The Issue The issues in this case are whether Respondent, Joan Lorraine Dragone, committed the offenses alleged in an Amended Administrative Complaint, issued by Petitioner, the Department of Financial Services and, if so, what penalty should be imposed.
Findings Of Fact The Parties. Petitioner, the Department of Financial Services (hereinafter referred to as the "Department"), is the agency of the State of Florida charged with the responsibility for, among other things, the investigation and prosecution of complaints against individuals licensed to conduct insurance business in Florida. Ch. 626, Fla. Stat. Respondent Joan Lorraine Dragone is currently and was at the times relevant, licensed in Florida as a Health (2-40) and General Lines (Property & Casualty)(2-20) insurance agent. Ms. Dragone was first licensed in December 1992. Ms. Dragone’s license identification number is A071793. At all relevant times, Ms. Dragone operated and owned All Neighbors Discount Insurance, Inc. (hereinafter referred to as “All Neighbors”). Ms. Dragone is and was the president and a director of All Neighbors. All Neighbors’ principal address is 7116 Stirling Road, Davie, Florida 33024. Ms. Dragone, who was first licensed by the Department in December 1992, has worked in the insurance business for approximately 23 years. Part of that time she worked with her sister, Nancy Rice, who also became a licensed insurance agent. Ms. Rice left All Neighbors in April 2004. Employment of Jose Corilloclla. Sometime in 1997, Jose Corilloclla, a native of Peru, was employed at All Neighbors. Mr. Corilloclla, who was an illegal alien at the time, was paid weekly in cash at an hourly rate of $6.00. Although Ms. Dragone denied knowledge of Mr. Corilloclla’s status and employment, it is inferred that she had knowledge that he was not legally in the United States. Initially, Mr. Corilloclla was employed as a file clerk and to do odd jobs for All Neighbors. Mr. Corilloclla also acted as an interpreter of Spanish-speaking customers for All Neighbors. After Ms. Rice’s departure in April 2004, Mr. Corilloclla was employed full-time at All Neighbors until his departure in 2005. Ms. Dragone was his only supervisor during this time. While directly under Ms. Dragone’s supervision, Mr. Corilloclla usually arrived at the office at about 10:00 a.m. and departed at about 6:00 p.m. On most days, Ms. Dragone began work at approximately 11:00 to 11:30 a.m. On occasion, Ms. Dragone did not arrive until noon. Ms. Dragone also, on occasion, would leave the office for an hour or more during the afternoon. On all of these occasions, Mr. Corilloclla was left alone, unsupervised, at All Neighbors. From at least April 2004 until his departure, Mr. Corilloclla’s duties at All Neighbors increased dramatically. Mr. Corilloclla answered the telephone and met with customers, describing the benefits of insurance coverage, giving interpretations of insurance coverage and/or policies, describing the terms of insurance coverage, including premiums, inviting customers to contract for insurance, quoting premiums and binding coverage, recommending insurance options, and completing applications. Mr. Corilloclla also conducted vehicle inspections. Mr. Corilloclla generally held himself out to be an insurance agent. At some time after April 2004, Ms. Dragone encouraged Mr. Corilloclla to obtain an insurance license. While Mr. Corilloclla began the process of obtaining a license, completing approximately eight of a 40-hour insurance agent course, he did not complete the process. As the agent in charge, Ms. Dragone agreed to supervise Mr. Corilloclla during the process of obtaining his license. Ms. Dragone’s testimony that Mr. Corilloclla’s activities after April 2004 were limited to those for which she fully supervised him was not credible. Mr. Corilloclla, having been with All Neighbors since 1997, had learned how the business operated and Ms. Dragone simply allowed him to operate as if he were already an insurance agent, essentially unsupervised. Suresh Parmanand’s Automobile Insurance Purchase. In 2002, Suresh Parmanand (hereinafter referred to as “Suresh”), a resident of New York, purchased a 2002 Mercedes- Benz S430 (hereinafter referred to as the “Vehicle”) from somewhere in Virginia (Suresh was unable to recall where exactly in Virginia the purchase took place). The Vehicle was a used one. Suresh decided to insure the Vehicle in Florida, at least in part, because of lower insurance rates than he could obtain in New York. Utilizing his brother’s name, Hemchand Parmanand (hereinafter referred to as “Hemchand”), and his brother’s Florida address, Suresh obtained insurance for the Vehicle through All Neighbors. Suresh insured the Vehicle by telephone conversations with Mr. Corilloclla, who also obtained a Florida title in the name of Hemcharnd for the Vehicle for Suresh. After speaking with Mr. Corilloclla by telephone about insuring the Vehicle, Mr. Corilloclla, who was fully aware that the vehicle was located in New York, had never been in Florida, and would not be located in Florida, completed an application for insurance from Gainsco Insurance Group (hereinafter referred to as “Gainsco”). Mr. Corilloclla filled out a Gainsco application for insurance on the Vehicle, signing it with Hemchand’s name as applicant, Ms. Dragone’s name as agent, and binding the insurance effective December 18, 2004. While an explanation as to why it took approximately two years to bind the coverage was given, like many issues surrounding Suresh’s questionable automobile insurance dealings, that explanation was not convincing enough on which to make a finding. Mr. Corilloclla also completed a Vehicle Pre-insurance Inspection Form, signing Hemchand’s name and Ms. Dragone’s name. No inspection was ever conducted by Mr. Corilloclla or Ms. Dragone. Suresh paid for the insurance with three separate, sequentially numbered checks dated the same day and all made payable to Mr. Corilloclla. Mr. Corilloclla deposited those checks into his personal bank account, keeping part of the payments (approximately $200.00) for himself, and placed the premium with the application for insurance at All Neighbors. The application and premium were processed by Ms. Dragone. While the evidence failed to prove clearly and convincingly that Ms. Dragone was fully aware of the nature of this transaction, she was aware that Mr. Corilloclla had obtained the insurance and had signed the documentation on her behalf. Ms. Dragone, at the time of the foregoing transaction, had an agency agreement with National Specialty Lines, the Managing General Agent subsidiary of Gainsco. Pursuant to that agreement, Ms. Dragone was appointed and authorized to solicit and submit applications for insurance, and to deliver policies and binders consistent with the insurance company’s underwriting guidelines. Those guidelines limited the binding of coverage to Ms. Dragone and required that she conduct the vehicle inspection and complete and sign the inspection form. Ms. Dragone did not comply with either of these requirements. Ultimately, the Vehicle was allegedly involved in an accident for which Suresh submitted an insurance claim. As a result of the claim, an investigation was begun by Gainsco Insurance Group which led to the discovery that the Vehicle had been fraudulently insured.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that a final order be entered by the Department finding that Joan Lorraine Dragone violated the provisions of Chapter 626, Florida Statutes, described more fully in this Recommended Order; dismissing all other charges; and suspending her license and appointment for a period of between 18 and 24 months. DONE AND ENTERED this 21st day of August, 2009, in Tallahassee, Leon County, Florida. LARRY J. SARTIN 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 day 21st day of August, 2009. COPIES FURNISHED: David J. Busch, Senior Attorney Division of Legal Services Department of Financial Services 612 Larson Building 200 East Gaines Street Tallahassee, Florida 32399-0333 Joan Lorraine Dragone 3100 Southwest 20 Court Fort Lauderdale, Florida 33312 Tracey Beal, Agency Clerk Department of Financial Services 200 East Gaines Street Tallahassee, Florida 32399-0390 Honorable Alex Sink Chief Financial Officer Department of Financial Services The Capitol, Plaza Level 11 Tallahassee, Florida 32399-0300 Benjamin Diamond, General Counsel Department of Financial Services The Capitol, Plaza Level 11 Tallahassee, Florida 32399-0307
