Aug 25 2010 15:23 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 25 2616 83:24PM PS FILED Nov 13 2009 REPRESENTING ALEX SINK CHIEF FINANCIAL OFFICER STATE OF FLORIDA IN THE MATTER OF: CASE NO.: 107001-09-AG ARTHUR EUGENE WEST, JR. / ADMINISTRATIVE COMPLAINT ARTHUR BUGENE WEST, JR. 3204 Indian Trail Eustis, Florida 32726 You, ARTHUR, EUGENE WEST, JR., license I.D, # F096619, 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 insutance agent in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1 Pursuant to Chapter 626, Florida Statutes, you, ARTHUR EUGENE WEST, JR., are currently licensed in this state asa life and variable annuity agent, and a health agent. 2. At all times pertinent to the dates and occurrences referred to herein, you, ARTHUR EUGENE WEST, JR., were not licensed not in this state as a life and variable annuity agent, 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services (“Department”) has jurisdiction over your insurance licenses and appointments. Docketed by Ss asia Aug 25 2010 15:23 FROM :DEPT OF FINANCIAL SERVICES FAX NO. :8584874987 Aug. 25 2818 B3:24PM Pa COUNT I 4, The above general allegations are hereby realleged and fully incorporated herein by reference, 5, On February 22, 2006, you, ARTHUR EUGENE WEST, JR., met with D.D’A, of The Villages, Florida. ) 6, On that day, you, ARTHUR ZUGENE WEST, JR., sold D.D°A. a variable annuity with Allianz Life Insurance Company of North America (“Allianz”). 7. You, ARTHUR EUGENE WEST, JR., engaged in the solicitation of insurance and the (rangaction of insurance when you attempted to persuade, and did persuade, D.D’A, to purchase a variable annuity with Allianz, 8 You, ARTHUR EUGENE WREST, JR., in relation to D.D’A,;; 1) engaged in preliminary negotiations; 2) described the benefits or.terms of insurance coverage, including premiums or rates of return; 3) distributed an invitation to contract, 4) made general or specific recommendations as to insurance products; 5) completed orders or applications for insurance products; and/or 6) compared insurance products, advising as to insurance matters, or interpreting policies or coverages. 9, You, ARTHUR EUGENE WHS'T, JR., were not licensed as a life and variable annuity agent at the time you sold the Allianz variable annuity to D.D'A, 10, You, ARTHUR EUGENE WEST, JR., were not licensed to sell variable annuities at the time you sold the Allianz variable annuity to D.D’A, IT IS THEREFORE CHARGED that you, ARTHUR EUGENE WEST, JR., have violated or are accountable under one or more of the following provisions of the Florida Statutes Aug 25 2010 15:23 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Aug. 25 2616 83:24PM PS or Florida Administrative Code, which constitute grounds for the suspension or revocation of yout licenses as a Florida insurance agent: (a) No agent or customer representative shall solicit or otherwise transact as agent or customer representative, or represent or hold himself or herself out to be an agent or customer representative as lo, any kind or kinds of insurance as to which he or she is not then licensed and appointed, [Section 626.112(2), Florida Statutes]; (b) Demonstrated lack of fitness or trustworthiness 10 engage in the business of insurance, [Section 626.611(7), Florida Statutes]; (e) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the itansactions 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 626.6] 1(9), Florida Statutes]; and (e) 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 It 11. The above general allegations and paragraphs 5 through 10 are hereby realleged and fully incorporated hercin by reference. 12. You, ARTILUR EUGENE WEST, JR., were not appointed with Allianz at the time you sold the Allianz variable annuity to D.D’A. IT IS THEREFORE CHARGED that you, ARTITUR EUGENE WEST, JR., have violated or are accountable under one or more of the following provisions of the Florida Statutes Aug 25 2010 15:24 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + S584o7r4ogr Aug. 25 2616 83:25PM Pe or Florida Administrative Code, which constitute grounds for the suspension or revocation of your licenses as a Florida insurance agent: (a) No agent or customer representative shall solicit or otherwise transact as agent or customer representative, or represent ot hold himself or herself out to be an agent or customer representative as to, any kind or kinds of insurance as to which he or she is not then licensed and appointed. [Section 626.1 12(2), Florida Statutes]; (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes]; (c) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.6118), Florida Statutes]; (4) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes); and . (e) 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 Il 13. The above general allegations are hereby realleged and fully incorporated herein by reference. 14, On February 22, 2006, you, ARTHUR EUGENE WEST, JR., met with V.D’A. of The Villages, Florida 32162, 15, On that day, you, ARTHUR EUGENE WEST, JR., sold V.D’A, a variable annuity with Allianz. Aug 25 2010 15:24 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 25 2618 83:25PM Pe 16. You, ARTHUR EUGENE WEST, JR,, cngaged in the solicitation of insurance » and the transaction of insurance when you attempted to persuade, and did persuade, V.D’A, to purchase a variable annuity with Allianz, 17, You, ARTHUR RUGENE WEST, JR., in relation to V.D’A,; 1) cngaged in preliminary negotiations; 2) described the benefits or terms of insurance coverage, including premiums or rates of return; 3) distributed an invitation to contract; 4) made general or specific recommendations as to insurance products; 5) completed orders or applications for insurance products; and/or 6) compared insurance products, advising as to insurance matters, or interpreting policies or coverages. 18, You, ARTHUR EUGENE WEST, JR., were not licensed as a life and variable annuity agent at the time you sold the Allianz variable annuity to V.D’A. 19, You, ARTHUR EUGENE WEST, JR., were not licensed to sell variable annuities at the time you sold the Allianz variable annuity to V.D’A, IT IS THEREFORE CHARGED that you, ARTHUR EUGENE WEST, JR., have violated ot 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 ag 4 Florida Insurance agent: (a) No agent or customer representative shall solicit or otherwise transact as agent or ctistomer representative, or represent or hold himself or herself out to be an agent or customer representative as to, any kind or kinds of insurance as to which he or she is not then licensed and appointed, [Section 626.112(2), Florida Statutes); (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance, (Section 626.611(7), Florida Statutes); Aug 25 2010 15:24 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 25 2618 83:25PM Pe (c) 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]; (4) — Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626,611(9), Florida Statutes]; and (e) 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 licensc or appointment. [Section 626.62 1(2), Florida Statutes]. COUNT IY. 20. ‘The above general allegations and paragraphs 14 through 19 are hereby realleged and fully incorporated herein by referetice. 21. You, ARTHUR EUGENE WEST, JR., were not appointed with Allianz at the time you gold the Allianz variable annuity to V.D’A. IT IS THEREFORE CHARGED that you, ARTHUR TUGENE WEST, 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) No agent or customer representative shall solicit or otherwise transact as agent or customer representative, or represent or hold himself or herself out to be an agent or customer reptesentative as to, any kind or kinds of insurance ag to’ which he or she is not then licensed and appointed, [Section 626,112(2), Florida Statutes); . (b) Demonatrated lack of fitness or trustworthiness to engage in the business of insurance, [Section 626,61 1(7), Florida Statutes]; 6 Aug 25 2010 15:25 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 25 2616 83:26PM Po (c) 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]; (4) Fraudulent or dishonest practices in the conduct of business under the license or appointment, [Section 626,611(9), Florida Statutes]; and (e) 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 ot appointment. [Section 626.621(2), Florida Statutes]. WHEREFORE, you, ARTHUR EUGENE, WEST, 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 sst 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 Tracey Beal, DFS Agency Clerk, at the Florida Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0390. Your written response must be received by the Department no Aug 25 2010 15:25 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 25 2616 83:26PM Plea 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 (Lor 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. (4) A statement of when the respondent received notice of the administrative complaint, (e) A statement including the file number of the administrative complaint. If a heaving 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 Aug 25 2010 15:25 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 29 2618 3:26PM Pil 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 Heatings. 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 ghal! operate as a valid tequest for an administrative proceeding, Any request for an administrative proceeding reccived prior to the date of this notice shall be deemed abandoned unless timely renewed in compliance with the guidelines as set out above, Aug 25 2010 15:26 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 25 2618 B3:2rPM Pile 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 9 eddy Abarnbire. 2009, “DWirervia clacton. . TAMMY TEST(N Deputy Chief Financial Officer Aug 25 2010 15:26 FROM :DEPT OF FINANCIAL SERVICES FAX NO. + 85845749? Aug. 29 2618 @3:2rPM Pls I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been furnished to: AR THUR EUGENE WEST, JR, al 3204 Indian Trail, Eustis, Florida 32726, by Certified Mail this ay of A Drenden! 2009. Rober Alan Fox Senior Attorney Department of Financial Services Division of Legal Services 612 Larson Building 200 East Gaines Street Tallahassce, Florida 32399-0333 (850) 413-4103 a)

Docket for Case No: 10-008290PL