Received Event (Event Succeeded) Date: 3/14/2005 Time: 3:19 PM Pages: 13 Duration: 3 min 56 sec Sender: 8504874907 Company: Fav Numhar: Suhiart- tT @3/14/2005 16:16 8584874907 LEGAL SERVICES y FLORIDA _ FINANCIAL S TOM GALLAGHER FILED seo FEB 17 2005 Dooketed wiper IN THE MATTER OF: CASE NO.: 75768-05-AG CHARLES JUDSON STEPHENSON, JR. / 7 AQR GDL. (YS OFS PL ADMINISTRATIVE COMPLAINT TO: CHARLES JUDSON STEPHENSON, JR. 4346 Deering Street Marianna, FL 32446-3051 You, CHARLES JUDSON STEPHENSON, JR., 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 I. Pursuant to Chapter 626, Florida Statutes, you, CHARLES JUDSON STEPHENSON, JR., are currently licensed in this state as a Life Including Variable Annuity & Health Agent (2-15) and a Life & Health Agent (2-18), license LD. # E015956. 2. At all times pertinent to the dates and occurrences referred to herein, you, CHARLES JUDSON STEPHENSON, JR., 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. During times material to the dates and occurrences herein, you, CHARLES JUDSON STEPHENSON, JR., did represent or aid Meridian Benefits (“Meridian”) in transacting insurance in the State of Florida. Received Event (Event Succeeded) Date: 3/14/2005 Time: 3:19 PM Pages: 13 Duration: 3 min 56 sec Sender: 8504874907 Company: v Numbhor: Suhiart ® ™ 03/14/2085 16:16 8594874987 LEGAL SERVICES PAGE 4/13 y . Lo - 5. At no time material to the dates and occurrences herein did Meridian possess a certificate of authority from the Florida Department of Financial Services to engage in the business of insurance as an insurer. COUNT I 6. Paragraphs 1-5 are hereby realleged and fully incorporated herein by reference. 7. On or about June 2002, you, CHARLES JUDSON STEPHENSON, JR., as a licensed insurance agent, contacted J.E. of Graceville, Florida in reference to her buying a health insurance plan with Meridian. You had an application form fumished to her, which she completed and delivered to you, together with an initial premium payment. The purported plan was to become effective July 1, 2002. 8. Bi-weekly premium payments were paid by J.E., or on her behalf, for health insurance coverage by Meridian. 9. Commencing on or after October 2002, J.E. incurred claims for health care services. Meridian has failed to pay such claims. IT IS THEREFORE CHARGED that you, CHARLES JUDSON STEPHENSON, JR., 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) No person shall transact in this state, or relative to a subject of insurance resident, located, or to be performed in this state, without complying with the applicable provisions of this Code. [Section 624.11(1), Florida Statutes]; (6) Demonstrated Jack 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 626.61 1(8), Florida Statutes]; Received Event (Event Succeeded) Date: 3/14/2005 Time: 3:19 PM Pages: 13 Duration: 3 min 56 sec Sender: 8504874907 Company: Fay Number: Guhiant- qT 03/14/2005 16:16 8504874987 LEGAL SERVICES PAGE 85/13 y We Nes (4) Violation of any provision of this Code or any law applicable to the business of insurance in the course of dealing under the licensure or appointment. [Section 626.621(2), Florida Statutes}; (e) 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 probibited under Part X (re- designated as Part IX) of this chapter, or having otherwise shown himself or herself to be a source of injury or loss to the public. [Section 626.621(6), Florida Statutes]; (f) No person shall, from offices or by personnel or facilities located in this state... directly or indirectly act as an agent for, or otherwise represent or aid on behalf of another, any insurer not being authorized to transact such business in this state. [Section 626.901(1), Florida Statutes]. COUNT II 10. Paragraphs 1-5 are hereby realleged and fully incorporated herein by reference. 11. On or about October 2002, you, CHARLES JUDSON STEPHENSON, JR., as a licensed insurance agent, provided T.C. of Graceville, Florida with information about a health insurance plan with Meridian. You furnished to him application forms, which he completed and delivered to you, together with an initial premium payment that was paid by T.C., or on his behalf, to Meridian. 12, Commencing on or after July 2003, T.C. began receiving notices from Healthcare Providers that Meridian was not paying their claims. To date Meridian has failed to pay such claims. IT IS THEREFORE CHARGED that you, CHARLES JUDSON STEPHENSON, JR, 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: Received Event (Event Succeeded) Date: 3/14/2005 Time: 3:19 PM Pages: 13 Duration: 3 min 56 sec Sender: 8504874907 Company: Fay Number: Subiact- PAGE 06/13 qT 83/14/2085 16:16 8504874907 | LEGAL SERVICES y \Y J (a) No person shall transact in this state, or relative to a subject of insurance resident, located, or to be performed in this state, without complying with the applicable provisions of this Code. [Section 624,11(1), Florida Starutes]; (b) Demonstrated lack of fimess 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), Flonda Statutes]; (d) Violation of any provision of this Code or any law applicable to the business of insurance in the course of dealing under the licensure or appointment. [Section 626.621(2), Florida Statutes}; (e) 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 (re- designated as Part IX) of this chapter, or having otherwise shown himself or herself to be a source of injury or loss to the public. [Section 626.621(6), Florida Statutes]; (f) No person shall, from offices or by personnel or facilities located in this state... directly or indirectly act as an agent for, or otherwise represent or aid on behalf of another, any insurer not being authorized to transact such business in this state. (Section 626.901(1), Florida Statutes], COUNT UI 13. Paragraphs 1-5 are hereby realleged and fully incorporated herein by reference. 14. On or about October 2002, you, CHARLES JUDSON STEPHENSON, JR., as a licensed insurance agent, provided T.J. of Graceville, Florida with information about a health insurance plan with Meridian. You furnished to him application forms, which he completed and delivered to you, together with an initial premium payment that was paid by T.J., or on his behalf, to Meridian. eo Received Event (Event Succeeded) Date: 3/14/2005 Time: 3:19 PM Pages: 13 Duration: 3 min 56 sec Sender: 8504874907 Company: Fav Numhor- Guhiact- T 83/14/2005 16:16 95848749987 LEGAL SERVICES PAGE 67/13 y NS we 15. TJ. has forwarded claims that he received from Healthcare Providers to Meridian for payment. To date Meridian has failed to pay such claims. IT IS THEREFORE CHARGED that you, CHARLES JUDSON STEPHENSON, JR., 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) No person shall transact in this state, or relative to a subject of insurance resident, located, or to be performed in this state, without complying with the applicable provisions of this Code. [Section 624.11(1), Florida Statutes]; (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Flonda 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) Violation of any provision of this Code or any law applicable to the business of insurance in the course of dealing under the licensure or appointment. [Section 626.621(2), Florida Statutes]; (e) 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 (re- designated as Part IX) of this chapter, or having otherwise shown himself or herself to be a source of injury or loss to the public. [Section 626.621(6), Florida Statutes]; ( No person shall, from offices or by personnel or facilities located in this state... directly or indirectly act as an agent for, or otherwise represent or aid on behalf of another, any insurer not being authorized to transact such business in this state. [Section 626.901(1), Florida Statutes]. COUNT IV 16. Paragraphs 1-5 are hereby realleged and fully incorporated herein by reference. Received Event (Event Succeeded) Date: 3/14/2005 Time: 3:19 PM Pages: 413 Duration: 3 min 56 sec Sender: 8504874907 Company: Fav Number: Quhiart- mAGE tT 93/14/2885 16:16 8504874987 LEGAL SERVICES y : : 17. On or about October 2002, you, CHARLES JUDSON STEPHENSON, JR., as a licensed insurance agent, provided S.G. of Graceville, Florida with information about a health insurance plan with Meridian. You furnished to him application forms, which he completed and delivered to you, together with an initial premium payment that was paid by S.G., or on his behalf, to Meridian. 18. Commencing on or after December 2002, S.G. began receiving notices from Healthcare Providers that Meridian was not paying their claims. To date Meridian has failed to pay such claims. IT IS THEREFORE CHARGED that you, CHARLES JUDSON STEPHENSON, JR., 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) No person shall transact in this state, or relative to a subject of insurance resident, located, or to be performed in this state, without complying with the applicable provisions of this Code. [Section 624.11(1), Florida Statutes]; (0) 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]; (ad) Violation of any provision of this Code or any law applicable to the business of uisurance in the course of dealing under the licensure or appointment. [Section 626.621(2), Florida Statutes]; (e) 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 (re- designated as Part IX) of this chapter, or having otherwise shown himself or herself to be a source of injury or loss to the public. [Section 626.621(6), Florida Statutes]; 88/13 Received Event (Event Succeeded) Date: 3/14/2005 Time: 3:19 PM Pages: 13 Duration: 3 min 56 sec Sender: 8504874907 Company: Fav Shuimbhar: Subiant @3/14/2805 16:16 8584874907 LEGAL SERVICES PAGE 99/13 Ty (No person shall, from offices or by personnel or facilities located in this state... directly or indirectly act as an agent for, or otherwise represent or aid on behalf of another, any insurer not being authorized to transact such business in this state. [Section 626.901 (1), Florida Statutes]. WHEREFORE, you, CHARLES JUDSON STEPHENSON, JR., 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 626.901, 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. Received Event (Event Succeeded) Date: 3/14/2005 Time: 3:19 PM Pages: 13 Duration: 3 min 56 sec Sender: 8504874907 Company: Fav Numbhar- Siuhiart- rage 10/13 tT 03/14/2085 16:16 85848749487 LEGAL SERVICES y ~ —, 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 coromunication 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 matemal 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 majonty 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 10 Received Event (Event Succeeded) Date: 3/14/2005 Time: 3:19 PM Pages: 13 Duration: 3 min 56 sec Sender: 8504874907 Company: Fav Numhor: Suhiart- PAGE 11/13 tT Q3/14/2005 16:16 8504874927 LEGAL SERVICES y 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 { 7¢h _dayot Februar ye» 2008. N CHANDLER Deputy Chief Financial Officer Received Event (Event Succeeded) Date: 3/14/2005 Time: 3:19 PM Pages: 13 Duration: 3 min 56 sec Sender: 8504874907 Company: Fav Number: Guhiant tT 63/14/2005 16:16 8584874987 LEGAL SERVICES PAGE 12/13 y a, - 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: CHARLES JUDSON STEPHENSON, JR., 4346 Deering Street, Marianna, FL 32446-3051, by Certified Mail this /7_ dayof __ Az aeerey_, 2005. Dean Andrews Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4242 Phone (850) 487-4907 Fax Florida Bar Number 0001959 10 12

Docket for Case No: 05-000959PL