Volume 3 Number 20
May 15, 2006

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From balancing a checkbook to running a business, financial literacy is important to all Floridians. This year, the Legislature passed a bill that would create a Financial Literacy Council to serve as a central resource for consumers and small businesses on financial issues.

Championed by Sen. Jeff Atwater and Rep. Thad Altman, the council is charged with creating a comprehensive state resource to provide financial-planning assistance to Floridians. The resource will include user-friendly information on savings, loans, investment products, managing debt, and planning for college expenses and retirement.

Over the past several years, the Department of Financial Services has been actively involved with groups such as the Florida Council on Economic Education and the Florida Jumpstart Coalition to conduct more than over 60 presentations in high schools across the state to improve students’ financial knowledge and money management skills.

While promoting financial literacy is critical among our young people, Floridians of all ages and economic levels need access to information they can use to make solid financial decisions. To that end, the department developed www.yourmoneyyourlife.org, a website resource on a wide range of topics to help Floridians make knowledgeable financial decisions.

Now, with the creation of the Financial Literacy Council, Florida will have a central resource and clearinghouse for families and small businesses to obtain the information and resources they need to make informed financial decisions.

 

GALLAGHER PETITIONS COURT TO PUT POE INSURANCE COMPANIES INTO LIQUIDATION
Gallagher says liquidation will ensure claims get paid and policyholders are protected

Tom Gallagher, Florida’s chief financial officer, announced that he has petitioned a court to order three financially troubled property insurers of the Tampa-based Poe Financial Group into liquidation. All three insurers – Southern Family, Atlantic Preferred and Florida Preferred – have refused to consent to liquidation. Gallagher said the companies’ refusal only drains company resources that should be directed to pay outstanding claims.

“These insurance companies have not presented a viable plan to get back on their feet financially,” Gallagher said. “Our focus now needs to be getting outstanding hurricane claims paid as quickly as possible. Once the companies are in liquidation, the department can tap into guaranty funds so claims get paid immediately.”

If approved by the Leon County Circuit Court, the Department of Financial Services would be appointed receiver for the three insurers in liquidation. As receiver, the department would take over the company’s operations and liquidate its assets to pay outstanding claims. The Florida Insurance Guaranty Association (FIGA) is also activated to help pay claims. FIGA is funded by insurers with written premiums in the same lines of coverage. CONTINUED

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 GALLAGHER: AGGRESSIVE ACTION WILL BE TAKEN FOR ACTS OF ARSON THAT DESTROY PROPERTY, HOMES
State Fire Marshal Urges Floridians to Fire-Proof Homes as Precaution

Wildfires fueled by extra-dry conditions have burned nearly 61,000 acres and several homes in Florida so far this year, prompting State Fire Marshal Tom Gallagher to warn that anyone who intentionally causes a fire will face aggressive action. Gallagher also is urging Floridians to take steps to protect their families and property.

“It is critical that we not only protect our homes and property, but that we make sure we do nothing that could put anyone else’s home or property at risk,” Gallagher said. “Anyone who starts a wildfire can expect aggressive action from the State Fire Marshal’s Office.”

Governor Jeb Bush has issued an executive order declaring a state of emergency and called in the National Guard to assist with firefighting. The State Fire Marshal’s Office is assisting the Division of Forestry in coordinating heavy equipment to protect homes and is assisting in the investigation to determine if the fires were the result of arson.

This week is Arson Awareness Week in Florida, and Gallagher said parents must teach children to never play with matches or lighters, as juveniles have been charged in some of this year’s wildfires, including a large one that destroyed numerous homes in Lee County. He is urging anyone who suspects arson to call 1-877-662-7766 (1-877-NOARSON). CONTINUED
 

 

OPERATION 'BOGUS BINDERS’ LEADS TO 28 ARRESTS IN FAKE INSURANCE CARD SCHEME

Tom Gallagher, Florida’s chief financial officer, announced that a multi-agency operation called “Bogus Binders” has led to the arrests of 28 individuals for manufacturing, selling, or buying fraudulent insurance binders and insurance identification cards. Most of the arrests involved dump truck owners and operators, but it is also suspected that these fake insurance cards were also sold to private vehicle owners.

“If one of these uninsured drivers had injured someone, it could have resulted in financial devastation for the innocent victim,” said Florida’s Chief Financial Officer Tom Gallagher, who oversees the Department of Financial Services, Division of Insurance Fraud. “I commend the law enforcement officers who uncovered this fraud and worked to quickly bring those involved to justice.”

The agencies involved included the Department of Financial Services, Division of Insurance Fraud (DIF); the Miami-Dade State Attorney’s Office; the Miami-Dade Police Department (MDPD); the Florida Department of Transportation, Motor Carrier Compliance Office; and the United States Postal Service, Office of Inspector General. CONTINUED