The Issue Whether Respondent's insurance license should be suspended or revoked because Respondent failed to disclose his criminal history on his insurance license application.
Findings Of Fact The Department has authority over licensing insurance agents pursuant to Chapter 626, Florida Statutes. At times pertinent Mr. Arleo was a resident of Pensacola, Florida. He holds a 220 General Lines (Property and Casualty) Agent license issued on February 27, 2001. The license he received was based on a license application he filed with the Florida Department of Insurance on January 30, 2001. Question three of the licensure and screening questions portion of the January 30, 2001, application inquired, "Have you ever been convicted, found guilty, or pleaded guilty or nolo contendere (no contest) to a felony under the laws of any municipality, county, state, territory, or country, whether or not adjudication was withheld or a judgment of conviction was entered?" Respondent answered this question in the negative. Question four of the licensure and screening questions portion of the application inquired, "Have you ever been convicted, found guilty, or pleaded guilty or nolo contendere (no contest) to a crime punishable by imprisonment of one (1) year or more under the laws of any municipality, county, state, territory, or country, whether or not adjudication was withheld or a judgment of conviction was entered?" Respondent answered this question also in the negative. Following the aforementioned answers, Mr. Arleo signed his name beneath a statement that reads as follows: "Under penalty of perjury, I declare that all answers to the forgoing questions are true. I understand that misrepresentation of any fact required to be disclosed through this application is a violation of the Florida Insurance and Administrative Codes and may result in the denial of my application and or the revocation of my insurance license(s)." Notwithstanding his responses on the application, the evidence indicated that Mr. Arleo, on September 30, 1986, pleaded nolo contendere to, and was adjudicated guilty of, one count of theft of property worth $100 or more, but less than $20,000, and one count of burglary of a structure or conveyance, in the Circuit Court of Escambia County, Case No. 86-2796. Both of the listed offenses are felonies in the State of Florida. Mr. Arleo was adjudicated guilty of the offenses. However, on January 6, 1987, pursuant to an Order of Modification, adjudication was withheld.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that the Department revoke Mr. Arleo's license. DONE AND ENTERED this 21st day of November, 2003, in Tallahassee, Leon County, Florida. S HARRY L. HOOPER 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 21st day of November, 2003. COPIES FURNISHED: Steve Arleo 704 North 80th Avenue Pensacola, Florida 32506 Dana M. Wiehle, Esquire Department of Financial Services 200 East Gaines Street Tallahassee, Florida 32399 Honorable Tom Gallagher Chief Financial Officer Department of Financial Services The Capitol, Plaza Level 11 Tallahassee, Florida 32399-0300 Mark Casteel, General Counsel Department of Financial Services The Capitol, Plaza Level 11 Tallahassee, Florida 32399-0300
The Issue Whether Respondent's licenses as a health insurance agent, a life and health insurance agent, and a life including variable annuity agent should be suspended or revoked based on the allegations set forth in the Department's Administrative Complaint.
Findings Of Fact Respondent Gary L. Koniz (Respondent) is currently licensed by the Department as a health insurance (2-40) agent, a life and health insurance (2-18) agent, and a life including variable annuity (2-14) agent. On August 17, 1988, Respondent plead guilty to operating a vehicle while under the influence of alcohol (DUI), a felony, in the County Court in and for Ulster County, New York, Case No. 88-57. Respondent was sentenced to five years' probation, license revocation, and payment of a fine. On or about September 30, 2000, Respondent submitted an application to the Department for licensure as health agent, a life and health agent, and a life including variable annuity agent, on which he was asked the following two questions: Have you ever been convicted, found guilty, or pleaded guilty or nolo contendere to a felony under the laws of any municipality, county, state, territory, or country, whether or not adjudication was withheld or a judgment of conviction was entered? Have you ever been convicted, found guilty, or pleaded guilty or nolo contendere to a crime punishable by imprisonment of one year or more under the laws of any municipality, county, state, territory, or country, whether or not adjudication was withheld or a judgment of conviction was entered? Respondent answered each of the aforementioned questions, "no." On the application dated September 30, 2000, Respondent signed and swore to the statement that read: Under penalty of perjury, I declare that I have read the foregoing application for licensure, related information and related attachments, and that the facts as stated in it are true. I understand that misrepresentation of any fact required to be disclosed through this application is a violation of the Florida Insurance and Administrative Code and may result in the denial of my application and/or the revocation of my insurance license. Respondent testified at hearing. Respondent made a court appearance at which he entered a plea as part of a plea bargain to a misdemeanor. He did not comply with one of the conditions and the matter was called back up before the court. At this second hearing, the court asked how he plead. Respondent indicated he had already plead. The court took this response as a plea to the DUI felony and imposed the aforementioned penalties. Respondent did not knowingly answer the questions on the application for licensure incorrectly.
Recommendation Based on the foregoing Findings of Facts and Conclusions of Law, it is RECOMMENDED that the Department of Insurance enter a final order finding Respondent Gary L. Koniz guilty of violating Sections 626.611 and 626.621, Florida Statutes, and suspending his licensure as a health insurance agent, a life and health insurance agent, and a life including variable annuity agent for a period of up to 18 months. DONE AND ENTERED this 23rd day of April, 2002, in Tallahassee, Leon County, Florida. STEPHEN F. DEAN 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 23rd day of April, 2002. COPIES FURNISHED: Gary L. Koniz 9480 Princeton Square Boulevard, South Apartment 815 Jacksonville, Florida 32256 Matthew A. Nowels, Esquire Department of Insurance 612 Larson Building 200 East Gaines Street Tallahassee, Florida 32399-0333 Honorable Tom Gallagher State Treasurer/Insurance Commissioner Department of Insurance The Capitol, Plaza Level 02 Tallahassee, Florida 32399-0300 Mark Casteel, General Counsel Department of Insurance The Capitol, Lower Level 26 Tallahassee, Florida 32399-0307
The Issue Whether Respondent committed the violations alleged in the Administrative Complaint issued against her and, if so, what penalty should be imposed.
Findings Of Fact Based on the evidence adduced at hearing, and the record as a whole, the following findings of fact are made: Facts Relating to All Counts Respondent has held a Florida (2-20) general lines (property and casualty) insurance agent license since March 4, 2000. She had been licensed as a (4-40) customer representative in Florida for approximately one year before obtaining her 2-20 license. At no time as a licensee has she had any disciplinary action taken against her. At all times material to the instant case, Respondent was employed by A Maples Insurance Agency, Inc., in Pompano Beach, Florida (Agency). Respondent was one of four individuals involved in the operation of the Agency. The other three individuals were Respondent's sister, Mary Terrell (who had an ownership interest in the Agency); Respondent's brother, Gus Jones, Jr. (who was also a co-owner of the Agency), and Claudia Smith, a 25-year Agency employee. As Respondent was aware, neither Ms. Terrell, Mr. Jones, nor Ms. Smith possessed any Florida insurance license. At one time, prior to Respondent's coming to work for the Agency, Mr. Jones had been licensed in Florida as a 2-20 insurance agent, but his license was taken away by the Department's predecessor, the Department of Insurance, in 2002, and it has not been reinstated. The Department of Insurance's Final Order suspending Mr. Jones' license read, in pertinent part, as follows: Pursuant to Section 626.641, Florida Statutes, the Respondent shall not engage in or attempt to profess to engage in any transaction or business for which a license or appointment is required under the Insurance Code or directly or indirectly own, control, or be employed in any manner by any insurance agent or agency or adjuster or adjusting firm, during the period of suspension. Further, pursuant to Section 626.641, Florida Statutes, the licenses, appointment, or eligibility, which has been suspended shall not be reinstated except upon request for such reinstatement; but the Department shall not grant such reinstatement if it finds that the circumstance or circumstances for which the license, appointment or eligibility was suspended still exist or are likely to recur. Respondent knew, when she began working at the Agency, that Mr. Jones' 2-20 license had been taken away and not been reinstated. It was Mr. Jones' being stripped of his license that prompted the Agency to hire Respondent. The Agency needed a licensed agent to replace Mr. Jones so that there would be someone at the Agency able to generate commission revenues. Upon being hired, Respondent filled this role as the Agency's lone licensed producing agent. Respondent's employment at the Agency was her only source of income. She was paid on a commission-only basis, receiving her commission payments in cash from Mr. Jones. The business hours of the Agency were 9:00 a.m. to 5:00 p.m. Monday through Thursday and 9:00 a.m. to 6:00 p.m. on Friday. The Agency closed an hour for lunch each day. Although she was the only one working at the Agency who held an insurance license, Respondent ordinarily worked just nine hours a week (three hours on Mondays, three hours on Wednesdays, and three hours on Fridays). Respondent authorized Ms. Terrell, Mr. Jones, and Ms. Smith to sign Respondent's name on insurance-related documents and otherwise act in her stead so that these unlicensed individuals would be able to transact business and produce commissions for the Agency when she was out of the office. Respondent "g[o]t credit for the[se] sale[s]" made by these three unlicensed individuals and was compensated accordingly, notwithstanding her lack of personal involvement in the transactions. Facts Relating to Count I In August 2004, Sarah Harrington went to the Agency to shop for insurance for a manufactured home she was purchasing (through financing provided by Bank of America). At the Agency, Ms. Harrington dealt exclusively with Ms. Smith, whom Ms. Harrington reasonably believed was an insurance agent. Based on the information Ms. Harrington provided her, Ms. Smith recommended obtaining coverage through Citizens Property Insurance Corporation (Citizens), the state-created entity that services homeowners unable to find insurance in the private market. Ms. Smith told Ms. Harrington what the premiums were for this coverage, and Ms. Harrington wrote a check to the Agency for the total amount ($1,540.00) and gave it to Ms. Smith. Ms. Harrington left the Agency with a two-page insurance binder (with an effective date of August 25, 2004, and an expiration date of August 25, 2005) that Ms. Smith gave her. The binder contained what purported to be Respondent's signature in two different places. The signatures, however, were not Respondent's. They were placed there by Ms. Smith, pursuant to the grant of authority Respondent had previously given her. In September 2005, Ms. Harrington received a letter from her mortgage lender, Bank of America, advising her that her "hazard insurance policy ha[d] potentially lapsed, effective 08/25/2005" and that the bank was "unable to pay the premium for [her] new hazard insurance coverage because [it had] not received a bill from [her] insurance agent/company." Ms. Harrington reacted to this advisement by telephoning the Agency and speaking with Ms. Smith. Ms. Smith told Ms. Harrington that the Agency was a "little behind in processing [the paperwork for the renewal of Ms. Harrington's insurance coverage]" and would be sending Bank of America a bill shortly. Approximately a month later, Ms. Harrington received a second letter from Bank of America. In the letter, the bank informed her that it had still not received anything concerning the renewal of her insurance coverage. Ms. Harrington again telephoned the Agency and spoke with Ms. Smith. Ms. Smith told Ms. Harrington that the Agency "had already billed Bank of America" and that "everything was fine." On October 24, 2005, Hurricane Wilma made landfall in South Florida and "took off two sides of [Ms. Harrington's] home." The home was a total loss. When Ms. Harrington telephoned Citizens to initiate the claim process, she was told that there was no record of her being insured. Ms. Harrington thereafter went to the Agency to inquire about the matter and met with Ms. Smith. Ms. Harrington demanded to see proof of her insurance. Ms. Smith was unable to provide such proof. Ms. Harrington returned to the Agency for a follow-up visit. This time she met with Mr. Jones, as well as Ms. Smith. Mr. Jones gave Ms. Harrington the first two pages of an application for insurance he said he had mailed, on her behalf, to Citizens on October 19, 2005. Mr. Jones told Ms. Harrington that the payment for this insurance "was being processed" and that Ms. Harrington's "house was going be covered" inasmuch as she "had insurance." Upon examining the two pages that Mr. Jones had given her, Ms. Harrington noticed that it contained erroneous information concerning her occupation, her date of birth, and the age of her home. She pointed out these errors to Mr. Jones and Ms. Smith. Ms. Smith subsequently wrote, and signed Respondent's name to, a memorandum to Citizens, dated November 7, 2005, correcting the information that Ms. Harrington had identified as being erroneous. After this follow-up visit to the Agency, Ms. Harrington requested, and later received from Citizens, the entire application package that the Agency had submitted to Citizens on October 19, 2005, on her behalf. There were initials and signatures on the documents in this package that purported to be Ms. Harrington's, but were actually forgeries. These documents also contained signatures purporting to be Respondent's that were placed there by Ms. Terrell, Mr. Jones, and/or Ms. Smith, pursuant to the grant of authority Respondent had previously given them. Ms. Harrington's claim for the destruction of her home was ultimately paid by Citizens, as Mr. Jones and Ms. Smith said it would be. Ms. Harrington received $74,000.00. At no time did Respondent have any dealings or interaction with Ms. Harrington. Facts Relating to Count II Alton Barroso is the owner of Barroso Pools, Inc. (Company). In March of 2005, the Company, through the Agency, obtained insurance from Grenada Insurance Company (Grenada) for three Company vehicles. Ms. Terrell had signed Respondent's name on the application for this insurance, pursuant to the grant of authority Respondent had previously given her. Respondent had no personal involvement in this insurance transaction. After the effective date of the Company's policy with Grenada, a Company vehicle was involved in an accident resulting in damages to the vehicle costing approximately $7,500.00 to repair. The Company submitted a claim requesting that Grenada cover these damages under the Company's insurance policy with Grenada. Grenada refused to pay the claim, advising the Company that the Company vehicle "which was involved in [the] accident . . . was not listed as a covered vehicle under [its] auto policy at the time of the loss." Mr. Barroso, who does not "speak or write English very well," had a friend of his, Monica Barranco, go to the Agency to inquire about the matter. Ms. Barranco made several trips to the Agency. She dealt primarily with Ms. Smith, but met once with Mr. Jones, who gave her a copy of the Company's policy. She had no contact at all with Respondent. Despite Ms. Barranco's efforts, the Company never received any payment for the damages to the Company vehicle that was involved in the accident. Facts Relating to Count III Marvin Mercier is Ms. Smith's brother. He has obtained automobile insurance through the Agency for the past five or six years. In February 2006, Mr. Mercier was informed that the insurance policy he had on his 1990 Ford Aerostar van would not be renewed because of an at-fault accident in which he had been involved. Mr. Mercier thereafter spoke with Ms. Smith, who offered to "get [him] a [new] policy" with another insurer. Mr. Mercier accepted his sister's offer of assistance. Approximately a week later, on or about March 11, 2006, in accordance with Ms. Smith's instructions, Mr. Mercier met with Ms. Smith at the Agency "to sign the application [for the new policy] and to give a down payment." In obtaining this new policy for his van, Mr. Mercier dealt exclusively with Ms. Smith. Respondent had no involvement whatsoever in the transaction.
Recommendation Based upon the foregoing Findings of Fact and Conclusions of Law, it is hereby RECOMMENDED that the Department issue a Final Order finding Respondent guilty of the violations alleged in Counts I through III of the Administrative Complaint and suspending her license for a total of 24 months for having committed these violations. DONE AND ENTERED this 7th day of January, 2008, in Tallahassee, Leon County, Florida. S STUART M. LERNER 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 7th day of January, 2008.
