iw ft Ky et aye! 080CT31 py 2:30 g F. FILED uns oct 7 2008 ONSYTL 4 a CASE NO.: 89475-07-AG REPRESENTING ALEX SINK CHIEF FINANCIAL OFFICER} STATE OF FLORIDA IN THE MATTER OF: KENNETH RICHARD SZCZEPANEK / ADMINISTRATIVE COMPLAINT TO: KENNETH RICHARD SZCZEPANEK 626 Longmeadow Circle Longwood, Florida 32779 KENNETH RICHARD SZCZEPANEK 1707 North Mills Avenue Orlando, Florida 32803 You, KENNETH RICHARD SZCZEPANEK, 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, KENNETH RICHARD SZCZEPANEK, currently are licensed in this state as a general lines agent. At all times relevant to the dates and occurrences referenced herein, you, KENNETH RICHARD SZCZEPANEK, were licensed in this state as a general lines agent. Your license identification number is A259609. 2. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services (hereinafter referred to as the “Department”) has jurisdiction over your licenses and appointments. 3. At all times relevant to the dates and occurrences referenced herein you, KENNETH RICHARD SZCZEPANEK, were president of Florida Insurance Planners & Financial Services, Inc., an incorporated general lines insurance agency. COUNT I 4. The above General Allegations are hereby realleged and fully incorporated herein by reference. 5. Between October 31, 2003 and October 9, 2004, unlicensed agent Robert Seay solicited and transacted workers’ compensation insurance as an employee of Gulf Risk Services, Inc., an incorporated general lines insurance agency. Robert Seay was not licensed to sell workers’ compensation insurance. 6. Between October 31, 2003 and October 9, 2004, you, KENNETH RICHARD SZCZEPANEK, signed forty-six (46) workers’ compensation insurance applications taken by Robert Seay and, in so doing, aided and abetted Robert Seay in violating the insurance code. 7. The forty-six (46) workers’ compensation insurance applications signed by you, KENNETH RICHARD SZCZEPANEK, were submitted by Gulf Risk Services, Inc., to Florida Workers’ Compensation Joint Underwriting Association, Inc. (“FWCJUA”). 8. You, KENNETH RICHARD SZCZEPANEK, were an authorized agent of FWCJUA. Robert Seay was not. 9. FWCJUA mailed all correspondence regarding the workers’ compensation insurance applications signed by you to “Agent Kenneth R. Szczepanek, Gulf Risk Services, Inc., Post Office Box 51563, Sarasota, Florida 34232.” 10. You, KENNETH RICHARD SZCZEPANEK, never had any contact with the forty-six (46) consumers whose workers’ compensation insurance applications you signed for Robert Seay. 11. You, KENNETH RICHARD SZCZEPANEK, knew that Robert Seay was not licensed to transact insurance. IT IS THEREFORE CHARGED that you, KENNETH RICHARD SZCZEPANEK, 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) No person shall transact insurance in this state, or 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 624.11(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]. (c) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (d) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(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]; (f) 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]; (g) 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]; (h) 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]; (i) 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 insurer, agent, broker, or individual. [Section 626.9541(k)1, Florida Statutes] WHEREFORE, you, KENNETH RICHARD SZCZEPANEK, 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 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 Code. 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. 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. (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 120.57(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. 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 "]%_day of _DetObe , 2008. TAMMY re A Deputy Chief Financial Officer CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and the following ELECTION OF PROCEEDING has been furnished to: KENNETH RICHARD SZCZEPANEK, 626 Longmeadow Circle, Longwood, Florida 32779 and KENNETH RICHARD SZCZEPANEK, 1707 North Mills Avenue, Orlando, Florida 32803, by U.S. Mail this © day of OctplyA__. 2008. isfon of Legal Services 200 East Gaines St. 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4210 Florida Bar Number 689793

Docket for Case No: 08-005472PL