Saturday 14 March 2009

State bans sale of bankrupt firm’s travel insurance



A Southwest Florida travel agency says it long ago stopped selling insurance policies from a company under investigation by Florida Chief Financial Officer Alex Sink.

According to the Department of Financial Services, Sink this week notified three travel agencies to stop selling insurance on behalf of Colorado-based Prime Travel Protection Services Inc. and any other unlicensed travel insurer. Prime Travel Protection Services Inc., run by Jerry Watson in Colorado, reportedly filed bankruptcy in January.

Sink issued legal notices to Palm Coast Travel of Lake Worth; Vacation Superstore Network Inc., DBA Best Price Cruises, of Port St. Lucie; and Legendary Journeys Inc. of Sarasota, charging they violated state law by selling insurance for Prime Travel, which is not licensed in Florida to sell insurance. The travel agencies have 21 days from the receipt of the notice to respond.

Reached by phone in Sarasota on Friday, Legendary Journeys Vice President Al Ferguson said his company hasn’t sold Prime Travel Protection policies in six months. “We were getting complaints regarding their repayment schedule for valid claims,” Ferguson said. State regulators were informed, Ferguson said.

Legendary Journeys has offices throughout Southwest Florida, including one in Fort Myers.

Sink’s office said other travel agencies are under investigation, and may be named for selling policies from insurers that aren’t state-licensed.

Travel insurance can protect consumers against costs from unforeseeable circumstances, including trip cancellation, early return and emergency medical needs. Sink advises consumers to get confirmation that the insurer providing travel insurance protection is licensed by the State of Florida (Office of Insurance Regulation) before purchasing the product.
Source



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