CHIEF FINANCIAL OFFICER, JEFF ATWATER STATE OF FLORIDA IN THE MATTER OF: ERIN KLICH / ADMINISTRATIVE COMPLAINT Erin Klich c/o Jason Holtz Holtz, Mahshie, & DeCosta, P.A. 1560 Matthew Drive, Suite E Fort Myers, FL 33907 FILED NOV 03 2015 Docketed by SLU CASE NO.: 178266-15-AG Erin Klich (hereinafter “Respondent”), is hereby notified that pursuant to chapter 626, Florida Statutes, the Chief Financial Officer of the State of Florida has caused to be made an investigation of her 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, Respondent is currently licensed in this state as a life including variable annuity and health agent (2-15), License #W046678, and has been so licensed since February 4, 2012. () C) 2. Pursuant to chapter 626, Florida Statutes, the Florida Department of Financial Services (hereinafter “Department") has jurisdiction over Respondent’s insurance licenses and appointments. COUNT I 3. The above general allegations are hereby realleged and fully incorporated herein by reference. 4, On or around March 20, 2014, Respondent submitted an application for a life insurance policy (hereinafter the “D.K. Application”) with Lincoln Heritage Life Insurance Company (hereinafter “Lincoln Heritage”) on behalf of consumer D.K. 5. D.K. never met with Respondent and did not complete the D.K. Application or request the corresponding policy from Lincoln Heritage. 6. The D.K. Application Respondent submitted contained D.K.’s banking information and appeared to bear D.K.’s signature. 7, D.K. did not provide Respondent with D.K.’s banking information. 8 | DK. did not sign the D.K. Application Respondent submitted to Lincoln Heritage. 9. The D.K. Application Respondent submitted included an outdated address for D.K. and misspelled the last name of D.K.’s son. IT IS THEREFORE CHARGED that Respondent has violated one or more of the following provisions of the Florida Statutes and Florida Administrative Code, which constitutes grounds for the suspension or revocation of her licenses and appointments: () C) (a) Section 626.611(1)(g), Florida Statutes, which provides that the Department shall suspend, revoke, or refuse to continue or renew the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any agent who has demonstrated a lack of fitness or trustworthiness to engage in the business of insurance. (b) Section 626.611(1)(i), Florida Statutes, which provides that the Department shall suspend, revoke, or refuse to continue or renew the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any agent who has engaged in fraudulent or dishonest practices in the conduct of business under the license or appointment. (c) Section 626.611(1)(m), Florida Statutes, which provides that the Department shall suspend, revoke, or refuse to continue or renew the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any agent who has willfully violated any rule of the Department or provision of the insurance code. (d) Section 626.621(2), Florida Statutes, which provides that the Department may, in its discretion, suspend, revoke, or refuse to renew or continue the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any agent who has violated any provision of the insurance 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(3), Florida Statutes, which provides that the Department may, in its discretion, suspend, revoke, or refuse to renew or continue the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any agent who has violated any rule of the Department. C) OY (69) Section 626.621(6), Florida Statutes, which provides that the Department may, in its discretion, suspend, revoke, or refuse to renew or continue the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any agent who has engaged in a deceptive act or practice as prohibited under part IX of chapter 626, or has otherwise shown herself to be a source of injury or loss to the public. (g) Section 626.621(9), Florida Statutes, which provides that the Department may, in its discretion, suspend, revoke, or refuse to renew or continue the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any life insurance agent — who has violated the code of ethics codified in Rule 69B-215.210, Florida Administrative Code. (h) Section 626.797, Florida Statutes, which provides that it is a violation of law for any applicant for licensure as a life agent to fail to subscribe to the code of ethics codified in Rule 69B-215.210, Florida Administrative Code. (i) Section 626.9521, Florida Statutes, which provides that it is a violation of law for any person to engage in an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance, and that such violation subjects the offender to administrative fines in addition to any other applicable penalties. Gg) Section 626.9541(1)(e)1.b., Florida Statutes, which provides that an agent who knowingly makes a false material statement has engaged in a deceptive act or practice. (k) Section 626.9541(1)(e)1.c., Florida Statutes, which provides that an agent who knowingly delivers any false material statement to any person has engaged in a deceptive act or practice. C) ee a Section 626.9541(1)(e)1.e., Florida Statutes, which provides that an agent who knowingly causes, directly or indirectly, any false material statement to be delivered to any person has engaged in a deceptive act or practice. (m) Section 626.9541(1)(k)1., Florida Statutes, which provides that an agent who knowingly makes 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 has engaged in a deceptive act or practice. (n) Section 626.9541(1)(ee), Florida Statutes, which provides that an agent who willfully submits to an insurer on behalf of a consumer an insurance application bearing a false or fraudulent signature has engaged in a deceptive act or practice. (0) Rule 69B-215.210, Florida Administrative Code, which provides that a life insurance agent who fails to serve the best interests of the insuring public, by understanding and observing the laws governing life insurance in letter and in spirit by presenting accurately and completely every fact essential to a client’s decision, and by being fair in all relations with colleagues and competitors while always placing the policyholder’s interests first, has violated the code of ethics referenced in sections 626.621(9) and 626,797, Florida Statutes, COUNT II 10. The above general allegations are hereby realleged and fully incorporated herein by reference. C) C) 11, In April of 2014, Respondent visited the home of consumers V.L. and K.L. V.L., K.L.’s guardian, completed an application on behalf of K.L. for a life insurance policy (hereinafter the “K.L. Policy”) with Lincoln Heritage. Neither V.L. nor K.L. applied for any other insurance policies. 12. On or around May 30, 2014, Senior Life Insurance Company received an application from Respondent submitted on behalf of K.L. (hereinafter the “K.L. Application”). The K.L Application bore what appeared to be the signatures of V.L. and K.L. 13, In May of 2014, Lincoln Heritage deducted a premium from V.L.’s bank account in accordance with the K.L. Policy. 14. In June of 2014, Senior Life Insurance Company deducted a premium from V.L.’s bank account. 15. Neither V.L. nor K.L. completed the K.L. Application or requested the corresponding policy from Senior Life Insurance Company. 16. Neither V.L. nor K.L. signed the K.L. Application Respondent submitted to Senior Life Insurance Company. IT IS THEREFORE CHARGED that Respondent has violated one or more of the following provisions of the Florida Statutes and Florida Administrative Code, which constitutes grounds for the suspension or revocation of her licenses and appointments: (a) Section 626.611(1)(g), Florida Statutes, which provides that the Department shall suspend, revoke, or refuse to continue or renew the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any agent who has demonstrated a lack of fitness or trustworthiness to engage in the business of insurance. () (C) (b) — Section 626.611(1)(i), Florida Statutes, which provides that the Department shall suspend, revoke, or refuse to continue or renew the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any agent who has engaged in fraudulent or dishonest practices in the conduct of business under the license or appointment. (c) Section 626.611(1)(m), Florida Statutes, which provides that the Department shall suspend, revoke, or refuse to continue or renew the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any agent who has willfully violated any rule of the Department or provision of the insurance code. (d) Section 626.621(2), Florida Statutes, which provides that the Department may, in its discretion, suspend, revoke, or refuse to renew or continue the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any agent who has violated any provision of the insurance 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(3), Florida Statutes, which provides that the Department may, in its discretion, suspend, revoke, or refuse to renew or continue the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any agent who has violated any rule of the Department. . (63) Section 626.621(6), Florida Statutes, which provides that the Department may, in its discretion, suspend, revoke, or refuse to renew or continue the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any agent who has engaged in a deceptive act or practice as prohibited under part IX of chapter 626, or has otherwise shown herself to be a source of injury or loss to the public. C) () (g) Section 626.621(9), Florida Statutes, which provides that the Department may, in its discretion, suspend, revoke, or refuse to renew or continue the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any life insurance agent who has violated the code of ethics codified in Rule 69B-215.210, Florida Administrative Code. (h) Section 626.797, Florida Statutes, which provides that it is a violation of law for any applicant for licensure as a life agent to fail to subscribe to the code of ethics codified in Rule 69B-215.210, Florida Administrative Code. (i) Section 626.9521, Florida Statutes, which provides that it is a violation of law for any person to engage in an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance, and that such violation subjects the offender to administrative fines in addition to any other applicable penalties. qj) Section 626.9541(1)(e)1.b., Florida Statutes, which provides that an agent who knowingly makes a false material statement has engaged in a deceptive act or practice. (k) Section 626.9541(1)(e)1.c., Florida Statutes, which provides that an agent who knowingly delivers any false material statement to any person has engaged in a deceptive act or practice. 0) Section 626.9541(1)(e)l.e., Florida Statutes, which provides that an agent who knowingly causes, directly or indirectly, any false material statement to be delivered to any person has engaged in a deceptive act or practice. ©) C) (m) Section 626.9541(1)(k)1., Florida Statutes, which provides that an agent who knowingly makes 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 has engaged in a deceptive act or practice. (n) Section 626.9541(1)(ee), Florida Statutes, which provides that an agent who willfully submits to an insurer on behalf of a consumer an insurance application bearing a false or fraudulent signature has engaged in a deceptive act or practice. (0) Rule 69B-215.210, Florida Administrative Code, which provides that a life insurance agent who fails to serve the best interests of the insuring public, by understanding and observing the laws governing life insurance in letter and in spirit by presenting accurately and ‘completely every fact essential to a client’s decision, and by being fair in all relations with colleagues and competitors while always placing the policyholder’s interests first, has violated the code of ethics referenced in sections 626.621(9) and 626.797, Florida Statutes. COUNT IIT 17. The above general allegations are hereby realleged and fully incorporated herein by reference. 18. On or about April 9, 2014, Respondent attended an appointment at the residence of consumer M.B. for the purpose of selling M.B. a life insurance policy with Lincoln Heritage. MLB. selected a policy with a premium of $43.10. C) C) 19. MB. explained to Respondent that M.B. would not have the funds to pay the first month’s premium until May 4, 2014. M.B. gave Respondent a post-dated check in the amount of $43.10 for the first premium and instructed Respondent not to deposit the check until May 4, 2014. Respondent agreed not to deposit the check until said date, 20. Respondent deposited M.B.’s check before May 4, 2014. 21. In late April or early May of 2014, M.B.’s bank notified M.B. that M.B.’s account was over-drafted due to a payment to Lincoln Heritage. IT IS THEREFORE CHARGED that Respondent has violated one or more of the following provisions of the Florida Statutes and Florida Administrative Code, which constitutes grounds for the suspension or revocation of her licenses and appointments: (a) Section 626.611(1)(g), Florida Statutes, which provides that the Department shall suspend, revoke, or refuse to continue or renew the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any agent who has demonstrated a lack of fitness or trustworthiness to engage in the business of insurance. (b) Section 626.611(1)(), Florida Statutes, which provides that the Department shall suspend, revoke, or refuse to continue or renew the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any agent who has engaged in fraudulent or dishonest practices in the conduct of business under the license or appointment. | (c) Section 626.611(1)(m), Florida Statutes, which provides that the Department shall suspend, revoke, or refuse to continue or renew the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any agent who has willfully violated any rule of the Department or provision of the insurance code. C) OY (d) Section 626.621(2), Florida Statutes, which provides that the Department may, in its discretion, suspend, revoke, or refuse to renew or continue the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any agent who has violated any provision of the insurance 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(3), Florida Statutes, which provides that the Department may, in its discretion, suspend, revoke, or refuse to renew or continue the license or appointment, and suspend or revoke the eligibility to hold a license-or appointment, of any agent who has violated any rule of the Department. (f) Section 626.621(6), Florida Statutes, which provides that the Department may, in its discretion, suspend, revoke, or refuse to renew or continue the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any agent who has engaged in a deceptive act or practice as prohibited under part IX of chapter 626, or has otherwise shown herself to be a source of injury or loss to the public. (g) Section 626.621(9), Florida Statutes, which provides that the Department may, in its discretion, suspend, revoke, or refuse to renew or continue the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any life insurance agent who has violated the code of ethics codified in Rule 69B-215.210, Florida Administrative Code. (h) — Section 626.797, Florida Statutes, which provides that it is a violation of law for any applicant for licensure as a life agent to fail to subscribe to the code of ethics codified in Rule 69B-215.210, Florida Administrative Code. Co 0 (i) Section 626.9521, Florida Statutes, which provides that it is a violation of law for any person to engage in an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance, and that such violation subjects the offender to administrative fines in addition to any other applicable penalties. qj) Section 626.9541(1)(e)1.b., Florida Statutes, which provides that an agent who knowingly makes a false material statement has engaged in a deceptive act or practice. (k) — Section 626.9541(1)(k)1., Florida Statutes, which provides that an agent who knowingly makes a false or fraudulent oral statement or representation 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 has engaged in a deceptive act or practice. )) Rule 69B-215.210, Florida Administrative Code, which provides that a life insurance agent who fails to serve the best interests of the insuring public, by understanding and observing the laws governing life insurance in letter and in spirit by presenting accurately and completely every fact essential to a client’s decision, and by being fair in all relations with colleagues and competitors while always placing the policyholder’s interests first, has violated the code of ethics referenced in sections 626.621(9) and 626.797, Florida Statutes. . COUNT IV 22. The above general allegations are hereby realleged and fully incorporated herein by reference. oy a f } ( KO 23. On May 13, 2014, Respondent completed and submitted to Senior Life Insurance Company a New Agent Data Sheet. Respondent answered “No” to the question, “Are you indebted to any Insurance Company, Agency or Manager (including debit balances)?” Respondent certified that this answer was “true and correct to the best of [her] knowledge and belief.” 24. | Respondent was indebted to Americo Financial Life and Annuity Insurance Company at the time she submitted the New Agent Data Sheet. 25. Respondent was indebted to the Independent Order of Foresters at the time she submitted the New Agent Data Sheet. 26. Respondent knew she was indebted to one or more insurance companies, agencies, or managers at the time she submitted the New Agent Data Sheet. IT IS THEREFORE CHARGED that Respondent has violated one or more of the following provisions of the Florida Statutes and Florida Administrative Code, which constitutes grounds for the suspension or revocation of her licenses and appointments: (a) Section 626.611(1)(g), Florida Statutes, which provides that the Department shall suspend, revoke, or refuse to continue or renew the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any agent who has demonstrated a lack of fitness or trustworthiness to engage in the business of insurance. (b) — Section 626.611(1)(), Florida Statutes, which provides that the Department shall suspend, revoke, or refuse to continue or renew the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any agent who has engaged in fraudulent or dishonest practices in the conduct of business under the license or appointment. C) C) (c) Section 626.611(1)(m), Florida Statutes, which provides that the Department shall suspend, revoke, or refuse to continue or renew the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any agent who has willfully violated any rule of the Department or provision of the insurance code. (d) Section 626.621(2), Florida Statutes, which provides that the Department may, in its discretion, suspend, revoke, or refuse to renew or continue the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any agent who has violated ‘any provision of the insurance 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(3), Florida Statutes, which provides that the Department may, in its discretion, suspend, revoke, or refuse to renew or continue the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any agent who has violated any rule of the Department. (69) Section 626.621(6), Florida Statutes, which provides that the Department may, in its discretion, suspend, revoke, or refuse to renew or continue the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any agent who has engaged in a deceptive act or practice as prohibited under part IX of chapter 626, or has otherwise shown herself to be a source of injury or loss to the public. (g) Section 626.621(9), Florida Statutes, which provides that the Department may, in its discretion, suspend, revoke, or refuse to renew or continue the license or appointment, and suspend or revoke the eligibility to hold a license or appointment, of any life insurance agent who has violated the code of ethics codified in Rule 69B-215.210, Florida Administrative Code. 14 C) C) (h) Section 626.797, Florida Statutes, which provides that it is a violation of law for any applicant for licensure as a life agent to fail to subscribe to the code of ethics codified in Rule 69B-215.210, Florida Administrative Code. (i) Section 626.9521, Florida Statutes, which provides that it is a violation of law for any person to engage in an unfair method of competition or an unfair or deceptive act or practice involving the business of insurance, and that such violation subjects the offender to administrative fines in addition to any other applicable penalties. Gq) Section 626.9541(1)(e)1.b., Florida Statutes, which provides that an agent who knowingly makes a false material statement has engaged in a deceptive act or practice. (k) Section 626.9541(1)(e)1.c., Florida Statutes, which provides that an agent who knowingly delivers any false material statement to any person has engaged in a deceptive act or practice, (60) Section 626.9541(1)(e)1.e., Florida Statutes, which provides that an agent who knowingly causes, directly or indirectly, any false material statement to be delivered to any person has engaged in a deceptive act or practice. (m) Section 626.9541(1)(k)1., Florida Statutes, which provides that an agent who knowingly makes 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 has engaged in a deceptive act or practice. (n) Rule 69B-215.210, Florida Administrative Code, which provides that a life insurance agent who fails to serve the best interests of the insuring public, by understanding and observing the laws governing life insurance in letter and in spirit by presenting accurately and () C) completely every fact essential to a client’s decision, and by being fair in all relations with colleagues and competitors while always placing the policyholder’s interests first, has violated the code of ethics referenced in sections 626.621(9) and 626.797, Florida Statutes. WHEREFORE, Respondent is hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking her licenses and appointments as a life including variable annuity and health agent or to impose such penalties as may be provided under the provisions of sections 626.611, 626.621, 626.797, 626.9521, and 626.9541, Florida Statutes, and under the other referenced sections of the Florida Statutes and the Florida Administrative Code as set out in this Administrative Complaint. as Noewle DATED and SIGNED this day of Okino” , 2015.