FROM :DEPT OF FINANCIAL SERVICES IN THE MATTER OF: MARY C., IRVING TO: MARYC. IRVING 1591 Oak Circle North Sarasota, Florida 34232 MARY C. IRVING 6300 University Parkway / Now FAX NO. 1 858437r4oe? REPRESENTING ALEX SINK CHIgF FINANCIAL OFFICER STATE OF FLORIDA ADMINISTRATIVE COMPLAINT Sarasota, Florida 34240-8424 6 2008 11:18 Nov. 66 2665 11:25AM PS FILED OCT 7 2008 Dootardtyn YA. CASE NO.: 87288-06-AG You, MARY C. IRVING, are hereby: notified that the Chief Financial Officer of the State of Florida has caused to be made an investigation of your activities while licenscd 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, MARY C. IRVING, currently are licensed in this state as a general lines agent. At all times relevant to the dates and occurrences referenced herein, you, MARY C. IRVING, were licensed in this state as a gencral lines agent. Your license identification number is D084272. Nov 6 2008 11:18 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Nov. 66 2665 11:25AM P4 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, MARY C. IRVING, were the owner, president, C.E.O, and the agent of record for Gulf Risk Services, Ine. (“Gulf Risk”). | 4, At all times relevant to the dates and occurrences referenced herein, your husband, Robert Edward Seay, was cmployed by you, MARY C. IRVING, at Gulf Risk as, “President of Underwriting and Marketing.” 5. At all times relevant to the dates and occurrences referenced herein, your husband, Robert Edward Seay, was under your direct supervision and control as your employee at Gulf Risk. 6. At all times relevant to the dates and occurrences referenced herein, your husband, Robert Edward Seay, was your only employee at Gulf Risk. 7. At all times relevant to the dates and occurrences referenced herein, your husband, Robert Edward Seay, was an unlicensed insurance agent. 8. Section 626.112(1)(a), Florida Statutes provides that, “[n]o person may be, act as, or advertise or hold himself or herself out to be an insurance agent, or customer representative unless he or she is currently licensed by the department and appointed by an appropriate appointing entity or person.” 9. Section 624.11(1), Mlorida Statutes provides that, “{nJo 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.” Nov 6 2008 11:18 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Nov. 66 2668 11:25AM PS 10. At all times relevant to the dates and occurrences referenced herein, your husband and sole employee, Robert Edward Seay, transacted insurance without a license and in so doing violated Section 624.10, Section 624.11(1), and Section 626.112(]), Florida Statutes. COUNT 9. ‘The above General Allcgations are hereby realleged and fully incorporated herein by reference. 10. In 2003, 2004, and 2005, unlicensed agent Robert Seay solicited and transacted workers’ compensation insurance for Gulf Risk Services, Inc. Your sole employee and husband, Robert Seay, was not licensed to sell this insurance product and having done so was a violation of Florida Statutes and Florida Administrative Code. 11. In 2003, 2004, and 2005, unlicensed agent Robert Seay had three licensed insurance agents sign workers’ compensation insurance applications associated with thesc transactions. 12. All three licensed insurance agents knew that Robert Seay was not licensed and was working for Gulf Risk. None of them had contact with the consumers. 13. Over one hundred (100) workers’ compensation insurance applications were submitted by Gulf Risk Services, Inc., to Florida Workers’ Compensation Joint Underwriting Association, Inc. (“FWCIUA”), alt of which were solicited and transacted by your sole employee, unlicensed agent Robert Seay. 14. According to swom testimony given by Robert Seay on May 30, 2008, you, MARY C. IRVING, knew that Robert Seay was not licensed to transact insurance. Les] Nov 6 2008 11:18 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Nov. G6 2668 11:25AM Pe 15, You, MARY C. IRVING, in your capacity as C.E.O. of Gulf Risk, are responsible for the unlicensed transaction of insurance engaged in by your employee and husband Robert Seay. IT IS THEREFORE CHARGED that you, MARY C. IRVING, 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) Lf 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]; (b) Demonstrated Jack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes}; (©) 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]; (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 ot 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 insurarice in the course of dealing under the license or appointment. |Scction 626.621(2), Florida Statutes]; Nov 6 2008 11:19 FROM : DEPT OF FINANCIAL SERVICES FAX NO. 285845 749R7? Nov. G6 2668 11:29AM P? (g) Violation of any lawful order or rule of the department, commission, or office. [Section 626.621(3), Florida Statutes); (h) 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]; (i) Knowingly aiding, assisting, procuring, advising, or abetting any person in the violation of or 1o violate a provision of the insurance code or any order or rule of the department, commission, ot office, [Scction 626.621(12), Florida Statutes}; (j) Any general lines insurance agent who is an officer, director, or stockholder of an incorporated general lines insurance agency shall remain personally and fully liable and accountable for any wrongful acts, misconduct, or violations of any provisions of this code committed by such licensee or by any person under his or her direet supervision and control while acting on behalf of the corporation. Nothing in this section shall be construed to render any person criminally liable or subject to any disciplinary proceedings for any act unless such person personally committed or knew or should have known of such acts and of the facts constituting a violation of this chapter. [Section 626.734, Florida Statutes]. (k) Knowingly making a false or Sraudulent written or oral statement or representation on, or relative to, an application or negolialion 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] Nov 6 2008 11:19 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Nov. 66 2668 11:25AM Pe WHEREFORE, you, MARY C. IRVING, 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 jater 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 WEREIN AND AN ORDER OF SUSPENSION OR REVOCATION WILL BE ENTERED AGAINST YOU, Nov 6 2008 11:19 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Nov. 66 2665 11:29AM Pa If you request a proceeding, you must provide information that complies with the requirements of Rule 28-106.2015, Florida Adminisirative 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 Nov 6 2008 11:20 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Nov. 66 2668 11:36AM Plea 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 shal] operate as a valid request for an administrative proceeding. Any request for an adminisirative 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 7th day of Ob S01 Wr , 2008. TAMMY ‘STON Deputy Chief Financial Officer Nov 6 2008 11:20 FROM : DEPT OF FINANCIAL SERVICES FAX NO. 285845 749R7? Nov. G6 2668 11:36AM Pil CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and the following EI.ECTION OF PROCEEDING has been furnished to. MARY Cc. IRVING, 1591 Oak Circle North, Sarasota, Florida 34232; MARY C. IRVING, 6300 University Parkway, Sarasota, Florida 34240-8424, by U.S. Mail this ‘iALday of ial 2008 Cin ben Gafitier Kitchen, Fldridad epartment of Financial Services Division 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: 08-005583PL