Aug 25 2006 14:15 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 25 2866 82:18PM PS FLORIDA DEPARTMENT OF FINANCIALSERVICES seu ey TOM GALLAGHER “sue 8 2006 * CHIEF FINANCIAL OFFICER Backeted by role STATE OF FLORIDA IN THE MATTER OF: a . CASE NO.: 84542-05-AG THOMAS AQUINAS MCCULLOM / ADMINISTRATIVE COMPLAINT TO: THOMAS AQUINAS MCCULLOM 1116 Nestling Court Gulf Breeze, Florida 32561-2637 THOMAS AQUINAS MCCULLOM Clo Cash Register 4499 North Palafox Street Pensacola, Florida 32504 You, THOMAS AQUINAS MCCULLOM, 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 and as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, THOMAS AQUINAS MCCULLOM, currently are licensed in this state as a life including variable annuity (2-14), life including variable annuity and health (2-15), Life (2-16), life and health (2-18), general lines | (2-20), and health (2-40) agent, and were so licensed at all times relevant to the dates and occurrences referenced herein. Your license identification number is A171421. Aug 25 2006 14:15 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 25 2866 82:18PM P4 2, Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services (hereinaftet referred to as the “Department”) has jurisdiction over your licenses and appointmonts, 3, At all times relevant to the dates and occurrences referenced herein you, THOMAS AQUINAS MCCULLOM, were employed or affiliated with Direct General Insurance Agency, Inc., a Tennessee corporation, doing business in Florida as Cash Register. COUNT I 4, The above General Allegations are hereby realleged and fully incorporated herein by reference, | 3. | Onor about January 11, 2005, you, THOMAS AQUINAS MCCULOM, sold Jesse Wallace an Accident Medical Protection Plan without his informed consent. IT (8 THEREFORE CHARGED that you, THOMAS AQUINAS MCCULLOM, have violated or are accountable under one or more ofthe following provisions of the Florida Insurance Code, which constitutes grounds for the suspension or revocation of your licenses as an insurance agent in this state: | (a) No person shall transact insurance in this state, ot 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 624.1 1(1), Florida Statutes]. (b) — If the license or appointment is willfully used, or to be used, to circumvent any of the requirements or prohibitions of this code. [Section 626.611(4), Florida Statutes). (ce) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]. Aug 25 2006 14:15 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 25 2866 82:18PM PS (d) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.61 1(9), Florida Statutes], (e) Willful failure to comply with, or willful violation of, any proper order or rule of the department, commission, or office or willful violation of any provision of this code. [Section 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 dealin g under the license or appointment. [Section 626.621(2), Florida Statutes], (g) Violation of any lawful order or rule of the department, commission, or office. [Section 626.621(3), Florida Statutes]. (h) 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). a No person shall engage in this state in any trade practi ce which is defined in this part as, or determined pursuant to s. 626.951 ors. 626.9561 to be, an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance. [Section 626.9521(1), Florida Statutes]. qj) Representing to the applicant that a specific ancillary coverage or product is required by law in conjunction with the purchase of insurance when such coverage or product is not required. [Section 626.9541 ( 1\(z)1., Florida Statutes). Aug 25 2006 14:15 FROM : DEPT OF FINANCIAL SERVICES FAs NO. : 8564874987 Aug. 25 2666 82:16PM Pe (ix) Representing to the applicant that a specific ancillary coverage or product is included in the policy applied for without an additional charge when such charge is required. [Section 626.9541(1)(z)2., Florida Statutes] oy) Charging an applicant for a specific ancillary coverage or product, in addition to the cost of the insurance coverage applied for, without the informed consent of the applicant. [Section 626.954 1(1)(z)3., Florida Statutes]. COUNT IT 6, The above General Allegations are hereby realleged and fully incorporated herein by reference. 7. On or about January 11, 2005, you, THOMAS AQUINAS MCCULLOM, sold Jesse Wallace a Travel Protection Plan without his informed consent. TT IS THEREFORE CHARGED that you, THOMAS AQUINAS MCCULLOM, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, which constitutes grounds for the suspension or tevocation of your licenses as an insurance agent in this state: (a) Sections 624.11(1), 626.611(4), 626,611(7), 626.61 19), 626.611(13), 626,621(2), 626.621(3), 626,621(6), 626,9521(1), 626.9541 (1)(z)1., 626.9541(1)(7)2., and 626.9541 (1)()3., Florida Statutes, which are more fully set forth in Count I above and fully incorporated herein by reference, - COUNT II 8. The above General Allegations are hereby realleged and fully incorporated herein by reference. Aug 25 2006 14:15 Aug. 25 2066 Be:11PM Pr FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? 9. On or about January 11, 2005, you, THOMAS AQUINAS MCCULLOM, sold Jesse Wallace Term Life Insurance without his informed consent, Tf 18 THEREFORE CHARGED that you, THOMAS AQUINAS Mi CCULLOM, have violated or are accountable under one or more of the following provisions of the Florida Tnsurance Code, which constitutes grounds for the suspension or revocation of your licenses as an insurance agent in this state: (@) Sections 624.11(1), 626.611(4), 626.611(7), 626.61 1(9), 626.61 1(13), 626.621(2), 626.621(3), 626.621(6), 626,9521(1), 626.9541(1)(z)1., 626.9541(1)(z)2., and 626.9541(1)(z)3., Florida Statutes, which are more fully set forth in Count I above and fully incorporated herein by reference. COUNT IV 10. The above General Allegations are hereby realleged and fully incorporated herein by reference. li. On or about March 23, 2005, you, THOMAS AQUINAS MCCULLOM, sold Patrice Fountain an Accident Medical Protection Plan without her informed consent, - ITIS THEREFORE CHARGED that you, THOMAS AQUINAS MCCULLOM, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, which constitutes grounds for the suspension or revocation of your licenses as an insurance agent in this state: (a) — Sections 624.11(1), 626.611(4), 626.61 1(7), 626.61 1(9), 626.611(13), 626,621(2), 626.621(3), 626.621(6), 626.9521 (1), 626.9541(1)(2)1., 626.9541(1)(z)2., and 626.9541(1)(z)3., Florida Statutes, which are more fully set forth in Count ! above and fully incorporated herein by reference. Aug 25 2006 14:17 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 25 2666 @2:11PM Pe COUNT V 12, The above General Allegations are hereby realleged and fully incorporated herein by reference, 13. On or about March 23, 2005, you, THOMAS AQUINAS MCCULLOM, sold Pattice Fountain a Travel Protection Plan without her informed consent. IT IS THEREFORE CHARGED that you, THOMAS AQUINAS MCCULLOM, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, which constitutes grounds for the:suspension or revocation of your licenses as an insurance agent in this state: (a) Sections 624.11(1), 626.6] 1(4), 626.611(7), 626,61 1(9), 626.61 1(13), 626.621(2), 626.62.1(3), 626.621(6), 626.9521(1), 626.9541 (1)(z)1., 626.9541(1)(z)2.. and 626,9541(1)(z)3., Florida Statutes, which are more fully set forth in Count I above and fully incorporated herein by reference, COUNT VI 14, The above General Allegations are hereby realleged and fully incorporated hercin by reference, 15, On or about March 23, 2005, you, THOMAS AQUINAS MCCULLOM, sold Patrice Fountain Term Life Insurance without her informed consent. IT 1S THEREFORE CHARGED that you, THOMAS AQUINAS MCCULLOM, have violated or are accountable under one or more of the following provisions of the Florida Tnsurance Code, which constitutes grounds for the suspension or revocation of your licenses as an insurance agent in this state: Aug 25 2006 14:17 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Aug. 25 2666 @2:11PM Pa (a) Sections 624.11(1), 626.611(4), 626.611(7), 626.611(9), 626.61 1(13), 626.6212), 626.621(3), 626.621(6), '626.9521(1), 626,9541(1)(2)1., 626.9541(1)(z)2., and 626.9541(1)(z)3.; Florida Statutes, which are more fully set forth in Count I above and fully incorporated herein by reference, COUNT VII 16. The above General Allegations are hereby realleged and filly incorporated herein by reference. 17, Onor about January 11, 2005, you, THOMAS AQUINAS MCCULOM; sold Lynetta Harris an Accident Medical Protection Plan without her informed consent. tT IS THEREFORE CHARGED that you, THOMAS AQUINAS M CCULTI.OM, have violated or are accountable under one or more of the following provisions of the Florida Insutance Code, which constitutes grounds for the suspension or revocation of your licenses as an insurance agent in this state: (a) Sections 624.1 1(1), 626.611(4), 626.61 1(7), 626.611(9), 626.61 1(13), 626.621 (2), 626.621(3), 626.621 (6), 626.9521(1), 626.9541(1)(2)1., 626.9541(1 \(z)2., and 626.9541 (1)(Z)3., Florida Statutes, which are more fully set forth in Count I above and fully incorporated herein by reference, COUNT VIII 18. The above General Allegations are hercby realleged and fully incorporated herein by reference, 19. On or about January 11, 2005, you, THOMAS AQUINAS MCCULLOM, sold Lynetta Harris a Travel Protection Plan without her informed consent. Aug 25 2006 14:17 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Aug. 25 2666 @2:12PM Plea IT IS THEREFORE CHARGED that you, THOMAS AQUINAS MCCULLOM, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, which constitutes grounds for the suspension or revocation of your licenses as an insurance agent in this state: (a) Sections 624.11(1), 626.61 1(4), 626.61 1(7), 626.611(9), 626.611(13), 626.621(2), 626.62 1(3), 626.621(6), 626.9521(1), 626.9541 (1)(2)1., 626.9541(1)(2)2., and 626.9541 (1)(4)3., | Florida Statutes, which are more filly set forth in Count I above and fully incorporated herein by reference, COUNT IX 20. The above General Allegations are hereby realleged and fully incorporated herein by reference. 21. Onor about January 11, 2005, you, THOMAS AQUINAS MCCULLOM, sold Lynetta Harris Term Life Insurance without her informed consent. IT 1S THEREFORE CHARGED that you, THOMAS AQUINAS MCCULLOM, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, which constitutes grounds for the suspension or revocation of your licenses as an insurance agent in this state: (a) Sections 624.11(1), 626.61 1(4), 626.611(7), 626.611 (9), 626,611(13), 626.621(2), 626.621(3), 626.621(6), 626.9521(1), 626.9541 (1)(2)1., 626.9541(1)(z)2., and 626,9541(1)(z)3., Florida Statutes, which are more fully set forth in Count I above and full y incorporated herein by reference, Aug 25 2006 14:18 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 29 26686 2:12PM Pil COUNT X 22. The above General Allegations are hereby realleged and fully incorporated herein . by reference. 23. On or about March 8, 2005, you, THOMAS AQUINAS MCCULLOM, sold William Clark an Accident Medical Protection Plan without his informed consent. IT 18 THEREFORE CHARGED that you, THOMAS AQUINAS MCCULLOM, have violated or are accountable under one or more of the following provisions of the Flotida Tnsurance Code, which constitutes grounds for the suspension or revocation of your licenses as an insurance agent in this state: (a) Sections 624.11(1), 626.611 (4), 626.611(7), 626.61 1(9), 626.61 1(13), 626.621(2), 626.621(3), 626.621 (6), 626.9521(1), 626.9541(1)(z)1., 626.9541(1)(2)2., and 626.9541 (1)(z)3., Florida Statutes, which are more fully set forth in Count I above and fully incorporated herein by reference. COUNT XI 24, The above General Allegations are hereby realleged and fully incorporated herein by reference, 25. On or about March 8, 2005, you, THOMAS AQUINAS MCCULLOM, sold William Clark ‘Term Life Insurance without his informed consent. IT IS THEREFORE CHARGED that you, THOMAS AQUINAS MCCULLOM, have violated or are accountable under one or more of the following provisions of the Florida Insurance Code, which constitutes grounds for the Suspension or revocation of your licenses as an insurance agent in this state: Aug 25 2006 14:18 FROM : DEPT OF FINANCIAL SERVICES FAs NO. : 8564874987 Aug. 25 2666 @2:12PhM Pl2 1 (a) “Sections 624,11 (1), 626.61 1(4), 626.611(7), 626.611(9), 626.611(13), 626.621(2), 626.621(3), 626.621(6), 626.9521(1), 626.9541 (1)(z)1., 626.9541 (1\(z)2., and 626.9541 (1)(2)3., Florida Statutes, which are more fully set forth in Count Tabove and fully incorporated herein by reference, COUNT XT 26. The above General Allegations are hereby realleged and fully incorporated herein by reference. 27. On or about March 8, 2005, you, THOMAS AQUINAS MCCULLOM, sold William Clark a Travel Protection Plan without his informed consent, IT 18 THEREFORE CHARGED that you, THOMAS AQUINAS MCCULLOM, have violated or are accountable under one or more of the following provisions of the Florida Thsurance Code, which constitutes grounds for the suspension or revocation of your licenses as an insurance agent in this state: (a) Sections 624.11(1), 626.61 1(4), 626.611(7), 626.611(9), 626,611(13), 626.6212), 626.621(3), 626.621(6), 626.9521(1); 626.9541(1 )(z)1., 626,9541(1)(2)2., and 626,9541(1)(4)3., Florida Statutes, vihich are more fully set forth in Count I above and fully incorporated heroin by reference, WHEREFORE, you, THOMAS AQUINAS MCCULLOM, 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 penaltics as may be provided under the provisions of Sections 624.15, 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 and under the provisions of Rule 69B-231, Florida Administrative 10 Aug 25 2006 14:18 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 25 2866 @2:15PM Piss Code: You are further notified that any order entered in this case revoking of suspending any’ license or eligibility for licensure held by you shall also apply to all other licenses and eligibility held by you under the Florida Insurance Code. 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 28-1 07, Florida Administrative Code. The proceeding Tequest 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 Flection 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 tesponse must be received by the Department no later than 5:00 p.m, on the twenty-first day aficr 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 RECLIPT 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. TC 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, 11 Aug 25 2006 14:19 FROM : DEPT OF FINANCIAL SERVICES FAs NO. : 8564874987 Aug. 25 2666 @2:135PM Pi4 (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, Ifa proceeding is requested and there is no dispute of material fact, the provisions of Section 120.57(2), Florida Statutes, apply, Tn this regard, you tay submit oral or written evidence in opposition to the action taken by the Department or a wriiten statement challen ging 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 Depattment’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 maj ority of witnesses are located elsewhere, the Department wil] 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 guidclines as set out above. 12 Aug 25 2006 14:19 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 29 2866 @2:15PM Ps Mediation of this matter pursuant to Section 120.573, Florida Statutes, is not available. No Department attorney will discuss this matler with you until the response has been received by ~ the Department of Financial Services. DATED and SIGNED thid nd day of , 2006. 2N CHANDLER Deputy Chief Financial Officer 13 Aug 25 2006 14:19 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 29 2866 @2:14PM P16 ‘ CERTIFICATE OF SERVICE THEREBY CERTIFY that’a true-and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and the following ELECTION OF PROCEEDING has been furnished to: THOMAS AQUINAS MCCULLOM 1116 Nestling Court Gulf Breeze, Florida 32561-2637 THOMAS AQUINAS MCCULLOM C/o Cash Register 4499 North Palafox Street Pensacola, Florida 32505 by Certified Mail this” al day of lugs 2006. Florida Department of Financial Services Division of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4180 Florida Bar Number 131369

Docket for Case No: 06-003244PL