Insurance Commissioner Goes After New Company For Blatant Violations
LAVBELLE, FL. -- Florida Chief Financial Officer Alex Sink is taking legal action to prevent People's Trust Insurance�s Managing General Agent (MGA) from using unlicensed agents to sell its homeowners insurance. The action follows an investigation by CFO Sink�s Department of Financial Services showing that People�s Trust MGA, LLC is using some unlicensed agents to sell homeowners' insurance in Hendry County and other Florida counties.
CFO Sink issued an Order to Show Cause to the Managing General Agent for People�s Trust Homeowner�s Insurance, charging that the Boca Raton-based People�s Trust MGA LLC faces suspension or revocation of its license if the allegations are upheld. CFO Sink said the investigation revealed that People�s Trust MGA has allowed unlicensed agents to transact insurance, committing numerous violations of the Florida Insurance Code.
People's Trust Insurance Company has been sending regular mailers to Hendry county property owners advertising "save as much as 70% on your homeowners insurance premiums." A closer reading of the fine print shows that it would be rare to actually get that much savings, says one homeowner. And each new mailing appears with more fine print added compared to the preceding mailings.
"It is my responsibility to make sure Floridians are getting the best advice for protecting their families and homes by properly licensed agents," said CFO Sink. "People�s Trust MGA is violating the people�s trust by illegally allowing unlicensed agents to sell insurance in our state."
CFO Sink also called on Florida Insurance Commissioner Kevin McCarty to look into the business practices of People�s Trust Homeowners Insurance because of its MGA�s use of unlicensed agents to sell insurance coverage. Insurance Commissioner McCarty has primary responsibility for regulation, compliance and enforcement of statutes related to licensed insurers and the monitoring of insurer market conduct.
"I hope that Commissioner McCarty will join me in my work to protect Floridians and take action regarding this blatant violation," CFO Sink continued.
The Department�s investigation is ongoing. Any consumer who believes they bought coverage from an unlicensed individual is asked to contact the Department via the CFO�s website, MyFloridaCFO.com, or call CFO Sink�s consumer helpline at 1-877-MY-FL-CFO. Florida law specifies that people who buy insurance from unlicensed agents continue to have valid coverage.
Today, People's Trust MGA received an order from Florida's Chief Financial Officer regarding how its representatives interact with and sell homeowners insurance to consumers in Florida.
ReplyDelete'This comes as a surprise to us,' stated Mike Gold. 'From day one, we have been completely transparent about our direct-to-consumer business model and, in fact, cleared our business plan with official representatives of CFO Sink prior to selling our first policy. Subsequently, representatives of the CFO visited our Boca Raton headquarters. We were completely open and honest about our business procedures and were not informed of any concerns at that time.
'Less than two weeks ago, we learned that the state, through CFO Sink's office, now believes every one of our representatives should be licensed. While many on our team were already appropriately certified, we immediately secured additional training to certify every remaining individual in our call center.
'People's Trust MGA will respond immediately to the state's complaint and cooperate fully. We will continue to do business in accordance with the state's requirements and expect the situation to be resolved in a manner that shows we have operated ethically and in the best interest of Florida homeowners insurance customers.'
To arrange interviews with Mike Gold, contact Stu Opperman, APR at (954) 815-2303 or Deborah Straus at (917) 658-6933.
http://www.topix.net/content/prweb/2009/03/peoples-trust-mga-chief-executive-officer-mike-gold-reacts-to-order-to-show-cause
It's very difficult to find a agent who will go to protect your family well, we must be careful in the hands of those who put the safety of your family!
ReplyDeletei think people should investiget before invest...
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