State closes 2 unlicensed insurers

Sun-Sentinel
8-10-02

The state Department of Insurance has ordered shut two unlicensed companies that Commission Tom Gallagher said have been selling worthless medical malpractice insurance to health professionals in Florida.

Gallagher took action against one firm that operates under several names, including Physicians Exchange Association; Physicians Exchange Risk Reduction Group; Doctors Liability Exchange, and Reliance General Insurance Co.

He said the entities were not licensed in any state.

The insurance commissioner also ordered shut Embassy Bonding & Surety Ltd., which he said claims it is associated with a New Zealand-based insurance operation.

Gallagher said his department has determined there is no connection between Embassy and any legitimate insurer.