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CFO Sink Issues Consumer Alert: Floridians Should Cease Transactions with National Foundation of America

4/25/2007

CONTACT:  Tara Klimek or Nina Banister
(850) 413-2842         

 
TALLAHASSEE–Florida Chief Financial Officer Alex Sink is urging consumers and agents to avoid any annuity transactions with Tennessee-based National Foundation of American (NFOA), which is operating in Florida without authority, and immediately contact the Department of Financial Services’ consumer helpline. 
 
“We advise Florida consumers to never conduct insurance or financial business with any entity not authorized to do business in this state, and we have made it easy for them to check on any agent or company through our website,” said CFO Sink, who oversees the department.  “We stand ready to assist consumers with any questions or concerns they may have.”
 
To verify licensure, ask a question or file a complaint, consumers can log on to the department’s website at www.fldfs.com or call the department’s Consumer Helpline at 1-800-342-2762. 
 
Insurance Commissioner Kevin McCarty, who oversees the Office of Insurance Regulation (OIR), has ordered NFOA to cease all activities in Florida and with Florida consumers because it is not authorized to operate in Florida.   The company promotes itself in Florida and other states as a charitable organization, but investigators are unable to confirm that the company is registered with the Internal Revenue Service as a charitable organization, nor have they been able to confirm registration with the Florida Department of Agriculture and Consumer Services. 
 
NFOA is soliciting Florida consumers with existing annuities and offering allegedly tax-favored monthly payments in exchange for the transfer of their annuities to NFOA.  CFO Sink said the department wants consumers and agents currently working with NFOA to call to help investigators determine the extent of NFOA’s operations.  One insurance company has reported that in Florida alone it has more than $4 million in annuities where ownership has been transferred or is pending transfer to NFOA.
 
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