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CFO Sink Shuts down Companies for Selling Unauthorized Health Insurance

8/26/2009

FOR IMMEDIATE RELEASE: August 26, 2009                                CONTACT: Kyra Jennings or Nina Banister, (850) 413-2842
 
CFO SINK SHUTS DOWN COMPANIES FOR SELLING UNAUTHORIZED HEALTH INSURANCE
Action Underscores Need for Consumers to Verify Before They Buy
 
TALLAHASSEE—Florida CFO Alex Sink announced today that she has filed an Immediate Final Order (IFO) against Depawix Health Resources, Inc., Peck & Peck, Inc. (also known as Green Cross Managed Health System), and Smart Service, Inc. for soliciting and selling unauthorized health insurance in Florida.  It is suspected that nearly 300 Floridians may have bought coverage from these Georgia-based entities.  An investigation by CFO Sink’s Division of Agent and Agency Services revealed that the insurance was sold by both licensed and unlicensed individuals.
 
“Unauthorized health insurance can lead to serious financial hardship for Floridians, which is why Florida’s licensed agents should be vigilant about protecting consumers from this type of scam,” said CFO Sink.  “We will take the most aggressive action possible against anyone who sold these unauthorized products and put Floridians at risk.”
 
Licensed insurers have met Florida’s stringent statutory financial requirements for licensure, and policyholders are protected by the Florida Life and Health Guaranty Association Act should a licensed insurer become insolvent. Unauthorized insurance does not offer these protections.  Unauthorized insurance, particularly unauthorized health insurance, can lead to significant unpaid claims and out-of-pocket costs for victims. Agents or individuals who sell unauthorized insurance not only could lose their license but also could be required to pay all unpaid claims and could face felony charges.
 
CFO Sink has an ongoing campaign to warn consumers to “Verify Before You Buy,” offering easy-to-use links on her web site for consumers to check if a company or agent is licensed in Florida.  Consumers and agents can verify licensure by going to www.MyFloridaCFO.com.  Complaints about suspected unauthorized insurance can be reported on the web site or by calling 1-850-413-3089 or toll-free at 1-877-My-FL-CFO.
 
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