FLORIDA _ DEPARTMENT OF FINANCIAL SERVICES ers CHE Po A CFPLER FILED A ne STATE OF FLORIDA pr APR 1 5 IN THE MATTER OF: Qocketed by’ aes ; a MARGARET L. HERGET CASE NO. 80573-05-AG / ADMINISTRATIVE COMPLAINT — ac] GPL TO: MARGARET L. HERGET OS 4 lr if 9860 Fairway Cove Lane Plantation, Florida 33324 MARGARET L. HERGET 1083 Sunset Strip Sunrise, Florida 33313 You, MARGARET L. HERGET, are hereby notified that pursuant to Chapter 626, Florida Statutes, 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. You, MARGARET L. HERGET, are currently licensed in the state as a general lines insurance agent. 2. At all time pertinent to the dates and occurrences referred to in this Administrative Complaint you, MARGARET L. HERGET, were licensed as an insurance agent in this state. 3 At all time pertinent to the dates and occurrences referred to in this Administrative Complaint, you, MARGARET L. HERGET, were an officer and director of A&M Insurance, Inc., a Florida incorporated insurance agency. 4, At all time pertinent to the dates and occurrences referred to in this Administrative Complaint all funds received by you, MARGARET L. HERGET from consumers or on behalf of consumers representing premiums for insurance policies, were trust funds received in a fiduciary capacity and were to be paid over to an insurer, insured, or other persons entitled thereto in the regular course of business. COUNT I 5. Paragraphs one through four are realleged and incorporated herein by reference. 6. On or about June 2002, MARGARET L. HERGET, received $2273.97 from M.C.. of Hollywood, Florida, a Florida insurance consumer. This sum was intended to be total premium payments on a homeowner's insurance policy, a flood insurance policy and windstorm insurance policy. $1026 of this sum was intended to be the premium payment on the windstorm insurance policy to be issued by Citizens Insurance Company. 7. MARGARET L. HERGET failed to promptly remit the above-described $1026 premium payments received from M.C. to Citizens Insurance or any insurer entitled thereto, but rather retained the $1026.00 in fiduciary funds for her own use and benefit. M.C. failed to receive the requested insurance, despite numerous representations from MARGARET L. HERGET that a policy had been issued and was in force. 8. MARGARET L. HERGET has knowingly and willingly misappropriated, converted or wrongfully withheld an insurance premium belonging to insurers or to an insured received in conduct of business under her license. Demand was made for a refund of the premium payment, which was not made until December, 2003. 9. You, MARGARET L. HERGET, have converted, misappropriated, or wrongfully withheld money belonging to an insurer and an insured. IT IS THEREFORE CHARGED that you, MARGARET L. HERGET, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Chief Financial Officer which constitute grounds for the suspension or revocation of your insurance licenses and eligibility for licensure: (a) 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]; (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 permit. [Section 626.611(8), Florida Statutes]; (d) Fraudulent or dishonest practices in the conduct of business under the license or permit. [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. [Section 626.611(10), Florida Statutes]; (f) Failure or refusal, upon demand, to pay over to any insurer he represents or has represented any money coming into his hands belonging to the insurer. [Section 626.621(4), Florida Statutes]; COUNT II 10. Paragraphs one through four are realleged and incorporated herein by reference. 11. On or about July 30, 2003, MARGARET L. HERGET, received $1,658.00 from First American Title Insurance Company for insurance on behalf of C.C. of Sunrise, Florida, a Florida insurance consumer. This sum was intended to be the initial premium payment on a homeowner’s insurance policy. 12. MARGARET L. HERGET failed to promptly remit the above-described premium payments received from C.C., to any insurer entitled thereto, but rather retained the $1658.00 premium payments for her own use and benefit. C.C. failed to receive the requested insurance, despite numerous representations from MARGARET L. HERGET that a policy had been issued and was in force. 13. MARGARET L. HERGET has knowingly and willingly misappropriated, converted or wrongfully withheld an insurance premium belonging to insurers or to an insured received in conduct of business under her license. Demand was made for a refund of the premium payment, but MARGARET L. HERGET has refused same. 14. You, MARGARET L. HERGET, have converted, misappropriated, or wrongfully withheld money belonging to an insurer and an insured. IT IS THEREFORE CHARGED that you, MARGARET L. HERGET, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Chief Financial Officer which constitute grounds for the suspension or revocation of your insurance licenses and eligibility for licensure: Sections 626.561(1); 626.611(7); 626.611(8); 626.611(9); 626.611(10); and 626.611(4), Florida Statutes, as more particularly alleged in Count Tabove. WHEREFORE, you, MARGARET L. HERGET, 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 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. DATED and SIGNED this day of » 2005. 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: MARGARET L. HERGET at 9860 Fairway Cove Lane, Plantation, Florida 33324; and MARGARET L. HERGET, 1083 Sunset Strip, Sunrise, Florida 33313 this \>r day of April, 2005. ae BL fer ames A. Bossart Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-033 (850) 413-4124 Florida Bar Number 0374598

Docket for Case No: 05-001469PL