Agents should routinely verify the licensure of the companies for which they're selling. If you suspect an entity is not authorized or licensed to transact insurance in Florida, from Florida or with residents of Florida, please notify our office. Report suspected unlicensed activity. Call 877-MY-FL-CFO (1-877-693-5236).
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Estimados Compañeros Floridanos:
Last week, we announced two South Florida fraud cases that outline the
fantastic work our investigators perform every day. In each case, individuals
chose to lie and cheat their way to a cheaper insurance policy premium. By doing
so, their scams cause insurance costs to rise for law-abiding families in
Florida who pay their fair share for insurance.
In the first case, an
insurance agent trusted to assist Floridians make important insurance decisions,
helped an individual attain a less expensive but inadequate insurance policy for
an assisted living facility in Miami. The business owner applied for a
residential homeowner's policy, claiming that the building was used only for
personal purposes. Therefore, the policy he ultimately obtained did not cover
the business, leaving potential residents liable for any accidents that could
have happened.
When individuals lie on insurance applications, the
underlying insurance company oftentimes reserves the right to deny all claims
because the policy was sold under false pretenses. The ramifications of this
activity can be astronomical.
The second case involved an intricate web
of lies, during which a South Florida construction company owner used check
cashing stores to conceal the number of people he employed and his total payroll
amount -- two figures that are key to calculating workers' compensation
premiums. Investigators proved an annual payroll of $8.2 million, far more than
the $112,000 the owner claimed. Because of his lies, he evaded paying more than
$300,000 in workers' compensation premiums, and left his entire workforce
vulnerable in the event of an on-the-job injury.
As we debate big
insurance issues in our state, such as AOB, PIP and the cost of flood insurance,
we cannot overlook the overall cost of fraud within the insurance industry.
While looking at ways to drive down the cost of insurance in Florida, I'll keep
my eye on continuing to aggressively fight fraud, too.
If you'd like to
learn more about these two cases, look for stories in our "Noticias de Interés".
Atentamente,
Jimmy Patronis
Chief Financial Officer
State
of Florida