Volume 3 Number 42
October 16, 2006

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GALLAGHER REVOKES LICENSE OF AGENT WHO SOLD BOGUS STUDENT ACCIDENT POLICIES IN SOUTH FLORIDA

Tom Gallagher, Florida’s chief financial officer, has revoked the license of a Miramar insurance agent who sold bogus student accident insurance to schools, churches and athletic groups such as soccer associations, football leagues and cheerleading groups.

Jeffrey Edward Born, 44, sold at least 39 policies that listed an insurer that did not cover the policies in question. Born agreed to the revocation and Gallagher permanently barred him from working in Florida’s insurance business.

“It is unconscionable that this individual left hard-working families and children vulnerable in an emergency,” said Gallagher, who as CFO oversees the Department of Financial Services. “And I’ve taken action to ensure he never rips off another insurance consumer in Florida.”

The department’s Division of Agent and Agency Services, Bureau of Investigation, conducted the investigation that led to Born’s license revocation. Born worked with his brother, Greg, whose licenses were already revoked in Illinois and Florida for selling policies through a bogus insurance entity.

According to investigators, when the Born brothers started selling the product, it was offered through Security Insurance Company (SIC) of Hartford, but SIC of Hartford terminated its contract with the Born brothers in July 2003. Subsequently, the two started their own company, Security Insurance Company, and fraudulently used the forms and policies they had from SIC of Hartford to send to their customers. As a result, other agents selling the product saw contracts with the name of the licensed company on them and didn't realize the documents were fraudulent.

Gallagher suggested consumers should take the extra precaution of contacting the insurance company to verify coverage has been placed. Anyone who believes they may have been a victim of this or another scam should visit the department’s website at www.MyFloridaCFO.com or call the department’s Consumer Helpline at 1-800-342-2762.