Volume 1 Number 21
May 24, 2004











TEXT-ONLY VERSION


When you consider making a living and building a future, Florida is truly a place where opportunity abounds - the opportunity for every child to learn to reach their full potential, the opportunity to feel safe at work and in our neighborhoods, and the opportunity to thrive and grow as a business. It is these opportunities that bring nearly 900 new people a day to live in Florida.

Today, Florida continues to lead the nation in job growth, a position we have held for the last two years. In fact, our unemployment rate has again dropped to 4.6 percent in April from 4.9 percent in March and down from 5.3 percent a year ago. These numbers mean that Florida’s job market has expanded by more than 168,000 jobs in the last year.

New job growth is a sign of Florida’s improving economy. An improving economy brings growth and opportunity across the spectrum - from tourism and the service sector to construction, financial activities, health and education.

Our current tax structure, and our governor and legislature’s commitment to tax relief, have helped foster economic growth and job creation. Our expanding economy demands that we devote our resources to help educate and train hard-working Floridians to fill the jobs.

These are important challenges for state leaders as we continue to develop Florida’s economic growth, and I’m committed to the principles which will lead to future success.

                                              


The cityscape for May is downtown Tampa as seen from the Hillsborough River near the University of Tampa..


 

TRAVEL INSURANCE: THE VACATION RAINCHECK

This coverage can be beneficial, but be sure to read the fine print

As Floridians are preparing for summer vacations, with many planning to travel during the Memorial Day weekend, Florida’s Chief Financial Officer Tom Gallagher is reminding consumers to consider options for ensuring your trip won’t be rained out. 

“Travel insurance can act as a parachute, bringing you and your pocketbook in for a safe landing if things go wrong on your trip,” Gallagher said.  “However, Floridians should choose carefully.  Many plans may contain exclusions which can still leave you stranded.” 

Floridians can purchase insurance policies to protect their travel plans from unforeseeable circumstances, including trip cancellation, early return and emergency medical needs.  Some plans may pay in the event of baggage loss or delay, or evacuation due to a natural disaster. CONTINUED






 



CFO Gallagher, center, accepting the President's Award from Donald Fell, right, President of the Florida Council on Economic Education, with Bill Habermeyer, President and CEO of Progress Energy Florida on the left.


GALLAGHER HONORED BY FINANCIAL LITERACY ORGANIZATION

Florida’s Chief Financial Officer Tom Gallagher was honored by the Florida Council on Economic Education (FCEE) with their prestigious President’s Award. Gallagher was recognized for his years of advocating increased financial literacy of Florida’s students, working families and seniors. The President’s Award is presented to Floridians demonstrating leadership in promoting financial education and free-market principles.

“I am truly honored to accept this award,” Gallagher said. “Preparing our citizens for financial challenges is one of my most important tasks, and I will continue to provide Floridians, especially students and seniors, with the tools needed for financial success.”

Gallagher, recognized as having helped create the FCEE and provide crucial funding while serving as a state lawmaker, was honored with an award for his leadership in initiating several statewide financial education efforts. Gallagher was instrumental in the success of programs such as Florida Stock Market Simulation, Financial Freedom and Strive to Drive, which provides teens with information and instruction related to car-buying. CONTINUED





 




BETTING THE RANCH: RISKING YOUR HOME TO BUY SECURITIES

As part of an ongoing effort to improve the state’s financial literacy and provide information to consumers making important investment decisions, Florida’s Chief Financial Officer Tom Gallagher is warning Floridians about the risks involved in playing the stock market with the equity in your home.  

“Taking out a mortgage on your home to make an investment means you must rely on investment returns to make your mortgage payments.   You could end up defaulting on your home loan if the investment declines,” said Gallagher, who oversees the Department of Financial Services. “Investors who bet the ranch could lose it.”
CONTINUED



 

 

TOWING CONTRACTOR ARRESTED FOR WORKERS’ COMPENSATION FRAUD                         

The owner of a towing company with local government contracts has been charged with failing to provide workers’ compensation for his employees, according to Chief Financial Officer Tom Gallagher.

“Employers who avoid paying workers’ compensation premiums contribute to the rise in workers’ compensation rates and gain an unfair advantage over competitors,” said Gallagher, who oversees the Department of Financial Services.  “We will continue to aggressively investigate instances of fraud and abuse of the workers’ compensation system.”   CONTINUED





 

FTC Facts for Consumers


PHONY MORTGAGE BROKER SENTENCED FOR ROLE IN FRAUD SCHEME

A Miami man who posed as a mortgage broker in order to steal mortgage funds from a local resident has been ordered to pay more than $42,000 in restitution and serve 10 years of probation.

Gary E. Stys, 37, of 20210 SW 83rd Ave., pleaded guilty to two counts of grand theft after he misrepresented himself as a mortgage broker in order to convince an area resident to apply for mortgage funds to refinance her home.  After helping her complete the forms, Stys informed the homeowner that her loan had been declined, when in fact it had been funded and diverted to an account controlled by Stys. The case was investigated by the Office of Financial Regulation.  CONTINUED







 

CONSUMER SERVICES HELPLINE
800-342-2762

DEPARTMENT ADVISES CONSECO POLICYHOLDERS ON OPTIONS

In response to numerous calls from seniors who have a home health care policy with Conseco Senior Health Insurance Company, the Florida Department of Financial Services is alerting them that notices are now arriving in their mailboxes with options regarding their policies.  Conseco Senior has approximately 18,650 policies in force.

On April 20, the Office of Insurance Regulation denied a rate increase request of  212 percent and ordered the company to continue honoring the policies, along with offering the following options to policyholders who had a policy in force as of February 22, 2004.  CONTINUED