FLORIDA DEPARTMENT OF FINANCIAL SERVICES ALEX SINK . OTH1T9 CHIEF FINANCIAL OFFICER . STATE OF FLORIDA AUG 1 2007 IN THE MATTER OF: Docketed by:_ JY CASE NO.: 88922-07-AG CREDIT GUARD OF FLORIDA, INC. ADMINISTRATIVE COMPLAINT TO: CREDIT GUARD OF FLORIDA, INC. = 200 CENTRAL AVE. SUITE 2100 ao = SAINT PETERSBURG, FLORIDA 33701 me= §& Bane ~ DEAN ESKILD KUCERA Se % 806 COLUMBUS DR. “azo VU TIERRA VERDE, FLORIDA 33715 =<" > ~m DS) THERESA CLAIRE RUSSO 2601 DESOTO WAY SOUTH SAINT PETERSBURG, FLORIDA 33712 You, CREDIT GUARD OF FLORIDA, INC., 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 a managing general agent in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 648, Florida Statutes, you, CREDIT GUARD OF FLORIDA, INC., are currently licensed in this state as a managing general agent (MGA), license LD. # L006560. 2. At all times pertinent to the dates and occurrences referred to herein, you, CREDIT GUARD OF FLORIDA, INC., were licensed in this state as a managing general agent (MGA). 3. At all times pertinent to the dates and occurrences referred to herein, you, CREDIT GUARD OF FLORIDA, INC., held an appointment with First Colonial Insurance Company, (“First Colonial”). 4, Pursuant to Chapter 648, Florida Statutes, the Florida Department of Financial Services has jurisdiction over your managing general agent (MGA) license and appointments. COUNTI 5. The above general allegations are hereby realleged and fully incorporated herein by reference. 6. . On or about August 25, 1997, you, CREDIT GUARD OF FLORIDA, INC. (“Credit Guard”), entered into a CPI Insurance Service Agreement with First National Bank of South Miami (“FNBSM”) 7. The CPI Insurance Service Agreement provided that Credit Guard would provide FNBSM with an insurance management system and procure a Collateral Protection Insurance policy for FNBSM through a company for which Credit Guard is the managing general agent. 8. Pursuant to the CPI Insurance Service Agreement, Credit Guard procured a collateral protection insurance policy through First Colonial. 9. Pusuant to the terms of the CPI Insurance Service Agreement and. the First Colonial policy, certificates of insurance would be “forced placed” on FNBSM’s borrowers who failed to provide adequate proof of insurance. Credit Guard would invoice FNBSM for the No premiums for such insurance. FNBSM would pay the premiums and add the premiums to the borrowers’ balance due under their loan agreement. 10... When a “forced placed” borrower provided FNBSM with proof that the borrower had insurance, ENBSM sent the proof to Credit Guard to cancel the “forced placed” certificate of insurance. . 11. Pursuant to the CPI Insurance Service Agreement, Credit Guard was then obligated to cancel the “forced placed” certificate of insurance, and return the unearned premium to FNBSM. 12. Pursuant to Credit Guard’s Managing General Agency Agreement with First Colonial, Credit Guard is responsible for the retum of ‘unearned premiums resulting from cancellations of the company’s policies. 13, You, CREDIT GUARD OF FLORIDA, INC., have not issued refunds to FNBSM since approximately July 2005. . . 14. You, CREDIT GUARD OF FLORIDA, INC., have failed to return unearned premiums to FNBSM in the amount of fifty two thousand nine hundred sixty five dollars ($52,965), for customers that had forced placed Certificates and later provided proof of insurance. . IT IS THEREFORE CHARGED that you, CREDIT GUARD OF FLORIDA, INC., 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) All premiums, return premiums, or other funds. belonging to insurers or others received by an agent, insurance agency...in transactions urider the license are trust funds received by a licensee in a fiduciary capacity. An agent or insurance agency shall keep the funds belonging to each insurer for which an agent is not appointed, ..in a separate account so as to allow the department or office to properly audit such funds, 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) 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 626.611(10), 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 [Section 626.611(13), Florida Statutes]. (d) Violation of any provision of this: code or of any other Jaw applicable to the business of insurance in the course of dealing under the license or appointment [Section 626.621(2), Florida Statutes]. WHEREFORE, you, CREDIT GUARD OF FLORIDA, INC., are hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking your licenses and ‘ appointments as a Managing General Agent (MGA) or to impose such penalties as may be provided under the provisions of Sections 626.611, 626.621, 626.681, 626.691, and 626.692, 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 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 tight 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. ) (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. 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 120.5702), Florida Statutes, apply. In this regard, you may submit oral or written evidence in opposition to the action taken by the Department ora 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. DATED and SIGNED this es day of | bua is , 2007. N CHANDLE: Deputy Chief Financial Officer CERTIFICATE OF SERVICE J HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been furnished to: CREDIT GUARD OF FLORIDA, INC., 200 Central Avenue, Suite 2100, Saint Petersburg, Florida 33701; DEAN ESKILD KUCERA, 806 Columbus Drive, Tierra Verde, Florida 33715; and THERESA CLAIRE RUSSO, 2601 Desoto Way South, Saint Petersburg, Florida 33712 by Certified Mail this__{_ day of Avene 2007. tl I mua FULD 390) Wud 44aS Yee Sy; enter dalivery addres below: 3, Service Type CEATIFIED MAIL 4, Restricted Delivery? (Extra Fee) , Alicia Addressed WO... eee ee ne “mmmuue | UO 390L SANK 4435 41Ab 3, Service Type CERTIFIED MAIL | 4, Restricted Delivery? (Extra Fea) [Aves q 4. Article Addressed to: Agent {[) Addressee D, VeGelivary addrass ditiprent from item 17 Cves YES, enter dellveryyddress below: CINo CREDIT GUARD OF FLORIDA, INC.. 200 CENTRAL AVENUE, SUITE 2100 ST. PETERSBURG, FL 33701 RESTRIC? ©. OELIVERY [ PS Form 3841, July 2004 "Domestic Return Receipt Reference Information §8922-07-AG/AC August 1, 2007 ‘Kitchen ts

Docket for Case No: 07-004799