Findings Of Fact On December 31, 1997, the Department of Insurance issued a Notice of Intent to Issue Cease and Desist Order against Petitioner, alleging that Petitioner is engaged in the legal expense insurance business in the State of Florida without being licensed. The Department alleges that Petitioner is in violation of several statutory provisions requiring licensure. Petitioner timely requested an evidentiary proceeding regarding the allegations contained within that Notice of Intent to Issue Cease and Desist Order. Jurisdiction over the matter was transferred to the Division of Administrative Hearings on January 28, 1998, to conduct the evidentiary proceeding. The matter was assigned DOAH Case No. 98-0442. By Notice of Hearing entered February 17, 1998, that cause was scheduled for final hearing on June 15 and 16, 1998, and the parties have engaged in extensive discovery. By agreement of the parties that cause was re-scheduled several times and then was placed in abeyance. On February 24, 1999, Petitioner filed with the Division of Administrative Hearings its Petition for Administrative Determination of Invalidity of Existing Rule and Unpromulgated Rule. That Petition was assigned DOAH Case No. 99-0771RX, was consolidated with DOAH Case No. 98-0442, and is the subject of this Final Order. The Petition asserts the invalidity of the Department's Rule 4-201.003, Florida Administrative Code, and the invalidity of an alleged unpromulgated rule consisting of a statement by the Department that the amount of the membership fee Petitioner charges its members will determine whether Petitioner is a legal expense insurance corporation subject to regulation under Chapter 642, Florida Statutes. The existing Rule and the alleged unpromulgated rule are the subject of the Petitioner's Motion for Summary Final Order and the Department's Cross Motion for Summary Final Order. Petitioner alleges that Rule 4-201.003, Florida Administrative Code, is an invalid exercise of delegated legislative authority because (a) it enlarges, modifies, and contravenes specific provisions of the statute it purports to implement; (b) the Department exceeded its rulemaking authority; and (c) the Department materially failed to follow the requirements set forth in Chapter 120, Florida Statutes, by failing to repeal a rule for which there was no legislative rulemaking authority. Petitioner argues that the Department's alleged unpromulgated rule is an invalid exercise of delegated legislative authority because (a) the statement is an unpromulgated rule; (b) the statement enlarges, modifies, and contravenes specific provisions of the statute it purports to implement; and (c) the statement is vague, fails to establish adequate standards for the Department's decisions, and vests unbridled discretion in the agency. The Department's Cross Motion for Summary Final Order alleges that Petitioner lacks standing to assert its challenges, that the challenge to the existing Rule is moot, and that the alleged unpromulgated rule does not exist. Rule 4-201.003, Florida Administrative Code, relates to exemptions from the statutory definition of "legal expense insurance." The Department's Notice of Intent to Issue Cease and Desist Order does not allege that Petitioner has violated that Rule and does not even cite to that Rule as a basis for the Department's action against Petitioner. Since Petitioner is not charged with violating that Rule, Petitioner cannot show that it is substantially affected by the Rule. Further, the Department has now commenced the repeal of that Rule and has filed in this cause an affidavit from the Department's Bureau Chief of Specialty Insurers that Rule 4-201.003, Florida Administrative Code, has not been and will not be used against Petitioner in DOAH Case No. 98-0442 or in any other enforcement proceeding. As to the alleged unpromulgated rule, the record in this cause reveals that the Department in both correspondence and conversations with Petitioner raised a concern about the amount of Petitioner's membership fees in re-considering whether Petitioner is a lawyer referral service or a legal expense insurer. However, Petitioner does not allege that the amount of the membership fee has been considered as to any entity other than Petitioner. Conversely, the Department has filed affidavits from the Bureau Chief of Specialty Insurers and from the employee charged with handling licensure of legal expense insurers on a day-to-day basis that they have never heard of a Department policy in which the price of a legal service plan determines whether that plan is legal expense insurance. Those affidavits further state that no such policy has been applied by the Department and that the first time the Department heard of such a policy is when Petitioner asserted that such a policy existed. Accordingly, since it has not been shown that such a policy exists, it cannot be shown that the alleged policy constitutes an unpromulgated rule.
The Issue Whether the Respondent committed the violations alleged in the Administrative Complaint and, if so, what penalty should be imposed.
Findings Of Fact The Department is the state agency charged with the responsibility of regulating the insurance industry within the State of Florida. At all times material to the allegations of this case, the Respondent was licensed in Florida as a life and variable annuity agent; life, health and variable annuity agent; life insurance agent; life and health insurance agent; and health insurance agent. All such activities are regulated pursuant to Chapter 626, Florida Statutes. Aurore Giroux is approximately 86 years of age. She currently lives in an assisted living facility in Waltham, Massachusetts. At all times material to the allegations of this case, Mrs. Giroux resided at 12 Cozumel Lane, Port St. Lucie, Florida. By way of her background, Mrs. Giroux attended grade school but did not complete high school. Although well spoken, she is not well-educated either by formal school or training. She has limited retirement income, and is not particularly well versed in investment opportunities. At the time of her husband's death in 1989, Mrs. Giroux had a life savings of approximately $230,000. This was accomplished primarily due to her modest life style and careful spending habits. At all times material to the allegations of this case, Mrs. Giroux's income was limited to social security and her husband's retirement. Her total monthly income does not exceed $1,300. In order to afford the costs of her current residence, Mrs. Giroux must use portions of her savings every month. Mrs. Giroux is an independent person and has never wanted to rely on others for her financial care. Although she maintains close relationships with her children, Mrs. Giroux has always written checks on her account to pay her own bills and has managed her own funds without the interference of the children. Following her husband's death, Mrs. Giroux began spending two months in the summer with her daughter, Elaine O'Toole, in Massachusetts. Mrs. O'Toole also would visit her mother in Florida on occasion. After Mr. Giroux passed away, the Respondent contacted Mrs. Giroux under the guise of offering her Medicare supplement insurance. Mrs. Giroux purchased a supplement from the Respondent. Thereafter, the Respondent would from time to time go by and visit Mrs. Giroux. Over the course of time the Respondent developed a relationship with Mrs. Giroux and he offered her other insurance products for purchase. Among those known are the annuities and the viatical which are the subject of the instant case. Additionally, the Respondent sold Mrs. Giroux a second Medicare supplement policy in 1998 that contained a life insurance benefit in the amount of $2500. The premium for that life insurance benefit was $50 per month. Although she spent over $60,000 to purchase the viatical from the Respondent, Mrs. Giroux did not recall investing that amount and is unable to explain what the product is. Although she signed a "Statement of Understanding of Viaticals" dated September 21, 1998, Mrs. Giroux was unaware of the illiquid nature of the viatical product. Moreover, if the viator lives more than 12 months beyond his estimated date of demise, Mrs. Giroux was unaware that she would be required to remit the premiums to the insurance company for the policy. Failing same, Mrs. Giroux will lose her entire investment. To attempt to cover the questionable prudence of the viatical investment, the Respondent had Mrs. Giroux write and sign several documents, none of which were remembered by her. Similarly, the Respondent sold Mrs. Giroux two annuities. She liquidated certificates of deposit to purchase the annuities based upon documents the Respondent brought her to sign. Again, Mrs. Giroux has no recollection of signing the authorization forms that were presented to the bank. Prior to selling Mrs. Giroux the viatical and the annuities, the Respondent did not perform a written client financial analysis to determine if there were valid tax reasons for either type of investment. In fact, there are no tax advantages to Mrs. Giroux. Although the annuities were subsequently refunded to her, there is no credible evidence that they would have been preferable to the return earned by the certificates of deposit. As to the viatical, unless the viator dies within 12 months of the estimate dated of death, Mrs. Giroux will have to remit the premium amounts to keep the policy in effect just to preserve her investment. Thus the unknown return and illiquid nature of the investment may prove a significant hardship for her. Family concerns regarding Mrs. Giroux's investments arose after Mrs. O'Toole learned of the viatical purchase. During a visit to Florida Mrs. O'Toole met with the Respondent to attempt to gather information regarding her mother's investments. Of particular concern was the fact that Mrs. Giroux's understanding of the terms of the annuities did not match the paperwork Mrs. O'Toole was able to locate. Mrs. Giroux's annuities did not allow for any annual withdrawal of principal despite the Respondent's assertions that Mrs. Giroux could draw down funds. When challenged on that point, the Respondent maintained that the company issued the wrong policy. He did not take responsibility for the error until the administrative charges were filed with the Department by Mrs. O'Toole. He then assisted all parties in securing the refund of the annuity amounts. In fact, as of the date of hearing, such amounts had been refunded to Mrs. Giroux. As to the viatical, Mrs. Giroux does not know who the viator is. Presumably the viator is alive. How her estate would benefit should Mrs. Giroux predecease the viator is unknown. It is known, however, that Mrs. Giroux is not in a tax bracket mandating tax consideration of tax deferred income opportunities. The total amount of funds invested by Mrs. Giroux in reliance on the Respondent's suggestions was $131,000, over one-half of her life savings. The Respondent has had his insurance license previously disciplined for misrepresentation. Nevertheless, prior to allowing Mrs. Giroux, an elderly, uneducated, and unsophisticated investor to purchase the products described herein, he did nothing to encourage her to seek the independent advice that might be obtained from an accountant, a lawyer, a banker, or family member.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that the Department of Insurance enter a final order revoking the Respondent's license and eligibility for license. DONE AND ENTERED this 26th day of October, 2001, in Tallahassee, Leon County, Florida. J. D. PARRISH 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 26th day of October, 2001. COPIES FURNISHED: David J. Busch, Esquire Department of Insurance 645A Larson Building 200 East Gaines Street Tallahassee, Florida 32312 Lawrence H. Sussman 56 Southwest Riverway Boulevard Palm City, Florida 34990 Honorable Tom Gallagher State Treasurer/Insurance Commissioner Department of Insurance The Capitol, Level 02 Tallahassee, Florida 32399-0300 Mark Casteel, General Counsel Department of Insurance The Capitol, Lower Level 26 Tallahassee, Florida 32399-0307
The Issue The issue presented is whether the Department's audit assessment against Petitioner for additional insurance premium tax for the tax years 1989 and 1990 is proper.
Findings Of Fact Prior to the Final Hearing, the parties agreed to numerous facts and entered into a Joint Prehearing Statement. The Hearing Officer entitles the Findings of Fact section of the Recommended Order "Agreed Facts"; however, instead of reciting the actual stipulation facts submitted by the parties, the Hearing Officer paraphrases and adds facts that were not agreed to by the parties. The "Agreed Facts" section should only recite the facts that were actually agreed to by the parties. Accordingly, the Department substitutes the Joint Prehearing Statement for the Hearing Officer's "Agreed Facts" numbers 1 through 6 as follows: Central Dade is, and at all material times was, a Medical Malpractice Self Insurance Fund as defined in Sec. 627.357, Fla. Stat. Central Dade is a trust, not a corporation. It has been in existence and operation since 1979. Its sole purpose is to provide medical malpractice insurance for its members, i.e., approximately 100 doctors in Dade County. Central Dade has no capital and is not operated for profit. It does not and cannot, absent permission from the Department of Insurance, legally pay dividends to its members; rather it is required by law to hold one hundred percent of its premium and investment income to fund medical malpractice claims and pay its operating expenses (including taxes). Central Dade's members are individually liable or assessable for any shortfall in its trust funds. Central Dade has standing to challenge Fla. Admin. Code Rule 12B- 8.001(5) because it is substantially affected by the Rule. The Department, as an agency within the Executive Branch of the government of the State of Florida, is authorized by Chapters 213 and 624, Fla. Stat., to conduct audits and make assessments of tax pursuant to Chapter 624, Fla. Stat., (Insurance Premium Tax). The Department conducted an audit of Central Dade for the audit period of 12/31/89 through 12/31/90 for Insurance Premium Tax. After the conclusion of the audit and after administrative protest of the proposed assessment by Central Dade, an assessment was issued on July 20, 1994. The assessment became a Final Assessment on July 20, 1994. Central Dade was assessed $8,996.31 tax; $899.63 penalty; and $2,346.58 interest through March 10, 1993. Central Dade paid the entire assessment and is seeking a refund of the payment through this action. Central Dade timely filed a Petition seeking to have the tax assessment declared invalid. Additionally, Central Dade filed a Petition pursuant to Sec. 120.56, Fla. Stat. challenging Fla. Admin. Code Rule 12B-8.001(5) as invalid. Upon Motion by the Parties, the cases were consolidated for Final Hearing. Medical Malpractice Self-insurance Funds became subject to the Insurance Premium Tax beginning July 1, 1989. Ch. 88-206, ss. 6, Laws of Fla. Fla. Admin. Code Rule 12B-8.001(5) became effective March 25, 1990. The parties agree the Rule was correctly promulgated and the Petitioner is only challenging the applicability of the Rule to Petitioner and the substance of the Rule. The dispute between the parties concerns whether Petitioner is entitled to the credits contained in Sec. 624.509.(4), Fla. Stat. The parties additionally stipulated to the following: If the Department prevails in this action, the Petitioner will not be entitled to any refund for the tax years 1989 and 1990. [Joint Exhibit Two] Any overpayment made by the Petitioner will be applied to subsequent tax years. 1/ If the Petitioner prevails in this action, it will be entitled to a refund of $23,774.76 for the tax years 1989 and 1990. [Joint Exhibit Two] The Department rejects the Hearing Officer's "Agreed Fact" number 7 because it is a conclusion of law and not a finding of fact. The Department rejects the Hearing Officer's "Agreed Fact" number 8 as irrelevant to this proceeding. The Department makes the following additional findings of fact based on competent and substantial testimony and evidence presented at the Final Hearing: A premium tax on "medical malpractice self-insurance [funds]" was first imposed in 1989. Effective July 1, 1989, Chapter 88-206, ss. 6, Laws of Fla., amended Sec. 627.357, Fla. Stat. to provide: 627.357 Medical malpractice self-insurance -- (9) Premiums, contributions, and assessments received by a fund are subject to s. 624.509 (1), (2), and (3), except that the tax rate shall be 1.6 percent of the gross amount of such premiums, contributions and assessments. E.S. The premium tax imposed on medical malpractice self-insurers was, pursuant to the above-quoted statute, 1.6 percent of the gross amount of the premiums, contributions and assessments. A premium tax on "dental service plan corporations" self-insurance funds was first imposed in 1989. Effective July 1, 1989, Chapter 88-206, ss. 6, Laws of Fla., amended Sec. 627.357, Fla. Stat. to provide: 637.406 Tax on premiums, contributions, and assessments. Premiums, contributions, and assessments received by a dental service plan corporation are subject to the tax imposed by s. 624.509. The premium tax imposed on dental service plan corporations in 1988 was 2 percent of the gross amount of the premiums, contributions, and assessments pursuant to Sec. 624.509(1)(a), Fla. Stat. (1989). The Legislature in the same Bill that added the amendments to Sec. 627.357 Fla. Stat., which subjected medical malpractice self-insurers to subsections (1), (2) and (3) 2/ of Sec. 624.509, Fla. Stat., 3/ and made dental service plan self-insurers subject to "s. 624.509" in its entirety also made multiple employer welfare arrangements, 4/ Commercial self-insurance funds, 5/ professional liability self-insurance, 6/ and group self-insurer funds subject to subsections (1), (2), and (3) of Sec. 624.509, Fla. Stat.; but made other insurers, such as the continuing care contracts, 7/ subject to Sec. 624.509, Fla. Stat., in its entirety. Further, all those entities which the Legislature specifically made subject to noncredit paragraphs (1), (2) and (3) of Sec. 624.509, Fla. Stat. (Supp. 1988) were given a lower 1.6 percent tax rate by the Legislature. In contrast, those entities made subject to Sec. 624.509, Fla. Stat., in its entirety, such as the dental service plan self-insurers, without a listing of the specific paragraphs, and which are clearly entitled to the credits therein, were made subject to the higher 2 percent tax rate provided in Sec. 624.509(1), Fla. Stat. (Supp. 1988). 18. Sec. 624.509(1), (2), (3), (4), and (9), Fla. Stat. (Supp. 1988), states in pertinent part: 624.509 Premium tax; rate and computation. In addition to the license taxes provided for in this chapter, each insurer shall also annually, and on or before March 1 in each year, except as to wet marine and transportation insurance taxed under s. 624.510, pay to the Department of Revenue a tax on insurance premiums, risk premiums for title insurance, or assessments, including membership fees and policy fees and gross deposits received from subscribers to reciprocal or interinsurance agreements, and on annuity premiums or considerations, received during the preceding calendar year, the amounts thereof to be determined as set forth in this section, to wit: An amount equal to 2 percent of the gross amount of such receipts on account of life and health insurance policies covering persons resident in this state and on account of all other types of policies and contracts (except annuity policies or contracts taxable under paragraph (b)) covering property, subjects, or risks located, resident, or to be performed in this state, omitting premiums on reinsurance accepted, and less return premiums or assessments, but without deductions: For reinsurance ceded to other insurers; For moneys paid upon surrender of policies or certificates for cash surrender value; For discounts or refunds for direct or prompt payment of premiums or assessments; and On account of dividends of any nature or amount paid and credited or allowed to holders of insurance policies; certificates; or surety, indemnity, reciprocal, or interinsurance contracts or agreements; and An amount equal to 1 percent of the gross receipts on annuity policies or contracts paid by holders thereof in this state. Payment by the insurer of the license taxes and premium receipts taxes provided for in this part of this chapter is a condition precedent to doing business within this state. Notwithstanding other provisions of law, the distribution of the premium tax and any penalties or interest collected thereunder shall be made to the General Revenue Fund in accordance with rules adopted by the Department of Revenue and approved by the Administration Commission. The intangible tax imposed under chapter 199, the income tax imposed under chapter 220, and the emergency excise tax imposed under chapter 221 which are paid by any insurer shall be credited against, and to the extent thereof shall discharge, the liability for tax imposed by this section for the annual period in which such tax payments are made. As to any insurer issuing policies insuring against loss or damage from the risks of fire, tornado, and certain casualty lines, the tax imposed by this section, as intended and contemplated by this subsection, shall be construed to mean the net amount of such tax remaining after there has been credited thereon such gross premium receipts tax as may be payable by such insurer in pursuance of the imposition of such tax by any incorporated cities or towns in the state for firemen's relief and pension funds and policemen's retirement funds maintained in such cities or towns, as provided in and by relevant provisions of the Florida Statutes. For purposes of this subsection, payments of estimated income tax under chapter 220 and of estimated emergency excise tax under chapter 221 shall be deemed paid either at the time the insurer actually files its annual returns under chapter 220 or at the time such returns are required to be filed, whichever first occurs, and not at such earlier time as such payments of estimated tax are actually made. (9) As used in this section "insurer" includes any entity subject to the tax imposed by this section.
Recommendation Based upon the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that a Final Order be entered finding that the Department's assessment issued July 20, 1994, was improper and finding Petitioner entitled to a refund in the amount of $23,774.76. DONE and ORDERED this 19th day of May, 1995, at Tallahassee, Florida. LINDA M. RIGOT, 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 19th day of May, 1995. APPENDIX TO RECOMMENDED ORDER Petitioner's proposed findings of fact numbered 4, 5 and 7 have been adopted either verbatim or in substance in this Recommended Order. Petitioner's proposed findings of fact numbered 1, 3, 6, and 8 have been rejected as not constituting findings of fact. Petitioner's proposed findings of fact numbered 2, and 9-11 have been rejected as being subordinate to the issues involved herein. Respondent's proposed findings of fact numbered 1, 4, 5 and 12 have been adopted either verbatim or in substance in this Recommended Order. Respondent's proposed findings of fact numbered 3, 6-10, 13, and 15-19 have been rejected as not constituting findings of fact. Respondent's proposed finding of fact numbered 2 has been rejected as being subordinate to the issues herein. Respondent's proposed findings of fact numbered 14, 20, and 21 have been rejected as being irrelevant to the issues in this cause. Respondent's proposed findings of fact numbered 11 and 22 have been rejected as not being supported by the weight of the competent evidence in this cause. COPIES FURNISHED: Curtis H. Sitterson, Esquire Stearns, Weaver, Miller, et al. Museum Tower 150 West Flagler Street Miami, Florida 33130 Linda Lettera, General Counsel Department of Revenue Post Office Box 6668 Tallahassee, Florida 32314-6668 Lisa M. Raleigh, Esquire Office of the Attorney General Tax Section, The Capitol Tallahassee, Florida 32399-1050 Larry Fuchs, Executive Director Department of Revenue 104 Carlton Building Tallahassee, Florida 32399-0100
The Issue Whether Petitioner was initially enrolled in her current dental plan as a result of an error and, therefore, should be allowed to cancel the current enrollment and retroactively enroll in the desired plan.
Findings Of Fact As defined in Subsection 110.123(2), Florida Statutes (2009),1 the “state group insurance program” or “programs” offer a variety of insurance plans to state officers, employees, retirees, and dependents. The programs include regular benefits that are offered to employees as part of the regular benefits package and supplemental insurance benefits that are made available to all employees. Unless participants opt-out, all insurance premiums are paid through the state-sponsored pre-tax programs. Under federal law, taxable income is reduced by the insurance premiums paid through pre-tax programs. At all times relevant to this proceeding, Petitioner has been an active state employee, participating in the programs. Section 110.161, Florida Statutes, directs the Department of Management Services to establish and maintain pre- tax programs as authorized by the Internal Revenue Code (IRC) of 1986. These programs allow employers (including public employers) to establish plans whereby employees’ taxable income is reduced by the premium payments deducted from employees’ wages. The pre-tax programs are known as “Section 125 Plans” and “Cafeteria Plans” and are governed by 26 United States Code Section 125. Subsection 110.161(6)(a), Florida Statutes, states that Respondent shall allow employees’ contributions to premiums for the State Group Insurance Program administered under Section 110.123, Florida Statutes, to be paid on a pre-tax basis, unless an employee elects not to participate. Employers participating in the Section 125 pre-tax program must implement a written plan (Cafeteria Plan) and take deductions from an employee’s earned income for the purpose of paying medical and dependent care expenses and, as in this case, insurance premiums. To maintain the pre-tax benefit, the employer is required to administer the program in compliance with IRC Section 125; the applicable federal laws, rules, and regulations; and the employer’s written plan. Florida Administrative Code Chapter 60P is part of the State of Florida’s Cafeteria Plan. Supplemental insurance is governed by Florida Administrative Code Chapter 60P-10. Dental insurance is a supplemental insurance, which means it is not included in regular employee benefits, but is optional coverage provided through the pre-tax programs. Under Florida Administrative Code Rule 60P-10.005, for employees on payroll, premiums shall be payroll deducted, and enrollment in the pre-tax programs is automatic, unless declined by participants. Florida Administrative Code Rule 60P-10.003(1) provides that an employee may elect to change or cancel coverage upon the occurrence of a qualifying status change event or during open enrollment period. Through a contract with the State of Florida, NorthGate Arinzo (formerly Convergys, Inc.) provides personnel administrative services, including management of benefits. The processing of benefits is performed through an online system known as People First. Petitioner was hired on June 26, 2009. On July 2, 2009, Petitioner enrolled in the program as a new hire. Prior to July 2, 2009, Petitioner had been assigned a People First identification number and was, therefore, able to access the People First system. On July 2, 2009, Petitioner called People First to select benefits. Her call was routed to Customer Service Representative Janelle Vazquez at 11:00 a.m. on that date. The People First system includes notations that are manually input by the representative that is assisting the employee. This is known as the “e-case system.” The e-case system also notes written correspondence that is received from or provided to employees. When an employee calls into People First to enroll in benefits, the representative accesses the enrollment screen. Once the employee informs the representative that he or she wants to enroll in dental insurance, the representative accesses the dental tab. A screen comes up that identifies the insurer (e.g., CompBenefits) and plan code (e.g., 4004, 4054). The representative does not type in either the name of the insurer, nor the plan code, but makes the selections from the menu that is presented. The menu shows plan names and plan codes. No plan description of benefits are provided on the enrollment screen. The representative does not advise the employee based upon type of benefits. It is the responsibility of the employee to identify the type of plan desired and to provide the representative the plan code of the plan name. Once the representative has been directed to enter the plan name and plan code, the representative reads the selections to the employee and then pushes the “complete transaction” button. After the enrollment, the transaction is noted in the e-case notes system. The notation is made by copying the enrollment information as it appeared on the enrollment screen and pasting it into the e-case notes. On July 2, 2009, at 11:00 a.m., as instructed by Petitioner, Vazquez enrolled Petitioner in insurance benefits, including “CompBenefits Network Plus #4004 Employee Only.” The People First system also maintains a screen that shows when contacts are made with an employee and any related transaction. The “Logged Changes” shows that on July 2, 2009, at 10:58 a.m., Vazquez made changes to Petitioner’s account. After the enrollment, a computer confirmation notice was mailed on July 3, 2009, by first class mail to Petitioner. The confirmation notice was mailed to Petitioner’s address of record: 1311 Trail View, Tarpon Springs, Florida 34688. Had the confirmation notice been returned to People First, it would have been noted in the e-case notes. There is not a notation in Petitioner’s e-case notes that the confirmation notice was returned. The confirmation notice advises new enrollees of the coverage selected. As to dental, it identifies the plan by name of the provider and plan code, coverage level, and the monthly premium. The confirmation notice advises enrollees that, if the statement does not accurately reflect changes to coverage, the enrollee must contact the People First Service Center within days of the date of the notice to make any corrections. A toll-free telephone number is provided. Prior to July 2, 2009, Petitioner had access to the People First website, including the booklets that identified the providers, which described the various benefits, the levels of coverage available, and the plan codes. The booklets describing the benefits are available on the website or the employee can request copies to be sent by mail. Regarding the CompBenefits dental coverage, the booklet points out that there is a “Network Plus Prepaid” plan (code 4004) and a “Preferred Plus DPPO” plan (code 4054). The booklet provides a full description of the benefits available under each and the differences between the two plans. The CompBenefits booklet also provides an explanation of the payment of benefits and co-pays. On and prior to July 2, 2009, a publication identified as the “Benefits Guide for State of Florida Employees,” effective January 1, 2009, was available on the website of Respondent. The benefits guide provided a full description of the dental benefits available and also contained an explanation of the difference between the “Dental Prepaid Plans” and the “Dental Preferred Provider Organization” (DPPO) offered by CompBenefits. The benefits guide also offered a comparison of the premium payments and benefits offered under each of the plans. On page 10 of the benefits guide is an advertisement that compares the Network Plus Prepaid plan (includes code 4004) and Preferred Plus DPPO plan (includes code 4054). In each of the documents described in paragraphs 29 and 30, the information included the plan codes: “4004” for the Network Plus Prepaid plan and “4054” for the Preferred Plus DPPO plan. On July 2, 2009, available to Petitioner were the benefits guide included on the website of Respondent and the People First website that contained the booklets that outline the various dental plans available to state employees. On July 2, 2009, Petitioner directed the People First service representative to enroll Petitioner in the CompBenefits 4004 plan. Although it was unlikely that Ms. Vasquez entered the incorrect plan number, Petitioner failed to review the confirmation notice within the time allotted and, therefore, cannot make correction at this time.
Recommendation Based upon the forgoing Findings of fact and Conclusion of Law, it is RECOMMENDED that the Department of Management Services, Division of State Group Insurance, enter a final order, dismissing the claim of Petitioner. DONE AND ENTERED this 13th day of August, 2010, in Tallahassee, Leon County, Florida. S DANIEL M. KILBRIDE Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (850) 488-9675 Fax Filing (850) 921-6847 www.doah.state.fl.us Filed with the Clerk of the Division of Administrative Hearings this 13th day of August, 2010.
Findings Of Fact The Respondent, Robert Charles Anderson, currently is eligible for licensure and is licensed in this state as a life and health (debit) agent, life, health and variable annuity contracts agent, general lines property, casualty, surety and miscellaneous agent, and health insurance agent. The Respondent moved to Florida from Michigan in September, 1983. In January, 1984, the Respondent and a partner bought Guaranteed Underwriters, Incorporated, a corporate general lines insurance agency doing business as Security Insurance Agency (Security) in New Port Richey, Florida. The Respondent's background was primarily in the life and health insurance business; his partner's background was primarily in property and casualty insurance. They planned to divide responsibilities for Security's operations along the lines of their respective areas of expertise. However, the partnership dissolved, leaving to the Respondent responsibility for all of the operations of the agency. After the dissolution of the partnership, the Respondent delegated to unlicensed employees most of the day-to-day responsibilities for the property and casualty and workmen's compensation side of the agency's business. The Respondent was personally involved primarily in the day-to-day operations of the health and life insurance side of the business, as well as in selected large commercial accounts. The conduct of Security's business, as described above, went smoothly (there were no charges of any license violations) until two disruptive factors entered into the picture. One was financial in nature; the other was personal. In 1986, Security bought an existing insurance agency (Sunland Insurance Agency) in Holiday, merged it into Security, and attempted to operate it as part of Security's overall business. In 1987, Security bought another, large agency (Village Insurance Agency) and also merged it into Security and attempted to operate it as part of Security's overall business. At this point, the Respondent essentially was attempting to operate three insurance agencies, something he never attempted before. With the purchase of Sunland and Village, in addition to Security, the Respondent incurred significant debt which had to be met for his business to just break even. By approximately 1988, the Respondent owed approximately $150,000 still outstanding on the purchase of Security, $100,000 borrowed to finance the purchase of Village, $43,000 to three different relatives and $3,500 to the NCNB bank on loans made in connection with the business. Payments on these debts, together with payroll, rent and other business expense left Security with a monthly operating budget of almost $12,000. At this expense level, the business was losing money. In calendar year 1989, the business lost between approximately $12,600 and (counting unpaid bills outstanding at the end of the year) $17,900. At the end of 1988, severe personal problems added to the Respondent's financial woes. In December, 1988, the Respondent's wife had to be hospitalized in Tampa for eight weeks for treatment for symptoms of mental illness. During this time, in addition to trying to supervise the operations of Security, the Respondent was required to travel back and forth to Tampa (about an hour drive by car, each way) to visit his wife and also make arrangements for the care of his eighteen month old son (either by himself or by a baby-sitter). As if the Respondent's personal problems were not enough, when his wife was discharged from the hospital (with a diagnosis of a chemical imbalance), she informed him that she wanted a divorce. She took up a separate residence in Tampa where she lived pending the dissolution of the marriage. As a result of the his personal problems, the Respondent delegated more and more responsibility to his unlicensed employees. He would go to the office only for an hour or two a day. Sometimes he was not able to get into the office at all. Judy Nelson (Count V). Judy Nelson, who is self-employed doing business as Pedals 'N' Presents, used Security for her insurance needs since 1986. In January, 1989, she applied through Security for renewal of a special multi-peril (SMP) insurance policy with American Professional Insurance for another year beginning January 21, 1989. On January 10, 1989, she gave Security her check for $485 as partial payment for the coverage. The $485 was deposited into Security's general operating account which Security used to pay the operating expenses of the business. Security never processed Nelson's application or secured the coverage. On or about March 10, 1989, Nelson received notice from American Professional that no application for renewal of coverage or premium had been received and that coverage was being cancelled. Nelson immediately contacted Security regarding the notification, and one of the Respondent's unlicensed employees acknowledged an error on Security's part but assured Nelson that Security would correct the situation and have Nelson's coverage reinstated. Security never got the policy reinstated, and the policy was cancelled on March 21, 1989. On or about April 8, 1989, Nelson's business was burglarized, and Nelson made a claim on her MPS policy. At this point, in handling the claim, the Respondent realized that the policy had been cancelled and that Nelson had no coverage. But, instead of telling her the facts, the Respondent paid the claim himself. Nelson thought the claim was paid under the terms of her SMP policy and still thought she had coverage. Later, Nelson had a question about a signature on her policy and telephoned the Professional American to get her question answered. Professional American told her that she had no coverage. At about the same time, Nelson was contacted by a Department investigator, who asked her not to contact the Respondent yet as he would make arrangements for a refund for her. On or about December 6, 1989, after the Department investigator cleared it, Nelson telephoned the Respondent and asked for a refund. This time, the Respondent acknowledged that Nelson had no coverage and agreed to a refund. The Respondent paid Nelson the refund at the end of December, 1989, or the beginning of January, 1990. Nelson still does business with Security. She has in force workmen's compensation insurance through Security. Fred J. Miller (Count VI). On or about February 24, 1989, Fred J. Miller came into the Security offices to get commercial automobile insurance for the vehicles he uses in his recycling business. He dealt with one of the Respondent's unlicensed employees. Several application and other papers for coverage with Progressive American Insurance Companies were prepared and were signed by Miller. Miller also made a partial payment for the coverage in cash in the amount of $296, for which the employee gave Miller a receipt. As he left the office, the Security employee assured him that he had coverage. A few days later, on or about February 28, 1989, Security contacted Miller and told him an additional $606 was needed to obtain the coverage for which he had applied. Miller returned to Security and gave the employee he was dealing with an additional $606 cash, for which he was given another receipt. It was not proven, and is not clear, whether the cash received from Miller was placed in the Security operating account. Security never submitted Miller's application for insurance. Contrary to Miller's understanding, Miller had no insurance on his vehicles. As of April 6, 1989, Miller had neither a policy (or copy of one) nor an insurance identification card. On or about April 6, 1989, Miller bought a new vehicle and had to contact Security to get an insurance policy number in order to have the vehicle registered in his name. The Security employee speaking to Miller discovered that Miller's undated application still was in the "pending matters" file and told Miller he could not get the policy number at that time. Miller said he had to have the policy number immediately. At that point, the employee brought the problem to the Respondent's attention. The Respondent had the employee tell Miller they would call right back. Security then dated Miller's application April 6, 1989, telephoned Progressive American to secure coverage effective April 6, 1989, and called Miller back with the policy number he needed. Security then processed Miller's application to secure the coverage for a year, through April 6, 1990. Miller has renewed the Progress American coverage through Security and still has his vehicles insured under the policy. Donald E. Wilkins (Count IV). Donald E. Wilkins, President of Apple Paradise Landscaping, Inc., used Security for his general liability and automobile insurance needs. He has no complaint about, and no issue is raised in this proceeding, as to Security's handling of those coverages. (The evidence is that the coverages Wilkins applied for were placed in the normal course of business.) On or about March 9, 1989, Wilkins decided he wanted a workmen's compensation insurance certificate. He went to Security's office, and one of the Respondent's unlicensed employees completed an application for the insurance and for premium financing. Wilkins gave her a $250 check "just for the certificate." The check was deposited into Security's general operating account which Security used to pay the operating expenses of the business. On March 9, 1989, Wilkins also specifically requested that Security furnish to Hawkins Construction of Tarpon Springs, Florida, a certificate of insurance. In response to the request, Security furnished to Hawkins Construction a certificate that Apple Paradise with the "S. Atlantic Council on Workers Compensation." A policy number appears on the certificate, and the certificate states that coverage was effective March 13, 1989, to expire on March 13, 1990. There is no evidence that the Respondent personally was involved in providing this certificate of insurance. The evidence did not prove whether Wilkins ever got any workmen's compensation insurance. The Department proved that Security never processed the premium financing application, and Wilkins testified that he never got a payment book or other request for payment from any premium financing company. But the representative of the National Council on Compensation Insurance gave no testimony on Wilkins or Apple Paradise. Wilkins himself did not appear to have any complaint against the Respondent or Security. Theoharis Tsioukanaras (Count III). Theoharis (Harry) Tsioukanaras owned and operated Harry's Painting and Enterprises, Inc. He had been doing business with the Respondent to meet his business and personal insurance needs since the Respondent first bought Security (and did business with the prior owner for a year before that). He had his business and personal automobile insurance, as well as his workmen's compensation insurance through Security. In the normal course of their business relationship, either Harry would telephone Security when he had insurance needs or Security would telephone Harry when it was time to renew insurance. Harry would then drop by the office to complete the necessary paperwork and pay the premium. When Harry did not have the necessary premium money when it was time to buy or renew insurance, the Respondent regularly loaned Harry premium money and Harry would pay the Respondent back later. Harry usually dealt with the Respondent's unlicensed employees, not with the Respondent directly. On or sometime after July 7, 1989, Harry telephoned Security for proof of insurance on a 1987 Subaru so that he could avoid having to pay for lender insurance on the vehicle at a bank where he was seeking to obtain financing. One of the Respondent's unlicensed employees gave Harry a purported insurance identification card for "Progressive American," listing a purported insurance policy number and purported policy effective dates of July 7, 1989, to January 7, 1990. The lending institution did not accept the card. In fact, no Progressive American policy had issued on the vehicle. At some point, Harry came by the Security office and told the Respondent that he (Harry) was due a $640 refund for automobile insurance renewal premium money on a policy that never issued. By the Respondent's own admission, he checked with his records and his unlicensed employees and confirmed that Harry was owed the money. On September 28, 1989, he gave Harry a check for $640. 1/ Despite the circumstances that resulted in the false Progressive American insurance identification card, in Harry's need to buy Allstate insurance on a vehicle he thought was insured through Security, and in Harry's need for a $640 refund from Security, Harry continues to do his insurance business with the Respondent and Security and also refers friends to the Respondent for insurance needs. John Stuiso (Count I). On or about June 7, 1989, John Stuiso, a self-employed building contractor, applied for both general liability and workmen's compensation insurance through Security. (Stuiso had been insured through Security for the preceding four years with no apparent problems.) Stuiso paid Security $3,250 as partial payment of the premiums on the policies and also applied for premium financing through Security. At least $3,000 was paid by check; the evidence is not clear how the other $250 was paid. The $3,000 check was deposited into Security's general operating account which Security used to pay the operating expenses of the business. It is not clear what happened to the other $250. It was understood between Stuiso and Security that Security would have the applications processed and would inform Stuiso if there was any problem with coverage. Not having heard anything to the contrary, Stuiso believed he had the general liability and workmen's compensation insurance for which he had applied. In fact, Security never processed either application for insurance or either application for premium financing. In late July or early August, 1989, Stuiso requested that Security furnish a certificate of insurance for him to provide to a customer, APCO Building Systems of Oldsmar, Florida. On August 4, 1989, Security issued to APCO a certificate that Stuiso had both general liability insurance with American Professional Insurance Company and workmen's compensation insurance with "South Atlantic Council on Work Comp." Purported policy numbers also appeared on the certificate. When Stuiso never received a payment book for his premium financing, he became concerned about his coverage and was about to approach the Department for assistance when he received a telephone call from a Department investigator who had been investigating the Respondent (unbeknownst to the Respondent.) The investigator told Stuiso that he had no coverage. Stuiso then approached the Respondent and asked for a refund. The Respondent checked his records and asked his unlicensed employees about Stuiso's claim that he had paid for and applied for insurance that never issued. He learned for the first time the facts about Stuiso and immediately wrote Stuiso two refund checks, one for $3,000 and one for $250. Due to the financial problems the Respondent was having, his $3,00 check was returned for insufficient funds. The Respondent tried to borrow the money to cover the $3,000 check from a friend who declined on advice of counsel. Stuiso then went to the police and had the Respondent charged with writing a worthless check. The Respondent was advised of this and turned himself in to the police. He was given a week to make good on the check. The Respondent was able to borrow the money from another friend and paid Stuiso in full. However, his encounter with the police brought home to him the depths to which he had sunk. He decided to commit suicide by monoxide poisoning but changed his mind before it was too late. He telephoned his wife in Tampa to report what he had just done, and she initiated steps to have him committed involuntarily for treatment for mental illness under Florida's Baker Act. He spent four days in the Community Hospital in New Port Richey, Florida, where he was diagnosed as having "adjustment reaction." He was released to the custody of his wife and spent the next week to ten days with her in Tampa. After the Respondent recovered, he decided to do whatever was necessary to save his business and pay off his debts. He laid off office staff and, to take up the slack, himself assumed the responsibilities he had been delegating to his unlicensed employees. He also decided, in light of the Harry's and Stuiso matters, to himself investigate to see if there were any other Security customers who did not have insurance coverage for which they had paid. He found Wanda Mae Riley (Custom Plumbing of Pasco, Inc.). Wanda Mae Riley (Count II). In about August, 1988, the Respondent himself called on Wanda Mae Riley of Custom Plumbing of Pasco County to advise her that the company's general liability and automobile insurance policies for its fleet of four trucks were up for annual renewal on August 24, 1988. The Respondent filled out applications for renewal of the policies and for premium financing and accepted Riley's check in the amount of $3,244 as down payment for the renewal policies. The $3,244 was deposited into Security's general operating account which Security used to pay the operating expenses of the business. The Respondent telephoned American Professional Insurance Company to bind the coverage. He or his office also issued proof of insurance identification cards for Custom Plumbing. But, for reasons he cannot explain (having no recollection), he never processed the applications and the binders expired when the applications were not processed and policies were not issued in the normal course of business. Having had a lapse of memory as to the matter and as to Security's responsibilities to Custom Plumbing, the Respondent did not know and never told Riley or Custom Plumbing that the insurance policies were not renewed and that Custom Plumbing did not have the coverage it thought it did. Later in 1988, Security also arranged for workmen's compensation insurance for Custom Plumbing. The evidence did not prove that there were problems in the way Security obtained this coverage for Custom Plumbing. In approximately April, 1989, Custom Plumbing requested that Security furnish a certificate of insurance for him to provide to the Barnett Bank of Hernando County. On April 21, 1989, Security issued to the bank a certificate that Custom Plumbing had automobile insurance with American Professional Insurance Company. The expired binder number (which perhaps was the same as the policy number of the prior year's policy) appeared on the certificate as the purported policy number. There is no evidence that the Respondent personally was involved in providing this certificate of insurance. When, in approximately late October or early November of 1989, the Respondent discovered that Security had not obtained the coverages for which Custom Plumbing had made down payments in August, 1988, he telephoned Riley to inform her 2/ and tell her that he would refund the down payments Custom Plumbing had made in August, 1988. When the refund was not made promptly, Riley went to a lawyer to have a promissory note drawn for the Respondent's signature. The promissory note reflected the $3,244 the Respondent owed to Custom Plumbing, payable $500 a month. On or about December 9, 1989, the Respondent signed the note, which was paid in full in accordance with the terms of the note. (As previously found in Finding 14, by this time the Respondent also had heard from Nelson.)
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is recommended that the Petitioner, the Department of Insurance and Treasurer, enter a final order: (1) finding the Respondent, Robert Charles Anderson, guilty of the charges contained in Counts I, II, III, V and VI of the Administrative Complaint, as set forth in the Conclusions of Law, above; and (2) suspending the Respondent's licenses and eligibility for licensure for six months. RECOMMENDED this 28th day of May, 1991, in Tallahassee, Florida. J. LAWRENCE JOHNSTON 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 28th day of May, 1991.
The Issue The issue is whether Petitioner properly issued a Stop-Work Order and Amended Order of Penalty Assessment against Respondent for failing to obtain workers' compensation insurance that meets the requirements of chapter 440, Florida Statutes.
Findings Of Fact The Division is a component of the Department of Financial Services. It is responsible for enforcing the workers' compensation coverage requirements pursuant to section 440.107. At all times relevant to this proceeding, Grandview was a corporation registered to do business in Florida. Grandview is a bread and breakfast and was an active company during the two-year audit period from August 22, 2015, through August 21, 2017. On July 19, 2017,1/ Respondent met with a Henderson Insurance agent and learned that Respondent was not in compliance with the workers' compensation requirements. Grandview immediately requested bids to obtain insurance, but did not purchase a policy because it was decided that it was "not the right time." On August 21, 2017, Robert Feehrer ("investigator" or "Feehrer"), compliance investigator for the Division, started an investigation of Grandview. Feehrer discovered that Grandview did not have any workers' compensation policies, employee leasing agreements, or exemptions on file with the National Council on Compensation Insurance. That same day the Division issued Grandview a Stop-Work Order for Respondent's failure to secure the required workers' compensation insurance coverage. Petitioner also served Grandview with a Request for Production of Business Records for Penalty Assessment Calculation ("Request") asking for documentation to enable the Division to evaluate the payroll for the audit period of August 22, 2015, through August 21, 2017, and to determine Respondent's compliance with the Workers' Compensation Law of Florida. Grandview responded timely and provided sufficient business records in response to the Division's Request. Eunika Jackson ("auditor" or "Jackson"), penalty auditor for the Division, was assigned to Grandview's investigation. Jackson reviewed the business records produced by Grandview. Jackson concluded her audit by properly calculating the workers' compensation amount owed by Grandview for the audit period using the Class Code 9052 for lodging facilities. Jackson applied the approved manual rates and methodology specified in section 440.107(7)(d). Grandview had at least four employees2/ during the audit period and did not have any exemptions from workers' compensation insurance coverage requirements during the audit period. Initially, Jackson calculated Grandview's penalty amount as being over $25,000.00. After Grandview timely provided sufficient business records in response to the Request, Jackson correctly applied the penalty reduction credit to the calculation and concluded Grandview owed a reduced penalty amount of $13,755.55. On November 27, 2017, Respondent was served with the Amended Order of Penalty Assessment totaling $13,755.55. On December 18, 2017, Respondent challenged the penalty assessment and requested a formal hearing.
Recommendation Based on the forgoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that the Department of Financial Services, Division of Workers' Compensation, issue a final order affirming the Stop-Work Order and Amended Order of Penalty Assessment in the amount of $13,755.55. DONE AND ENTERED this 30th day of October, 2018, in Tallahassee, Leon County, Florida. S JUNE C. MCKINNEY Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (850) 488-9675 Fax Filing (850) 921-6847 www.doah.state.fl.us Filed with the Clerk of the Division of Administrative Hearings this 30th day of October, 2018.
Findings Of Fact At all times pertinent to this proceeding Respondent, HOWARD P. HAUSER, was eligible for licensure and licensed in this state by the Florida Department of Insurance as a Life and Health Insurance Agent; General Lines Insurance Agent - Property, Casualty, Surety, and Miscellaneous Lines; and Legal Expense Insurance Agent. At all times pertinent hereto, Respondent was the registered agent and an officer or director of Hauser and Associates Insurance Agency, Incorporated of 7770 Davie Road Extension, Hollywood, Florida. Beginning on or about January 1, 1986, and continuing through August 31, 1987, Respondent represented to one of his clients that he had obtained insurance coverage for that client's three restaurants. This representation of coverage was false. Respondent received from the client insurance premium payments of $56,550.00, more or less, for the insurance of the client's three restaurants. These funds were obtained by Respondent under false pretenses. Respondent provided the mortgagee of one of the restaurants owned by his client with a document purporting to be a certificate of insurance on that restaurant from Scotsdale Insurance Company insuring the restaurant for the period December 11, 1985, to December 11, 1986. Respondent further provided the mortgagee with a declaration sheet stating that Protective Insurance Company would insure the restaurant from January 1, 1987, to January 1, 1990. Respondent falsified these declaration sheets. Respondent's client suffered no loss, other than the loss of his premium dollars, because of Respondent's misrepresentations as to coverage. Respondent was charged with one count of Grand Theft of the Second Degree, a second degree felony, based on the dealings with his client. Respondent entered a plea of nolo contendere to the charge of Grand Theft of the Second Degree. The Circuit Court, in and for Broward County, Florida, placed Respondent on probation for a period of three years and withheld adjudication of guilt. As a condition of the Order of Probation, the court required that Respondent make restitution to his client in the amount of $56,550.00 and further required that $15,000.00 be paid toward restitution on October 24, 1988, the date Respondent entered his plea of nolo contendere and the date the court entered the Order of Probation. Respondent made a restitution payment of $15,000.00 on October 24, 1988. Respondent has been licensed by Petitioner since April 1972. Although Petitioner has received other complaints about Respondent, no formal action has been previously taken against him. Respondent has been a good citizen, except for this misconduct, and a good family man. Respondent regrets his misconduct. Respondent timely requested a formal hearing after the Administrative Complaint was served upon him.
Recommendation Based on the foregoing findings of fact and conclusions of law it is RECOMMENDED that the Department of Insurance enter a final order which revokes all licenses issued by the Department of Insurance to Respondent, Howard Paul Hauser. DONE and ENTERED this 21st of July, 1989, in Tallahassee, Leon County, Florida. CLAUDE B. ARRINGTON 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 21st day of July, 1989. APPENDIX The proposed findings addressed as follows: of fact submitted on behalf of Petitioner are 1. Addressed in paragraph 1. 2. Addressed in paragraph 2. 3. Addressed in paragraph 6. 4. Addressed in paragraph 3. 5. Addressed in paragraph 4. 6. Addressed in paragraphs 3-4. The proposed findings of fact submitted on behalf of Respondent are addressed as follows: Addressed in paragraph 9. Addressed in paragraph 6. Addressed in paragraph 6. Rejected as being unnecessary to the conclusions reached. Addressed in paragraph 7. Addressed in paragraph 5. Addressed in part in paragraph 7. Rejected in part as being speculative. Rejected as being a conclusion of law and not a finding of fact. COPIES FURNISHED: Robert G. Gough, Esquire, (at the hearing) and Charles Christopher Anderson, Esquire, (on the proposed recommended order) Office of Legal Services 412 Larson Building Tallahassee, Florida 32399-0300 Gary D. Weiner, Esquire, Glendale Federal Building Suite 209 901 Southeast 17th Street Fort Lauderdale, Florida 33316 Honorable Tom Gallagher State Treasurer and Insurance Commissioner The Capitol, Plaza Level Tallahassee, FL 32399-0300 Don Dowdell, General Counsel Department of Insurance and Treasurer The Capitol, Plaza Level Tallahassee, FL 32399-0300
