Findings Of Fact The Petitioner, Florida Department of Insurance (hereinafter referred to as Department) is the state agency authorized to regulate and enforce the provisions of Chapter 629, Florida Statutes. Nautical Management Reciprocal Insurers, Respondent, is a licensed domestic commercial reciprocal insurer, subject to the jurisdiction and regulation of the Department, pursuant to Chapter 629, Florida Statutes. The Department conducted a detailed review of Respondent's 1989 Annual Statement, and certain other information prior to issuing the Order to Show Cause. On October 17, 1985, Respondent submitted its Plan of Operations to the Department for its first three years of business in connection with its application for a certificate of authority as a domestic reciprocal insurer under Section 629.081, Florida Statutes, with the purpose of seeking its initial business in the area of ship/boat coverage and other related marine coverage, such as seafood cargo. On August 19, 1986, Respondent converted its Section 629.081 reciprocal application into a limited commercial reciprocal insurer application pursuant to Section 629.50 and reaffirmed its October 17, 1985 Plan of Operations to the Department. In Respondent's Plan of Operations, the insurer stated the objective of Respondent is "to provide a stable, reasonable (insurance) marketplace for the commercial marine members . . . . In summary, Florida should have the first insurance program in the nation whereby the commercial fishing industry can look forward to direct (member) advisory committee involvement (in Nautical Management)." Respondent is an unincorporated aggregation of subscribers operating individually and collectively through an attorney-in-fact that is organized for, and the primary activities of which consist of assuming and spreading all or any portion of the commercial property or commercial casualty exposure of its subscribers. On January 6, 1987, Respondent was granted a certificate of authority as a licensed domestic limited commercial reciprocal insurer "ocean marine" pursuant to Section 629.50(1), Florida Statutes. Respondent was authorized to transact the business of ocean marine insurance on a restricted basis for the purpose stated in its application. The application's stated purpose was to pool and spread the commercial property or casualty marine liabilities of Respondent's commercial fishing industry subscribers. Respondent's certificate of authority requires that the ocean marine insurance business written by Respondent as a domestic limited commercial reciprocal insurer shall only be for those owners/operators of commercial fishing vessels domiciled in the State of Florida that engage in commercial marine businesses. The terms "ocean marine" and "pleasure craft" are not defined by the Insurance Code or Department rules. The term "private pleasure vessel" is not synonymous with the term "commercial marine vessel." Respondent, during 1989, covered private pleasure craft in addition to commercial vessels under policies of insurance. The Respondent clearly disclosed on its annual and quarterly reports filed with the Department that it was engaged in underwriting pleasure craft. At no time did Respondent conceal or mislead the Department regarding its writing policies of insurance covering pleasure craft in addition to commercial vessels. Since on or about October 15, 1987, Respondent has made periodic inquiries of the Department regarding the capital surplus and other requirements necessary to convert its certificate of authority to that of a "full" reciprocal insurer. Additionally, Respondent has engaged in other direct correspondence with members of Petitioner's staff regarding, among other things, reinsurance, the identity of its subscribers, and has submitted certain collateral pledge agreements and debentures to determine their sufficiency as capital surplus. On May 22, 1990, the Department received the cover sheet which showed the distinction between pleasure and commercial vessels. In May, 1990, the Department determined that as of December 31, 1989, Respondent had insured a total of 1,693 vessels of various types. Of those 1,693 vessels, 1,615 or 95.4% were private pleasure vessels, and only 78 or 4.6% were commercial vessels. Based upon its 1989 gross premiums recorded in its Annual Statement, Respondent's estimated total gross written premium volume for year 1990 will be $1,381,171.32 on its 1,615 covered private pleasure vessels and only $355,717.85 on its 78 commercial vessels. Respondent has a ratio of premiums written or projected to surplus as to policyholders that exceeds 4 to 1. Respondent is in an impaired or insolvent financial condition. Although Respondent's officers and directors were not certain they would be allowed to write marine private pleasure boats under Section 629.50, Florida Statutes, they proceeded to write pleasure boat insurance prior to receiving Department approval. Respondent contends that the classification for "ocean marine insurance" means "marine insurance on anything that operates on navigable waterways". There are several lines of insurance under the ocean marine classification which differentiates between the lines of insurance for commercial vessels and pleasure craft. Respondent did not amend its Plan of Operations to indicate that it intended to insure any risks other than the commercial vessels indicated in the Plan of Operations as filed with the Department. A limited commercial reciprocal insurer must maintain a minimum surplus of at least $100,000 pursuant to Section 629.50, Florida Statutes. A general reciprocal insurer must maintain a minimum surplus of $250,000, and in addition to this, when first authorized, needs a minimum expendable surplus of $750,000 pursuant to Sections 629.071(1) and (2), Florida Statutes. At the time of its initial application, Respondent was unable to meet the financial requirements for authorization as a general reciprocal insurer and had to convert its application to that of a limited commercial reciprocal insurer. The commercial marine industry is a highly volatile industry with few insurers over whom these risk are spread. Respondent may not now meet or may not be able to meet in the future all its financial obligations toward members of the general insurance buying public it has insured and/or it has entered into business relationships with in the State of Florida. If so, these persons would suffer irreparable financial injury.
Recommendation Based on the foregoing findings of fact and conclusions of law, it is RECOMMENDED as follows: Respondent, Nautical Management Reciprocal Insurers, be found guilty of: Using methods and practices in the conduct of its business as to render its further transaction of insurance in this state hazardous or injurious to its policyholders or the public, in violation of Section 624.418(1)(d), Florida Statutes (1989); No longer meeting the requirements for the authority originally granted, in violation of Section 624.418(2)(a), Florida Statutes (1989); and Violating a lawful order or rule of the Department or any provision of the Insurance Code, in violation of Section 624.418(2)(a), Florida Statutes. Respondent, Nautical Management Reciprocal Insurers, be found not guilty of being composed of management offices or directors which are incompetent or untrustworthy or so lacking in insurance experience, ability and standing as to jeopardize the reasonable promise of successful insurer operations. [Sections 624.404(3)(a) and 624.404(3)(b), Florida Statutes (1989)]. Respondent, Nautical Management's certificate of authority be suspended for a period of one year. The imposition of the penalty shall be abated upon compliance with the following conditions: Respondent cease and desist immediately the solicitation and underwriting of all new subscribers who are owners of pleasure craft; That policies of insurance for present subscribers who are owners of pleasure craft may only be renewed for a period not to exceed six months; and That within a reasonable time not to exceed six months, as determined by the Commission Respondent comply with all requirements necessary to convert its Certificate Authority to that of a full reciprocal, pursuant to Section 629.081, Florida Statutes (1989). Such other and additional reasonable conditions as the Commissioner may require. DONE AND ENTERED this 1st day of March, 1991, in Tallahassee, Leon County, Florida. DANIEL M. KILBRIDE Hearing Officer Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-1550 (904)488-9675 Filed with the Clerk of the Division of Administrative Hearings this 1st day of March, 1991. APPENDIX TO RECOMMENDED ORDER The following constitutes my specific rulings, in accordance with section 120.59, Florida Statutes, on findings of fact submitted by the parties. Petitioner's proposed findings of fact: Accepted in substance: Paragraphs 1,2,3,4,5,6,7,8,9,10,11,12,14,16,17,18,19,20,21,22. Rejected as not proven by clear and convincing evidence: Paragraphs 13,15. Respondent's proposed findings of fact: Accepted in substance: Paragraphs 1,2,3 (in part), 4,5,6,7 (in part), 8. Rejected as against the greater weight of the evidence: Paragraph 3 (in part). Rejected as irrelevant: Paragraphs 7 (in part), 9. COPIES FURNISHED: Michael C. Godwin, Esquire Elizabeth Gregovits, Esquire Department of Insurance Division of Legal Services 412 Larson Building Tallahassee, FL 32399-0300 William E. Powers, Jr., Esquire Powers and Ferris 2544 Blairstone Pines Drive Suite A Tallahassee, FL 32301 Bill O'Neil General Counsel Department of Insurance and Treasure The Capitol, Plaza Level Tallahassee, FL 32399-0300 Tom Gallagher State Treasurer and Insurance Commissioner The Capitol, Plaza Level Tallahassee, FL 32399-0300
The Issue Whether the Respondent's licenses should be revoked, or whether lesser penalties should be imposed.
Findings Of Fact The following Stipulation of the parties was entered into evidence: The Petitioner and Respondent through their undersigned attorneys hereby stipulate to the introduction into evidence at the hearing to be held in this matter the attach ed copies of insurance policy applications referenced in the Administrative Complaint filed in this cause The Respondent further states that the applications were submitted to the respective insurers by Respondent, the Respondent signed the applications and received commissions on some of said appli cations. (Petitioner's Exhibit 4) An application was submitted to the Midwestern National Life Insurance Company by Respondent Owens in the name of Julia Lea Anderson, a witness for Petitioner, in September of 1977. In addition a form was submitted authorizing the automatic withdrawal of premium payments from Ms. Anderson's checking account. Ms. Anderson did not authorize, request or sign either the application for insurance or the check authorization withdrawal form. Respondent's testimony as to how he obtained the information he certified to be true and correct was contradictory and not worthy of belief. The Hearing Officer finds that Respondent submitted the application and check withdrawal form to Midwestern without the permission, knowledge or consent of Ms. Anderson in order to obtain a fee, commission or other benefit. An application for insurance was submitted to the Centennial Life Insurance Company together with an authorization form for said company to draw checks from a checking account of witness Roger Barone at the Dania Bank in Dania, Florida. Barone had never had an account at said bank and did not authorize or sign either the insurance application or the withdrawal form. Other applications not authorized or signed by Barone were submitted to the State Mutual Insurance Company and the Beneficial Standard Life Insurance Company. The application and the check withdrawal authorization were submitted by Respondent without the knowledge, consent or approval of Barone for the purpose of obtaining a fee, commission or other benefit. Applications for insurance were submitted to the Midwestern National Life Insurance Company by Respondent in the name of Chris E. Konopinski, John Scott Konopinski and Troy Allen Konopinski, all children of Carol Konopinski. Ms. Konopinski did not sign or request such applications, although she was listed as the applicant and beneficiary (Petitioner's Exhibit 5). The applications were made by Respondent Owens to secure a benefit for himself. Respondent filled out an application for insurance and check withdrawal form for Heather Gouvert without her signature or consent. Respondent admitted he thereafter sent a check dated November 13, 1976, to Ms. Gouvert in the amount of $24.25 marked "deposit only" to reimburse her for the amount the insurance company had drafted out of her account. Herman J. Zottie, a regional director of agencies for the Midwestern National Life Insurance Company, explained that his insurance company has a plan for new applications: When a premium is paid through a bank authorization (called a pre-authorization check plan), the company pays ninety (90) percent of two years' commission to the agent upon the payment of one month's premium. If the policy is thereafter cancelled, the unearned amount paid to the agent is charged back to the agent's account.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law the Hearing Officer recommends that all licenses and eligibility for licenses of the Respondent, Grady Harold Owens, be revoked. DONE and ORDERED this 6th day of May, 1980, in Tallahassee, Leon County, Florida. DELPHENE C. STRICKLAND Hearing Officer Division of Administrative Hearings Room 101, Collins Building Tallahassee, Florida 32301 (904) 488-9675 COPIES FURNISHED: Patrick F. Maroney, Esquire Legal Division Department of Insurance Room 428-A, Larson Building Tallahassee, Florida 32301 David R. Farbstein, Esquire 2610 West Oakland Park Boulevard Fort Lauderdale, Florida 33311
The Issue Whether Respondents are indebted to Petitioner in the amount of $18,330.00 for agricultural products (bahia sod).
Findings Of Fact Petitioner, McCullough Grass Corporation, is a producer of agricultural products and is located in Balm, Florida. Respondent, Landtech Services, Inc. (Landtech), is an agricultural dealer located in Largo, Florida. Co-Respondent, Western Surety Company, is a surety which issued Respondent Landtech a surety bond during times material. On April 19, 1993 and on May 18 and 19, 1993, Petitioner sold to Respondent Landtech 217,000 square feet of bahia sod for the total price of $18,330.00. The terms of the sale between Petitioner and Respondent Landtech were for net payment for products sold within thirty days after the invoice date. Respondent, Landtech, has paid Petitioner approximately $8,000.00 toward the purchase price of the sod leaving a balance now due and owing of $10,470.70. Respondents, Landtech and Western Surety Company, did not appear at the hearing to contest or otherwise refute the charges alleged in Petitioner's complaint. Respondent, Landtech, is indebted to Petitioner in the amount of $10,470.70 for bahia sod purchased from Petitioner during April and May of 1993.
Recommendation Based on the foregoing findings of fact and conclusions of law, it is RECOMMENDED that: The Department of Agricultural issue its final order requiring that Respondent, Landtech, pay to Petitioner the amount of $10,470.70 within fifteen (15) days of its final order. It is further RECOMMENDED that if Respondent, Landtech, fails to comply with the order directing payment, that the Department shall call upon the surety, Western Surety Company, to pay over to the Department from funds out of the surety certificate, the amount needed to satisfy the indebtedness. 1/ RECOMMENDED this 3rd day of March, 1995, in Tallahassee, Leon County, Florida. JAMES E. BRADWELL Hearing Officer Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-1550 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 3rd day of March, 1995.
The Issue Whether the allegations of the Administrative Complaint are correct and, if so, what penalty should be imposed.
Findings Of Fact At all times material to this case, Myron Ihor Ostapchuk (hereinafter "Respondent") was eligible for and licensed as a non-resident life and health insurance agent in this state. In June, 1990, Mark Harold Johnson and Frances Conroy jointly met with the Respondent in Jacksonville, Florida, to discuss their potential licensure as health insurance agents with Western Fidelity Insurance Company. During the meeting, the Respondent represented that he had the authority to hire agents on behalf of Western Fidelity. After hearing of the opportunity, Ms. Conroy, a friend of Mr. Johnson's, left to attend to other matters, while Mr. Johnson remained and obtained additional information. Contrary to his representation to Mr. Johnson and Ms. Conroy, the Respondent was not authorized to hire agents on behalf of the Western Fidelity Insurance Company. At the time of the meeting, the Respondent requested $150 from Mr. Johnson to cover the cost of licensure. Mr. Johnson examined the materials provided by the Respondent and determined that the Western Fidelity administrative fee was $25 and the state's licensing fee was $40. Mr. Johnson mentioned the matter to the Respondent who agreed to accept $65 as the total fee. Mr. Johnson obtained the necessary forms for both himself and Ms. Conroy and the meeting ended. Ms. Conroy completed her forms and gave them to Mr. Johnson. After completing his forms, Mr. Johnson contacted the Respondent who resided in Tallahassee, and made arrangements to bring both his and Ms. Conroy's completed forms and required fees to the Respondent's home. Mr. Johnson paid the $65 fee by check number 2895 dated June 12, 1989 drawn on Southeast Bank of Jacksonville made payable to "United Financial". The check was deposited into the First Florida Bank of Tampa account number 612131053 of "United Financial Consultants Group, Inc.", a business entity controlled by the Respondent. Ms. Conroy paid the $65 fee by check number 4337 dated June 8, 1989 drawn on Barnett Bank of Jacksonville made payable to "United Financial Services". The check was deposited into the First Florida Bank of Tampa account number 612131053 of "United Financial Consultants Group, Inc." The Respondent was not authorized to accept the funds on behalf of, and failed to submit such funds to, the Western Fidelity Insurance Company. The Respondent has not refunded the funds to either Mr. Johnson or Ms. Conroy. In order to become licensed, both Mr. Johnson and Ms. Conroy submitted additional funds to Western Fidelity Insurance Company. On or about June 12, 1989, the Respondent met with and sold a policy of health insurance to Katherine Marinakis . Ms. Marinakis gave to the Respondent her check number 0854 in the amount of $232.00, dated June 12, 1989, drawn on First Florida Bank of Clearwater, and made payable to "U. F. C. G." The Respondent provided to Ms. Marinakis a receipt identifying her payment as the initial premium for the Western Fidelity Insurance Company policy. Ms. Marinakis' check cleared through the First Florida Bank of Tampa, Florida, and the funds were deducted from her checking account. The Respondent failed to submit the premium payment to Western Fidelity Insurance Company. The Respondent has not refunded the premium payment to Ms. Marinakis.
Recommendation Based on the foregoing, it is hereby RECOMMENDED that the Department of Insurance enter a Final Order revoking the licensure and eligibility for licensure of Myron Ihor Ostapchuk as a non- resident life and health insurance agent in this state. DONE and RECOMMENDED this 21st day of May, 1991, in Tallahassee, Florida. WILLIAM F. QUATTLEBAUM Hearing Officer Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, FL 32399-1550 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 21st day of May, 1991.
The Issue The issue for determination in this proceeding is whether Respondent, Dal Don Produce, Inc. (Dal Don), owes Petitioner $5,956 for watermelons for the reasons stated in the Producer Complaint filed with the Department of Agriculture and Consumer Services (Department) on December 26, 2003.
Findings Of Fact Pursuant to an agreement between Petitioner and Dal Don, Petitioner delivered seven loads of watermelons to Dal Don between November 11 and 24, 2003. The watermelons weighed approximately 291,016 pounds. Dal Don agreed to pay Petitioner $21,956.60 for the watermelons. Dal Don paid Petitioner only $16,000. Dal Don owes Petitioner $5,956.60. Dal Don did not provide Petitioner with an accounting or explanation for the unpaid amount. Fidelity & Deposit Company of Maryland (Fidelity) is the surety for Dal Don and provided bond for Dal Don pursuant to Surety Bond Number 08374953 (the bond). The conditions and provisions of the bond are to assure proper accounting and payment to producers, including Petitioner. In the absence of payment from Dal Don, responsibility for payment evolves to Fidelity.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that the Department enter a final order adopting the findings and conclusions in this Recommended Order and requiring Respondents to pay Petitioner the sum of $5,956.60. DONE AND ENTERED this 3rd day of November, 2004, in Tallahassee, Leon County, Florida. S DANIEL MANRY Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (850) 488-9675 SUNCOM 278-9675 Fax Filing (850) 921-6847 www.doah.state.fl.us Filed with the Clerk of the Division of Administrative Hearings this 3rd day of November, 2004. COPIES FURNISHED: Brenda D. Hyatt, Bureau Chief Department of Agriculture and Consumer Services Bureau of License and Bond 407 South Calhoun Street, Mayo Building Tallahassee, Florida 32399-0800 Bobby Williams Bobby Williams Farms 5005 Placid View Drive Lake Placid, Florida 33582 C. Catherine Bloebaum Dal Don Produce, Inc. Post Office Box 120036 Clermont, Florida 34712-0036 Kathy Alves Fidelity & Deposit Company of Maryland Post Office Box 87 Baltimore, Maryland 21203 Honorable Charles H. Bronson Commissioner of Agriculture Department of Agriculture and Consumer Services The Capitol, Plaza Level 10 Tallahassee, Florida 32399-0810 Richard D. Tritschler, General Counsel Department of Agriculture and Consumer Services The Capitol, Plaza Level 10 Tallahassee, Florida 32399-0810
