ne ST eT = FLORIDA _ DEPARTMENT O FINANCIAL SERVICES ° TOM GALLAGHER CHIEF FINANCIAL OFFICER STATE OF FLORIDA IN THE MATTER OF: CASE NO.: 81797-05-AG JONATHAN LEE DUCLOS OS DSH PL ADMINISTRATIVE COMPLAINT TO: JONATHAN LEE DUCLOS 401 Norwood Ave. Satellite Beach , FL 32397 You, JONATHAN LEE DUCLOS, license LD. #E009885, are hereby notified that there was conducted 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, JONATHAN LEE DUCLOS, are currently licensed in this state as a Life Including Variable Annuity Agent (2-14), and Life Insurance Agent (2-16). 2. At all times pertinent to the dates and occurrences referred to herein, you, JONATHAN LEE DUCLOS, 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, At all times pertinent to the dates and occurrences referred to herein, you, JONATHAN LEE DUCLOS, were associated with and an employee of First National Financial Services, a corporation located at 401 Norwood Ave., Satellite Beach, Florida. 5. At all times pertinent to the dates and occurrences referred to herein, agent Gene Turner was an employee of First National Financial Services. 6. At no time pertinent to the dates and occurrences referred to herein was agent Turner appointed to represent Transamerica in the sale of annuities. COUNT I 8. The above general allegations are hereby realleged and fully incorporated herein by reference. 9. On December 13, 2002, FD of New Port Richey, Florida went to First National Financial Services located at 2264 Commercial Way Unit K, Spring Hill, Florida and spoke with agent Tumer. Agent Turner sold to FD a Transamerica annuity in the amount of $74,766.59. 10. Agent Turner was the only insurance agent in the office at the time this transaction took place and the only person who discussed annuities with FD. FD never met with you during this transaction. 11. Subsequent to the insurance transaction between agent Turner and FD, you signed as the producing agent on FD’s application for the Transamerica annuity TAR0062315. IT IS THEREFOR CHARGED that you, JONATHAN LEE DUCLOS, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Office which constitute grounds for the suspension or revocation of your licenses and appointments: (a) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; (c) 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. [626.611(13), Florida Statutes]; (d) Violation of any provision of this code or of any other law applicable to the business of insurance in the course of dealing under the license or appointment. [626.621(2), Florida Statutes}; (e) Violation of any lawful order or rule of the department, commission, or office. [626.621 (3), 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 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. {Section 626.621(12), Florida Statutes]; (h) A life or health agent with an appointment in force may solicit applications for policies of insurance on behalf of an insurer with respect to which he or she is not an appointed life or health agent, unless otherwise provided by contract, if such agent simultaneously with the submission to such insurer of the application for insurance solicited by him or her requests the insurer to appoint him or her as agent. However, no commissions shall be paid by such insurer to the agent until such time as an additional appointment with respect to such insurer has been received by the department or person designated by the department to administer the appointment process pursuant to the provisions of subsection (1). [Section 626.341 (2), Florida Statutes] COUNT II 12. The above general allegations are hereby realleged and fully incorporated herein by reference. 13. On October 29, 2002, CW of Spring Hill, Florida went to First National Financial Services located at 2264 Commercial Way Unit K, Spring Hill, Florida and spoke with agent Tumer. Agent Turner sold to CW a Transamerica annuity in the amount of $10,000.00. On March 20, 2003, CW invested an additional $20,000 in the Transamercia annuity she had purchased on October 29, 2002. 14. Agent Turner was the only insurance agent in the office at the time this transaction took place and the only person who discussed annuities with CW. CW never met with you during this transaction. 15. Subsequent to the insurance transaction between agent Turner and CW, you signed as the producing agent on CW’s application for the Transamerica annuity TAR0061093. IT IS THEREFOR CHARGED that you, JONATHAN LEE DUCLOS, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Office which constitute grounds for the suspension or revocation of your licenses and appointments: (a) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.61 1(9), Florida Statutes]; (c) 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. [626.611(13), Florida Statutes]; (d) Violation of any provision of this code or of any other law applicable to the business of insurance in the course of dealing under the license or appointment. [626.621(2), Florida Statutes]; (e) Violation of any lawful order or rule of the department, commission, or office. [626.621(3), Florida Statutes]; (f) 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. [Section 626.621(12), Florida Statutes]; (h) A life or health agent with an appointment in force may solicit applications for policies of insurance on behalf of an insurer with respect to which he or she is not an appointed life or health agent, unless otherwise provided by contract, if such agent simultaneously with the submission to such insurer of the application for insurance solicited by him or her requests the insurer to appoint him or her as agent. However, no commissions shall be paid by such insurer to the agent until such time as an additional appointment with respect to such insurer has been received by the department or person designated by the department to administer the appointment process pursuant to the provisions of subsection (1). [Section 626.341(2), Florida Statutes] COUNT I 16. The above general allegations are hereby realleged and fully incorporated herein by reference. 17. On August 14, 2002, EN of Spring Hill, Florida went to First National Financial Services located at 2264 Commercial Way Unit K, Spring Hill, Florida and spoke with agent Turner. Agent Turner sold to EN a Transamerica annuity in the amount of $14,657.92. 18. Agent Turner was the only insurance agent in the office at the time this transaction took place and the only person who discussed annuities with EN. EN never met with you during this transaction. 19. Subsequent to the insurance transaction between agent Turner and EN, you signed as the producing agent on EN’s application for the Transamerica annuity TAR0058481. IT IS THEREFOR CHARGED that you, JONATHAN LEE DUCLOS, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Office which constitute grounds for the suspension or revocation of your licenses and appointments: (a) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (b) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; (c) 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. [626.611(13), Florida Statutes]; (d) Violation of any provision of this code or of any other law applicable to the business of insurance in the course of dealing under the license or appointment. [626.621(2), Florida Statutes]; (e) Violation of any lawful order or rule of the department, commission, or office. (626.621(3), Florida Statutes]; (f) 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}; (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. [Section 626.621(12), Florida Statutes]; (h) A life or health agent with an appointment in force may solicit applications for policies of insurance on behalf of an insurer with respect to which he or she is not an appointed life or health agent, unless otherwise provided by contract, if such agent simultaneously with the submission to such insurer of the application for insurance solicited by him or her requests the insurer to appoint him or her as agent. However, no commissions shall be paid by such insurer to the agent until such time as an additional appointment with respect to such insurer has been received by the department or person designated by the department to administer the appointment process pursuant to the provisions of subsection (1). [Section 626.341(2), Florida Statutes] WHEREFORE, you, JONATHAN LEE DUCLOS, are hereby notified that the Office intends to enter an Order suspending or revoking your licenses and appointments as an insurance adjuster 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. NOTICE OF RIGHTS You have the right to request a proceeding to contest this action by the Office 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 Office 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 Office of Insurance Regulation, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. Your written response must be received by the Office 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 call and cross-examine witnesses, and to compel the attendance of witnesses and the production of documents by subpoena. lf 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 Office or a written statement challenging the grounds upon which the Office 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 Office’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 Office 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. DATED and SIGNED this [Oday of une _. 2005. KARSN CHANDLER ——— Deputy Chief Financial Officer CERTIFICATE OF SERVICE | HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been furnished to: JONATHAN LEE DUCLOS, 401 Norwood Ave. Satellite Beach, FL 32397; JONATHAN LEE DUCLOS, by Certified Mail this _} 5 “day of Tine , 2005. William W. Tharpe, Jr. Florida Bar Number 0312411 Division of Legal Services 612 Larson Building 200 East Gaines Street Tallahassee, Florida 32399-0333 Phone: (850) 413-4110 Fax: (850) 487-4907 10

Docket for Case No: 05-002596PL