cae npn ners See ARAN IEEE TTA AE a FLORIDA DEPARTMENT OF FINANCIAL SERVICES © Fiep TOM GALLAGHER CHIEF FINANCIAL OFFICER STATE OF FLORIDA IN THE MATTER OF: CASE NO.: 75952-05-AG EAGLE TITLE & ABSTRACT CORP. ADMINISTRATIVE COMPLAINT TO: Eagle Title & Abstract Corp c/o: Priscilla Carroll 5020 Central Avenue Saint Petersburg, Florida 33707-1942 Eagle Title & Abstract Corp ("Eagle Title"), license I.D. #4074592, is hereby notified that the Chief Financial Officer of the State of Florida has caused to be made an investigation of its activities while licensed as an insurance agency in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, EAGLE TITLE is currently licensed in this state as a Title Insurance Agency (4-12). 2. At all times pertinent to the dates and occurrences referred to herein, EAGLE TITLE was licensed in this state as a Title Insurance Agency (4-12). 3, Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services (hereinafter “Department”) has jurisdiction over Eagle Title’s insurance license and appointments. 4, Pursuant to Chapter 626, Florida Statutes, Priscilla Carroll, license I.D.# 1049162, is currently licensed in this state as a Title Agent (4-10). 5. At all times pertinent to the dates and occurrences referred to herein, Priscilla Carroll was licensed in this state as a Title Agent (4-10). 6. Currently, and at all times pertinent to the dates and occurrences referred to herein, Priscilla Carroll has been employed by Eagle Title as a Title Agent. COUNT I 7. The above general allegations are hereby realleged and fully incorporated herein by reference. 8. On or about July 17, 2002, M.A., of Cape Coral, Florida, closed on a refinancing of her home, where EAGLE TITLE served as the title agency. Pursuant to the provisions of the closing, M.A. paid to EAGLE TITLE NINE HUNDRED AND EIGHTY-TWO AND 00/100 ($982.00) DOLLARS, for her homeowner's insurance premium. EAGLE TITLE forwarded this premium to American Superior Insurance Company ("American Superior"), M.A.'s extant insurer, by check #148202, drawn on the account of EAGLE TITLE, on or about July 22, 2002. 9. Check #148202 for M.A.'s insurance premium should have been sent to the American Insurance Agency, Inc. ("American Insurance"), and not to American Superior. Prior to her closing on July 17, 2002, M.A. informed EAGLE TITLE that she would be changing insurance companies because M.A.'s policy with American Superior was terminating on August 20, 2002, and American Superior did not plan to renew M.A.'s coverage. M.A. also informed EAGLE TITLE that the premium should be sent to T.R. of American Insurance. T.R. had also contacted EAGLE TITLE, prior to the closing on July 17, 2002, and informed the agency that premium payments for M.A. should be directed to her attention at American Insurance following the closing. 10. Onor about August 2, 2002, check #148202 to American Superior was returned to EAGLE TITLE. This check was voided, and a new check was issued (check #155837) made payable to M.A. and her husband for NINE HUNDRED AND EIGHTY-TWO AND 00/100 ($982.00) DOLLARS on or about August 12, 2002. However, this check was not mailed to M.A. until September 9, 2002. A check was not issued to T.R. of American Insurance as M.A. had instructed. 11. On August 20, 2002, M.A.'s insurance with American Superior terminated. She did not have coverage to replace the terminating policy. 12. On August 21, 2002, M.A. contacted the office of EAGLE TITLE, and left a message stating that her old policy had cancelled and there was no replacement coverage in force, despite the earlier instructions that would have provided replacement coverage. Priscilla Carroll, an title insurance agent employed with EAGLE TITLE, returned M.A.'s phone call later that day. M.A. again requested that EAGLE TITLE void the previously written check to American Superior (check #148202), and issue a new check to T.R., of American Insurance, for the requisite NINE HUNDRED AND EIGHTY-TWO AND 00/100 ($982.00) DOLLARS. M.A. also stated that T.R. would send EAGLE TITLE a billing statement. Priscilla Carroll informed M.A. that she would have to verify that check #148202 had not been cashed by American Superior, then issue a stop payment on that check, and only then could she issue a new check to American Insurance: a process that would take some five (5) days. Unbeknownst to both M.A. and Priscilla Carroll, however, a stop payment had already been issued on check #148202, and a new check made out to M.A. and her husband (check #155837---see paragraph 10 above). 13. Following the conversation discussed in paragraph 12 above, Priscilla Carroll of EAGLE TITLE received a billing statement from T.R. of American Insurance for M.A.'s replacement policy. The bill was for ONE THOUSAND ONE-HUNDRED SEVENTY-SIX AND 00/100 ($1,176.00) DOLLARS. On the bill was a note stating, "Insured has advised she will pay the difference in what you have collected [the NINE HUNDRED AND EIGHTY-TWO AND 00/100 ($982.00) DOLLARS] and the premium being billed." 14. On August 26, 2002, after attempting to stop payment on check #148202, Priscilla Carroll discovered that payment had already been stopped on said check and replacement check #155837 had been made out to M.A. and her husband on August 12, 2002 for NINE HUNDRED AND EIGHTY-TWO AND 00/100 ($982.00) DOLLARS. This new check had not been mailed to M.A. or her husband, nor had any provision been made for payment to T.R. or to American Insurance. 15. Upon discovery of check #155837 to M.A. and her husband, Priscilla Carroll of EAGLE TITLE attempted to contact M.A. to request further instruction as to what to do with the check, despite the previous instructions from M.A. and T.R. as to what to do with the funds. When M.A. did not immediately return Priscilla Carroll's inquiries, Priscilla Carroll mailed check #155837 to M.A. on September 9, 2002 (see paragraph 10 above). 16. When M.A. returned from being out of town, on or about September 16, 2002, she discovered that there had been a water leak in her home while she was gone, and damage has been estimated at TWENTY-ONE THOUSAND EIGHTY-ONE AND 86/100 ($21,081.86) DOLLARS. 17. Because of the actions of EAGLE TITLE, M.A. did not have coverage in place to protect her against this loss. treme tt LETS AO EOE IT IS THEREFORE CHARGED that you, EAGLE TITLE, 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 license and appointments: (a) Demonstrated lack of fitness or trustworthiness to represent a title insurer in the issuance of its commitments, binders, policies of title insurance, or guarantees of title. Section 626.8437(4), Florida Statutes. (b) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. Section 626.8437(5), Florida Statutes. (c) Misappropriation, conversion, or unlawful withholding of moneys belonging to title insurers or insureds or others and received in conduct of business under the license or appointment. Section 626.8437(7), Florida Statutes. (d) Violation of any provision of this act in the course of dealing under the license or appointment. Section 626.844(2), Florida Statutes. (e) Engaging in unfair methods of competition or in unfair or deceptive acts or practices in the conduct of business, as prohibited under part IX 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 626.844(5), Florida Statutes. WHEREFORE, you, EAGLE TITLE, are hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking your licenses and appointments as an insurance agency or to impose such penalties as may be provided under the provisions of Sections nth NNN PE IDES SE 626.8437, 626.844, 626.8457, and 626.846, 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 pater i tee LES LCE SE (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 Pia day of Max , 2005. KAREN CHANDLER Deputy Chief Financial Officer CERTIFICATE OF SERVICE L HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF RIGHTS has been furnished to: Eagle Title & Abstract Corp, c/o: Priscilla Carroll, 5020 Central Avenue, Saint Petersburg, Florida 33707-1942, by Certified Mail this 2.¢2@day of __ Ma 4 , 2005. Michael T. , Florida Bar Number 6885: SL Division of Legal Services 612 Larson Building 200 East Gaines Street Tallahassee, Florida 32399-033 Phone: (850) 413-4134 Fax (850) 487-4907 Attorney for Department

Docket for Case No: 05-002324