FILED AUG 6.5 2015 OOEER ATWATER . FAL aE ae Docketed by <1, IN THE MATTER OF: BRADLEY KEITH BURNETT : CASE NO: 159522-14-AG / ADMINISTRATIVE COMPLAINT TO: Bradley Keith Burnett ) Post Office Box 1980 Silver Springs, FL 34489-1980 Bradley Keith Burnett is hereby notified that the Chief Financial Officer of the State of Florida (the “Department”) has caused to be made an investigation of his activities while licensed as an insurance agent in this state, as a result of which it is alleged: GENERAL ALLEGATIONS 1, Pursuant to chapter 626, Florida Statutes, Bradley Keith Burnett is currently licensed in this state as a life, health and variable annuity agent. , | 2. At all times pertinent to the dates and occurrence referred to herein, Bradley Keith Burnett was licensed in this state as a life, health and variable annuity agent pursuant to chapter 626, Florida Statutes. 3. Pursuant to chapter 626, Florida Statutes, thé Department has jurisdiction over Bradley Keith Burnett’s insurance licenses and appointments. COUNT I 4, The above General Allegations are hereby realleged and fully incorporated herein by reference. 5, As of December 27, 2011, Marlene Bal was insured under the provisions of a Midland Life universal life insurance policy with a face benefit value of $300,000.00 and an annual premium of approximately $10,000.00, 6. Bradley Keith Burnett, on or about December 27, 2011, solicited Marlene Bal of Ocala, Florida (age 79 at that time) to replace her extant Midland Life universal life insurance policy with a Prudential universal life insurance policy. Bradley Keith Burnett represented to Marlene Bal that her Midland Life policy would lapse at age 88 and that in order to have an insurance policy in effect past age 88 she would need to purchase the Prudential universal life insurance policy being solicited. 7. In point of fact, the Midland Life universal life insurance policy would lapse upon Marlene Bal reaching the age of 83, not age 88, because based upon the premium paid, the policy had a five year duration. However, because the Midland Life policy is a universal life insurance policy, the premium payments are flexible and the policy could have continued in effect indefinitely by increasing the annual premium. Bradley Keith Burnett was aware or should have been aware of this fact. 8. The Prudential universal life insurance policy solicited by Bradley Keith Burnett would continue in effect indefinitely as opposed to the Midland Life policy; however, in order to accomplish this, the face benefit value of the Prudential policy had to be reduced to $200,000.00 and the annual premium increased to approximately $12,000.00, as compared to the Midland Life policy. In effect, the Prudential universal life insurance policy and the Midland Life universal life insurance policy were and are identical insurance policies and each can remain in force as long as the insured desires to pay the required premium for the desired benefit. Bradley Keith Burnett was aware of or should have been aware of this fact but failed to disclose this fact to Marlene Bal. 9. The Midland Life universal life insurance policy provided Marlene Bal what is known as an accelerated benefits rider for terminal illness and chronic illness, This rider provides that the insurer will pay the policyholder upon proof of claim accelerated benefits equal up to one quarter of the policy face value annually for any medical purpose, including home health care or long term care. The Prudential Life universal life insurance policy does not provide any such benefit. Bradley Keith Burnett was aware of this fact or should have been aware of this fact; but failed to disclose this fact to Marlene Bal. | 10, Marlene Bal justifiably relied on the representations and information conveyed to her by Bradley Keith Burnett concerning the life insurance policies. The Midland Life universal life insurance policy would not have been replaced and the Prudential Life universal life insurance policy purchased but for Bradley Keith Burnett’s representations. 11. The Prudential Life universal life insurance policy was duly issued with Marlene Bal as the insured. Bradley Keith Burnett received a commission, 12. Bradley Keith Burnett knowingly made misleading representations and incomplete or fraudulent comparisons or material omissions with respect to insurance policies for the purpose of inducing Marlene Bal to lapse her Midland Life universal life insurance policy and take out a policy of insurance with Prudential. 13. Rule 69B-215.210, Florida Administrative Code, declares the business of life insurance to be a public trust that obligates insurance agents to work together in serving the best interests of the public by understanding and observing the laws governing life insurance, presenting accurate and complete facts essential to a client’s decision, and being fair in all relations with colleagues and competitors, always placing the policyholder’s interests first. 14. Rule 69B-215.230(1), Florida Administrative Code, declares insurance sales misrepresentations as to terms, benefits, and advantages of insurance products to be unethical and prohibited. 15. The sale of the Prudential Life life insurance policy to Marlene Bal and the replacement of her Midland Life insurance policy pursuant to the sales misrepresentations alleged herein was not in her best interest, was neither necessary nor appropriate for a person of her age and financial circumstance, was without demonstrable benefit, and was done for the sole purpose of obtaining a fee, commission, money or other benefits. As a result, Bradley Keith Burnett has violated a public trust in violation of the Code of Ethics, Rules 69B-215.210 and 69B-215.230(1), Florida Administrative Code. . IT IS THEREFORE CHARGED that Bradley Keith Burnett has violated or is accountable under the following provisions of the Florida Insurance Code and the Florida Administrative Code which constitutes grounds for the suspension or revocation of his license and eligibility for licensure as an insurance agent: | (a) Section 626.611(7), Florida Statutes, which provides that it is a violation to demonstrate a lack of fitness or trustworthiness to engage in the business of insurance. (b) Section 626.611(8), Florida Statutes, which provides that it is a violation to demonstrate a lack of reasonably adequate knowledge and technical competence to. engage in the transactions authorized by the license. (c) Section 626.611(13), Florida Statutes, which provides that it is a violation to willfully fail to comply with any order or rule of the department or any provision of the Florida Insurance Code. (d) Section 626.621(2), Florida Statutes, which provides that it is a violation to violate any provision of this code or of any other law applicable to the business of insurance in the course of dealing under the license or appointment. (e) Section 626.621(3), Florida Statutes, which provides that it is a violation to fail to comply with any order or rule of the Department or any provision of the Florida Insurance code. | (f) Section 626.621(5), Florida Statutes, which provides that it is a violation to violate the provision against twisting, as defined in section 626.9541(1)(1), Florida Statutes. _(g) ~~ Section 626.621(6), Florida Statutes, which provides that itis a violation, in the conduct of business under the license or appointment, to engage in unfair or deceptive acts or practices, as prohibited under part XI of chapter 626, Florida Statutes. (h) Section 626.621(9), Florida Statutes, which provides that it is a violation for a life agent to violate the Code of Ethics found in Rules 69B-215.210 and 69B-215.230, Florida Administrative Code. . q@) Section 626.9541(1)(a) 1, Florida Statutes, which provides that 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, or comparison, which misrepresents the benefits, advantages, conditions, or terms of any insurance policy. Gg) Section 626.9541(1)(), Florida Statutes, which provides that it is a violation to knowingly make any misleading representations or incomplete or fraudulent comparisons or fraudulent material omissions of or with respect to any insurance policies for the purpose of inducing, or tending to induce, any person to lapse any insurance policy or to take out a policy of insurance in another insurer, (k) — Section 626.621(9), Florida Statutes, which provides that it is a violation for a life agent to violate the Code of Ethics found in Rules 69B-215.210 and 69B-215.230, Florida . Administrative Code, WHEREFORE, Bradley Keith Burnett is hereby notified that the Chief Financial Officer of the State of Florida, intends to enter an Order suspending or revoking his licenses and appointments as an insurance agent or to impose such penalties as may be provided under the provisions of sections 626.611, 626.621, 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. Bradley Keith Burnett is further notified that any order entered in this case revoking or suspending any license or eligibility for licensure held by him shall also apply to all other licenses and eligibility held by him under the Florida Insurance Code. DATED this al day of hug ust , 2015, » FIA . Gregory Thomas Director, Agent & Agency Services NOTICE OF RIGHTS You have the right to request a proceeding to contest this action by the Department of Financial Services ("the Department") pursuant to sections 120.569 and 120.57, Florida Statutes, and chapter 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 a petition for administrative hearing are required. 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 A FINAL ORDER OF SUSPENSION OR REVOCATION SHALL BE ENTERED AGAINST YOU. If re request a proceeding, you must provide information that complies with the requirements of Rule 28-106.2015, Florida Administrative Code. Specifically, your response must contain: (a) The name, address, 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 attomey 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. (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 an administrative law judge of the State of Florida 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 free form 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 before 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 during the time frame in which you have to request a hearing. CERTIFICATE OF SERVICE . J HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT and ELECTION OF PROCEEDING has been served by Certified Mail on Respondent BRADLEY KEITH BURNETT at Bradley Keith Burnett, Post Office Box 1980, Silver Springs, FL 34489-1980, on this 5H day of Augu st, 2015. ‘AMES A, BOSSART, ESQ Division of Legal Services 612 Larson Building Tallahassee, Florida 32399-0333 (850) 413-4124

Docket for Case No: 15-006373PL