Case: An investigation into the activities of a surplus lines agent was initiated when an agent failed to submit the correct Surplus Lines Premium Tax from insureds. The Department's investigation determined the agent systemically rounded the surplus lines premium tax for policies to the nearest whole dollar, causing some insureds to be overcharged. The data provided by the insurer indicated the total amount overcharged was $34,321.

Disposition: The subject was suspended for 12 months and required to provide the Department a list of all policyholders overcharged for premium taxes, fees, or assessment, and ordered to refund all overcharges to the affected policyholders.

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Case: Insurance companies are required to notify the Department when they terminate the appointment of any licensee for cause. When the Bureau of Investigation received notice an agent was terminated for cause regarding the sale of annuities to two elderly consumers, an investigation was opened. The investigator visited the affected senior consumers, both over 80 years old, and took their statements. The consumers stated the agent advised them to direct-surrender their existing annuities, without benefit of a 1035 Exchange. The agent further instructed the senior consumers to provide a personal check for the surrendered funds to pay for the new annuities, stating doing so would allow the contracts to be issued quicker.

Analysis of the transactions determined the agent inflated the consumer's net worth and income on suitability forms and failed to disclose the transactions involved the replacement of existing annuities. In addition to making unsuitable recommendations to the consumers, the transactions created significant tax consequences for them because the value of the replaced annuities was not transferred by a tax-free,1035 Exchange.

Disposition: Suspended 18 months.

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Case: The investigation was opened after an agent alleged an insurance agency used his license and appointment to sell life insurance policies to insureds he never met. Investigators obtained affidavits from the agent, the involved consumers and insurance company personnel concerning those transactions.

Investigators followed the money trail which led directly to the agency. According to documentation from the insurer, the agency received commissions for the policies issued under the complaining agent's name.

Disposition: License administratively surrendered.

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Case: The Department received information alleging a recently licensed Debit Life and Health agent failed to disclose a prior administrative action on his license application. The agent, while an attorney, acted as counsel for two title insurance companies in Florida, and a complaint was submitted to the Florida Bar alleging the attorney misappropriated fiduciary funds belonging to the title insurance companies.

On August 15, 2018, the subject signed a Petition for Disciplinary Revocation requesting the Supreme Court of Florida grant the petition for revocation and order that petitioner's membership in the Florida Bar be revoked. On October 4, 2018, the Supreme Court of Florida granted the petition for disciplinary revocation. The attorney was disbarred from the Florida Bar. The subject submitted his Department license application and failed to disclose the Supreme Court of Florida Order and his disbarment.

Disposition: License administratively surrendered.

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