main menu page title feature menus content footer
My Florida C F O

CFO's Initiatives

Stay Connected

Follow the
Department of
Financial Services

Sign up for the CFO's
weekly newsletter!

Press Release

News   RSS RSS   Press Office   Archive

Gallagher: Policyholders to Receive More than $2 Million in Refunds

5/8/2006

CONTACT: Tami Torres or Bob Lotane
(850) 413-2842
        
TALLAHASSEE – Tom Gallagher, Florida's chief financial officer, said today that American Mercury and Mercury Insurance companies have agreed to refund more than $2 million to their policyholders in Florida.   According to the state's Office of Insurance Regulation, its examination of the two companies was initiated based on consumer complaints referred by the Department of Financial Services and found the companies improperly cancelled coverage and denied claims.
 
 "Obtaining restitution for consumers should be our top priority when action is taken against an insurance company for improper practices," said Gallagher, who oversees the Department of Financial Services.  "We will continue to shed the light on companies that engage in an abusive pattern of denying claims or dropping policyholders."
 
In addition to refunds, the Office of Insurance Regulation ordered the two companies to pay $1 million in fines and investigative costs.   Its examination uncovered numerous violations, including canceling coverage when a claim is filed and improperly denying or avoiding payment on claims.
 
Gallagher said Floridians who need help with their insurance companies or financial entities should call the department's helpline at 1-800-342-2762.  More information is also available at www.fldfs.com.