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Gallagher Wins on Appeal against Phony Insurer


TALLAHASSEE -- The First District Court of Appeal has upheld Florida Treasurer and Insurance Commissioner Tom Gallagher's emergency legal action against the operator of a Philadelphia, Pa.-based unauthorized health insurance entity that left thousands of Floridians with unpaid claims.

N.A.P.T. was the acronym for numerous "associations" through which David Weinstein, 42, peddled phony health insurance throughout Florida until Gallagher shut down the operation in March 2001 with an Immediate Final Order. You may view the order online at by clicking News Releases. Select the department's March 2001 release on N.A.P.T. At that time, N.A.P.T. had an estimated $2.5 million in unpaid claims. The company is now in state receivership.

Weinstein argued in his appeal that the receivership of N.A.P.T. should terminate Gallagher's order requiring Weinstein to stop transacting insurance without a license. However, Florida Department of Insurance attorneys convinced the court that Weinstein continues to pose a danger to the public and that without the order Weinstein is likely to sell unauthorized health insurance again. The court issued its ruling on Friday, and Weinstein has 30 days to appeal.

"The department will continue to take every step possible to protect the public from unauthorized health insurers, individuals who operate them and those who sell their phony products," Gallagher said.

Through the receivership it is expected that claims will get paid in part. If a health care provider files a claim through the receiver, the policyholder is released from further responsibility for payment.

Since February 2001, Gallagher has taken action against five unlicensed entities that are believed to have lured nearly 30,000 health insurance buyers into phony plans. The department has released a public service announcement and a video news release to television news markets throughout Florida as part of a campaign to educate consumers on the dangers of buying unauthorized health insurance. Both the PSA and VNR can be viewed at by selecting "Unlicensed Insurance from our scroll-down menu.

Citizens are encouraged to contact the department if they have information regarding Weinstein's insurance-related activities or if they have a complaint regarding N.A.P.T. The department's fraud hotline number is 1-800-378-0445.