Consumer eViews

Volume 3 Number 17
April 24, 2006

Consumer Services HelpLine Number 800-342-2762

Homeowners scored a victory when appropriations committees in both the House and Senate recommended setting aside hundreds of millions of dollars to provide insurance rate relief to Florida homeowners.

Returning surplus revenue to Florida’s families is sound fiscal policy and common-sense tax relief, and I commend our state legislators for taking this first step. There is still much work to be done, and I’m going to do my part to ensure additional reforms are also approved.

Since 2004, I have been calling on the Legislature to use surplus tax revenues to offset any assessments by Citizens Property Insurance Corporation, rather than taxing Floridians twice for the damages incurred by multiple hurricanes. When the Legislature created Citizens, the state’s insurer of last resort, it mandated that any shortfalls in revenue be recovered through assessments on homeowners.

Following revenue projections, House leaders recommended that $920 million be set aside to offset the burden of Citizens’ assessments on Floridians, with an additional $500 million earmarked for grants and no-interest loans to help Floridians strengthen their homes against hurricanes. Senate leaders are proposing $750 million be dedicated to offset insurance assessments, with another $50 million allocated for mitigation.

Helping Floridians strengthen their homes against catastrophes, moving people out of Citizens or keeping them from ending up in the insurer of last resort are all wise investments for our future.

I urge you to contact your area legislators to voice your support for meaningful insurance rate relief.

GALLAGHER PRESENTS 2005 FIRE SERVICE AWARDS
Ten men and women, one school recognized for outstanding service

State Fire Marshal Tom Gallagher and Agricultural Commissioner Charles Bronson today honored 10 men and women and a school for exemplary dedication to the fire, rescue and emergency management service. The award recipients were chosen by their colleagues for actions last year ranging from pulling a woman from a burning house to training fellow responders how to safely handle hazardous materials.

“In the aftermath of back-to-back hurricanes and the threat of man-made disasters, in addition to daily duties of responding to fires, these individuals have valiantly responded to the needs of the people of Florida,” Gallagher said. “On behalf of the State Fire Marshal’s Office and the people of Florida, we give them and all who wear an emergency responder uniform our heartfelt thanks for their service.”

“Every year countless lives and millions of dollars’ worth of property are saved because of the dedication of these men and women,” Bronson said. “This annual ceremony is an opportunity to let them know how much we appreciate all that they do.”

Gallagher and Bronson presented proclamations signed by Governor Jeb Bush and other members of the Cabinet recognizing them for being named fire and rescue service personnel of the year for 2005 and declaring this week “Florida Firefighter Appreciation Week.” CONTINUED

GALLAGHER COMMENDS SENATE JUDICIARY COMMITTEE FOR APPROVING METH LEGISLATION IN FIRST STOP

State Fire Marshal Tom Gallagher commended the members of the Senate Judiciary Committee for unanimously approving legislation that would better protect children, emergency responders and communities from toxic and flammable methamphetamine labs. Gallagher, who first proposed these reforms last June, especially thanked Sen. Carey Baker, who is sponsoring Senate Bill 2356, and Rep. Faye Culp, who is sponsoring companion House Bill 1325.

“This legislation focuses on four basic but important measures in the fight against methamphetamine use and manufacturing.

“Nearly half of all children rescued from homes or living areas used as meth labs test positive for meth and need urgent medical care and intervention. This legislation would authorize the Department of Children and Families to begin dependency proceedings for the immediate removal of children found at meth labs.

“Too many meth manufacturers post bond after arrest and go right back to making the drug. This legislation would allow the courts to hold meth producers without bail until trial.

“This legislation also would make it a third or second-degree felony if any emergency responder is injured at a meth lab, and prevent them from having life or health insurance canceled because they have tested positive for meth as a result of performing their jobs.

“We must do more than slap meth makers on the wrists, and today’s vote is an important step toward stronger, more meaningful protections for our communities and the responders who serve them.”

Fraud wrecks auto insurance for everyone
Big Florida cities hot spots for staged accidents and bogus claims

Automobile insurance fraud cost $14 billion in 2004, according to the Coalition Against Insurance Fraud.

Staged accidents and fake injuries claimed under Personal Injury Protection (or PIP) coverage account for the majority of auto insurance fraud, and recently the National Insurance Crime Bureau (NICB) identified the cities with the highest number of staged auto accidents. Florida has three cities in the top 10: Miami at No. 1, Tampa at No. 6, and Orlando at No. 8.

Why should you care? With what this fraud costs the typical Florida family each year, you could make a car payment, or buy a couple of bottles of Dom Perignon champagne.

Tom Gallagher, Florida's chief financial officer, announced in February the arrests of 21 people for allegedly staging 10 auto crashes. The investigation leading to the arrests uncovered more than 60 staged crashes throughout the Tampa Bay area. The staged crashes resulted in nearly $1 million in fake claims. CONTINUED

GALLAGHER BANS MIAMI AGENT FOR FRAUDULENTLY PROVIDING INSURANCE CERTIFICATE TO ACCIDENT VICTIM

Tom Gallagher, Florida’s chief financial officer, has revoked the license of a Miami area insurance agent who sold a fraudulent certificate of insurance to a woman who was subsequently injured in a car accident. Francois Noel, 46, of North Miami, has been banned from selling insurance in Florida.

“My heart goes out to this victim. She sustained serious injuries in a car crash and learned from a hospital bed that the insurance she paid for was bogus,” said Gallagher. “It is reprehensible to me that this poor victim is facing unpaid medical bills and lost wages as a result of this agent’s actions.”

Investigators from the Department of Financial Services found that Noel not only took money for coverage he did not place with an insurance company, he was not even authorized to sell insurance for the company from which he wrote the phony certificate. An appeal of the charges to a state court has been denied.

“This is a tragic reminder that it may not be enough to review the documents, you may need to follow up with the insurance company to ensure coverage is in place,” Gallagher said. “Also, never pay in cash and never write a check to the insurance agent or agency. Always make the check payable to the insurance company that will provide the coverage.”

The Department of Financial Services, Division of Agent and Agency Services, investigates insurance agents and agencies concerning violations of the Florida insurance regulations. Anyone with information or questions about this case should call the department’s Consumer Assistance Hotline at 1-800-342-2762.

GALLAGHER BANS SOUTH FLORIDA AGENT FOR SELLING BOGUS INSURANCE

CFO Tom Gallagher has revoked the license of a South Florida insurance agent for selling bogus health insurance. Gordon Arthur Esses, 64, of Aventura, was licensed to sell life and health insurance.

“A licensed insurance agent should know whether the product he or she is selling is illegal or properly licensed,” Gallagher said. “Although a majority of agents are not marketing unlicensed plans, unscrupulous agents selling bogus coverage will be held accountable.”

Esses represented N.A.P.T., an unlicensed entity that sold bogus health insurance policies to thousands of Floridians and subsequently left many with unpaid claims. Unpaid claims from unlicensed entities are not eligible to be paid from the state guaranty fund which covers the claims of authorized insurers that become insolvent. The former organizer of N.A.P.T. David A. Weinstein was sentenced to probation for three years, ordered to pay over $600,000 in restitution and costs, and banned from participating in banking and insurance industry activities in Florida.

The Department of Financial Services, which Gallagher oversees, has conducted an aggressive campaign to root out unauthorized insurance activity in Florida, acting against over 200 entities, operators, marketers and agents in the last five years.

Beginning in 2002, Gallagher implemented the Verify Before You Buy campaign using websites, billboards, radio ads and various news shows and publications to encourage residents to take steps to protect themselves in financial transactions. To verify if a salesman, agent or company is licensed to sell insurance or financial products in Florida go to www.MyFloridaCFO.com or call 1-800-342-2762.

Agency for Workforce Innovation

FLORIDA’S STRONG JOB STATISTICS
Florida continues to be national leader in job creation

Florida’s most recent employment numbers support the state as a national leader in the number of new jobs created. According to statistics released today by the Agency for Workforce Innovation, Florida added 306,100 jobs (seasonally adjusted) from March 2005 to March 2006. Florida’s unemployment rate is 3.1 percent, and its job growth rate is more than twice the national average.

Florida continues to lead the U.S. in the number of new jobs created with the fastest rate of annual job growth and lowest unemployment rate among the 10 most populous states.

According to the most recent statistics released this week by AeA, Florida ranked 2nd in the nation in the number of new high-tech jobs created. Florida also retained its 3rd place ranking in the number of high-tech establishments.

According to statistics released today:

From March 2005 to March 2006, Florida added 306,100 new jobs, seasonally adjusted.
In March 2006, 8,585,000 were employed in Florida.
The unemployment rate was 3.1 percent, 1.6 percentage points below the national rate of 4.7 percent.