IN THE MATTER OF: MARK HUNT DORFMAN
REPRESEl\"f!NG
ALEX SINK
CHIEF FINANCIAL OFFICER STATE OF FLORIDA
/
MAR 22 2010
Docketed by a#
CASE NO: 109421-10-AG
ADMINISTRATIVE COMPLAINT
TO: MARK HUNT DORFMAN
c/o Gene Leverty, Esq. Leverty & Associates CHTD 832 Willow Street
Reno, Nevada 89502
You, MARK HUNT DORFMAN, are hereby notified that the Chief Financial Officer of the State of Florida has caused to be made and investigation of your activities while licensed as an insurance agent in this state, as a result of which it is alleged:
GENERAL ALLEGATIONS
1
i. Pursuant to Chapter 626, Florida Statutes, you, MARK HUNT DORFMAN, are currently licensed in this state as a General Lines (Property and Casualty)(2-20) agent.
At all times pertinent to the allegations contained within this administrative complaint, you, MARK HUNT DORFMAN, were licensed in this state as an insurance agent, license number A070741.
At all times material hereto, you, MARK HUNT DORFMAN, were the director,
owner and agent-in-charge of an insurance agency known as Risk Management Center ("RMC") located at 2300 Palm Lakes Boulevard, Suite 304, West Palm Beach, Florida 33409.
RMC is a duly licensed insurance agency in this state, having been issued license number L047265.
Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services ("Department") has jurisdiction over your insurance license and appointments.
COUNT!
The above General Allegations are hereby re-alleged and incorporated herein by reference.
On or about November 2005, Physicians Indemnity Risk Retention Group, Inc. ("PIRRG"), a risk retention group domiciled in Nevada and authorized to do business in Florida, entered into a contract with RMC to provide management services for PIRRG, including, but not limited to, marketing, policy issuance, claims management, and compliance. You, MARK HUNT DORFMAN, signed this contract on behalf ofRMC.
Beginning on February 8, 2007, you, MARK HUNT DORFMAN, were appointed to transact insurance by, and on behalf of, PIRRG.
On November 5, 2009, PIRRG cancelled your appointment.
You, MARK HUNT DORFMAN, were aware of the termination.
Subsequent to PIRRG's termination of your appointment, you, MARK HUNT DORFMAN, continued to act as if appointed by PIRRG.
On February 2 and 22, 2010, Department investigators conducted an inspection of
RMC.
The inspection revealed that RMC's agency files contained at least 14 PIRRG
applications for medical malpractice that were signed after the termination of your appointment.
You, MARK HUNT DORFMAN, continued to provide quotes to consumers, sign premium finance agreements as "agent or broker," sign coverage summaries as "authorized representative" of PIRRG, and sent documentation on behalf of PIRRG encouraging policyholders to renew their policies after your appointment was terminated.
You, MARK HUNT DORFMAN, also took premium payments from policyholders on behalf of PIRRG after your appointment was terminated.
You, MARK HUNT DORFMAN, failed to remit those premium payments to PIRRG.
You, MARK HUNT DORFMAN, continued to encourage policyholders to submit premiums for their PIRRG policies to RMC, despite RMC's lack of authority to operate on behalf of PIRRG after your appointment was terminated.
You, MARK HUNT DORFMAN, issued Certificates of Insurance to policyholders on behalf of PIRRG, representing the Certificates as being sent from PIRRG, despite your lack of authority to operate on behalf of PIRRG after your appointment was terminated.
After the termination of your appointment, you, MARK HUNT DORFMAN, represented to multiple policyholders that you, MARK HUNT DORFMAN, retained the ability to act on behalf of RMC.
Although you, MARK HUNT DORFMAN, and PIRRG are currently litigating matters related to your Management Agreement, the presiding judge declined to order PIRRG to reinstate your terminated appointment pending the outcome of the litigation.
IT IS THERFORE CHARGED THAT you, MARK HUNT DORFMAN, 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 license and such other penalties as are identified in the "Wherefore" section of this administrative complaint:
Section 626.611(5), Florida Statutes, provides that it is violative of the Insurance Code to engage in willful misrepresentation of an insurance policy or willful deception with regard to the policy.
Section 626.611(7), Florida Statutes, provides that it is violative of the Insurance Code to demonstrate a lack of fitness or trustworthiness to engage in the business of insurance.
Section 626.611(8), Florida Statutes, provides that it is violative of the Insurance Code to demonstrate a lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by a license or appointment.
Section 626.611(9), Florida Statutes, which provides that it is violative of the Insurance Code to engage in fraudulent or dishonest practices in the conduct of business under a license or appointment.
Section 626.611(10), Florida Statutes, which provides that it is violative of the Insurance Code to misappropriate, convert, or unlawfully withhold moneys belonging to insurers or insureds or beneficiaries or to others received in conduct of business under a license or appointment.
Section 626.621(4), Florida Statutes, which provides that it is violative of the Insurance Code to fail or refuse, upon demand, to pay over to any insurer any money coming into an insurance agent's hands belonging to the insurer.
Section 626.621(6), Florida Statutes, which provides that it is violative of the Insurance Code to, while in the conduct of business under the license or appointment, engage in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part IX of this chapter, or otherwise show yourself to be a source of injury or loss to the public.
Section 626.9521(1), Florida Statutes, which provides that it is violative of the Insurance Code to engage in this state in any trade practice which is defined in the part as, or determined pursuant to s.626.951 ors. 626.9561 to be, an unfair method of competition or and unfair or deceptive act or practice involving the business of insurance.
Section 626.9541(1)(a)l., Florida Statutes, which provides that it is violative of the Insurance Code to knowingly make, issue, circulate, or cause to be made, issued, or circulated, any estimate, illustration, circular, statement, sales presentation, omission, or comparison which misrepresents the benefits, advantages, conditions, or terms of any insurance policy.
G) Section 626.9541(1)(b), Florida Statutes, which provides that it is violative of the Insurance Code to knowingly make, publish, disseminate, circulate, or place before the public, or cause, directly or indirectly, to be made, published, disseminated, or circulated, or placed before the public: in a newspaper, magazine, or other publication; in the form of a notice, circular, pamphlet, letter, or poster; over any radio or television station; or in any other way, an advertisement, announcement, or statement containing any assertion, representation, or statement with respect to the business of insurance, which is untrue, deceptive or misleading.
Section 626.9541(1)(e), Florida Statutes, which provides that it is violative of the Insurance Code to knowingly file with any supervisory or other public official, make, publish, disseminate, circulate, deliver to any person, place before the public, or cause, 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)(1), Florida Statutes, which provides that it is violative of the Insurance Code to knowingly make any misleading representations or incomplete or fraudulent comparisons or fraudulent material omission of or with respect to any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on, or convert any insurance policy or to take out a policy of insurance in another insurer.
(m) Section 626.311(4), Florida Statutes, which provides that no agent licensee shall transact or attempt to transact under his license any line of insurance for which he does not have currently in force of record with the department an appointment by an authorized insurer.
COUNT II
The above General Allegations are hereby re-alleged and incorporated herein by reference.
Since October 9, 2009, you, MARK HUNT DORFMAN, have maintained with the Department that your business address is 10404 Carmen Lane in Royal Palm Beach, Florida.
The Department investigation, which included an inspection of RMC, revealed that your business address is actually 2300 Palm Beach Lakes Boulevard in West Palm Beach, Florida.
You, MARK HUNT DORFMAN, failed to update your business address with the Department.
IT IS THERFORE CHARGED THAT you, MARK DORFMAN 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 such other penalties as are identified in the "Wherefore" section of this administrative complaint:
Section 626.551, Florida Statutes, which provides that every licensee shall notify the department in writing within 60 days after a change of name, residence address, principal business street address, mailing address, contact telephone numbers, including a business telephone number, or e-mail address.
Section 626.611(7), Florida Statutes, which provides that it is violative of the Insurance Code to demonstrate a lack of fitness or trustworthiness to engage in the business of msurance.
Section 626.611(8), Florida Statutes, which provides that it is violative of the Insurance Code to demonstrate a lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by a license or appointment.
WHEREFORE, you, MARK HUNT DORFMAN, 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, 626.692, 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 Julie Jones, 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:
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").
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.
A statement requesting an administrative hearing identifying those material facts that are in dispute. If t.liere are none, the petition must so indicate.
A statement of when the respondent received notice of the administrative complaint.
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.
r, Agents and Agency
Services
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: MARK HUNT DORFMAN, c/o Gene L verty, Es'!:s, Leverty & Associates CHTD, 832 Willow
Street, Reno, Nevada 89502 this Q{J day of l'Ja,,rc..[ , 2010.
Cll!L
Ellen M. Simon
Department of Financial Services Division of Legal Services
612 Larson Building
Tallahassee, Florida 32399-0333
