THE TREASURER OF THE STATE OF FLORIDA DEPARTMENT OF INSURANCE BILL NELSON p0-g§ or IN THE MATTER OF: MICHAEL HENRY BURTON CASE NO.: 31361-99+ ADMINISTRATIVE COMPLAINT TO: MICHAEL HENRY BURTON 292 S. University Drive . Plantation, Florida 33324-4106 MICHAEL HENRY BURTON 6000 SW 13 Street Plantation, Florida 33317-4637 MICHAEL HENRY BURTON United Surety Associates 1820 N. University Drive Plantation, Florida 33322-4106 FILED JUN 21 2000 1)or 09 Wd Be You, MICHAEL HENRY BURTON, are hereby notified that the Insurance Commissioner 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: WU ww) GENERAL ALLEGATIONS 1. Pursuant to Chapter 626, Florida Statutes, you, MICHAEL HENRY BURTON, are currently licensed in this state as a general lines agent. 2. At all times pertinent to the date and occurrences referred to herein, you, MICHAEL HENRY BURTON, were licensed as an insurance agent in this state. 3. Pursuant to Chapter 626, Florida Statutes, the Florida Department of Insurance has jurisdiction over your insurance licenses and appointments. 4, At all times pertinent to the dates and occurrences referred to herein, you, MICHAEL HENRY BURTON, were the resident agent of record for Clarion Insurance, Inc., (hereinafter “Clarion”) of Plantation, Florida, an incorporated insurance agency. According to the corporate records of the Florida Secretary of State, you, MICHAEL HENRY BURTON, served as the secretary and treasurer for this corporation, at all times pertinent to the date and occurrences referred to herein. At all times pertinent to the date and occurrences referred to herein, your wife, Linda Burton served as President for this corporation. 5. According to the corporate records of the Florida Secretary of State, Clarion is a Florida domestic corporation, first incorporated on November 18, 1988. i) U Nw) 6. The owners/principals of an "insurance agency" such as Clarion, are required by section 626.592, Florida Statutes, to annually declare (on or before January 1° of each year) and notify the Department of the identity of that licensed individual who would serve as the “primary agent” of this particular “insurance agency.” 7. Pursuant to sections 626.734, you, MICHAEL HENRY BURTON, are personally and fully liable and accountable for any wrongful acts, misconduct, or violations of any provisions of the insurance code committed by such licensee or by any person under your direct supervision and control while acting on behalf of Clarion. 8. At all times pertinent to the dates and occurrences referred to herein, you, MICHAEL HENRY BURTON, according to the records of First Union Bank were the joint signatory on your agency's bank account with your wife, Linda Burton. COUNT TI 9. The above general allegations are hereby realleged and fully incorporated herein by reference. 10. On or about August 12, 1997, you, MICHAEL HENRY BURTON, sold and issued to A-1 Duran Roofing (d.b.a. All Roof Services), of Miami, Florida, a performance (surety) bond in the amount of $379,000.00 underwritten by Nobel Insurance Company, policy number we U Nw] STD0643461, effective August 12, 1997, intended for a large re- roofing project. 11. On or about August 25, 1997, you, MICHAEL HENRY BURTON, received a check from A-1 Duran Roofing (d.b.a. All Roof Services), of Miami, Florida, in the amount of $6,685.00 which was deposited to Clarion’s bank account. This check was intended to be the premium payment (net of commission) for the above performance (surety) bond. 12. According to company officials of Nobel Insurance Company, with a statement of account prepared as of January 31, 1999, you, MICHAEL HENRY BURTON, had remitted no premium on this bond to Nobel Insurance Company, as of that date. 13. In May of 1998, Nobel Insurance Company submitted to the Department of Insurance, a notice of Termination of Appointment for you, MICHAEL HENRY BURTON. 14. You, MICHAEL HENRY BURTON, failed to remit to the Nobel Insurance Company, in the applicable regular course of business, the insurance premiums paid to you by All Roof Services). 15. To date, neither you, MICHAEL HENRY BURTON, nor any employee at your agency, has restored any of these collected, but nonremitted, insurance premiums to Nobel Insurance company or returned any of these funds to the insured. U UW IT IS THEREFORE CHARGED that you, MICHAEL HENRY BURTON, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitute grounds for the suspension or revocation of your licenses and appointments as an insurance agent: (a) All premiums, return premiums, or other funds belonging to insurers or others received by an agent, solicitor, or adjuster in transactions under his license shall be trust funds so received by the licensee in a fiduciary capacity. An agent shall keep the funds belonging to each insurer for which he is not appointed, other than a surplus lines insurer, in a separate account so as to allow the department to properly audit such funds. The licensee in the applicable regular course of business shall account for and pay the same to the insurer, insured, or other person entitled thereto. [Section 626.561(1), Florida Statutes] (b) Demonstrated lack of fitness or trustworthiness to engage in the business of insurance. [Section 626.611(7), Florida Statutes] (c) Demonstrated lack of reasonably adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.611 (8) , Florida Statutes] U Nw] (a) Fraudulent or dishonest practices in the conduct of business under the license or appointment. [Section 626.611(9), Florida Statutes] (e) Misappropriation, conversion, or unlawful withholding of moneys belonging to insurers or insureds or beneficiaries or to others and received in conduct of business under the license or appointment. [Section 626.611(10), Florida Statutes] (£) Willful failure to comply with, or willful violation of, any proper order or rule of the department or willful violation of any provision of this code. [Section 626.611(13), Plorida Statutes] (g) Violation of 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. [Section 626.621(2), Florida Statutes] (h) Failure or refusal, upon demand, to pay over to any insurer he or she represents or has represented any money coming into his or her hands belonging to the insurer. [Section 626.621(4), Florida Statutes] (i) In the conduct of business under the license or appointment, engaging in unfair methods of competition or in unfair or deceptive acts or practices, as prohibited under part x of this chapter, or having otherwise shown himself or herself to VU WY be a source of injury or loss to the public or detrimental to the public interest. [Section 626.621(6), Florida Statutes} COUNT IT 16. The above general allegations above are hereby realleged and fully incorporated herein by reference. 17. On or about September 11, 1997, you, MICHAEL HENRY BURTON, sold A-1 Duran Roofing (d.b.a. All Roof Services), of Miami, Florida, a performance (surety) bond in the amount of $177,210.00 underwritten by Nobel Insurance Company, policy number STD0643523, effective September 11, 1997, intended for a roof replacement project for a U.S. Post Office. 18. On or about September 11, 1997, you, MICHAEL HENRY BURTON, received a bank check from A-1 Duran Roofing (d.b.a. All Roof Services), of Miami, Florida, in the amount of $2,518.00, which you deposited to Clarion’s bank account. This check was A-1 Duran Roofing’s premium payment (net of commission) for this surety bond. 19. According to Officers of Nobel Insurance Company, with a statement of account prepared as of January 31, 1999, you, MICHAEL HENRY BURTON, had remitted no portion of the net premium of $1,590.40 for this bond to Nobel Insurance Company, as of that date. U ww) 20. In May of 1998, Nobel Insurance Company submitted to the Department of Insurance, a notice of Termination of Appointment for you, MICHAEL HENRY BURTON. 21. You, MICHAEL HENRY BURTON, failed to remit to the Nobel Insurance Company, in the applicable regular course of business, the insurance premiums paid to you by All Roof. Services. 22. To date, neither you, MICHAEL HENRY BURTON, nor any employee at your agency, has restored any of these collected, but nonremitted, insurance premiums to Nobel Insurance company or returned any of these funds to the insured. IT IS THEREFORE CHARGED that you, MICHAEL HENRY BURTON, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitute grounds for the suspension or revocation of your licenses and appointments as an insurance agent: Sections 626.561(1), 626.611(7), 626.611(8), 626.611(9), 626.611(10), 626.611(13), 626.621(2), 626.621(4), and 626.621(6), Florida Statutes, which are set forth specifically in Count I above and are hereby realleged and fully incorporated herein by reference. COUNT IIT 23. The above general allegations above are hereby realleged and fully incorporated herein by reference. UW WY 24. On or about August 20, 1997, you, MICHAEL HENRY BURTON, sold Kennedy Contractors, Inc., of West Palm Beach, Florida, a performance (surety) bond in the amount of $1,840,574.55 underwritten by Nobel Insurance Company, policy number STD0643473, effective August 20, 1997, intended for a large construction project. 25. On or about August 26, 1997, you, MICHAEL HENRY BURTON, received a bank check from Kennedy Contractors, Inc., in the amount of $14,885.00, which you deposited to Clarion’s bank account. This check was Kennedy Contractors’ premium payment (net of commission) for this surety bond. 26. According to Officers of Nobel Insurance Company, with a statement of account prepared as of January 31, 1999, you, MICHAEL HENRY BURTON, had remitted no portion of the net premium of $1,590.40 for this bond to Nobel Insurance Company, as of that date. 27. In May of 1998, Nobel Insurance Company submitted to the Department of Insurance, a notice of Termination of Appointment for you, MICHAEL HENRY BURTON. 28. You, MICHAEL HENRY BURTON, failed to remit to the Nobel Insurance Company, in the applicable regular course of business, the insurance premiums paid to you by Kennedy Contractors. 29. To date, neither you, MICHAEL HENRY BURTON, nor any employee at your agency, has restored any of these collected but unremitted, insurance premiums to Nobel Insurance company or returned any of these funds to the insured. IT IS THEREFORE CHARGED that you, MICHAEL HENRY BURTON, have. violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitute grounds for the suspension or revocation of your licenses and appointments as an insurance agent: Sections 626.561(1), 626.611(7), 626.611(8), 626.611(9), 626.611(10), 626.611(13), 626.621(2), 626.621(4), and 626.621(6), Florida Statutes, which are set forth specifically in Count I above and are hereby realleged and fully incorporated herein by reference. COUNT IV 30. The above general allegations above are hereby realleged and fully incorporated herein by reference. 31. On or about September 17, 1997, you, MICHAEL HENRY BURTON, sold Kennedy Contractors, Inc., of West Palm Beach, Florida, a performance (surety) bond in the amount of $854,981.00 underwritten by Nobel Insurance Company, policy number STD0643531 ’ effective September 17, 1997, intended for a large construction project. U 1) 32. On or about October 22, 1997, you, MICHAEL HENRY BURTON, received a bank check from Kennedy Contractors, Inc., in the amount of $8,163.00, which you deposited to Clarion’s bank account. This check was Kennedy Contractors’ premium payment (net of commission) for this surety bond. 33. According to Officers of Nobel Insurance Company, with a statement of account prepared as of January 31, 1999, you, MICHAEL HENRY BURTON, had remitted no portion of the net premium of $1,590.40 for this bond to Nobel Insurance Company, as of that date. 34. In May of 1998, Nobel Insurance Company submitted to the Department of Insurance, a notice of Termination of Appointment for you, MICHAEL HENRY BURTON. 35. You, MICHAEL HENRY BURTON, failed to remit to the Nobel Insurance Company, in the applicable regular course of business, the insurance premiums paid to you by Kennedy Contractors. 36. To date, neither you, MICHAEL HENRY BURTON, nor any employee at your agency, has restored any of these collected but unremitted, insurance premiums to Nobel Insurance company or returned any of these funds to the insured. IT IS THEREFORE CHARGED that you, MICHAEL HENRY BURTON, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance 1, UY which constitute grounds for the suspension or revocation of your licenses and appointments as an insurance agent: Sections 626.561(1), 626.611(7), 626.611(8), 626.611(9), 626.611(10), 626.611(13), 626.621(2), 626.621(4), and 626.621(6), Florida Statutes, which are set forth specifically in Count I above and are hereby realleged and fully incorporated herein by reference. COUNT V 37. The above general allegations above are hereby realleged and fully incorporated herein by reference. 38. On or about September 17, 1997, you, MICHAEL HENRY BURTON, sold Kennedy Contractors, Inc., of West Palm Beach, Florida, a performance (surety) bond in the amount of $426,818.00 underwritten by Nobel Insurance Company, policy number STD0643530, effective September 17, 1997, intended for a large construction project. 39. On or about October 9, 1997, you, MICHAEL HENRY BURTON, received a bank check from Kennedy Contractors, Inc., in the amount of $4,769.00, which you deposited to Clarion’s bank account. This check was Kennedy Contractors’ premium payment (net of commission) for this surety bond. 40. According to Officers of Nobel Insurance Company, with a statement of account prepared as of January 31, 1999, you, 12 VU Nw] MICHAEL HENRY BURTON, had remitted no portion of the net premium of $1,590.40 for this bond to Nobel Insurance Company, as of that date. 41. In May of 1998, Nobel Insurance Company submitted to the Department of Insurance, a notice of Termination of Appointment for you, MICHAEL HENRY BURTON. 42. You, MICHAEL HENRY BURTON, failed to remit to the Nobel Insurance Company, in the applicable regular course of business, the insurance premiums paid to you by Kennedy Contractors. 43. To date, neither you, MICHAEL HENRY BURTON, nor any employee at your agency, has restored any of these collected but unremitted, insurance premiums to Nobel Insurance company or returned any of these funds to the insured. IT IS THEREFORE CHARGED that you, MICHAEL HENRY BURTON, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitute grounds for the suspension or revocation of your licenses and appointments as an insurance agent: Sections 626.561(1), 626.611(7), 626.611(8), 626.611(9), 626.611(10), 626.611(13), 626.621(2), 626.621(4), and 626.621(6), Florida Statutes, which are set forth specifically in Count I above and are hereby realleged and fully incorporated herein by reference. U Nw] COUNT VI 44. The above general allegations above are hereby realleged and fully incorporated herein by reference. 45. On or about September 17, 1997, you, MICHAEL HENRY BURTON, sold Kennedy Contractors, Inc., of West Palm Beach, Florida, a performance (surety) bond in the amount of $431,461.00 underwritten by Nobel Insurance Company, policy number STD0643532, effective September 17, 1997, intended for a large construction project. 46. On or about October 22, 1997, you, MICHAEL HENRY BURTON, received a bank check from Kennedy Contractors, Inc., in the amount of $4,815.00, which you deposited to Clarion’s bank account. This check was Kennedy Contractors’ premium payment (net of commission) for this surety bond. 47. According to Officers of Nobel Insurance Company, with a statement of account prepared as of January 31, 1999, you, MICHAEL HENRY BURTON, had remitted no portion of the net premium of $1,590.40 for this bond to Nobel Insurance Company, as of that date. 48. In May of 1998, Nobel Insurance Company submitted to the Department of Insurance, a notice of Termination of Appointment for you, MICHAEL HENRY BURTON. U ww) 49. You, MICHAEL HENRY BURTON, failed to remit to the Nobel Insurance Company, in the applicable regular course of business, the insurance premiums paid to you by Kennedy Contractors. 50. To date, neither you, MICHAEL HENRY BURTON, nor any employee at your agency, has restored any of these collected but unremitted, insurance premiums to Nobel Insurance company or returned any of these funds to the insured. IT IS THEREFORE CHARGED that you, MICHAEL HENRY BURTON, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitute grounds for the suspension or revocation of your licenses and appointments as an insurance agent: Sections 626.561(1), 626.611(7), 626.611(8), 626.611(9), 626.611(10), 626.611(13), 626.621(2), 626.621(4), and 626.621(6), Florida Statutes, which are set forth specifically in Count I above and are hereby realleged and fully incorporated herein by reference. COUNT VII 51. The above general allegations above are hereby realleged and fully incorporated herein by reference. 52. On or about January 27, 1998, you, MICHAEL HENRY BURTON, sold Philco Glass, Inc., (d.b.a. Cherokee Glass and Mirror), of Lake Worth, Florida, a performance (surety) bond in 15s U ww] the amount of $138,000.00 underwritten by Nobel Insurance Company, policy number STD0650245, effective January 27, 1998, intended for a construction project. 53. On or about April 27, 1998, you, MICHAEL HENRY BURTON, received a bank check from Cherokee Glass and Mirror in the amount of $3,070.00, which you deposited to Clarion’s bank account. This check was Cherokee Glass and Mirror’s premium payment for this surety bond. 54. According to Officers of Nobel Insurance Company, with a statement of account prepared as of January 31, 1999, you, MICHAEL HENRY BURTON, had remitted no portion of the net premium of $2,149.00 for this bond to Nobel Insurance Company, as of that date. 55. In May of 1998, Nobel Insurance Company submitted to the Department of Insurance, a notice of Termination of Appointment for you, MICHAEL HENRY BURTON. 56. You, MICHAEL HENRY BURTON, failed to remit to the Nobel Insurance Company, in the applicable regular course of business, the insurance premiums paid to you by Cherokee Glass and Mirror. 57. To date, neither you, MICHAEL HENRY BURTON, nor any employee at your agency, has restored any of these collected but unremitted, insurance premiums to Nobel Insurance company or returned any of these funds to the insured. WU WY IT IS THEREFORE CHARGED that you, MICHAEL HENRY BURTON, have violated or are accountable under the following provisions of the Florida Insurance Code ‘and Rules of the Department of Insurance which constitute grounds for the suspension or revocation of your licenses and appointments as an insurance agent: Sections 626.561(1), 626.611(7), 626.611(8), 626.611(9), 626.611(10), 626.611(13), 626.621(2), 626.621(4), and 626.621(6), Florida Statutes, which are set forth specifically in Count I above and are hereby realleged and fully incorporated herein by reference. COUNT VIII 58. The above general allegations above are hereby realleged and fully incorporated herein by reference. 59. On or about December 19, 1997, you, MICHAEL HENRY BURTON, sold Gulf Construction Group, Inc., of Panama City, Florida, a performance (surety) bond in the amount of $3,650,000.00 underwritten by Nobel Insurance Company, policy number STD0650198, effective December 19, 1997, intended for a large construction project. 60. On or about January 21, 1998, you, MICHAEL HENRY BURTON, received a bank check from Gulf Group, Inc., in the amount of $25,825.00, which you deposited to Clarion’s bank UY v7] account. This check was Gulf Construction Group’s premium payment (net of commission) for this surety bond. 61. According to Officers of Nobel Insurance Company, with a statement of account. prepared as of January 31, 1999, you, MICHAEL HENRY BURTON, had remitted no portion of the net premium of $18,710.21 for this bond to Nobel Insurance Company, as of that date. 62. In May of 1998, Nobel Insurance Company submitted to the Department of Insurance, a notice of Termination of Appointment for you, MICHAEL HENRY BURTON. 63. “You, MICHAEL HENRY BURTON, failed to remit to the Nobel Insurance Company, in the applicable regular course of business, the insurance premiums paid to you by Gulf Construction Group, Inc. 64. To date, neither you, MICHAEL HENRY BURTON, nor any employee at your agency, has restored any of these collected but unremitted, insurance premiums to Nobel Insurance company or returned any of these funds to the insured. IT IS THEREFORE CHARGED that you, MICHAEL HENRY BURTON, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the Department of Insurance which constitute grounds for the suspension or revocation of your licenses and appointments as an insurance agent: 18 ww) wv) Sections 626.561(1), 626.611(7), 626.611(8), 626.611(9), 626.611(10), 626.611(13), 626.621(2), 626.621(4), and 626.621(6), Florida Statutes, which are set forth specifically in Count I above and are hereby realleged and fully incorporated herein by reference. WHEREFORE, you, MICHAEL HENRY BURTON, are hereby notified that the Treasurer and Insurance Commissioner intends to enter an Order suspending or revoking your 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, 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 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. NOTICE OF RIGHTS Pursuant to Sections 120.569 and 120.57, Florida Statutes and Rule 28-106, Florida Administrative Code (F.A.C.), you have the 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 19 7] 7] Petition or Election of a proceeding must be in writing and must be filed with the General Counsel acting as the Agency Clerk, Department of rnsurance. If served by U.S. Mail the Petition or Election should be addressed to the Florida Department of Insurance at 612 Larson Building, Tallahassee, 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 AND AN ORDER OF REVOCATION WILL BE ENTERED AGAINST YOU. If a proceeding is requested and there is no dispute of fact the provisions of Section 120.57(2), Florida Statutes would apply. In 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 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. 7 Nw] 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. If you request this type of proceeding, the request must comply with all of the requirements of Rule 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 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. If you request a 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. U WY 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 be considered freeform agency action, and no such correspondence shall 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. DATED and SIGNED this Z (. day of , 2000. ILL NELSON Treasurer and Insurance Commissioner 22 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing ADMINISTRATIVE COMPLAINT has been furnished to: MICHAEL HENRY BURTON, 292 S. University Drive, Plantation, Florida 33324-4106; MICHAEL HENRY BURTON, 6000 SW 13° Street, Plantation, Florida 33317-4637 and MICHAEL HENRY BURTON, United Surety Associates, 1820 N. University Drive, Pl tation, Florida 33322-4106 by Certified Mail this 2/ day of , 2000. ROBERT F. LANGFOR: Division of Legal 612 Larson Building | Tallahassee, FL 32399-0333 (850) 413-4138 Attorney for the Department to w

Docket for Case No: 00-002862PL

Orders for Case No: 00-002862PL