FILED JUL 10 2014 Docketed by_ A/c, CHIEF FINANCIAL OFFICER JEFF ATWATER STATE OF ELORIDA IN THE MATTER OF: CASE NO. 143016-14-AG CHARLES BRIAN KLEINMETZ / ADMINISTRATIVE COMPLAINT TO: CHARLES BRIAN KLEINMETZ 7929 9" Avenue South St. Petersburg, FL 33707-2732 CHARLES BRIAN KLEINMETZ Fidelity Assurance Inc. 5051 66" Street N. St. Petersburg, FL 33709-3133 e-mail: ckleinmetz@tampabay .rr.com You, CHARLES BRIAN KLEINMETZ, are hereby notified that pursuant to Chapter 626, Florida Statutes, the Chief Financial Officer of the State of Florida, has caused to be made an investigation of your activities while licensed as an insurance agent in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1, You, CHARLES BRIAN KLEINMETZ, are currently licensed in the state as a life including variable annuity agent & Health (2-15), a life agent (2-16), a life & health agent (2-18) and a health agent (2-40). - wd 2. Atall times pertinent to the dates and occurrences referred to in this Administrative Complaint you, CHARLES BRIAN KLEINMETZ, were licensed as an insurance agent in this state, operating out of the Fidelity Assurance Inc. agency (the agency). 3. You, CHARLES BRIAN KLEINMETZ, have been appointed as agent for various insurance companies, including Columbian Insurance Company (Columbian), American Pioneer Life Insurance Company (American Pioneer) owned by Universal American Insurance Company (Universal), Colonial American Life Insurance Company (Colonial), Independent Order of Foresters Insurance (Foresters) and United Security Assurance Company (United). 4. On June 17, 1993, this Department filed a Consent Order Jn The Matter Of CHARLES BRIAN KLEINMETZ, Case No. 92-L-457WEM, fining you $1,500.00 for misrepresenting a nursing home policy to an elderly consumer by telling her that there would be no pre-existing condition clause in the policy when in fact there was a pre-existing condition clause in the policy. 5. Pursuant to Rule 69B-231.160, Florida Administrative Code, the Department will seek to aggravate any license disciplinary penalty imposed in this matter, by reason of the above- listed prior disciplinary order against you, CHARLES BRIAN KLEINMETZ. 6. Pursuant to Chapter 626, Florida Statutes, the Chief Financial Officer of the State of Florida and the Department of Financial Services has jurisdiction over your insurance licenses and your eligibility for licensure and appointment. 7, Rule 69B-215.210, Florida Administrative Code, declares the business of life insurance to be a public trust, in which all agents of all companies have a common obligation to work together in serving the best interests of the insuring public, by understanding and observing the laws governing Life Insurance by presenting accurately and completely every fact essential 2 to a client’s decision, and by being fair in all relations with colleagues and competitors, always placing the policyholder’s interests first. 8. All of the insurance consumers described in each of the counts below trusted you, CHARLES BRIAN KLEINMETZ, and you abused that trust. 9. Rule 69B-215.230(1), Florida Administrative Code, declares insurance sales misrepresentations to be unethical and provides that no person shall make, issue, circulate, or cause to be made, issued, or circulated, any estimate, circular, or statement misrepresenting the terms of any policy issued or to be issued or the benefits or advantages promised thereby or the dividends or share of the surplus to be received thereon, or make any false or misleading statement as to the dividends or share of surplus previously paid on similar policies, or make the financial condition of any insurer, or as to the legal reserve system upon which any life insurer operates, or use any name or title of any policy or class of policies misrepresenting the true nature thereof. 10. Rule 69B-215.230(2), Florida Administrative Code, provides that no person shall make, publish, disseminate, circulate, or place before the public, or cause, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter or poster, or over any radio or television station, or in any other way, any advertisement, announcement or statement containing any assertion, representation or statement with respect to the business of insurance or with respect to any person in the conduct of his insurance business, which is untrue, deceptive or misleading. i I { i 11. Section 626.951(1), Florida Statutes declares that the conduct and actions described in sections 626.9521 and 626.9541, Florida Statutes, constitute unfair and deceptive acts or practices as defined in the Unfair Insurance Trade Practices Act. COUNT I 12. The above allegations are hereby realleged and fully incorporated herein by reference. 13. Ms. B.T. is a resident of Tampa, Florida. Ms. B.T. was born on April 6, 1940. 14. Ms. B.T. purchased a long-term health care policy with National States Insurance Company (National States) while she was employed as a teacher. National States has since been liquidated and its policies have been assumed and administered by Family Life Insurance Company beginning April 1, 2012. 15. Ms. B.T. currently has a medical condition preventing her from taking out health insurance with another company. 16. On January 4, 2010, you, CHARLES BRIAN KLEINMETZ, signed a “Solicitor’s Agreement” with Columbian wherein you, acting as a solicitor on behalf of Columbian, agreed not to “in any way disguise that they [Columbian policies] are life insurance policies or contracts ... [or] sell products which do not meet the client’s financial and personal needs... [or] misrepresent [Columbian] products ....” 17. On February 24, 2011, you, CHARLES BRIAN KLEINMETZ, sold Ms. B.T. a Columbian life insurance policy ending with the numbers 00 (C 00) which you misrepresented as being a home medical care supplement to her National States health insurance policy. 18. Following that purchase, Ms. B.T. contacted you, CHARLES BRIAN KLEINMETZ, to obtain a copy of the policy which you then falsely claimed had been mailed to her. After subsequent repeated attempts to obtain a copy of the policy, Ms. B.T. wrote to Columbian and only 4 then learned that she had unwittingly purchased an unwanted life insurance policy from you, CHARLES BRIAN KLEINMETZ. 19. At Ms. B.T.’s request, and following her complaint to this Department, Columbian cancelled the life insurance policy and returned her premium payment(s). 20. The purchase of the Columbian life insurance policy was not in Ms. B.Ts.’ best interests and was contrary to her express instructions to you, CHARLES BRIAN KLEINMETZ. The policy was without demonstrable benefit to her, and was done for the sole purpose of obtaining a fee, commission, money or other benefit, either directly or indirectly from Columbian. You, CHARLES BRIAN KLEINMETZ, have violated a public trust as described in Rule 69B-215.210, Florida Administrative Code. IT IS THEREFORE CHARGED that you, CHARLES BRIAN KLEINMETZ, have violated or are accountable under the following provisions of the Florida Insurance Code which constitute grounds for the suspension or revocation of your licenses as an insurance agent in the state: (a) Section 626.611(5), Florida Statutes, which provides it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent to, either in person or by any form of dissemination of information or advertising, to willfully misrepresent any insurance policy or annuity contract or willfully deceive with regard to any such policy or contract. (b) Section 626.611(7), Florida Statutes, which provides it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent to demonstrate a lack of fitness or trustworthiness to engage in the business of insurance. (c) Section 626.611(9), Florida Statutes, which provides it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or managing - general agent to exhibit fraudulent or dishonest practices in the conduct of business under the license or appointment. (d) Section 626.611(13), Florida Statutes, which provides it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent to willfully fail to comply with, or willfully violate, any proper order or rule of the department or willfully violate any provision of the Insurance Code. (e) Section 626.621(6), Florida Statutes, which provides it is a violation for any applicant, agent, title agency, adjuster, customer representative, service representative, or managing general agent, in the conduct of business under the license or appointment, to engage in unfair methods of competition or unfair or deceptive acts or practices, as prohibited by part IX of this chapter, or having otherwise shown himself or herself to be a source of injury or loss to the public. (f) Section 626.621(9), Florida Statutes, which provides it is a violation for any life agent, in the conduct of business under the license or appointment, to violate the Florida Insurance Code of Ethics. (g) Section 626.9541(1)(a)1., Florida Statutes, which provides it is a violation to knowingly make, issue, circulate, or cause to be made, issued, or circulated, any estimate, illustration, circular, statement, sales presentation, omission, comparison that misrepresents the benefits, advantages, conditions, or terms of any insurance policy. (h) Section 626.9521(2), Florida Statutes, which provides that any person who violates any provision of the Unfair Insurance Trade Practices Act is subject to a fine in an amount not 6 aa ee! greater than $5,000 for each nonwillful violation and not greater than $40,000 for each willful violation, such fines being in addition to any other applicable penalty. COUNT II 21. The above allegations are hereby realleged and fully incorporated herein by reference. 22. Ms. L.C. is a resident of Seminole, Florida and a retired federal government employee. She was born on November 27, 1932. 23. On April 10, 2010, Ms. L.C. purchased a United health insurance policy ending with the numbers 30 (U 30) from you, CHARLES BRIAN KLEINMETZ. 24. In December 2011 you, CHARLES BRIAN KLEINMETZ, returned to Ms. L.C.’s home and told her that she had to exchange the U 30 for a Foresters policy ending with the numbers 75 (F 64). . 25. When you, CHARLES BRIAN KLEINMETZ, took Ms. L.C.’s application for F 64, you completed the application, had her sign it, and in the process provided Ms. L.C. with false information, or omitted to provide her with accurate and complete facts essential to her purchasing decision. These fraudulent material omissions and misrepresentations are summarized as follows: (a) You, CHARLES BRIAN KLEINMETZ, told Ms. L.C. that F 64 was a health insurance policy when you knew it was a life insurance policy. (b) You, CHARLES BRIAN KLEINMETZ, refused to provide Ms. L.C. with the F 64 policy application. (c) You, CHARLES BRIAN KLEINMETZ, knew that Ms. L.C. had never requested a life insurance policy from you, that you had never discussed life insurance with her, and that you knew or should have known that she had no need for life insurance. ~ a ‘, (d) You, CHARLES BRIAN KLEINMETZ, never explained to Ms. L.C. that by purchasing F 64 she would have to pay a premium sum in addition to making premium payments on U 30. (e) When Ms. L.C. discovered that you, CHARLES BRIAN KLEINMETZ, had sold her a life insurance policy and complained to you about your fraudulent conduct, you made nasty remarks to her and then refused to speak to her or assist in undoing the F 64 sale. (f) You, CHARLES BRIAN KLEINMETZ, never explained to Ms. L.C. that when she cancelled U 30, she would likely have to undergo additional medical underwriting and pay a higher premium to obtain a substitute health insurance through another insurer. 26. These willful misrepresentations and omissions made by you, CHARLES BRIAN KLEINMETZ, were false and material misstatements of fact. You were fully aware of these falsehoods. 27. Because you, CHARLES BRIAN KLEINMETZ, were her insurance agent, Ms. L.C. justifiably relied on the representations and misinformation conveyed to her by you concerning the F 64 policy. She trusted you and readily and agreeably signed the life insurance application forms at your urging. 28. The purchase of the Foresters life insurance policy was not in Ms. L.C.’s best interest, was unwanted, unnecessary and inappropriate for her, was without demonstrable benefit to her, and was done for the sole purpose of obtaining a fee, commission, money or other benefit from Foresters. 29. These deceitful and fraudulent actions, CHARLES BRIAN KLEINMETZ, have caused Ms. L.C. to have a lapse in health insurance coverage and has required her to pay $75 per month in premium for a substitute health insurance policy. 8 30. You, CHARLES BRIAN KLEINMETZ, by your conduct, have violated a public trust in contravention of Rule 69B-215.210, Florida Administrative Code as described above. IT IS THEREFORE CHARGED that you, CHARLES BRIAN KLEINMETZ, have violated or are accountable under the provisions of the Florida Insurance Code set forth in paragraphs (a) through (h) under Count I above, which constitute grounds for the suspension or revocation of your licenses as an insurance agent in the state. COUNT HT 31. The above allegations are hereby realleged and fully incorporated herein by reference. 32. Ms. S. D. is a resident of St. Petersburg, Florida and works as a school crossing guard in Madeira Beach. She was born on May 23, 1923. 33. On October 9, 2009, Ms. 8.D. purchased a Colonial long term health care policy from insurance agent Michael Calderone ending with the numbers 35 (C 35). Following health insurance underwriting, the policy was issued and effective on December 15, 2009. 34. On October 19, 2010, you, CHARLES BRIAN KLEINMETZ, completed an application on Ms. S.D. for a United long term health insurance policy that ended with the numbers 58 (U 58). Following health insurance underwriting, the policy was issued and effective on December 1, 2010. 35. When you, CHARLES BRIAN KLEINMETZ, took Ms. S.D.’s application for U 58, you completed the application, had her sign it, and in the process provided Ms. S.D. with false information, or omitted to provide her with accurate and complete facts essential to her purchasing decision. These fraudulent material omissions and misrepresentations are summarized as follows: - (a) You, CHARLES BRIAN KLEINMETZ, told Ms. S.D. that U 58 would replace C 35, when the application you completed indicated that U 58 would not replace any existing policy. 9 (b) You, CHARLES BRIAN KLEINMETZ, told Ms. S.D. that you were going to cancel C 35, but you never did. (c) You, CHARLES BRIAN KLEINMETZ, knew that Ms. 8.D. had no need for two duplicative long term health insurance policies that resulted in her having to pay approximately $1,200.00 a month in combined insurance premiums, which you knew she could ill afford and yet you took no action(s) to undo your sale of U 58. (d) Alternatively, you, CHARLES BRIAN KLEINMETZ, never explained to Ms. S.D. that by purchasing U 58 she would have to pay a premium sum in addition to making premium payments on C 35. 36. These willful misrepresentations and omissions made by you, CHARLES BRIAN . KLEINMETZ, were false and material misstatements of fact. You were fully aware of these falsehoods. 37. As her insurance agent, Ms. S.D. justifiably relied on the representations and misinformation conveyed to her by you, CHARLES BRIAN KLEINMETZ, concerning the U 58 policy. She trusted you and readily and agreeably signed the health insurance application forms at your urging. 38. The purchase of U 58 was not in Ms. S.D.’s best interests, was unwanted, unnecessary and inappropriate for her, and was done for the sole purpose of obtaining a fee, commission, money or other benefit from United. 39. Your deceitful and fraudulent actions, CHARLES BRIAN KLEINMETZ, caused Ms. S.D. to pay duplicate premiums for a period of five months, then to cancel both policies, then to purchase a worthless home care service contract (not insurance) that she later cancelled, with the result that this ninety-year-old widow presently has no long term health care coverage. 10 40. You, CHARLES BRIAN KLEINMETZ, by your conduct have violated a public trust in contravention of Rule 69B-215.210, Florida Administrative Code as described above. IT IS THEREFORE CHARGED that you, CHARLES BRIAN KLEINMETZ, have violated or are accountable under the provisions of the Florida Insurance Code set forth in paragraphs (a) through (h) under Count I above, which constitute grounds for the suspension or revocation of your licenses as an insurance agent in the state. WHEREFORE, you, CHARLES BRIAN KLEINMETZ, are hereby notified that the Chief Financial Officer intends to enter an Order suspending or revoking your licenses, appointments and your eligibility for licensure as an insurance agent in this state or to impose such penalties as may be provided under the provisions of Sections 626.611, 626.621, 626.641, 626.681, 626.691, 626.692, and 626.9521, Florida Statutes, and under the other referenced sections of the Florida Statutes as set out in this Administrative Complaint. You are further notified that the Department intends to seek aggravation of all such penalties in accordance with the provisions of Rule 69B-231.160, Florida Administrative Code, and that any order entered in this case revoking or suspending any license or eligibility for licensure held by you shall also apply to all other licenses and eligibility held by you under the Florida Insurance Code. $h DATED and SIGNED this_|@ day of __< July 2014. Greg Thomas Director, Agent and Agency Services 11 NOTICE OF RIGHTS You have the right to request a proceeding to contest this action by the Department of Financial Services ("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, 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. FAILURE TO ENSURE YOUR WRITTEN RESPONSE IS RECEIVED BY THE DEPARTMENT WITHIN TWENTY-ONE (21) DAYS OF YOUR RECEIPT OF THIS NOTICE WILL CONSTITUTE A WAIVER OF YOUR RIGHT TO REQUEST A PROCEEDING ON THE MATTERS ALLEGED HEREIN AND AN ORDER OF SUSPENSION OR REVOCATION WILL BE ENTERED 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. 12 (c) A statement requesting an administrative hearing identifying those material facts that are in dispute. If there are none, the petition must so indicate. (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 13 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. CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative Complaint has been furnished by e-mail to CHARLES BRIAN KLEINMETZ at ckleinmetz@tampabay.rr.com on this id + day of ¢ el yf , 2014. David J. Busch Division of Legal Services 200 East Gaines Street 612 Larson Building Tallahassee, FL 32399-0333 Tel: (850) 413-4211 Fax: (850 487-4907 e-mail: david.busch@myfloridacfo.com Attorney for the Department Fla. Bar No.: 140945 14 STATE OF FLORIDA DEPARTMENT OF FINANCIAL SERVICES DIVISION OF LEGAL SERVICES IN THE MATTER OF: CASE NO. 143016-14-AG CHARLES BRIAN KLEINMETZ / ELECTION OF PROCEEDING I have received and have read the Administrative Complaint filed by the Florida Department of Financial Services ("Department") against me, including the Notice of Rights contained therein, and I understand my options. I am requesting disposition of this matter as indicated below. (CHOOSE ONE) 1.) 3.0] I do not dispute any of the Department’s factual allegations 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, including suspending or revoking my licenses and appointments as may be appropriate. 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, 1 desire to (CHOOSE ONE): [] Submit a written statement and documentary evidence in lieu of a hearing; or p] Personally attend a hearing conducted by a department hearing officer in Tallahassee; or {1 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. TO PRESERVE YOUR RIGHT TO A HEARING, YOU MUST FILE YOUR RESPONSE WITH THE DEPARTMENT OF FINANCIAL SERVICES WITHIN TWENTY-ONE (21) DAYS OF YOUR RECEIPT OF THE ADMINISTRATIVE COMPLAINT. THE RESPONSE MUST BE RECEIVED BY THE DEPARTMENT NO LATER THAN 5:00 P.M. ON THE TWENTY-FIRST DAY AFTER YOUR RECEIPT OF THE ADMINISTRATIVE COMPLAINT. The address for filing is: Julie Jones, 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.: 15 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative Complaint has been furnished by U.S. Certified mail to CHARLES BRIAN KLEINMETZ, 7929 9th Avenue South, St. Petersburg, FL 33707-2732; CHARLES BRIAN an Fidelity Assurance Inc., 5051 66th Street N. St. Petersburg, FL 33709-3133this iy day of July, 2014. David J. Busch Division of Legal Services 200 East Gaines Street 612 Larson Building Tallahassee, FL 32399-0333 Tel: (850) 413-4146 Fax: (850 487-4907 e-mail: david.busch@myfloridacfo.com Attorney for the Department Fla. Bar No.: 140945 FL 71494 4991 7032 ?lb? 4zga L199 9994 ?O3a 746? 45 14 16

Docket for Case No: 14-004559PL