State cites Venice insurance agency for unlicensed sale

Sarasota Herald Tribune

A Venice insurance agent faces suspension or revocation of his license for selling what the state called a bogus insurance policy.

State regulators said Leonard LoCastro III, president of LoCastro Insurance Services Inc., sold a liability policy from a Canadian company that wasn't authorized to offer insurance in Florida.

The state also has ordered North American Marine General Insurance Co. to cease selling policies in Florida.

The company sold coverage for personal watercraft, commercial charters, liability, and towing. It was marketed to members of the International Water Safety Foundation of Quebec.

The carrier has been ordered to stop selling unapproved coverage in other states, said Kevin McCarty, director of the state Office of Insurance Regulation.

"I consider them to be a danger to the public welfare," he said.

The foundation maintains its marine insurance falls under federal jurisdiction and cannot be regulated by state insurance departments.

The LoCastro agency sold a North American liability policy last year to Island Jet Ski Rental of Englewood. The business paid $1,600 for $1 million in coverage, said owner Brian King.

"It was fortunate that I did not have any claims to speak of, because apparently they have not paid some claims," King said.

After the state contacted King about North American, he found other coverage, canceled the first policy after eight months, and received a $400 refund, he said.

LoCastro said North American Marine told him it was authorized to do business and had more than 500 sales agents in Florida. Island Jet Ski was the only policy he sold through the carrier.

He also said the state Fish & Wildlife Conservation Commission had accepted a certificate of insurance showing North American as the insurer when it licensed Island Jet Ski to do business.

"I don't know if they are singling me out," said LoCastro, an agent for more than 30 years, originally in Pennsylvania and in Venice since 1996.

His son, Leonard LoCastro IV, said they never verified that North American was licensed by the state. Florida agents are required to know they are selling insurance from authorized carriers.