| FILED JAN 17 2012 CHIEF FINANCIAL OFFICER JEFF ATWATER Docketed by STATE OF FLORIDA IN THE MATTER OF: CASE NO.: 122816 -12-AG JOHN ROBERT KOKO / JOHN ROBERT KOKO 29750 U.S. Highway 19 North, Suite 203 Clearwater, Florida 33761 1308 Preservation Way Oldsmar, FL 34677 ADMINISTRATIVE COMPLAINT You, JOHN ROBERT KOKO, license I.D. # A144415, 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, as a result of which it is alleged: GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, JOHN ROBERT KOKO, are currently licensed in this state as a life including variable annuity and health agent, a home warranty agent, and an automobile warranty agent. 2. At all times pertinent to the dates and occurrences referred to herein you, JOHN ROBERT KOKO, were licensed in this state as a nonresident life and health agent. 3. At all times pertinent to the dates and occurrences referred to herein you, JOHN ROBERT KOKO, were an officer and director with direct supervision and control of Benco Filed February 13, 2012 2:40 PM Division of Administrative Hearings Insurance Planners, Inc., a licensed insurance agency operating under licenses 1.D. # L051534, L051879, L051880, L051881, L051538, as well as its employees. 4. At all times pertinent to the dates and occurrences referred to herein you, JOHN ROBERT KOKO, were an officer and director with direct supervision and control of Alco Associates, Inc., a licensed insurance agency operating under license I.D. # L052008, as well as its employees. 5. At all times pertinent to the dates and occurrences referred to herein you, JOHN ROBERT KOKO, were an officer and director with direct supervision and control of Benco Alco Property and Casualty, Inc., a licensed insurance agency operating under license I.D. # L069734, as well as its employees. 6. At all times pertinent to the dates and occurrences referred to herein, Keith Aviles was a licensed life including variable annuity and health agent employed by Benco Insurance Planners, Inc. and/or Alco Associates, Inc. 7. At all times pertinent to the dates and occurrences referred to herein, Christina Briscoe was a licensed life including variable annuity and health agent employed by Benco Insurance Planners, Inc. and/or Alco Associates, Inc. 8. At all times pertinent to the dates and occurrences referred to herein, Eugenia Stewart-Harris was a licensed life including variable annuity and health agent employed by Benco Insurance Planners, Inc. and/or Alco Associates, Inc. 9. At all times pertinent to the dates and occurrences referred to herein, Doreen Hines was a licensed life including variable annuity and health agent employed by Benco Insurance Planners, Inc. and/or Alco Associates, Inc. 10. ‘At all times pertinent to the dates and occurrences referred to herein, Joseph Hozian was a licensed life and health agent, a general lines agent, and a health agent employed by Benco Insurance Planners, Inc. and/or Alco Associates, Inc. 2 11. At all times pertinent to the dates and occurrences referred to herein, Dorothea Manns (now known as Dorothea Pack) was a licensed life including variable annuity and health agent employed by Benco Insurance Planners, Inc. and/or Alco Associates, Inc. 12. At all times pertinent to the dates and occurrences referred to herein, Angela Jones was a licensed life including variable annuity and health agent employed by Benco Insurance Planners, Inc. and/or Alco Associates, Inc. 13. At all times pertinent to the dates and occurrences referred to herein, Danice Leal was a licensed life including variable annuity agent and a licensed health agent employed by Benco Insurance Planners, Inc. and/or Alco Associates, Inc. 14. ‘At all times pertinent to the dates and occurrences referred to herein, Joann Neveroski was a licensed life including variable annuity and health agent employed by Benco Insurance Planners, Inc. and/or Alco Associates, Inc. 15. At all times pertinent to the dates and occurrences referred to herein, Meryl Peters was a licensed life including variable annuity and health agent, a life including variable annuity agent, a health agent, a life agent, and a life and health agent, employed by Benco Insurance Planners, Inc. and/or Alco Associates, Inc. 16. At all times pertinent to the dates and occurrences referred to herein, Sandy Shapiro was a licensed life and health agent, life agent, and health agent employed by Benco Insurance Planners, Inc. and/or Alco Associates, Inc. 17. At all times pertinent to the dates and occurrences referred to herein, Jacqueline Stevens was a licensed life including variable annuity and health agent and a personal lines agent employed by Benco Insurance Planners, Inc. and/or Alco Associates, Inc. 18. At all times pertinent to the dates and occurrences referred to herein, the Benco Insurance Planners, Inc. and/or Alco Associates, Inc. agents listed in the general allegations were acting within the scope of their employment and on behalf of Benco Insurance Planners, Inc. and/or Alco Associates, Inc. 19. As an officer and director with direct supervision and control of Benco Insurance Planners, Inc. and Alco Associates, Inc., you, JOHN ROBERT KOKO, knew or should have known of the acts of the agents referenced in this Administrative Complaint. 20. Pursuant to Section 626.839, Florida Statutes, any health insurance agent who is an officer, director, or stockholder of an incorporated health 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 direct supervision and control while acting on behalf of the corporation. 21. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Financial Services (“Department”) has jurisdiction over your insurance licenses and appointments. COUNT I 22. The above general allegations are hereby realleged and fully incorporated herein by reference. 23. Between September of 2009 and April of 2010, the Benco Insurance Planners, Inc. and/or Alco Associates, Inc. agents listed in the general allegations, while acting within their scope of employment as employees of Benco Insurance Planners, Inc. and/or Alco Associates, Inc., sold or assisted in selling health insurance policies to be issued through a health benefit association known as CEO Health Plan/AIM Health Plans, Inc. (““CEO/AIM policies”), to approximately 32 consumers. 24. | The CEO/AIM policies referenced in this count were sold to consumers who came to Benco Insurance Planners, Inc. and/or Alco Associates, Inc., for the purpose of purchasing health insurance products. 25. | The CEO/AIM policies referenced in this count were not placed with any insurer authorized to provide health insurance in this state, and were never underwritten by any such authorized insurer. 26. | You, JOHN ROBERT KOKO, knew or should have known that the approximately 32 CEO/AIM policies purchased through Benco Insurance Planners, Inc. and/or Alco Associates, Inc. would not provide the consumers with the health coverage which they specifically sought to obtain. 27. You, JOHN ROBERT KOKO, knew or should have known that the approximately 32 CEO/AIM policies referenced in this count were not placed with an authorized insurer, and were never underwritten by an authorized insurer. 28. You, JOHN ROBERT KOKO, and the Benco Insurance Planners, Inc. and/or Alco Associates, Inc. agents listed in the general allegations, received compensation for the approximately 32 CEO/AIM policies. The monies received as compensation, stemming from commissions on premiums paid by unsuspecting consumers for an unauthorized product, rightfully belong to the respective consumers. 29. Some of the 32 consumers enrolled in the CEO/AIM policies through Benco Insurance Planners, Inc. and/or Alco Associates, Inc. incurred medical expenses that were not paid by the unauthorized insurer. 30. During his enrollment in the CEO/AIM policy, consumer J.B. of The Villages, Florida, one of the consumers listed in Paragraph 23 of this count, incurred over $60,000 in medical expenses which were not paid by the CEO/AIM health plan. At least some of those expenses would have been covered if the CEO/AIM policy had been underwritten by an authorized insurer. 31. During her enrollment in the CEO/AIM policy, consumer D.R. of St. Petersburg, Florida, one of the consumers listed in Paragraph 23 of this count, incurred over $80,000 in medical expenses which were not paid by the CEO/AIM health plan. At least some of those expenses would have been covered if the CEO/AIM policy had been underwritten by an authorized insurer. 32. During his enrollment in the CEO/AIM policy, J.R. of Ocala, Florida, one of the consumers listed in Paragraph 23 of this count, incurred approximately $120 in health related expenses which were not paid by the CEO/AIM health plan. At least some of those expenses would have been covered if the CEO/AIM policy had been underwritten by an authorized insurer. IT IS THEREFORE CHARGED that you, JOHN ROBERT KOKO, have violated or are accountable under one or more of the following provisions of the Florida Statutes, which constitute grounds for the suspension or revocation of your licenses as a Florida insurance agency: (a) Section 626.611(7), Florida Statutes, which provides that it is a violation for a licensee to demonstrate a lack of fitness or trustworthiness to engage in the business of insurance. (b) Section 626.611(8), Florida Statutes, which provides that it is a violation to demonstrate lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by a license or appointment. (c) Section 626.611(10), Florida Statutes, which provides that it is a violation to misappropriate, convert, or unlawfully withhold moneys belonging to insurers or insureds or beneficiaries and received in the conduct of business under the license or appointment. (d) Section 626.621(2), Florida Statutes, which provides that it is a violation to violate 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. (e) Section 626.621(6), Florida Statutes, which provides in part that it is a violation of law, in the conduct of business under a license or appointment, to engage in unfair methods of competition or in unfair or deceptive acts or practices as prohibited in Part IX of Chapter 626, Florida Statutes or having otherwise shown himself or herself to be a source of injury or loss to the public. (f) Section 626.901(1), Florida Statutes, which provides that it is a violation for any person to, from offices or by personnel or facilities located in this state, or in any other state or country, directly or indirectly act as agent for, or otherwise represent or aid on behalf of another, any insurer not then authorized to transact such insurance in this state in the solicitation, negotiation, procurement, or effectuation of insurance or annuity contracts, or renewals thereof or in any other manner represent or assist such an insurer in the transaction of insurance with respect to subjects of insurance resident, located, or to be performed in this state. (g) Section 626.901(2), Florida Statutes, which provides that if an unauthorized insurer fails to pay in full or in part any claim or loss within the provisions of any insurance contract which is entered into in violation of this section, any person who knew or reasonably should have known that such contract was entered into in violation of this section and who solicited, negotiated, took application for, or effectuated such insurance contract is liable to the insured for the full amount of the claim or loss not paid. (h) — Section 626.9521(1), Florida Statutes, which provides that no person shall engage in this state in any trade practice which is defined in Part IX of Chapter 626 as an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance (i) Section 626.9541(1)(a)1., Florida Statutes, which provides that it is an unfair method of competition or an unfair or deceptive act to knowingly make a statement that misrepresents the benefits, advantages, conditions, or terms of any insurance policy. (j) Section 626.9541(1)(k)1., Florida Statutes, which provides that it is a violation to knowingly make a false or fraudulent written or oral statement 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. (k) Section 626.839, Florida Statutes, which provides that any health insurance agent who is an officer, director, or stockholder of an incorporated health insurance agency shall remain 7 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 direct supervision and control while acting on behalf of the corporation. WHEREFORE, you, JOHN ROBERT KOKO, 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, 626.901, 626.910, 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, 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 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. (ec) A statement including the file number of 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 9 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 \7q day of “S Cunuee st , 2012. p Greg~Fhromas ’ Director, Division of Agent and Agency Services 10 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE Assistant General Counsel Fla. Bar. No.: 0087965 Department of Financial Services Division of Legal Services 612 Larson Building 200 East Gaines Street Tallahassee, Florida 32399-0333 (850) 413-4172 STATE OF FLORIDA DEPARTMENT OF FINANCIAL SERVICES DIVISION OF LEGAL SERVICES IN THE MATTER OF: JOHN ROBERT KOKO CASE NO.: 122816 -12-AG ELECTION OF PROCEEDING I have received and have read the Administrative Complaint filed by the Florida Department of Financial Services ("Department") against me, including the Notice of Rights contained therein, and I understand my options. I am requesting disposition of this matter as indicated below. (CHOOSE ONE) 1] 3.0] I do not dispute any of the Department’s factual allegations and I do not desire a hearing. I understand that by waiving my right to a hearing, the Department may enter a final order that adopts the Administrative Complaint and imposes the sanctions sought, including suspending or revoking my licenses and appointments as may be appropriate. I do not dispute any of the Department's factual allegations and I hereby elect a proceeding to be conducted in accordance with Section 120.57(2), Florida Statutes. In this regard, I desire to (CHOOSE ONE): [] Submit a written statement and documentary evidence in lieu of a hearing; or {] Personally attend a hearing conducted by a department hearing officer in Tallahassee; or [] Attend that same hearing by way of a telephone conference call. I do dispute one or more of the Department's factual allegations. I hereby request a hearing pursuant to Section 120.57(1), Florida Statutes, to be held before the Division of Administrative Hearings. I have attached to this election form the information required by Rule 28-106.2015, Florida Administrative Code, as specified in subparagraph (c) of the Notice of Rights. Specifically, I have identified the disputed issues of material fact. TO PRESERVE YOUR RIGHT TO A HEARING, YOU MUST FILE YOUR RESPONSE WITH THE DEPARTMENT OF FINANCIAL SERVICES WITHIN TWENTY-ONE (21) DAYS OF YOUR RECEIPT OF THE ADMINISTRATIVE COMPLAINT. THE RESPONSE MUST BE RECEIVED BY THE DEPARTMENT NO LATER THAN 5:00 P.M. ON THE TWENTY-FIRST DAY AFTER YOUR RECEIPT OF THE ADMINISTRATIVE COMPLAINT. The address for filing is: Julie Jones, DFS Agency Clerk, Florida Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0390. Signature Print Name Date: Address: Date Administrative Complaint Received: If you are represented by an attorney or qualified Phone No.: representative, please attach to this election form his or her name, address, telephone and fax numbers Fax No.: 12

Docket for Case No: 12-000550PL