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DEPARTMENT OF FINANCIAL SERVICES vs JEFFREY LEE ANDERSON, 04-004251PL (2004)

Court: Division of Administrative Hearings, Florida Number: 04-004251PL Visitors: 18
Petitioner: DEPARTMENT OF FINANCIAL SERVICES
Respondent: JEFFREY LEE ANDERSON
Judges: SUSAN BELYEU KIRKLAND
Agency: Department of Financial Services
Locations: Naples, Florida
Filed: Nov. 19, 2004
Status: Closed
Settled and/or Dismissed prior to entry of RO/FO on Friday, January 21, 2005.

Latest Update: Dec. 24, 2024
FLORIDA DEPARTMENT OF FINANCIAL SERVICES (eee i rs FILED STATE OF FLORIDA NOV 1 204 IN THE MATTER OF: Ey Dooke . CASE NO. 78443-04-AG JEFFREY LEE ANDERSON ted ym | CY 495 IPC ADMINISTRATIVE COMPLAINT TO: JEFFREY LEE ANDERSON 7710 Santa Margherita Way Naples, Florida 34109 JEFFREY LEE ANDERSON 1100 5" Avenue South #201 Naples, Florida 34102 JEFFREY LEE ANDERSON P.O. Box 9163 Naples, Florida 34101 You, JEFFREY LEE ANDERSON, 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 I. You, JEFFREY LEE ANDERSON, are currently licensed in the state as a life, and variable annuity contracts salesman, life, health, and variable annuity contracts salesman, life insurance agent, life and health insurance agent and health insurance agent. 2. At all time pertinent to the dates and occurrences referred to in this Administrative Complaint you, JEFFREY LEE ANDERSON, were licensed as an insurance agent in this state. COUNT I 3. Paragraphs one through two are realleged and incorporated herein by reference. 4. As of August 6, 1999, a North Atlantic Life life insurance policy was in effect insuring the life of Charles L. Healey, Sr. of Naples, Florida. As of October, 1993, all premium payments had been suspended on this policy and no further payments were due prior to its maturity date. You, JEFFREY LEE ANDERSON, were aware or should have been aware of this fact. 5. On or about August 6, 1999, you, JEFFREY LEE ANDERSON, solicited Charles L. Healey, Sr. of Naples, Florida, to surrender his North Atlantic Life (Reliastar) life insurance policy and replace it with a Manufacturer’s Life Insurance universal life insurance policy being solicited by you. 6. You, JEFFREY LEE ANDERSON, represented to Charles Healey at the time of sale that the policy would have a $500,000 face value benefit and that no further premium payments would need to be paid after the initial payment. This was a misrepresentation and a material misstatement of fact. The policy as structured by you, JEFFREY LEE ANDERSON, was not a single premium policy and additional premium payments would have to be made in the future to keep the policy in force. The premiums or cost of insurance on a person of Charles 2 Healey’s age was prohibitive and unless additional annual premium payments were paid, the policy’s cash value was depleted in a relatively short time period. You, JEFFREY LEE ANDERSON, were aware of these facts and failed to disclose these facts to Charles L. Healey. 7. Based upon your misrepresentations, Charles Healey purchased the Manufacturers Life policy, which was duly issued. As a result of the initial lump sum payment of $448,000.00, the policy maintained sufficient value to obviate the need for additional out of pocket premium payments for a number of years. However, as no further premium payments were ever made, the annual premium or cost of insurance was deducted from the policy value gradually diminishing the policy value to the point where it eventually lapsed. You, JEFFREY LEE ANDERSON, were aware of this fact, but failed at any time to disclose this fact to Charles L. Healey. 8. As a result of your actions, Charles Healey has lost the entire cash value of the money that he paid into the insurance policy. Charles Healey would not have purchased the insurance policy if he had been made aware that he was required to pay annual premiums to keep the policy in force for life or that he would lose all of his funds. You, JEFFREY LEE ANDERSON, were aware of these facts. IT IS THEREFORE CHARGED that you, JEFFREY LEE ANDERSON, have violated or are accountable under the following provisions of the Florida Insurance Code and Rules of the State Chief Financial Officer which constitute grounds for the suspension or revocation of your insurance licenses and eligibility for licensure: (a) Willful misrepresentation of any insurance policy or annuity contract or willful deception with regards to any such policy or contract. {Section 626.611(5), 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 reasonable adequate knowledge and technical competence to engage in the transactions authorized by the license or appointment. [Section 626.611(8), Florida Statutes. (d) Fraudulent or dishonest practices in the conduct of business under the license or permit. [Section 626.611(9), Florida Statutes]; (e) 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), Florida Statutes] (f) 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] (g) False statements and entries. — 1. Knowingly: a. Filing with any supervisory or other public official, b. Making, publishing, disseminating, circulating, c. 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]. (h) Knowingly making any misleading representations or incomplete or fraudulent comparisons or fraudulent material omissions of or with respect to any insurance policies or insurers for the purpose of inducing, or tending to induce, any person to lapse, forfeit, surrender, terminate, retain, pledge, assign, borrow on, or convert any insurance policy or to take out a policy of insurance in another insurer. [Section 626.9541(1)(1), Florida Statutes] 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 28-107, 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 the General Counsel as acting Agency Clerk, at the Florida Department of Financial Services, 612 Larson Building, 200 East Gaines Street, Tallahassee, Florida 32399-0333. 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. YOUR FAILURE TO RESPOND IN WRITING 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 REVOCATION WILL BE ENTERED AGAINST YOU. If you request a proceeding, you must provide information that complies with the requirements of Rule 28-107.004, 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 and address of the party making the request, for purpose of service; (b) A statement that the party is requesting a hearing involving disputed issues of material fact, or a hearing not involving disputed issues of material fact; and (c) A reference to the notice, order to show cause, administrative complaint, or other communication that the party has received form the agency. Ifa 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 of Financial Services. st DATED and SIGNED this { day of November _, 2004. CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing Administrative Complaint was mailed by certified mail to: JEFFREY LEE ANDERSON, 7710 Santa Margherita Way, Naples, Florida 34109; JEFFREY LEE ANDERSON, 1100 5" Avenue South #201, Naples, Florida 34102; JEFFREY LEE ANDERSON, P.O. Box 9163, Naples, Florida 34101 on this F* day of November, 2004. A, ES A. BOSSART, ESQUIRE vision of Legal Services 612 Larson Building Tallahassee, FL 32399-0333 (850) 413-4124

Docket for Case No: 04-004251PL
Issue Date Proceedings
Jan. 21, 2005 Order Closing File. CASE CLOSED.
Jan. 20, 2005 Notice of Cancellation of Depositions (to be rescheduled) filed.
Jan. 19, 2005 Petitioner`s Notice of Filing Deposition of Susan Stein filed.
Jan. 18, 2005 Motion to Relinquish Jurisdiction (filed by Respondent).
Jan. 18, 2005 Notice of Cancellation of Depositions (to be rescheduled) filed.
Jan. 06, 2005 Notice of Taking Deposition filed.
Dec. 02, 2004 Order of Pre-hearing Instructions.
Dec. 02, 2004 Notice of Hearing (hearing set for February 16 and 17, 2005; 9:00 a.m.; Naples, FL).
Nov. 29, 2004 Notice of Appearance (filed by W. Zeena, Jr., Esquire).
Nov. 29, 2004 Joint Response to Initial Order filed.
Nov. 22, 2004 Initial Order.
Nov. 19, 2004 Administrative Complaint filed.
Nov. 19, 2004 Election of Proceeding filed.
Nov. 19, 2004 Agency referral filed.
Source:  Florida - Division of Administrative Hearings

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