32347 by Certified Mail this ede day of Cer bur , 2004. William W. Tharfe, Jr. Florida Bar Number 0312411 Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-0333 Phone: (850) 413-4110 Fax: (850) 487-4907 i 2. Articta Number AMIEL ADSL OQ 000001 tate a 2. Article Number ane 4. Restricted Delivery? (Extra Fee) K Wes PbO 390) WHA 4434 FHL 3. Service Type CERTIFIED MAIL. 1. Article Addressed to: ae Leaf Bon LINDA FAYE MURPHY 212 EAST GREEN STREET PERRY, FL 32347 COMPLETE THIS SECTION ON’ DELIVERY B, Date of Delivery Received by {Please Print Clearly) aw: COMPLETE THIS SECTION ON DELIVERY A. eived by (Please Print Faye Puy C. Signalyre 8. Date of Delivery Clearly) Ph PAgent Pf fi Addressee 79429-04-AG 12/29/04-AC : Complaint&Settlement : PS Form 3811, July 2001 Domestic Return Receipt

Docket for Case No: 05-000509PL