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Beware of Unlicensed Entity Selling Homeowners Insurance

7/27/2005

CONTACT:
Tami Torres or Bob Lotane
(850) 413-2842
 
*** CONSUMER ALERT ***
 TALLAHASSEE – The Florida Department of Financial Services today warned that it has received reports of an unlicensed entity selling bogus homeowners insurance in Florida.  Global Insurance Group, headquartered in Aventura, FL., has been aggressively advertising that it offers the lowest windstorm insurance rates in Florida. 
 
 When asked about its licensing status, a company representative reported that it sells coverage through a company named Global Property and Casualty Insurance.  Neither entity is either licensed or authorized to sell insurance in Florida.  
 
 "Floridians need to be on guard against this kind of activity," said Florida's Chief Financial Officer Tom Gallagher.  "Last year's hurricanes taught us how devastating and expensive property losses can be.  It is critical for Floridians to make sure an insurance company is licensed." 
 
 If a licensed insurer becomes insolvent all outstanding policyholder claims will be paid through the state guarantee fund.  However, if a company is not authorized, any losses sustained cannot be recovered from the fund. 
 
 To check on the license status of a company or agent, consumers should visit www.fldfs.com, and click on Verify Before You Buy, or call the Department of Financial Services' Helpline at 1-800-342-2762.

 
As a statewide elected officer of the Florida Cabinet, Chief Financial Officer Tom Gallagher 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. Gallagher also serves as the State Fire Marshal.