Volume 3 Number 33
August 14, 2006

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After being pummeled by eight hurricanes in 15 months that left nearly $40 billion in insured losses, we have learned how important it is to take every step possible to protect our homes and families against these devastating storms.

Now, thousands of Floridians will have an unprecedented opportunity to get a free home inspection and learn how they can strengthen their homes. The Department of Financial Services is now taking applications for a $250 million program that will inspect as many as 50,000 homes over the next year.

The department is proud to be able to roll out this program within 60 days of it becoming law on July 1. In addition to working fast, we have worked hard to make this program available to as many Floridians as possible while working to provide the most qualified inspectors.

As we are entering the height of this year’s hurricane season, please also take the time to review your family’s hurricane plan. You should have a hurricane kit, available on the department’s website at www.MyFloridaCFO.com, that includes all of your important financial documents, as well as a hurricane pack with supplies for everyone in your family, including pets, to last at least 72 hours.

We each must take responsibility for our own preparedness, both in the short-term and in the long-term. Make sure you are ready for the current hurricane season, and then log on to www.MySafeFloridaHome.com to learn how you may qualify for a free inspection to prepare for future hurricane seasons.


 



 

 

GALLAGHER FILES CHARGES AGAINST DIRECT GENERAL AGENTS FOR ‘SLIDING’ EXTRA CHARGES TO DOZENS OF CUSTOMERS

Tom Gallagher, Florida’s chief financial officer, announced that he has filed administrative charges against 12 agents and customer representatives of Direct General Insurance Agency for “sliding” ancillary products in consumers’ automobile insurance policies without their knowledge or consent, a scheme that cost policyholders as much as 44 percent extra on their premiums.

Gallagher oversees the Department of Financial Services, and the charges follow an investigation by the department’s Division of Agent and Agency Services, Bureau of Investigation, and the Division of Legal Services. Direct General operates more than 100 agencies in Florida doing business as Florida No Fault Insurance, Insurance Options Plus, Friendly Auto, and Cash Register among others. If the charges are upheld, the licensees could face revocation of their licenses. Gallagher said he will also seek restitution for affected consumers.

“Florida’s insurance professionals should be driven by their clients’ best interests, not commissions,” Gallagher said. “This department will continue to rigorously prosecute agents who violate the law and violate that trust.”  CONTINUED

GALLAGHER: ONGOING CRACKDOWN ON PIP FRAUD SNARES 3

Tom Gallagher, Florida’s chief financial officer, announced that the Department of Financial Services’ ongoing crackdown on personal injury protection (PIP) insurance fraud has led to the arrests of three individuals – including a father and daughter – on felony charges stemming from staged accidents and more than $40,000 in fraudulent auto insurance billings. Four others were previously arrested in related cases, and further arrests are anticipated.

“We are sending a clear message that we will not tolerate abuse of our citizens, and fraud steals from our citizens,” said Gallagher. “Our efforts have led to lower auto rates in recent years, so we will continue to aggressively pursue those who would defraud the system.”

These investigations are part of an ongoing crackdown by the department’s Division of Insurance Fraud in collaboration with the National Insurance Crime Bureau (NICB). CONTINUED

 

 

PROGRAMS GEARED TOWARD YOUNG CONSUMERS

Today's students are a purchasing powerhouse.

Teenagers spent $175 billion in 2004, according to Chicago-based Teenage Research Unlimited. The average American teen spends $103 a week!

But while teens are spending billions of dollars, most of them have little or no "real world" financial experience. Many young people do not realize that the financial decision they make on a daily basis will affect their financial future.

The Florida Department of Financial Services (DFS) has taken an active role in helping young consumers — including students, singles and young married couples — learn more about financial responsibility.

In 2004, Chief Financial Officer Tom Gallagher launched the Web site, www.yourmoneyyourlife.org, a comprehensive public education initiative designed to help students, young people and families learn the basics about personal finances. CONTINUED