Petitioner: DEPARTMENT OF FINANCIAL SERVICES, DIVISION OF INSURANCE AGENT AND AGENCY SERVICES
Respondent: BRADLEY KEITH BURNETT
Judges: LISA SHEARER NELSON
Agency: Department of Financial Services
Locations: Tallahassee, Florida
Filed: Nov. 13, 2015
Status: Closed
Settled and/or Dismissed prior to entry of RO/FO on Monday, November 23, 2015.
Latest Update: Dec. 23, 2024
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