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CFO Sink Takes Legal Action against People’s Trust Agency for Allowing Unlicensed Agents to Sell Insurance

3/5/2009

CONTACT:  Kyra Jennings or Kevin Cate
(850) 413-2842
 
TALLAHASSEE– Florida Chief Financial Officer Alex Sink today took legal action to prevent People’s Trust Insurance’s Managing General Agent (MGA) from using unlicensed agents to sell its homeowners insurance.  The action follows an investigation by CFO Sink’s Department of Financial Services showing that People’s Trust MGA, LLC is using some unlicensed agents to sell homeowners’ insurance.

CFO Sink issued an Order to Show Cause to the Managing General Agent for People’s Trust Homeowner’s Insurance, charging that the Boca Raton-based People’s Trust MGA LLC faces suspension or revocation of its license if the allegations are upheld.  CFO Sink said the investigation revealed that People’s Trust MGA has allowed unlicensed agents to transact insurance, committing numerous violations of the Florida Insurance Code. 

“It is my responsibility to make sure Floridians are getting the best advice for protecting their families and homes by properly licensed agents,” said CFO Sink. “People’s Trust MGA is violating the people’s trust by illegally allowing unlicensed agents to sell insurance in our state.”

CFO Sink also called on Florida Insurance Commissioner Kevin McCarty to look into the business practices of People’s Trust Homeowners Insurance because of its MGA’s use of unlicensed agents to sell insurance coverage.  Insurance Commissioner McCarty has primary responsibility for regulation, compliance and enforcement of statutes related to licensed insurers and the monitoring of insurer market conduct.

“I hope that Commissioner McCarty will join me in my work to protect Floridians and take action regarding this blatant violation,” CFO Sink continued.

The Department’s investigation is ongoing.  Any consumer who believes they bought coverage from an unlicensed individual is asked to contact the Department via the CFO’s website, www.MyFloridaCFO.com, or call CFO Sink’s consumer helpline at 1-877-MY-FL-CFO.  Florida law specifies that people who buy insurance from unlicensed agents continue to have valid coverage.
 
 
As a statewide elected officer of the Florida Cabinet, Chief Financial Officer Alex Sink  oversees the department of Financial Services, a multi-division state agency responsible for management of state funds and unclaimed property, assisting consumers who request information and help related to financial services, and investigating financial fraud. Sink also serves as the State Fire Marshal.