FI LED

`CT092017

Docketedby

CHIEF FINANCIAL OFFICER

JIMMY PATRONIS
STATE OF FLORIDA

IN THE MATTER OF:

XCEL TESTING SOLUTIONS CASE NO.: 212932-17-AG

ADMINISTRATIVE COMPLAINT

TO: XCEL TESTING SOLUTIONS

7700-2 SQUARE LAKE BLVD
JACKSONVILLE, FLORIDA 32256

XCEL TESTING SOLUTIONS is hereby notified that the Chief Financial Officer

of the State of Florida has caused to be made an investigation of its activities while approved as a

prelicensing education course provider in this state, as a result of which it is alleged:

GENERAL ALLEGATIONS

1. Pursuant to chapter 626, Florida Statutes (2017), XCEL TESTING SOLUTIONS

(the "Respondent") was approved to offer, instruct, and officiate prelicensing education programs

for persons seeking insurance agent licensure in the State of Florida, provider number 369206.

2. Pursuant to section 626.2817, Florida Statutes, the Florida Department of Financial

Services (the "Department"), has authority over the regulation and enforcement of prelicensing

education courses and has jurisdiction over Respondent's activities as a prelicensing education

course provider.

COUNTI

3. The above general allegations are hereby realleged and fully incorporated herein

by reference.
 4. On or about April 1, 2013, the Respondent submitted to the Department a 2-40

health prelicensing course outline containing a curriculum consisting of 196,684 words and 136

minutes of video instruction ("2-40 Course").

5. On or about April 4, 2013, the Department determined that the aforementioned

curriculum satisfied the forty-hour coursework requirement mandated by section 626.8311,

Florida Statutes, and subsequently approved the 2-40 Course.

6. On or.about January 12, 2017, the Depa rtment performed an audit of the 2-40

Course ("January Audit").

7. During the January Audit the Department discovered the 2-40 Course's curriculum

contained 63,187 words and approxima tely 60 minutes of video instruction. The Department

approved the 2-40 Course subject to a curriculum containing 196,684 words and 136 minutes of

video instruction.

8. On or about April 1, 2013, the Respondent submitted to the Department a 2-15 life,

health, and variable annuity prelicensing course outline containing a curriculum consisting of

273,702 words and 225 minutes of video instruction ("2-15 Course").

9. On or about April 4, 2013, the Department determined that the aforementioned

curriculum satisfied the sixty-hour coursework requirement manda ted by section 626.7851,

Florida Statutes, and subsequently approved the 2-15 Course.

10. Fr om on or a bout Febr ua r y 6, 2017 until on or a bout Februar y 8, 2017, the

Department performed an audit of the 2-15 Course ("February Audit").

11. During the February Audit the Department discovered the 2-15 Course's

curriculum contained 59,683 words and approximately 102 minutes of video instruction. The

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Department approved the 2-15 Course subject to a curriculum containing 273,702 words and 225

minutes of video instruction.

12. On or about July 19, 2017, the Respondent submitted to the Department a course

roster containing a list of 134 students who purportedly attended and successfully completed the

2-40 Course in either January, February, or March of 2017.

13. On or about July 25, 2017, the Respondent submitted to the Department a course

roster containing a list of 3,226 students who purportedly attended and successfully completed the

2-15 Course in either January, February, or March of 2017.

IT IS THEREFORE CHARGED that Respondent has violated or is accountable under the

following provisions of the Florida Insurance Code and Rules of the Department which constitutes

grounds for disciplinary action against Respondent as an approved pre-licensing education

provider:

(a) Section 626.2817, Florida Statutes, which provides a course provider shall not grant

completion credit to any student who has not completed at least 75 percent of the required course

hours of a department-approved prelicensure course.

(b) Rule 69B-227.170(2)(b), Florida Administrative Code, which prohibits a provider

from instructing a course which does not use the Department's current Florida Insurance Content

outlines and study manuals.

(c) Rule 69B-227.170(2)(c), Florida Administrative Code, which prohibits a provider

from instructing a course for less than the hours specified in statute for the respective line(s) of

insurance.

(d) Rule 69B-227.320(2)(a), Florida Administrative Code, which pr ovides that no

course shall be taught unless its curriculum has been previously approved by the Department.

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 (e) Rule 69B-227.320(2)(d), Florida Administrative Code, which provides that any

change in an approved course curriculum must be submitted to the Department prior to being

implemented.

(f) Rule 69B-227.140(2)(a), Florida Administrative Code, which prohibits a provider

from offering a course which is required for licensure tha t ha s not been appr oved by the

Department.

(g) Rule 69B-227.310(3), Florida Administrative Code, which provides the

Department shall disapprove courses, fine, order restitution, suspend, or revoke approval of a

provider for violations of chapter 69B-227, Florida Administrative Code.

(h) Section 626.2817, Florida Statutes, which provides the Department shall adopt

rules establishing standards for the approval, regulation, and operation of pre-licensing education

programs and for the discipline of licensees, course providers, instructors, school officials, and

monitor groups.

COUNT II

14. The above general allegations are hereby realleged and fully incorporated herein

by reference.

15. On or about June 3, 2015, the State of Washington, Office of the Insurance

Commissioner, in Consent Order 15-0129, levied a fine of $1,500 against the Respondent for

advertising, soliciting, and selling unapproved prelicensing courses to Washington consumers

without being approved as a prelicensing course provider by the State of Washington ("2015

Washington Order").

16. On or about July 10, 2017, the State of Washington, Office of the Insurance

Commissioner, in Consent Order 17-0160, levied a fine of $1,200 against the Respondent for

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issuing certificates of completion to students who did not fully complete the requisite prelicensing

course hours and issuing fraudulent certificates of completion ("2017 Washington Order").

17. On or about October 22, 2015, the State of Minnesota, Commissioner of Commerce

entered a Cease and Desist Order against the Respondent imposing -a $5,000 civil penalty for

allegedly advertising, soliciting, and selling unapproved prelicensing courses to Minnesota

consumers without being approved as -a prelicensing course provider by the State of Minnesota

("2015 Minnesota Order").

18. As of the date of this Administrative Complaint the Respondent has failed to report

the 2015 Washington Order, 2017 Washington Order, and 2015 Minnesota Order to the

Department.

IT IS THEREFORE CHARGED that Respondent has violated or is accountable under the

following provisions of the Florida Insurance Code and Rules of the Department which constitutes

grounds for disciplinary action against Respondent as an approved pre-licensing education

provider:

(a) Rule 69B-227.310(1), Florida Administrative Code, which provides the

Department shall disapprove an application, fine, order restitution, suspend, or revoke approval of

a provider if a provider has had a license, permit, registration, or other authority to conduct

business in the areas of education, insurance, or other financial services industry subject to a

finding, injunction, suspension, prohibition, revocation, denial, judgment, final agency action, or

administrative order by any court of competent jurisdiction, administrative law proceeding, state

agency, federal agency, or federally established regulatory body or association.

(b) Rule 69B-227.310(4), Florida Administrative Code, which provides the

Department shall disapprove an application, fine, order restitution, suspend, or revoke approval of

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a provider if a provider lacks the knowledge, competence, fitness or trustworthiness to fulfill the

educational objectives of sections 626.2815, 626.2817, 627.7015, 627.7074, 627.745, 648.385 and

648.386, Florida Statutes.

(c) Rule 69B-227.310(5 ), Florida Administrative Code, which provides the

Department shall disapprove an application, fine, order restitution, suspend, or revoke approval of

a provider if a provider violates any provision of section 626.611, Florida Statutes, or section

626.621, Florida Statutes.

(d) Rule 69B-227.310(3), Florida Administrative Code, which provides the

Department shall disapprove courses, fine, order restitution, suspend, or revoke approval of a

provider for violations of chapter 69B-227, Florida Administrative Code.

(e) Section 626.2817, Florida Statutes, which provides the Department shall adopt

rules establishing standards for the approval, regulation, and operation of pre-licensing education

programs and for the discipline of licensees, course providers, instructors, school officials, and

monitor groups.

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 WHEREFORE, the Respondent, XCEL TESTING SOLUTIONS, is hereby notified that

the Chief Financial Officer intends to enter an Order imposing one or more of the following

penalties: imposition of administrative fines, issuance of reprimand, assessment of costs related

to the investigation, or imposition of such penalties as may be provided under the provisions of

sections 626.2817, 626.869(5), 648.385, and 648.386, Florida Statutes, and under the other

referenced sections of the Florida Statutes and Rules of the Depar tment as set out in this

Administrative Complaint.

DATED and SIGNED this d a y o f L ') , 2017.'

Gregory Thomas, Director,

Division of Insurance Agent and Agency Services

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 NOTICE OF RIGHTS
You have the right to request a proceeding to contest this action by the Department pursuant

to sections 120.569 and 120.57, Florida Statutes, and Rule 28-106, Florida Administrative Code.

The proceeding request must be in writing, signed by you, and must be filed with the Department

within twenty-one (21) days of your receipt of this notice. Completion of the attached. Election of

Proceeding form and/or a petition for administrative hearing will suffice as a written request. The

request must be filed with Julie Jones, DFS Agency Clerk, at the Florida Department of Financial

Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0390. Your

written response must be received by the Department no later than 5:00 p.m. on the twenty-first

day after your receipt of this notice. Mailing the response on the twenty-first day will not preserve

your right to a hearing.

YO UR FAIL UR E T O RESPOND IN WRIT ING W I T H I N

T W E N T Y- O N E ( 2 1 ) D AYS O F YO UR R E C E I P T O F T H I S
NO T IC E W I L L CONST IT UT E A WAI VE R O F YO UR
RIGHT T O REQUEST A PROCEEDING ON T HE MAT T ERS
ALLEGED HEREIN AND AN ORDER OF SUSPENSION OR
REVOCAT ION WILL BE ENT ERED AGAINST YOU.
If you request a proceeding, you must provide information that complies with the

requirements of Rule 28-106.2015, Florida Administrative Code. As noted above, completion of

the attached Election of Proceeding form conforms to these requirements. Specifically, your

response must contain:

(a) The name, address, and telephone number, and facsimile number (if any) of the

respondent (for the purpose of requesting a hearing in this matter, you are the "respondent").

(b) The name, address, telephone number, facsimile number of the attorney or qualified

representative of the respondent (if any) upon whom service of pleadings and other papers shall

be made.

(c) A statement requesting an administrative hearing identifying those material facts

that-are in dispute. If there are none, the petition must so indicate.

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 (d) A statement of when the respondent received notice of the administrative

complaint.

°(e) A statement including the file number to the administrative complaint.

If a hearing of any type is requested, you have the right to be represented by counsel or

other qualified representative at your expense, to present evidence and argument, to call and cross-

examine witnesses, and to compel the attendance of witnesses and the production of documents

by subpoena.

If a proceeding is requested and there is no dispute of material fact, the provisions of section

120.57(2), Florida Statutes, apply. In this regard, you may submit oral or written evidence in

opposition to the action taken by the Department or a written statement challenging the grounds

upon which the Department has relied. While a hearing is normally not required in the absence of

a dispute of fact, if you feel that a hearing is necessary, one will be conducted in Tallahassee,

Florida, or by telephonic conference call upon your request.

However, if you dispute material facts which are the basis for the Department' s action, you

must request an adversarial proceeding pursuant to sections 120.569 and 120.57(1), Florida

Statutes. These proceedings are held before a State Administrative Law Judge of the Division of

Administrative Hearings. Unless the majority of witnesses are located elsewhere, the Department

will request that the hearing be conducted in Tallahassee, Florida.

Failure to follow the procedure outlined with regard to your response to this notice may

result in the request being denied. All prior oral communication or correspondence in this matter

shall be considered freeform agency action, and no such oral communication or correspondence

shall operate as a valid request for an administrative proceeding. Any request for an administrative

proceeding received prior to the date of this notice shall be deemed abandoned unless timely

renewed in compliance with the guidelines as set out above.

Mediation of this matter pursuant to section 120.573, Florida Statutes, is not available. No

Department attorney will discuss this matter with you until the response has been received by the

Department.

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 CERTIFICATE OF SERVICE

I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative

Complaint and Election of Proceeding has been furnished to Xcel Testing Soluti ns,7700-2 Square

Lake Blvd., Jacksonville, Florida 32256 by Certified Mail this day of , 2017.

e aumann
D artment of Financial Services
Office of the General Counsel
612 Larson Building
200 East Gaines Street
Tallahassee, Florida 32399-0333

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 STATE OF FLORIDA
DEPARTMENT OF FINANCIAL SERVICES
OFFICE OF THE GENERAL COUNSEL

IN THE MATTER OF:

CASE NO.: 212932-17-AG
XCEL TESTING SOLUTIONS

ELECTION OF PROCEEDING

I have received and have rea d the Administrative Complaint filed by the Florida Depa rtment of Financial Services
("Department") against me, inclu ding the Notice of Rights conta ined therein, and I u nderstand my options. I am requesting
disposition of this matter a s indicated below. (C HO OS E ON E)

I do not dispute a ny of the Department's factual a llegations and I do not desire a hearing. I understand that by
waiving my right to a hearing, the Department may enter a final order that adopts the Administrative Complaint and
imposes the sanctions sought as may be appropriate.

2. I do not dispute any of the Department's factual allegations and I hereby elect a proceeding to be conducted in
accordance with Section 120.57(2), Florida Statutes. In this regard, I desire to (CHOOSE ONE):

[] Submit a written statement and documentary evidence in lieu of a hearing; or

[] Personally attend a hearing conducted by a department hearing officer in Tallahassee; or

[] Attend that same hearing by way of a telephone conference call.

I do dispute one or more of the Department's factual allegations. I hereby request a hearing pursuant to Section
120.57(1), Florida Statutes, to be held before the Division of Administrative Hearings. I have attached to this
election form the information required by Rule 28-106.2015, Florida Administrative Code, as specified in
subparagraph (c) of the Notice of Rights. Specifically, I have identified the disputed issues of material fact.

T O P R E S E R VE Y O UR R I G H T T O A H E AR I N G , Y O U M US T F I L E Y O UR R E S P O N S E W I T H T H E D E P AR T M E N T
OF F I N AN C I AL SE R VI C E S W I T H IN T W E N T Y -O N E (2 1 ) D AY S O F YO UR R E CE I P T OF T H E AD M I N I S T R AT I VE
C O M P L AI N T . T H E R E S P O N S E M U S T B E R E C E I VE D BY T H E D E P AR T M E N T N O L AT E R T H AN 5 : 0 0 P . M . O N
T H E T W E N T Y - FIRST DAY AF T E R Y OUR R E C E I P T O F T H E AD M IN I S T R AT I VE C O M P L AI N T .

The address for filing is: Julie Jones, DFS Agency Clerk, Florida Department of Financial Services, 612 Larson Building, 200 East
Gaines Street, Tallahassee, Florida 32399-0390.

Signature Print Name

Date: Address:

Date Administrative
Complaint Received:

If you are represented by an attorney or qualified Phone No.:

representative, please attach to this election form his
or her name, address, telephone and fax numbers Fax No.:

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