2 ore iit wy 24 a [PALL E D oF . STRAT/VMAY 29 2008 REPRESENTING ti ALEXSINK —f; CHIEF FINANCIAL OFFICER aoe STATE OF FLORIDA RE ARINGS O S- DOTY Booketea oy Ff IN THE MATTER OF: GLENN KENNETH FANNIN CASE NO: 90018-08-AG ADMINISTRATIVE COMPLAINT TO: GLENN KENNETH FANNIN, JR. 1137 48" Street West Palm Beach, FL 33407-2301 GLENN KENNETH FANNIN, JR. Direct General/Florida No Fault 2845 N. Military Trail, Suite #1 West Palm Beach, FL 33409 You, GLENN KENNETH FANNIN, JR., license I.D. #A080826, 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, GLENN KENNETH FANNIN, JR., are currently licensed in this state as a 2-15 Life Agent, 2-18 Life & Health Agent, 2-20 General Lines (Property and Casualty) Agent and 2-40 Health Agent. 2. At all times pertinent to the dates and occurrences referred to herein, you, ' GLENN KENNETH F ANNIN, were licensed in this state as an insurance agent, license number A080826. 3. At all times material hereto, you, GLENN KENNETH FANNIN. , JR., were an insurance agent operating out of an agency known as Allied Lines of F lorida, 907 Park Avenue, Lake Park, Florida, 33403-3119 (“Allied”), formerly Any Kind Insurance, 1085 Silver Beach Road, Suite A, Lake Park, Florida, 33403-3119 (“Any Kind”). You, GLENN KENNETH FANNIN, JR., were an officer and a director of Allied, formerly Any Kind. 4. Pursuant to Chapter 626, Florida Statutes, the Florida Department of F ‘nancial Services (“Department”) has jurisdiction over your insurance licenses and appointments. COUNT I 5. The above general allegations are realleged and incorporated herein by reference. 6. On or around October 1, 2004, you, GLENN KENNETH FANNIN » JR., met with Harold Chrisentery, operating under Gulf Atlantic Restoration Services (“Gulf Atlantic”) in West Palm Beach, Florida, to write a commercial general liability insurance policy for Gulf Atlantic. Gulf Atlantic restores damages homes. 7. You, GLENN KENNETH FANNIN , JR., wrote and signed a certificate for commercial general liability coverage for Gulf Atlantic, effective October 2, 2004, and expiring October 1, 2005. 8. The insurer listed on the certificate was Penn America Insurance Company (“Penn America”), and the insured was Gulf Atlantic, policy number 040351. 9. On or around December of 2004, Audrey Freeman of West Palm Beach, Florida, contracted with Chrisentery of Gulf Atlantic to perform restoration work on her home, which sustained damage from Hurricane Frances and Hurricane Jeanne in earlier 2004. 10. Chrisentery provided Freeman with the commercial general liability insurance policy certificate written by you, GLENN KENNETH F. ANNIN, JR., listing Freeman as the certificate holder. 11. In the months following December 2004, Freeman became very dissatisfied with Chrisentery’s services on the project, alleging non-performance. 12. On or around July 28, 2005, Freeman sent a letter of demand to Chrisentery for reimbursement of itemized payments within ten (10) days. A liability insurance-claim with Penn America followed the letter of demand. 13. Freeman then learned from Department staff that Chrisentery’s insurance certificate was invalid. 14. Penn America has no record of any insured named Gulf Atlantic Restoration Services. 15. The policy number 040351 is not a legitimate Penn America policy number. 16. Additionally you, GLENN KENNETH FANNIN, JR., were never appointed to transact insurance on behalf of Penn America, and had no authority to issue any certificate or binder listing Penn America as the insurer. 17. You, GLENN KENNETH F ANNIN, JR., knowingly failed to obtain commercial general liability insurance coverage from Penn America or any other insurance company for Gulf Atlantic, thereby engaging in fraudulent or dishonest practices in the conduct of business under the license. 18. Asa result of reliance on the phony insurance certificate written by you, GLENN KENNETH FANNIN, J R., Freeman incurred costs of nearly $54,000 for unsatisfactory work by Chrisentery. IT IS THEREFORE CHARGED that you, GLENN KENNETH FANNIN, JR., have violated or are accountable under one or more of the following provisions of the Florida Statutes or Florida Administrative Code, which constitute grounds for the suspension or revocation of your licenses as a Florida insurance agent: (a) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.61 1(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 626.61 1(8), Florida Statutes]; (c) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.61 1(9), 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. [Section 626.621(2), Florida Statutes] COUNT II 19. The above general allegations are realleged and incorporated herein by reference. 20. On or around April 4, 2002, you, GLENN KENNETH FANNIN, JR., met with Gregory Roberts of Riviera Beach, Florida, regarding the purchase of automobile insurance. 21. Roberts inquired as to the cost of obtaining automobile insurance. You, GLENN KENNETH FANNIN, JR., quoted an approximate figure of a ONE HUNDRED NINETY-SIX ($196) DOLLAR down payment with the balance to be sent to the insurer. 22. You, GLENN KENNETH FANNIN, JR., led Roberts to believe that he had purchased personal injury protection and Property damage insurance in connection with his automobile. Roberts made premium payments to E.T.I. Financial Corp. (“E.T.I.”), a premium finance company, pursuant to your direction. 23. In July of 2003, E.T.I. cancelled Roberts’s insurance. Roberts confirmed the cancellation with you, GLENN KENNETH FANNIN, JR. 24. Approximately five to six days after talking to you, GLENN KENNETH FANNIN, JR., Roberts received a letter from E.T.I. informing him of a refund of his premium. The insurance cancellation form lists the effective dates of coverage as beginning on September 17, 2002, and ending on July 9, 2003. 25. — Roberts tried to obtain his refund from E.T.L., which repeatedly redirected.him to you, GLENN KENNETH FANNIN, JR., for his refund, E.T.I. mailed the premium credit to you, GLENN KENNETH FANNIN, JR., and you, GLENN KENNETH FANNIN, JR., should have forwarded the premium to Roberts, along with any unearned commission. 26. As of early June 2004, Roberts still had not received his premium refund. After filing a report with the Department, Roberts finally obtained his refund of ONE HUNDRED ELEVEN AND 35/100 ($111.35) DOLLARS from you, GLENN KENNETH FANNIN, JR., on June 16, 2004. 27. You, GLENN KENNETH FANNIN, JR., withheld Roberts’s refund for almost one year, well over the 15 day time frame for premium refunds. As a result, Roberts’s receipt of his refund was delayed by over one year. IT IS THEREFORE CHARGED that you, GLENN KENNETH FANNIN, JR., have violated or are accountable under one or more of the following provisions of the Florida Statutes or Florida Administrative Code, which constitute grounds for the suspension or revocation of your licenses as a Florida insurance agent: (a) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.61 1(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 626.61 1(8), 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. [Section 626.621(2), Florida Statutes] (e) 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] (f) Whenever a financed insurance contract is canceled, the insurer shall, within 30 days of the cancellation date, return the unpaid balance due under the finance contract, up to the gross amount available upon the cancellation of the policy, to the premium finance company and any remaining unearned premium to the agent or the insured, or both, for the benefit of the insured or insureds. The insurer shall, within 30 days of the cancellation date, notify the insured and the agent of the amount of unearned premium returned to the premium finance company and the amount of unearned commission held by the agent. The premium finance company shall, within 15 days after the account has been overpaid, either refund to the insured for the insured’s benefit any refund due on his or her account or, if the refund is sent or credited to the agent, return or credit to the agent the amount of the overpayment and notify the insured of the refunded amount. Within 15 days of receipt of notification from the premium finance company, the agent shall return such amount including any unearned commission to the insured or with the written approval of the insured apply such amount to the purchase of other insurance products regulated by the office. The commission may adopt rules necessary to implement the provisions of this subsection. [Section 627.848(2)(e), Florida Statutes] (g) Within 15 days of receipt of the notification as outlined above and the receipt or credit of any unearned premium, the agent shall return the unearned premium including any unearned commission or other funds due the insured or, with written approval of the insured, apply the unearned premium and unearned commission to other insurance products regulated by the department. Under no circumstances may the agent withhold the return of the unearned commission or unearned premium to the insured after notification by the insurer and premium finance company. [Rule 690-196.010(2)(b), Florida Administrative Code] COUNT Il 28. The above general allegations are realleged and incorporated herein by reference. 29. Onor around September 17, 2004, you, GLENN KENNETH FANNIN, JR., met with Patrick Palmer of Jupiter, Florida, regarding commercial liability coverage for Palmer’s business, Metal Craft of South Florida, Inc. (“Metal Craft”). 30. You, GLENN KENNETH FANNIN, JR., determined that Metal Craft should be insured under Penn America. 31. You, GLENN KENNETH FANNIN, JR., in return for premium payments, gave Palmer a certificate of liability insurance numbered 040316 listing Penn America as the insurer and Metal Craft as the insured, and holding an effective date of September 17, 2004. You, GLENN KENNETH FANNIN, JR., told Palmer that the insurance policy was to follow by mail within 30 days. 32. Palmer did not receive a written policy by mail within 30 days, brought that to your attention, and you, GLENN KENNETH FANNIN, JR., agreed to follow up for him. 33. In the meantime, James Pearson, Palmer’s business consultant, mailed the certificate of liability insurance to several potential Metal Craft clients. 34. | Whereupon Venture Construction, one of Metal Craft’s potential clients, informed Palmer that the policy number on the certificate was bogus. 35. Pearson immediately notified Penn America and learned that policy number 040316 was not a Penn America number, and that said policy did not exist. 36. Palmer and Pearson brought this fraudulent matter to the attention of you, GLENN KENNETH FANNIN, JR., and also notified the Department. 37. You, GLENN KENNETH FANNIN, JR., immediately issued another certificate of liability insurance listing Penn America as the insurer and Metal Craft as the insured, effective December 20, 2004. 38. You, GLENN KENNETH FANNIN, JR., contrary to your words, actions, and written documents, failed to place a commercial liability policy for Metal Craft in September of 2004. 39. As aresult, during the months between September 17, 2004 and December 20, 2004, Metal Craft was uninsured. IT IS THEREFORE CHARGED that you, GLENN KENNETH FANNIN, JR., have violated or are accountable under one or more of the following provisions of the Florida Statutes or Florida Administrative Code, which constitute grounds for the suspension or revocation of your licenses as a Florida insurance agent: (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 of any other law applicable to the business of insurance in the course of dealing under the license or appointment. [Section 626.621(2), Florida Statutes] (e) 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] WHEREFORE, you, GLENN KENNETH FANNIN, JR., 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, 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 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. (c) | Astatement 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) | Astatement 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 120.57(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 10 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_ 24" day of Mot J , 2008. KAREN CHANDLER Deputy Chief Financial Officer CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been furnished by Certified Mail to: GLENN KENNETH FANNIN, JR., 1137 48" Street, West Palm Beach, FL 33407-2301; GLENN KENNETH FANNIN, JR., Direct General/Florida No Fault, 2845 N. Military Trail, Suite #1, West Palm Beach, FL 33409 this aqn day of | Noy , 2008. David J. Busch Senior Attorney Department of Financial Services Division of Legal Services 612 Larson Building Tallahassee, Florida 32399-0333 o STATE OF FLORIDA DEPARTMENT OF FINANCIAL SERVICES DIVISION OF LEGAL SERVICES IN THE MATTER OF: PILEP S trey they Cheat GLENN KENNETH FANNIN, JR. CASE NO.: 90018-08-AG / ELECTION OF PROCEEDING T have received and have read the Administrative Complaint filed by the Florida Department of Financial Services ("Department") against me, including the Notice of Rights contained therein, and I understand my options. I am requesting disposition of this matter as indicated below. (CHOOSE ONE) 1] I do not dispute any of the Department’s factual allegations and I do not desire a hearing. I understand that by waiving my right to a hearing, the Department may enter a final order that adopts the Administrative Complaint and imposes the sanctions sought, including suspending or revoking my licenses and appointments as may be appropriate. I do not dispute any of the Department's factual allegations and I hereby elect a proceeding to be conducted in accordance with Section 120.57(2), Florida Statutes. In this regard, I desire to (CHOOSE ONE): [] Submit a written statement and documentary evidence in lieu of a hearing; or I] Personally attend a hearing conducted by a department hearing officer in Tallahassee; or [] Attend that same hearing by way of a telephone conference call. I do dispute one or more of the Department's factual allegations. I hereby request a hearing pursuant to Section 120.57(1), Florida Statutes, to be held before the Division of Administrative Hearings. 1 have attached to this election form the information required by Rule 28-106.2015, Florida Administrative Code, as specified in subparagraph (c) of the Notice of Rights. Specifically, I have identified the disputed issues of material fact. TO PRESERVE YOUR RIGHT TO A HEARING, YOU MUST FILE YOUR RESPONSE WITH THE DEPARTMENT OF FINANCIAL SERVICES WITHIN TWENTY-ONE (21) DAYS OF YOUR RECEIPT OF THE ADMINISTRATIVE COMPLAINT. THE RESPONSE MUST BE RECEIVED BY THE DEPARTMENT NO LATER THAN 5:00 P.M. ON THE TWENTY-FIRST DAY AFTER YOUR RECEIPT OF THE ADMINISTRATIVE COMPLAINT. The address for filing is: General Counsel acting as Agency Clerk, Florida Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. Signature Print Name Date: Address: Date Administrative Complaint Received: If you are represented by an attorney or qualified Phone No.: representative, please attach to this election form his or her name, address, telephone and fax numbers Fax No.: 13

Docket for Case No: 08-003079PL