i MAY 22 200 31 Treasurer and \naurance Corprggnrt Dockated by? _ THE TREASURER OF THE STATE OF FLORIDA DEPARTMENT OF INSURANCE . _ L ef agste Tom GALLAGHER IN THE MATTER OF JEANNETTE CLAUDETTE BRUNET °——sCCASE: NO: 42185-01-AG ee / ADMINISTRATIVE COMPLAINT yo; JEANNETTE CLAUDETTE BRUNET JEANNETTE CLAUDETTE BRUNET HBH INSURANCE GROUP 1709 PALM RIDGE ROAD 224 FORREST AVENUE MELBOURNE, FLORIDA. 32935 COCOA, FLORIDA 32922 You, JEANNETTE CLAUDETTE BRUNET, are hereby notified that pursuant to Chapter 626, Florida Statutes, the Insurance Commissioner of the State of Florida has caused to be made an jovestigation of your activities as an insurance agent in this State, as a result of which it is alleged: GENERAL ALLEGATIONS 1. You, JEANNETTE CLAUDETTE BRUNET are currently licensed and eligible for licensure in this state as 8 life agent (0216), 2 life and health agent (0218), & health agent (0249), and a general lines agent (220). 2, Atall times material to the dates and occurrences herein, you, JEANNETTE CLAUDETTE BRUNET were eligible for licensure as an insurance agent in this State. 3. Atall times material to the dates and occurrences herein, “N.A.2.T.” was the acronym : EXHIBIT A \F oF 1 B i 4 i 4 i or pseudonym for a multitude of entities that engaged in the business of insurance, or operated as one oF more Multiple Employer Welfare Arrangements (hereafter, “MEWAs") in Florida, including: National Association of Physical Therapists National Association of ¢ Professionals & Technicians National Association of Professional Technical National Association of Professional Truckers National Association of Professional Traders National Association of Chiropractic Professionals National Association of Dental Professionals [Dental Division] National Tourism & Hospitality Association {Division} National Veterinarian Association National Real state Association {Division} Physician's Choice Limited a/k/a Physician's Choice, Ltd. 4. Section 624.02, Florida Statutes defines “Insurance” as: “Insurance” is a contract ’ whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies. 5. Section 624.03, Florida Statutes defines “Insurer” es: "Insurer" includes every person engaged as indemnitor, surety, or contractor in the business of entering into contracts of insuraince or annuity. 6, - Section 624.09, Florida Statutes defines “Authorized”, “Unauthorized insurer” as: “An “authorized” insurer is one duly authorized by a subsisting certificate of authority issued by the departn tment to franscat insurance in this state. (2) An‘ “uncuthorized " insurer ig one not so authorized 7 “Section 624, 10, ‘Florida Statues defines “Trangnoting insurance” as: “Transact” with aertier ey? a A A respect to insurance includes any of tne following, in addition to other applicable provisions of the code: (2) solicitation or induoement, (2) Preliminary negotiations. (3) Effectuation of a contract of insurance. (4) Transaction of matters subsequent (0 the effectuation ofa contract of insurance and arising out of it. g. Section 624.437(1), Florida Statutes defines “Multiple Employer Welfare Arrangement” (hereafter, “MEWA”) as: [ ‘ayn employee welfare benefit plan or any other arrangement which is established or maintained for the purpose of offering or providing health insurance benefils or any other benefits. described in S. 624.33, other than life insurance benefits, 10 the employees of two or more employers, or 10 their beneficiaries. 9, Allinsurers ahd MEWAs are required by Florida Insurance Code to possess 2 Certificate of Authority from the Department in order to conduct business in this State. 10. Atno time rnaterial to the dates and occurrences herein, did N.A.P.T. oF any of the entities for which it was the acronym or pseudonym, possess 2 Certificate of Authority from the Department to . engage in the business of insurance, of t0 operate 25 2 MEWA, io Florida. {i, Neither NLAP.T., nor any of the entities for which it was the acronym oF pseudonym, was subject to any exception to the licensure requirement of the Florida Insurance Code in order to lawhully engage in the business of insurance ort operate 2S 2 MEWA, in Florida. COUNT 12. All statements, claims, and allegations of Paragraphs } through 11, inclusive, are incorporated herein by reference. 13. In or about late 1999, yous JEANNETTE CLAUDETTE BRUNET, contacted Sterling Casino Lines of Cape Canaveral, Florida, for the purpose of inducing it and its eraployees. including Gerald Brown, to enter into {a] health benefits contract(s) with N.AP.T. 14. In or about Jate, 1999, you. JEANNETTE CLAUDETTE BRUNET, solicited and induced a Sennett a An TT i Sterling Casino Lines and its employees, including Gerald Brown to enter into {2} health benefits contract(s) with N.AP.T. 15, As part of your solicitation of Sterling Casino Lines and its employees, YOu represented toit and to its employees, including Gerald Brow. that N.AP.T. was a ge}f-insured * “association” and therefore exempt from the regulation and oversight of the Department by virtue of the federal Employee Retirement Income Security Act (hereafter, “ZRISA”). 16, Atthe time that you made the representation set forth in the forogoing paragraph, you knew or should have known that it was false, 2s yOu \enew or should have known that N.A-P T. optrated as an insurer or 25 & MEWA, and therefore, required a Certificate ‘of Authority from the Department in order to transact business in Florida. 17. In or about late, 1999, Sterling Casino Lines and its participating employees, including Gerald Brown, did, based upon your solicitation, enter into [a] health benefits contract(s) with N.AP.T. 18. At the time of your solicitation, inducement, representations concerning, and sale of the ‘N.AB.T. contract and at all times thereafter, N.AP.T. was not authorized to transact insurance OT © MEWA business in Florida, and was ot subject to any exception to the licensure requirement, of all of which you knew or should have known. COUNT 19. All statements, claims, and allegations of Paragraphs | through 11, inclusive, are incorporated therein by reference. 20. In or about fate, 2000, you, JEANNETTE CLAUDETTE BRUNET, contacted Advanced Dental Care of Orlando, Florida, to induce it and its employses, including, Soraya Leyton to enter into {a} health benefits contract(s) with N.A.P.T. »,,, 21. Inor about late, 2000, yous JEANNETTE CLAUDETIE BRUNET, solicited and induced Advanced Dental Care of Orlando, Florida and its employees, including, Soray2 Leyton, to enter into [8] health benefits contract(s) with N.A.P-T. 22. As part of your solicitation of Advanced Dental Care and its employees, including, Soraya Leyton, you represented to it that NAPT. was a self-insured “association” and therefore exempt from the regulation and oversight of the Department by virtue of the federal Employee Retirement Income Security Act (hereafter, “ERISA”). , 23, Atthe time that you made the representation set forth in the foregoing paragraph, you knew or should have known that it was false, as you knew or should have known that N.A-P.T. operated as an insurer or as 2 MEWA, and therefore, required a Certificate of Authority from the Department in order to transact business in Florida. 24. In or about early, 2000 employees of Advanced Dental Care, including Soraya Leyton did, based upon your solicitation, enter into (a) health benefits contract(s) with N.A.P.T. 25, Atthe time of your solicitation, inducement, representations concerning, and sale of the N.A.P.T. contract, and at all times thereafter,N.A.P.T. was not authorized to transact insurance or MEWA business in Florida, and was not subject to any exception to the licensure requirement, all of which you knew or should have known. _BASED UPON ALL OF THE FOREGOING, Ir IS THEREFORE CHARGED that you, JEANNETTE CLAUDETTE BRUNET, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the State Treasurer and Insurance Commissioner, which violations constitute grounds for the revocation or suspension of yout insurance licenses and eligibility for licensure: | A). No person shal) transact insurance in this state, or relative to a subject of insurance resident, located, or to be performed in this state. without complying with the applicable provisions of this code. [Section 624.11, Florida Statutes): |. ‘B). No person shall act 2s an insurer, and no insurer or its agents, £ amorneys, subscribers, any other state or country, directly or indirectly or representatives shall directly or indirectly transact insurance in this state except es authorized by a subsisting certificate of authority issued to the insurer by the Department, except as to such transactions as are expressly otherwise provided for in this code [Section 624,401(1), Florida Statutes}; C). No person shall, from offices or by personnel or facilities located in this state, orin act as agent for, or otherwise aid on behalf of another, any insurer not then authorized to transact insurance in this state in: (a). The solicitation, negotiation, procurement, or effectuation of insurance or annuity contracts, or renewals thereof, (b). The dissemination of information as to coverage or rates, (c). The forwarding of applications; (2). The delivery of policies or contracts, (¢). The inspection of risks; (f). The fixing of rates, (2). The investigation or adjustment of claims or losses; or (h). The collection or forwarding of premiums; or in any other manner represent or assist such an insurer in the transaction of i insurance with respect to subjects of insurance resident, located, or to be performed inthis state. [Section 626.901(1), Florida Statutes), D). fan unauthorized insurer fails to pay in full or in part any claim or loss within the provisions of any insurance contract wich i is entered into in violation of this section, any person who knew or reasonably should have known that such contract was entered into in violation of this section and who solicited, negotiated, took application for. or effectuated such insurance contract is liable to the insured for the full amount of the claim or loss not paid. [Section 626,901(2), Florida Statutes} ). ih ‘addition to any other penalties provided i in the insurance code any ingurance agent Te a licensed in this state who in this state represents or aids an ynauthorized insurer in violation of s. 626.901 commits a misdemeanor of the second degree, punishable as provided in s. 775.082 or s. 775.083, and each such violator shall be tiable, personally, jointly, and severally with any other person or persons liable therefor, for payment of taxes payable on account of such insurance under s, 626.938, [Section 626.902, Florida Statutes). F). No person shall engage in this state in any trade practice which is defined in this part as, OF determined pursuant to s.626.951 or 5.626.956] to be, an unfair method or competition or an unfair or deceptive act or practice involving the business of insurance. (Section 626.9521(1), Florida Statutes]; - G). Any person who violates any provision of this part shall be subject to a fine in an amount not greater than $2,500 for each non-willful violation and not greater than $20,000 for each willful violation. Fines under this subsection may not exceed an aggregate amount of $10,000 for all non- willful violations arising out of the same action or an ageregate amount of $100,000 for all willfu! violations arising out of the same action. The fines authorized by this subsection may be imposed in addition to any other applicable penalty. [Section 626.9521 (2), Florida Statutes), H). Knowingly making, issuing, circulating, or causing to be made, issued, or circulated, any estimate, illustration, circular, statement, sales presentation, omission, or comparison which: 1, misrepresents the benefits, advantages, conditions, or terms of any insurance policy; 2. isa misrepresentation for the purpose of inducing, or tending to induce, the lapse, forfeiture, exchange, conversion, or surrender of any insurance policy, 3. uses any advertisement that would mislead or otherwise cause a reasonable person to believe mistakenly that the state or the Federal Government is responsible for the insurance sales activities of any person or stands behind any person's credit or that the person, state, or the Federal i OS a A A IY Government guarantees any refumas oh insurance products or is a source of payment of any insurance obligation of or sold by any person. [Section 626.9541(S)(a), Florida Statutes}; 1), Knowingly making, publishing, disseminating, circulating, or placing before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, 1, in anewspaper, magazine, or other publication, 2. in the form of a notice, circular, pamphlet, letter, or poster, 3. over any radio or television station, or 4, in any Other way an advertisement, announcement, or statement containing any assertion, representation, or statement with respect to the business of instirance, Which is untrue. deceptive, or misleading, [Section 626.9541 (1)(c), Florida Statutes), J), Knowingly: a. Filing with any supervisory or other public official, b. Making, publishing, disseminating, circulating, o. Delivering to any person, d. Placing before the public, e. Causing, directly or indirectly, to be made, published, disseminated, circulated, delivered to any person, or placed before the public, , any false material statement [Section 626.9541(1)(e)1., Florida Statutes}, K). Knowingly making any false entry of a material fact in any book, report, or statement of any person, or knowingly omitting to make a true entry of any material fact pertaining to the business of such person in any book, report, or statement of such person. [Section 626.9541 (1)(e)2.,Mlorida Statutes}. Florida Statutes; 1. Holding you personally responsible for the payment of all unpaid claims of those Florida residents to whom you or the agents working under you, sold contracts or policies issued by N.A.P.T., in accordance with Section 626.901(2), Florida Statutes: IV. Holding you personally responsible for the payment of taxes on account of the coverage ” afforded under the N.A.P.T. contracts or policies pursuant to Section 626.938, Florida Statutes, in accordance with Section 626.902(2), Florida Statutes: Vv. Imposing an administrative penalty for the willful violation of Section 626.9541(1)(a), Florida Statutes; Vi. Imposing an administrative penalty for the willful violation of Section 626.9541(1)(b), Florida Statutes; , VI. Imposing an administrative penalty for the willful violation of Section 626.9541 (1)(e)1., Florida Statutes; Vi, Imposing an administrative penalty for the willful violation of Section 626.954 1(1)(e)2., Florida Statutes; X, Imposing an administrative penalty for the willful violation of Section 626.9541(1)(0)2., Florida Statutes. NOTICE OF RIG 57, Florida Sattes and Rule Chapter 28-106, Florida ~ Pursuant to Sections 120. 569 and 1 Administrative Code .A. C), you have a right to request a Proceeding to contest this action by the ; Department. You may elect a proceeding by completing the attached Election of Rights form or filing a Petition. Your Petition or Election ofa proceeding must bei in n writing and must be filed with the Gener Counsel acting as the ‘Agency Clerk, Department of Insurance. Te served by v. s. Mail the Petition or Election should be addressed t to the Florida Department of Ineurance at 612 Larson Building, Tallahassee, 10 4 4 4 4 Florida 32399-0333. If Express Mail or hand delivery is utilized, the Petition or Election should be delivered to 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. The Petition or Election must be received by, and filed in the Department within twenty-one (21) days of the date of your receipt of this notice. YOUR FAILURE TO RESPOND TO THIS ADMINISTRATIVE COMPLAINT WITHIN TWENTY-ONE (21) DAYS WILL CONSTITUTE A WAIVER OF YOUR RIGHT TO REQUEST A PROCEEDING ON THE MATTERS ALLEGED HEREIN, AN ORDER OF REVOCATION WILL BE ENTERED AGAINST YOU AND MONETARY ADMINISTRATIVE PENALTIES WILL BE ASSESSED. Ifa proceeding is requested and there is no dispute of fact the provisions of Section 120.57(2), Florida Statutes would apply. Ia this regard you may submit oral or written evidence in opposition to the action taken by this agency or a written statement challenging the grounds upon which the agency has relied, While a hearing js normally not required in the absence or 2 dispute of fact, if you feel that a hearing is necessary ons will be conducted in Tallahassee, Florida or by telephonic conference call upon your request. If you dispute material facts which are the basis for this agency's action you may request a formal adversarial proceeding pursuant to Sections 120,569 and 120.57(1), Florida Statutes. He you request this type of proceeding, the request must comply with all of the requirements of Rule Chapter 28-106, F.A.C. and contain: a) A statement identifying with particularity the allegations of the Department which you dispute and the nature of the dispute, b) . An explanation of what relief you are seeking and believe you are entitled to; c) Any other information which you contend is material, These proceedings are held before 2 State administrative law judge of the Division of Administrative | Hearings. Unless the maj ority of witnesses are located elsewhere the Department will request that the hearing be conducted in Tallahassee. 1 ‘ If you request 2 hearing, you have the right to be represented by counsel, or other qualified representative, to take testimony, to call and cross-examine witnesses, and to have subpoena and subpoena duces tecum issued on your behalf, You are hereby notified that mediation under Section 120.573, Florida Statutes, is not available. Failure to follow the procedure outlined with regard to your response to this notice may result in the request being denied. All prior correspondence in this matter shall bé considered freefonn agency action, and no such correspondence shal! operate as a valid request for an administrative proceeding. Any request for administrative proceeding received prior to the date of this notice stall be deemed abandoned unless timely renewed in compliance with the guidelines as set out above. You are hereby further notified that you have aright to request au advisory opinion or information letter as to your status and as to the effect of certain acts and transactions under the Retirement Income Security Act (ERISA) pursuant to ERISA Proc. 76-1, from the Pension and Welfare Benefits Administration of the United States Department of Labor, 200 Constitution Avenue NW, Washington, D.C. 20210 NO DATED and SIGNED this_@@ day of May, 2001. L Sopher Kenney Shipley Deputy Insurance Commissioner “12 CERTIFICATE OF SERVICE. J HEREBY CERTIFY that a true and correct copy of the foregoing Administrative Complaint has Wo been sent by Certified Mail this 22 day of May, 2001 to: JEANNETTE CLAUDETTE BRUNET JEANNETTE CLAUDETTE BRUNET HBH INSURANCE GROUP 1709 PALM RIDGE ROAD 224 FORREST AVENUE MELBOURNE, FLORIDA 32935 COCOA, FLORIDA 32522 LUKE S. BROWN Senior Executive Attomey Unauthorized Entities Supervisor Florida Department of Insurance 200 East Gaines Street, 6” Floor Tallahassee, Florida 32399-0333 Telephone: 850/413-4040 . Fax: 850/ 488-2632 sem ante a i If you request a hearing, you have the right to be represented by counsel, or other qualified representative, to take téstimony, to calf and cross-examine witnesses, and to have subpoéna and subpoena duces tecum issued on your behalf. You are hereby notified that mediation under Section 120.573, Florida Stztutes, is not available. Failure to follow the procedure outlined with regard fo your response to this notice may result in the request being denied. All prior correspondence in this matter shall bé considered freefonn agency action, and no such correspondence shal! operate as a valid request for an administrative proceeding, Any request for 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, You are hereby further notified that you have aright to request an advisory opinion or information letter as to your status and as to the effect of certain acts and transactions under the Retirement Income Security Act (ERISA) pursuant to ERISA Proc, 76-1, from the Pension and Welfare Benefits Administration of the United States Department of Labor, 200 Constitution Avenue NW, Washington, D.C, 20210 22 NO DATED and SIGNED this day of May, 2001. L Shagleg Kenney Shipley Deputy Insurance Commissioner meme rs : en a IS SS yy of the foregoing Administrative Complaint has PANNETTE CLAUDETTE BRUNET 908 PALM RIDGE ROAD “EMELBOURNE, FLORIDA 32935 LUKE S. BROWN | Senior Executive Attomey Unauthorized Entities Supervisor Florida Department of Insurance 200 East Gaines Street, 6° Floor Tallahassee, Florida 32399-0333 Telephone: 850/ 413-4040 Fax: 850/488-2632 tes fel 1 aM se és RRO SS ae see oe NAc ereeenee: Se sa CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative Complaint has Wo been sent by Certified Mail this 22 day of May, 2001 to: JEANNETTE CLAUDETTE BR HBH INSURANCE GROUP” 224 FORREST AVENUE - COCOA, FLORIDA 32922 UNET JEANNETTE CLAUDETTE BRUNET : 1709 PALM RIDGE ROAD MELBOURNE, FLORIDA 32935 LUKE S. BROWN Senior Executive Attorney Unauthorized Entities Supervisor Florida Department of Insurance - 200 East Gaines Street, 6” Floor Tallahassee, Florida 32399-0333 Telephone: 850/ 413-4040 Fax: 850/ 488-2632

Docket for Case No: 04-003257PL