FLORIDA DEPARTMENT OF FINANCIAL SERVICES ALEX SINK CHIEF FINANCIAL OFFICER STATE OF FLORIDA | ~ SUTALL os io IN THE MATTER OF O | — ELLIOTTE J. HARVEY CASE NO.: 85850-06-AG / ADMINISTRATIVE COMPLAINT TO: ELLIOTTE J. HARVEY ELLIOTTE J. HARVEY Contemporary Affordable Insurance Agency P. O. Box 47348 5800 Beach Blvd. #111 Jacksonville, Florida 32247 J acksonville, Florida 32207-4821 YOU, ELLIOTTE J. HARVEY, 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 1. Pursuant to Chapter 626, Florida Statutes, you, ELLIOTTE J. HARVEY, license identification number A113183, are currently licensed in this state as a life including variable annuity (2-14), life including vatiable annuity & health (2-15), life & health (2-18), general lines (property & casualty) (2-20) and health (2-40) agent. 2. At all times pertinent to the dates and occurrences referred to herein, you, ELLIOTTE J. HARVEY, were licensed in this state to transact life, health, variable annuity and property and casualty insurance. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services (Department) has jurisdiction over your insurance licenses and appointments. 4. During all times material to the allegations contained in this administrative complaint, you, ELLIOTTE J. HARVEY, owned and operated the Contemporary Affordable Insurance Agency, located at 5800 Beach Bivd. Unit 111, Jacksonville, Florida 32207 in the capacity as an insurance agent. | 5. At all times pertinent to the allegations of this administrative complaint, you, ELLIOTTE J. HARVEY, were the sole owner and only licensed agent and manager for the Contemporary Affordable Insurance Agency. 6. At all times pertinent to the allegations of this administrative complaint, you, ELLIOTTE J. HARVEY, as the owner or operator of the Contemporary Affordable Insurance Agency, sold automobile insurance customers an ancillary product identified as a Contemporary Affordable “Instant Issue Road Service Contract.” 7. You, ELLIOTTE J. HARVEY, have been the subject of a prior administrative action by this Department. On August 2, 2002, you, ELLIOTTE J. HARVEY, were placed on one (1) year probation and assessed an administrative penalty in the amount of seven hundred fifty dollars ($750) for your failure to divulge certain information on an agent licensure application form (case number 43049-01-AG). Pursuant to Rule 69B-231.160( DO, Florida Administrative Code, this prior penalty may be considered as an aggravating factor in imposing penalties in this present action, should the following allegations be established. Count I 8. The above General Allegations numbered one through seven are hereby realleged and fully incorporated herein by reference. 9. On May 11, 2005, consumer D.B. (D.B.) of Jacksonville, Florida, went to the Contemporary Affordable Insurance Agency to purchase automobile insurance for a 1996 Mercury. At that time and place, D.B. dealt directly with you, ELLIOTTE J. HARVEY, concerning her automobile insurance needs. D.B. asked you, ELLIOTTE J. HARVEY, for the minimum automobile insurance policy required by Florida law. D.B. requested that the automobile insurance policy also include towing and rental service. You, ELLIOTTE J. HARVEY, quoted D.B. a premium down payment of $260.00 for an automobile insurance policy to be issued by Victoria Select Insurance Company, to also include the towing and rental. 10. D.B. gave you, ELLIOTTE J. HARVEY, a check payable to Contemporary Affordable Insurance in the amount of $260.00 as a premium down payment. D.B. believed her entire premium down payment was for automobile insurance and towing/rental to be provided by the Victoria policy. 11. At the time of this transaction, D.B. did not know that she had been charged for any ancillary product. . 12. . D.B. later discovered that $145.00 of her premium down payment went toward the purchase of an “Instant Issue Road Service Contract” offered by Contemporary Affordable Insurance Agency. D.B. was charged for this ancillary product without her informed consent. 13. Consumer D.B. did not want to purchase any ancillary product. At the time of her automobile insurance purchase, D.B. was not made aware when she paid her premium down payment, that a portion of her premium down payment was being diverted to satisfy the costs of said ancillary product. 14, Onor about June 10, 2005, D.B. complained to you, ELLIOTTE J. HARVEY, and made a written request to cancel the “Instant Issue Road Service Contract” with Contemporary Affordable to no avail. 15. | Onor about June 20, 2005, D.B. made a formal complaint to the Department’s Division of Consumer Services regarding said request. 16. Onor about June 22, 2005, the Division of Consumer Services made contact with you, ELLIOTTE J. HARVEY, regarding D.B.’s complaint. On or about this same date, you, ELLIOTTE J. HARVEY, provided D.B. with a $20.00 cash refund. 17. _ Onor about June 23, 2005, you, ELLIOTTE J. HARVEY, provided consumer DB. an additional refund in the amount of $115.00. 18. Onor about July 13, 2005, you, ELLIOTTE J. HARVEY, provided D.B. with the remaining refund of $10.00. IT IS THEREFORE CHARGED that you, ELLIOTTE J. HARVEY, 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) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (b) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.611(8), Florida Statutes]; (c) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; (a) Violation of any provision of the Florida Insurance 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 permit, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part IX of Chapter 626, Florida Statutes. [Section 626.621(6), Florida Statutes]; (69) Sliding- 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]; (g) Sliding- 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 626.9541(1)(z)3, Florida Statutes]. Count I 19. The above General Allegations numbered one through seven are hereby realleged and fully incorporated herein by reference. 20. Or about January 15, 2005, consumer C.D. (C.D.) of Jacksonville, Florida, went to the Contemporary Affordable Insurance Agency to purchase automobile insurance for a 2002 Ford Taurus. At that time and place, C.D. dealt directly with you, ELLIOTTE J. HARVEY, concerning her automobile insurance needs. You, ELLIOTTE J. HARVEY, quoted C.D. a premium down payment of $176.00 for an automobile insurance policy to be issued by Occidental Fire and Casualty Company. 21. C.D. gave you, ELLIOTTE J. HARVEY, a check payable to Contemporary Affordable Insurance in the amount of $176.00 as a premium down payment. C.D. believed her entire premium down payment was for automobile insurance to be provided by the Occidental policy. 22. At the time of this transaction C.D. did not know that she had been charged for any ancillary product. 23. C.D. later discovered that $100.00 of her payment went toward the purchase of an “Instant Issue Road Service Contract” offered by Contemporary Affordable Insurance Agency. C.D. was charged for this ancillary product without her informed consent. 24. C.D. did not want to purchase any ancillary product. At the time of her automobile insurance purchase, C.D. was not made aware when she paid her premium down payment, that a portion of her premium down payment was being diverted to satisfy the costs of said ancillary product. IT IS THEREFORE CHARGED that you, ELLIOTTE J. HARVEY, 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) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (6) 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]; (c) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; (d) Violation of any provision of the Florida Insurance 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 permit, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part IX of Chapter 626, Florida Statutes. [Section 626.621(6), Florida Statutes]; (f) Sliding- 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]; (g) Sliding- 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 626.9541(1)(z)3, Florida Statutes]. | Count III 25. The above General Allegations numbered one through seven are hereby realleged and fully incorporated herein by reference. 26. Onor about August 5, 2005, consumer S.B. (S.B.) of Jacksonville, Florida, went to the Contemporary Affordable Insurance Agency to purchase automobile insurance for a 2002 Dodge Grand Caravan. At that time and place, S.B. dealt directly with you, ELLIOTTE J. HARVEY, concerning her automobile insurance needs. S.B. asked you, ELLIOTTE J. HARVEY, for the minimum automobile insurance requirements to operate her vehicle in Florida and satisfy lien holder standards. You, ELLIOTTE J. HARVEY, quoted a premium down payment of $200.00 for an automobile insurance policy to be issued by Victoria Select Insurance Company. 27. On or about August 17, 2005, S.B. made an initial premium down payment of $100.00 and a second premium down payment of $100.00 on the following day. 28. . At the time of this transaction, S.B. did not know that she had been charged for any ancillary product. 29. _S.B. later discovered that $96.00 of her premium down payments went toward the purchase of an “Instant Issue Road Service Contract” offered by Contemporary Affordable Insurance Agency. S.B. was charged for this ancillary product without her informed consent. 30. S.B. did not want to purchase any ancillary product. At the time of her automobile insurance purchase, S.B. was not made aware when she paid her premium down payment, that a portion of her premium down payment was being diverted to satisfy the costs of said ancillary product. IT IS THEREFORE CHARGED that you, ELLIOTTE J. HARVEY, 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) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (b) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.611(8), Florida Statutes]; (c) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), 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 permit, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part IX of Chapter 626, Florida Statutes. [Section 626.621(6), Florida Statutes]; (f) Sliding- 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]; (g) Sliding- 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 626.9541(1)(z)3, Florida Statutes]. Count IV 31. The above General Allegations numbered one through seven are hereby realleged and fully incorporated herein by reference. 32. Onor about January 7, 2005, you, ELLIOTTE J. HARVEY, met with consumer O.M. (O.M.) of Jacksonville, Florida to prepare an automobile insurance application for a 1991 Toyota Corolla. At that time and place, O.M. dealt directly with you, ELLIOTTE J. HARVEY, concerning his automobile insurance needs. You, ELLIOTTE J. HARVEY, quoted a premium down payment of $232.00 for an automobile insurance policy to be issued by Occidental Fire and Casualty Company. 33. O.M. made a cash premium down payment to you, ELLIOTTE J. HARVEY, in the amount of $232.00. O.M. believed his entire premium down payment was for the automobile insurance policy to be issued by Occidental Fire and Casualty Company. 34. At the time of this transaction O.M. did not know he had been charged for any ancillary product. 35. O.M. later discovered that $99.00 of his payment went toward the purchase of an - “Instant Issue Road Service Contract” offered by Contemporary Affordable Insurance Agency. O.M. was charged for this ancillary product without his informed consent. 36. | O.M. did not want to purchase any ancillary product. At the time of his automobile insurance purchase, O.M. was not made aware when he paid his premium down payment, that a portion of his premium down payment was being diverted to satisfy the costs of said ancillary product. 37. | O.M. complained directly to you, ELLIOTTE J. HARVEY, regarding the ancillary product, for which you, ELLIOTTE J. HARVEY, promised a refund. 38. | You, ELLIOTTE J. HARVEY, agreed to refund O.M. within a week via mail. One week later, O.M. contacted you with regards to said refund and you, ELLIOTTE J. HARVEY, stated that you had lost the address of O. M. 39. O.M. contacted you during the third week, and you, ELLIOTTE J. HARVEY then provided a check in the amount of $90.00, noting that the remaining $9.00 refund would be retained by your agency for gas money. IT IS THEREFORE CHARGED that you, ELLIOTTE J. HARVEY, 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) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (b) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.611(8), Florida Statutes]; (c) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes]; (d) 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 or appointment. [Section 626.61 1(10), Florida Statutes]; (e) 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]. 10 (f) In the conduct of business under the license or permit, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part IX of Chapter 626, Florida Statutes. [Section 626.621(6), Florida Statutes]; (g) Sliding- 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]; (h) Sliding- 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 626.9541(1)(z)3, Florida Statutes]. Count V 40. The above General Allegations numbered one through seven are hereby realleged and fully incorporated herein by reference. 41. At the time of the transactions hereafter described, Mrs. Latonia Harvey Battle and Mr. Antonio Harvey were employed by the Contemporary Affordable Insurance Agency. Neither Mrs. Latonia Harvey Battle nor Mr. Antonio Harvey held a Florida insurance license, but were knowingly and willfully allowed by you, ELLIOTTE J. HARVEY, to transact insurance business on behalf of the Contemporary Affordable Insurance Agency, for the person identified in this count. 42. Mrs. Latonia Harvey Battle or Mr. Antonio Harvey completed the new automobile insurance application, bound the coverage, and collected the initial premium, relevant to this count, without you, ELLIOTTE J. HARVEY, exercising supervision over these activities. 43. On or about November 14, 2005, consumer G.A. (G.A.) of Jacksonville, Florida went to Contemporary Affordable Insurance Agency to obtain automobile insurance coverage on a 1993 Mercury Sable. G.A. desired minimum automobile insurance requirements to operate his vehicle in this state. 1 44, At that time and place, G.A. dealt directly with Ms. Latonia Harvey Battle or Mr. Antonio Harvey concerning his automobile insurance needs. 45. Ms. Latonia Harvey Battle or Mr. Antonio Harvey completed G.A.’s automobile insurance application and quoted a premium of $372.00. 46. Ms. Latonia Harvey Battle or Mr. Antonio Harvey collected the premium down payment of $127.00 from G.A. which was paid in cash. 47. Ms. Latonia Harvey Battle or Mr. Antonio Harvey completed G.A.’s automobile insurance transaction, provided G.A. with an automobile insurance ID card, copies of the automobile insurance transaction and issued the binder. 48. | You, ELLIOTTE J. HARVEY, did not review the automobile insurance application, premium down payment or coverage binding with G.A. G.A. only made contact with Ms. Latonia Harvey Battle or Mr. Antonio Harvey. . 49. You, ELLIOTTE J. HARVEY, knowingly gave your full consent to the transactions described in this count. IT IS THEREFORE CHARGED you, ELLIOTTE J. HARVEY, 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) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes}; (b) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.611(8), Florida Statutes]; (c) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), 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]; (©) In the conduct of business under the license or permit, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part IX of Chapter 626, Florida Statutes. [Section 626.621(6), Florida Statutes]; (f) 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, commission, or office. [Section 626.621(12), Florida Statutes]. WHEREFORE, you, ELLIOTTE J. HARVEY, 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, 626.692, and 626.9521, Florida Statutes, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. You are further notified that any order entered in this case revoking or 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. 13 NOTICE OF RIGHTS You have the right to request a proceeding to contest this action by the Department of Financial Services ("Department") pursuant to Sections 120.569 and 120.57, Florida Statutes, and Rule 28-106, 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 acting as 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 SUSPENSION OR REVOCATION WILL BE ENTERED AGAINST YOU. If you request a proceeding, you must provide information that complies with the requirements of Rule 28-106.2015, 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, address, and telephone number, and facsimile number (if any) of the respondent (for the purpose of requesting a hearing in this matter, you are the "respondent"). (b) The name, address, telephone number, facsimile number of the attorney or qualified representative of the respondent (if any) upon whom service of pleadings and other papers shall be made. 14 (c) A statement requesting an administrative hearing identifying those material facts that are in dispute. If there are none, the petition must so indicate. (d) A statement of when the respondent received notice of the administrative complaint. (e) A statement including the file number to the administrative complaint. 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. 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. 15 Mediation of this matter pursuant to Section 120.573, F lorida Statutes, is not available. No Department attorney will discuss this matter with you until the response has been received by the Department. 'N CHANDLER Deputy Chief Financial Officer 16 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT has been furnished to: ELLIOTTE J. HARVEY, Contemporary Affordable Insurance Agency, 5800 Beach Blvd. #111, Jacksonville, Florida 32207-4821 and to ELLIOTTE J.LHARVEY, P. O. Box 4738, Jacksonville, Florida 32247 by Certified U.S. Mail this [i day of ANGELIQUE KNOX, Division of Legal Services Department of Financial Services 200 East Gaines Street Tallahassee, Florida 32399 (850) 413-4219 (850) 488-0697 18

Docket for Case No: 07-001567PL