Aug 14 2008 3:49 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Aug. 14 2668 7:35AM PS FILED OUN 12 2008 NOTING ALEX SINK Boakoind byt, oe ee Ciuke FINANCIAL OFFICER STATE OF FLORIDA IN ‘THE MATTER OF: CASE NO.: 87374-06-AG PATRICIA ANN GREGORY, AKA PATRICTA MCCLAREN ADMINISTRATIVE COMPLAINT PATRICIA ANN GREGORY 2410 SW 84th Terrace Miramar, FI. 33025 PATRICIA ANN GREGORY Accredited Ingurance Associates, Inc 6099 [lollywood Blyd Suite B Hollywood, FL 33024-7935 You, PATRICIA ANN GREGORY, aka Patricia MeClaren, license [.D. # E175336, are hereby notified that the Chief Financial Officer of the Stale of Florida has caused to be made an investigation of your activities while liconsed as a customer representative in this slate, as a result of which it is alleged: 1. Pursuant to Chapter 626, Florida Statutes, you, PATRICIA ANN GREGORY, are currently licensed in this state as a customer tepresentative. 2. At all times pertinent to the dates and occurrences referred to herein, you, PATRICIA ANN GREGORY, were licensed in this state as a customer representative, Aug 14 2008 3:49 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Aug. 14 2668 @7:SeRM P4 3. At all times pertinent to the dates and occurrences referred to herein, you, PATRICIA ANN GREGORY, were employed at Accredited Insurance Associates, Inc. (“Accredited Insurance”), an incorporated general lines insurance agency. 4. At all times relevant to the dates and occurrences referred to herein, Joanne Athena Manol (“Manol”) was a corporate officer and director of Accredited Insurance. 5. At all times relevant to the dates and occurrences referred to herein, Manol was licensed as a life and variable annuity agent, a life, health and variable annuity agent, a life agent, a life and health agent, a general lines agent, and a health agent. Her license 1.D. number is A164221. 6. From May 18, 2005 to April 20, 2006, you, PATRICIA ANN GREGORY, were appointed. as a customer representative by Manol, pursuant to Section 626.451, Florida Statutes, and Chapter 69B-213, Florida Administrative Code, formerly Chapter 4-213, Florida Administrative Code. 7. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services (“Department”) has jurisdiction over your insurance licenses and appointments. COUNT I 8. The above general allegations are hereby realleged and fully incorporated herein by reference. 9. On October 21,.2005, you, PATRICIA ANN GREGORY, met with IK. of Hallandalc, Florida, at Accredited Insurance. 10. ‘LK. informed you, PATRICIA ANN GREGORY, that she needed windstorm coverage for property located at 200 NE 6" Ave., Hallandale, Florida (“Property”). 11. The Properly was owned by J.K and her husband, J.K. Aug 14 2008 3:50 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Aug. 14 2668 7:36AM PS 12, The Property was used for J.K.’s business, AF Agencies, Inc., a Florida corporation. 13. JK. informed you, PATRICIA ANN GREGORY, that she wanted the windstorm coverage to coincide with her commercial liability coverage. 14, You, PATRICIA ANN GREGORY, provided J.K. a quote for commercial liability coverage with Grenada/Colony Insurance, at an annual premium of $3,482.00, and a quote for windstorm coverage with Citizens Property and Casualty Insurance Company, at an annual premium of $1,100.00. 15. J.K. accepted commercial liability coverage with Grenada/Colony Insurance, at the annual premium of $3,482.00. 16. J.K. accepted windstorm coverage with Citizens, at the annual premium of $1,100.00. 17. At all times relevant to the dates and occurrences referred to herein, no insurance agent cmployed at Accredited Insurance, including Manol, had an active appointment with Citizens or was engaged in the exchange of business with Citizens. 18. At all times relevant to the dates and occurrences referred to herein, no insurance agent or customer representative employed at Accredited Insurance, including you, PATRICIA ANN GREGORY, was permitted to engage in transactions with, or on behalf of, Citizens. 19. J.K. paid the commercial liability coverage with Grenada/Colony Insurance in full. 20. J.K. paid for the commercial liability coverage with Grenada/Colony Insurance by providing you, PATRICIA ANN GREGORY, six checks; one dated October 21, 2005, in the Aug 14 2008 3:50 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Aug. 14 2668 7:36AM Pe amount of $696.40, and five post-dated checks in the amount of $696.40. All the checks were made out to Accredited Insurance. 21. JK. paid the windstorm coverage with Citivens in full, 22. (JK. paid for the windstorm coverage with Citizens by providing you, PATRICIA ANN GREGORY, a check, dated October 21, 2005, in the amount of $1100.00. The check was made payable to Accredited Insurance. 23. You, PATRICIA ANN GREGORY, furnished J.K. a Certificate of Insurance, dated October 21, 2005, indicating that J.K. and J.K. were insured with Granada/Colony Insurance, for commercial building coverage, and Citizens, for windstorm insurance coverage for the Property, for the period of October 22, 2005 to October 22, 2006 (“Certificate of Insurance”). 24, You, PATRICIA ANN GREGORY, caused J.K. to believe she had windstorm coverage on the Property. 25, All the checks J.K. provided to Accredited Insurance were deposited or cashed by Accredited Insurance. 26. Accredited Insurance never obtained windstorm coverage for the Proporty from Citizens or any other insurer. 27. Asaresult, J.K. and J.K. did not have windstorm coverage on the Property when the Properly was damaged by Hurricane Wilma, on October 23 or 24, 2005. 28. ‘The Property sustained damages in excess of $70,000.00. 29. Manol made a claim with Accredited Insurance’s Error and Omissions carricr, AIG, regarding the Certificate of Insurance that you, PATRICIA ANN GREGORY, issued to JK, Aug 14 2008 3:50 FROM : DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 14 2688 BPSrAM Pr IT IS THEREORE CHARGED that you, PATRICLA ANN GREGORY, 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 626.61 1(8), Florida Statutes]; (c) 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]; (ad) A customer representative's license shall not cover life insurance or any kind of insurance for which the agent or agency by which he or she is appointed is not then licensed. [Section 626.7354(1), llorida Statutes |; (e) A customer representative may engage in transacting insurance with customers who have been solicited by any agent or customer representative in the same agency, and may engage in transacting insurance with customers who have not been so solicited to the extent and under conditions that are otherwise consistent with this part and with the insurer's contract with the agent appointing him or her. [Section 626.7354(2), Florida Statutes]; (f) All business transacted by a customer representative under his or her license shall be in the name of the agent or agency by which he or she is appointed, and the agent or agency Aug 14 2008 3:51 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Aug. 14 2668 @7:SrAM Pe shall be responsible and accountable for all acts of the customer representative within the scope of such appointment. [Section 626.7354(5), Florida Statutes]; (g) Violation of any lawful order or rule of the department, commission, or office. [Section 626.62 1(3), Florida Statutes}; (h) A customer representative may only perform customer representative duties as to the specific general lines insurance products which their supervising agent is actually then appointed by an insurer to handle, or which their supervising agent is authorized to handle under exchange of business laws or Joint Underwriting Associations or Workers’ Compensation Insurance Plan rules and contracts. Where the customer representative is employed in an agency with two or more agents, the customer representative may perform customer representative duties for agents other than the supervising agent regarding any general lines insurance product for which such agent is actually then appointed by an insurer to handle, or which such agent is authorized to handle under exchange of business laws or joint underwriting associations or Workers’ Compensation Insurance Plan rules and contracts; provided, however, the supervising agent shall remain accountable and responsible for the acts of the customer representative. [Rule 69B-213.050(1), Fla. Admin. Code]; (i) Tn 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. [Section 626.621(6), Florida Statutes]; Aug 14 2008 3:51 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Aug. 14 2668 @7:SrAM Po (j) Knowingly: a. Filing with any supervisory or other public official, b, Making, publishing, disseminating, circulating, c. Delivering to any person, d. Placing belore the public, e. Causing, directly or indirectly, to be made, published, disseminated, circulated, delivered to any person, or placed before the public, any false material statement. [Section 626.9541(1)(c)1, Florida Statutes]; and (k) Knowingly making a false or fraudulent written or oral statement or representation on, or relative to, an application or negotiation for an insurance policy for the purpose of obtaining a fee, commission, money, or other benefit from any insurcr, agent, broker, or individual. [Section 626.9541(1)(k)1, Florida Statutes]. WUEREIORE, you, PATRICIA ANN GREGORY, are hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking your licenses and appointments as a customer representative or 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 Aug 14 2008 3:51 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 14 2885 @7SeAM Pla 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 the 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 WATVER OF YOUR RIGHT TO REQUEST A PROCEEDING ON THE MATTERS ALLEGED HEREIN AND AN ORDER OF SUSPENSION OR REVOCATION WILL BE ENTERED AGAINST YOU. lf 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 lection 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 matier, 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. Aug 14 2008 8:52 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 14 2688 @7iS3AM Pil (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 ot other qualificd representative at your cxpensc, to present evidence and argument, to call and cross-cxamine wilnesses, and to compel the attendance of witnesses and the production of documents by subpocna. 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 Depariment 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 Adminisirative Law Judge of the Division of Administrative Hearings. Unless the majority of witnesses are located clsowhere, 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. 9 Aug 14 2008 8:52 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Aug. 14 26688 @7:SsAM Pl2 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 _/ , A » 2008. KAREN CHANDLER Deputy Chief I'inancial Officer Aug 14 2008 8:52 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Aug. 14 26688 @PSoAM Pls CERTIFICATE OF SERVICE THEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and KLLECTION OF PROCEEDING has been furnished to: PATRICIA ANN GREGORY, at 2410 SW 84th Terrace, Miramar, l'L 33025, PATRICIA ANN GREGORY, Accredited Insurance Associates, Inc, 60 Hywood Blvd Suite B, [ollywood, FI. 33024- 7935; by Certified Mail this day of 2 » 2008. L 2 Lf | | Robert Alan Fox Senior Attorncy Department of L‘inancial Services Division of Legal Services 612 Larson Building 200 East Gaines Street Tallahassee, Florida 32399-0333 (850) 413-4227

Docket for Case No: 08-003933PL