Florida’s Department of Financial Services has confirmed it is investigating travel agencies that sold insurance underwritten by Prime Travel Protection, a Colorado company that filed for bankruptcy protection last month and left thousands of travelers uninsured.
Prime Travel Protection sought to circumvent state regulations by claiming it wasn’t insurance. Jerry Watson, the company’s president, said Prime Travel Protection’s policies were “not an insurance product” and didn’t need to be licensed.
Florida authorities disagree. “This product was claimed to be insurance,” said Nina Banister, a spokeswoman for Florida’s Department of Financial Services. “It does not appear that Prime Travel Protection was an authorized entity. We’re looking for agents who were involved in selling it.”
Under Florida Statutes, any agency or agent selling unauthorized insurance faces fines and a possible suspension of license:
Any person who knowingly transacts insurance or otherwise engages in insurance activities in this state without a license in violation of this section commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
Banister says Florida wants to hear from anyone who bought a Prime Travel Protection policy through a travel agency in the United States. She asks that they either call Florida’s consumer help line at (877) 693-5236 or (850) 413-3030, or fill out a complaint online.
The investigation, which appears to be in its early stages, could affect hundreds of travel agencies and thousands of travelers.
According to numerous customers, travel agencies falsely represented the Prime Travel Protection product as travel insurance. Travel agents claim that they believed Prime Travel Protection to be legitimate insurance, and that they immediately stopped selling its policies when they learned it was an unlicensed insurance product.
But Florida authorities are conducting a thorough investigation, and are interested in hearing from travelers who bought policies through other defunct travel insurance companies Watson was involved with, including Trip Assured, Vacation Protection Services and Travelers Protection Services. The punishment for travel agencies who sold those insurance policies and then continued to sell Prime Travel Protection could be severe.
“There is no statute of limitation on this,” Banister said.
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Good news. Christopher, you get the Public Service award! I’m satisfied one reason this is happening is because of all the attention generated by your column. You done good.
Excellent article, Chris and thanks for continuing to be an advocate for these customers who have been hurt by these unlicensed companies. As you may remember, we have communicated several times over the past two and a half years about this topic. What I find particularly disturbing is the fact that it appears many of these travel agencies have continued to sell this unlicensed protection plan from one company to the next. You wrote that the travel agencies claim that when they realized Prime Travel Protection was not legitimate insurance they stopped selling its policies. Many travel agents did the same in ‘06 when they realized that Trip Assured was not an authorized entity to sell insurance. I remember because a great deal was published in trade publications and I spoke to scores of agents and consumers. Based on reading your blog it appears that some of the same travel agents that sold unauthorized plans through Trip Assured and the succession of companies that evolved during and after its demise, also sold through this new entity Prime Travel Protection. If this can be confirmed, then the story is far greater than what it appears. I hope you continue to investigate.
Thanks for a very thorough expose, Chris. I was, I believe, one of the early victims of Trip Assured back in 2003, and little did I know at that time that McKinley Johnson, the CEO of Trip Assured, was spawning his own “Axis of Evil” to sell fraud insurance products. His spawn served him well by carrying on his legacy, and selling other high profit “travel protection” products like Vacation ProtectionServices and Prime Travel Protection. I also didn’t know at the time that he was recruiting a mind-boggling number of Travel Agents to sell this deficient product, many of whom, especially the large ones in Florida, realized within a reasonable time, that the product was a scam.
The article that you wrote at that time was one of the first that took these companies to task, and sadly, you’re still one of the few bloggers who continue to expose the nationwide problem. I congratulate you on your persistance. I, like you, am looking forward to the day when these companies cease to exist.
Using statistics available from cruise travel and travel insurance organizations there has been $10,000,000 (low estimate) taken in fraudulent premiums in Florida – in a year.
$10 MILLION!
Wake up Florida Department of Agriculture & Consumer Services.
Wake up Florida legislators who received complaints months ago.
Since you were made aware of this scam $5,000,000 has been stolen from your tax payers and constituents.
Remove the licenses of the offending travel agents. Demand they pay back, at least, those that made claims.
.
Amen, Don. Amen.
By way of disclosure, my firm is public relations counsel for the US Travel Insurance Association. One way to be sure that you are dealing with a reputable company is to look for membership in legitimate trade associations such as UStiA.
UStiA member companies subscribe to a rigorous Code of Ethics, which, among other things, obligates each member to provide travel insurance and travel assistance services that represent value and high quality, and to present products, services, and prices clearly and accurately
To check whether a company is a UStiA member, visit http://www.ustia.org.
Chris, I happened to find your blog while looking for a place on Cruise Critic to sir my grievances about Legendary Journeys and Prime Travel Protection and Universal Assurance.
I can’t thank you enough for your attention to this awful matter and for giving all of us who have been scammed a chance to voice our grievances and report our claims to the proper authorities.
I have read all the blogs diligently and have contacted all the agencies that have been suggested and I only hope a satisfactory resolution results for all of us involved.
Thank you again and I will continue to check your blog daily to keep abreast of the progress of this investigation.
To: Linda Kundell
Re: US Travel Ins. Association
Those of us who have been burned by these unscrupulous trip protection companies as well as the reputable travel agents in this country are well aware of your organization. However, no matter what your organization does to promote the high quality products your members sell, it’s the rogue travel agencies that victimize unsuspecting consumers and that is the real problem. Trip Assured, Vacation Protection Services, Travel Protection Services, Prime Travel Protection – they are all gone. However, as Chris Elliott and his bloggers so clearly present, it’s the travel agencies who have continued to sell through these companies that should be punished. The ones who repeatedly sold the illegal plans should be shut down. I hope the state regulators come down hard on these travel agents and pursue criminal action as well as civil penalties.
A clarification…Trip Assured was not associated with any of the three other companies. Jerry Watson worked as a vice president of Trip Assured until 2003. He then was affiliated with Vacation Protection Services followed by Travel Protection Services and finally his most recent company, Prime Travel Protection Services. The latter has gone out of business. The former two were issued orders to cease business by the state of Tennessee where Vacation Protection Services was incorporated. Travel Protection Services was an Illinois corporation and Prime Travel Protection was a Colorado corporation.
Okay, this is what I don’t understand…I have seen these blogs and have read all of the agencies I can contact but if this is true,and the authorities have been notified and Prime Travel Protection is no longer in existence than why is Best Price Cruises still offering it? Wouldn’t the state have them remove this from their site if this was illegal?
This is in response to “bored’s” question. BPC is no longer selling Prime Travel protection”. This is the current status concerning what they are offering that I posted on another of Mr. Elliott’s blogs four days ago:
I really don’t understand how BPC can get away with what they’re doing. They sold Trip Assured about six years ago, and then switched to Vacation Protection Services. After that company went belly up, they switched to Prime Travel Protection, and when Jerry Watson went bankrupt, they had another “travel protection” package available to foist on the unwary customers immediately.
This came from their website…..
Is this not the same Insurance??
Prime Travel Protection, Inc.
7450 W. 52nd Ave
Suite 336-M
Arvada, CO 80002
FAX: 303-835-3059
Harry, here is the offering directly on BPC’s website:
The first link is the travel Protection offering, the second link is the terms & conditions – which includes the Prime Travel Protection information under “Filing A Claim is Simple” (scroll on down… you’ll see it!) The filing may be simple, it’s the getting paid that seems to be the problem!
http://www.bestpricecruises.com/free_travel_protection.htm
http://www.bestpricecruises.com/travel_protection/vp.htm
Bored is correct, why are they still selling this insurance, (oh excuse me), this vacation protection? There’s nothing new about this policy.
I definitely can’t argue with you that the information about PTP is out there. I do, however, have a question about whether you can get at it through normal means, like booking a cruise, and then booking insurance/travel protection. You used to be able to do this, but at the present time, you can’t click on the “We recommend Travel Protection” icon and get to the data. Did you try to do this? Based on your input, I’m certainly going to try. Thanks.
Harry, you reach the information I listed above by searching for a cruise, try March 09, 7 nights, Carnival and when the sailings come up, there will be an offering of “Free Travel Protection” in that box you can get more information – click on the sentance and they first link I listed above comes up and then at the bottom of that page is the “terms and conditions” link, the second link I listed above.
If I am booking a cruise via that website, I can only assume that the travel protection policy I will receive is the one posted – Vacation Protect along with it’s terms and conditions. If it is different, then WHY NOT list it? Obviously, BPC cannot be selling the Prime Travel Protection (it’s bankrupt) so what are they selling?
It is also interesting to note that Vacation Protect’s website – which is under construction has a copyright of Vacation Superstore Networks, Inc. which is by the way – Vacation Superstore Networks, Inc d/b/a Best Price Cruises.
http://vacationprotect.com/
It’s fairly obvious to me, but then again, I’m no state regulator nor am I in the insurance industry. It’s their job to follow the paper trail or in this case the cyber trail. All of this information is a matter of public domain and very easily obtained.
Thanks for the great research, Kathy. After looking at this, I’m pretty sure that Ron Russo and BPC isn’t attempting to sell Prime Travel Protection, which is bankrupt. What is less clear, however, is exactly what he is trying to sell or give away. One thing that we all have to remember is that Jerry Watson has sold at least three different products in three different states, and none of them met the qualifications assigned to trip insurance. Could it be possible that Mr. Russo is constructing his own “travel protection’ product? I get the impression that he thinks that by holding an insurance license, he can sell a non-insurance product legally. I’m pretty sure that the State of Florida Insurance Regulators don’t agree with him. In the meantime, if I was booking a cruise, I’d look elseware for a product to protect myself.
With the regulators looking at these travel agencies under a microscope I would be surprised if Best Price Cruises would dare to sell anything, but a licensed insurance product. However, after reading all these blogs, nothing would surprise me. One poster has claimed that Smartcruiser was one of the largest producers for Trip Assured (another unauthorized company selling unlicensed trip protection) and then turned around and began selling Prime Travel Protection. It appears some of these travel agencies sold from even more than two of the illegal companies. It’s not stupidity, it’s arrogance and greed and if the law is on the consumer’s side, these agencies will meet the same fate as Prime Travel Protection – the only difference is their demise won’t be voluntary.
We have removed the Prime Travel information from our website as it’s continued posting has been in error for several weeks. Thank you for bringing it to our attention.
iTravel Insured is a licensed seller of travel and we have been selling it since Prime’s closure. There have been unjust claims regarding this company and it was finally followed up by an apology on these blogs. Harry, you yourself was the one who apologized. These are licensed and state appoved insurance products that are being sold and given away, if applicable. This has been covered on other blogs directly by iTravel.
VacationProtect is a private label name & website, just as iTravel is sold as a private label name on InsureMyTrip.com.
Also as previously stated, we have paid out of pocket for all travelers, who have not yet sailed, to receive new policies with iTravel with pre-existing conditions waived.
We continue to request claims info for all unpaid claims for our review. This has taken much more time thru lawyers than expected, but we diligently continue to pursue this.
Ron Russo
Mr. Russo; Please pardon me for being persistent, but I’m still confused. I did, in fact, apologize to Mr. Dismore after I researched the issue and became convinced that his company sold a legitimate product, so let’s put that one to rest.
Now, let’s consider Kathy’s claim, three postings above yours, which states that someone can enter your website, book a Carnival cruise in March, and receive “Free Insurance” from your company. What is this “Free Insurance”? iTravelInsured does not sell a package called “VacationProtect”, so either you’re selling two packages, or you’re selling one and giving away the other. In either case, you seem to be doing something that no other agency, to my knowledge, is doing. Why is that?
If you’re giving away the “VacationProtect” package, when will construction be finished with the website, and who will be listed as an Underwriter when the website is finished?
Ron – I think it is admirable that you have agreed to look into all unpaid claims. Hopefully those individuals who have been unjustifiably denied by PTP will be reimbursed by Best Price Cruises. Perhaps for the credibility of the travel industry, and their own goodwill you might want to have your colleagues at the other agencies (most particularly Legendary Journeys and Smartcruiser.com) do the same.
I do have one question for you. I know this is a tough situation you have found yourself in and you probably believed everything that was told to you by the folks at Prime Travel Protection. However, this apparently isn’t the first time your agency sold an unauthorized, unlicensed trip protection plan to your clients. Can you explain how this happened again?
You might be interested in the following link to a Florida Department of Insurance publication from 2003. On page 4 there is a section on Unauthorized Entities. Note the penalties that these travel agencies might be facing. I wonder how severe the penalty will be if it is found that the travel agent sold from successive unauthorized insurers? The fact that Best Price Cruises appears to be taking responsibility might minimize their possible punishment should they be found in violation.
http://www.myfloridacfo.com/Agents/Industry/AgentIntercom/docs/agint0503.pdf
“Under Florida law, if an unauthorized insurer fails to pay claims,
agents who sold the unauthorized coverage may be held responsible
for unpaid claims. This is punishable by up to five years in prison.”
James – good work.
In the same puplication page five gives further information.
Senate Bill 1694, know as the “Pete
Orr Insurance Anti-Fraud Act,”
was recently passed by the Florida
Legislature. It will increase the
criminal penalties against those who
aid and abet unauthorized insurers.
This bill will enable the degree of the
felony to be determined by the total
amount of premiums collected by the
person who sells the unauthorized
plan of insurance. A person who
collects premiums that are less than
$20,000 would be charged with a
third-degree felony. An agent who
collects premiums from $20,000 to
$100,000 will face a second-degree
felony. An individual who collects
premiums that exceed $100,000 will
be charged with a first-degree felony.
The minimal mandatory sentences
imposed by this bill are one year, 18
months and two years, respectfully.
The bill also provides a mechanism
whereby any person damaged
may bring a civil action against the
unauthorized insurer.
PTP and similar illegal companies have argued that they were not under the jurisdiction of state insurance regulators. However, the argument was not effective. If the product sold promises a payment for a loss, the company is considered to be selling an insurance product and is therefore an insurer whether they represent themselves as such or not. If you read the previous cases in Florida, unaware agents who were caught selling such products argued they weren’t representing an insurer because the company they sold for (e.g. PTP) wasn’t legally an insurer. The argument was ineffective and these agents were punished as Ben outlined in his previous post. If an agent sells $100,000 or more in premiums he/she could be charged with a first degree felony. What if it is found that the agent has done this with multiple companies?
Nevertheless, the travel agents are still trying to get away with that argument.
WFTV, Channel 9 in Orlando confronted Legendary Journey’s Manager, Maribeth Voges recently , about a couple that was left stranded when Travel Protection Services went bankrupt. “That insurance company is gone, what kind of coverage do they have now?” She replied: “The client…none…if an insurance company goes bankruptcy.”
Voges told Action 9, “Travel Protection Services is backed by an insured underwriter —so it can be sold—but it had filed for bankruptcy”. This answer is, of course, totally wrong. Just obtaining an underwriter doesn’t make an illegal ptoduct legal, and the vendors of these illegal products have, in the past, just made up the name of an underwriter.
Florida’s office of insurance regulation told the WFTV reporter that Legendary Journeys was selling unlicensed insurance—and that’s why it’s customers will lose thousands.
If the insurance the company sold was licensed in Florida…then the customer would have been protected. A state insurance fund covers losses for insured companies.
And the OSCAR goes to – the “big three whiners” – Legendary Journeys, Smartcruiser and Best Price Cruises. Jerry Watson’s all time best “protection” sellers for years.
Not once have they denied knowing Trip Assured.
Not once have they denied a business relationship with Traveler Protection Services or Vacation Protection Services.
Not once have they denied moving business whenever Jerry Watson moved on.
Not once have they denied they did not know the Florida laws regarding insurance.
The Florida authorities have smart people and more documents even than “the group” – they will act.
Not one travel agent seems to have checked the credentials of Prime Travel Protection, out of 120?
Travel agents, like Charles Keating, Kenneth Lay and Bernard Madoff, are in for the shock of their lives.
Excellent points, Factual. Best Price Cruises, Legendary Journeys, Smartcruiser…tell us about your relationship with Trip Assured. You all seem to be dodging the issue. If you have nothing to hide and did not do business with Trip Assured just let us know.
I bet Revelex are enjoying the spotlighting of other agents.
Relelex – a travel booking engine.
2006 Revelex used Trip Assured and Vacation Protection Services.
A public document shows: Revelex-FL 561-988-5588 JW/PG-40*
Jerry Watson VP of TA gives Revelex 40% commission. You have to be a top seller to get 40 – enough for a first dgree felony charge!
2007 Revelex show INSURANCE partner Vacation Protection Services.
2008 Revelex shows INSURANCE partner Prime Travel Protection.
Late 2008 a great fanfare was made of the partnership of PTP/ Jerry Watson and Revelex.
By 2009 all reference to PTP was removed?
Too late Revelex, you used a bogus policy from unlicensed companies THREE times?
Factual, what is even more interesting is that Revelex’s CFO according to his “bio” located at this site: http://www.revelex.com/executive.rvlx , has in the past held an executive position at the National Council on Compensation Insurance (NCCI). Surely he would have known that Travel Protection is insurance and is governed by the same laws and regulations as insurance.
Which kinda drives your point regarding Revelex and the selling of policies from these unlicensed and non-underwritten companies for many years. I think they will find themselves answering the same questions as the Travel Agencies that are in question. It seems like it would be tough to claim ignorance with all that experience.
I’ve been burned by Legendary Journeys and Traveler Protection Services for excess of $8K. I made a report to FL consumer helpline. Don’t know if it’ll help.
Taken from The Intercom fldfs What do you think this means?
According to Florida Statutes:
No person shall, from offices or by personnel
or facilities located in this state … directly or
indirectly act as an agent for, or otherwise
represent or aid on behalf of another, any
insurer not authorized to transact such
business in the state of Florida.
DISPOSITION: In a Real Case:
In lieu of a hearing, the
agent entered into a settlement stipulation
surrendering his licenses with the same
force and effect as a revocation.
Other agents who have aided and
abetted unauthorized entities have been
fined thousands of dollars in addition
to having to reimburse consumers for
unpaid claims. The department recently
ordered a life, health and variable
annuity agent to pay $1.5 million in
restitution to insureds. The department
has set up an Unauthorized Entity Task
Force to pursue and monitor this threat to
Florida’s consumers.
Agents who aid and abet unauthorized
insurers are also subject to criminal
prosecution.
George Fredekson – I believe I read in a previous blog you should contact king2j@aol.com for assistance.
A previous blogger recommended we picket the big three travel agents – Legendary Journeys, Smartcruiser and Best Price Cruises.
When we get there we will sing this song.
To the music “There is nothing like a Dame.”
We got sunlight on the deck
We got moonlight on the sea
We got mangoes and bananas given all to me
We got spas and bars
And a dandy looking crew
And what ain’t we got
We ain’t got a cruise.
We get letters from our agents
With not a line of truth
We get promises from Russo
And advice is Watson pros
We get dizzy, who can tell
What don’t we get
You know darn well
Have a good weekend.
Booked with Legendary Journeys, July 2007, for 50 day cruise, check for $4000.00,deposit over the telephone, no refunds! Paid total $638.00 additional for trip Cancellation insurance. Had to cancel due to husbands poor health, on 10/17/2008 more than 90 days before the ship sailed ( which was 01/31/2009) Mailed paperwork to Travel Protection Services. A response was on 12/02/2008. requesting more medical paperwork. Tried to telephone them, could not reach them. Called “Legendary Journeys” & was advised that the insurance company was bankrupt!!!!! Asked to use the $4000.00 deposit that the travel agency has, of our money and was given no answers? We’re senior citizens and given todays econmy , cannot travel unless we are able to use our $4000.00 which is considered their money or ours?
Mary
There is an e-mail address two posts above you. Please contact them as they are willing to help on a volunteer bases.
While this is somewhat off the subject, I can’t find a single reason why anyone would deal with Legendary Journeys. They have an “F” rating with the National Better Business Bureau. They are, as near as I can determine, the ONLY large cruise seller that imposes HUGE non-refundable deposits on their customers. They advertise prices that are not attainable.
I guess that they’ve determined that the large commissions paid to them by Trip Assured and Jerry Watson’s string of bogus companies make them impervious to outraged consumers. Let’s show Mr. Adrian Ferguson, the CEO of Legendary Journeys, that he’s wrong!
Hey Harry – love your posts! If all that has been posted is true, there will be no need to search for a reason why anyone would deal with Legendary Journeys or the other frequently mentioned agencies on this blog (Smartcruiser, Best Best Price Cruises and Anchors Away). I can’t see how they will stay in business if the authorities come down on them. I buy travel insurance when I travel and it’s so easy if a claim needs to be filed. There’s a simple form that a medical professional completes and that’s all that is necessary for claim processing. The continual request for medical records is merely a game, particularly if the request comes from a travel agent or someone who is not working in the claims department for a state licensed insurer. I hate to state this, but those of you who bought this “protection” from these travel agencies were ripped off. All of you need to put pressure on the state investigators. Since it appears the investigation is ongoing in Florida, call your local legislator (if you live in Florida). If you don’t, good luck.
Mary
Did Legendary Journeys notify you of the TPS dissolution or did they only tell you when you called them?
Mary you need to contact the e-mail I prompted you to. Can’t help unless we know a lot more.
Hi, gang. Have been out of the loop for a while, but I’m back.
Did anyone involved with PTP get a letter from their legal counsel, as I did?
It’s dated February 23, 2009 and it states that Mr. Jerry Watson “has committed to make a series of capital contributions to PTP over a sixty month period” to ultimately repay customers.
Claims already approved at the time of the termination of business by PTP (january 26, 2009) will get paid in the first three years of this “contribution” and claimes filed but notyet approved by that date will be paid in the last two years of the contribution and may require the filing of more paperwork.
Any thoughts, and did others receive this letter???
I was not notified of the bankruptcy. called Universal Assurance Group LTD, they had sent letter re: our submitting for trip cancellation Ins. to Traveler Protection Services, due to husbands heart condition. THe paperwork was not approved by them even though our Cardiologist had a letter confirming, the health problems. The answering system at Universal Assurance Group LTD was full, then called Legendary Journeys and was told then of the insurance companys demise! The original check for trip ins., was to Legendary Journeys, I feel they should return our deposit of $4000.00 we feel defrauded
How can a travel agency Legendary Journeys sell travel insurance for a company that is not licensed in the state of Florida. This company is a sham and Legendary Journeys knows it. If it isn’t legal you can’t sell it. That constitutes FRAUD. People go to jail for fraud. There is a cell waiting for J. Watson. He stole a lot of money from the traveling public and he should pay a heavy price for it. He owes us over $6,000 and we want it back. There are a lot of senior citizens that have been defrauded and that may constitute Elder Abuse. Think about that for awhile. Every one should contact their Senator and flood their offices with this info.
Best Price Cruises, Trip Assured, Travelers Protection Services Inc., Prime Travel Protection Inc and Universal Assurance Group LTD are all connected with Ron Russo and Jerry Watson. This is a big scam. They collect insurance premiums and never pay when a claim is filed.
The following article appeared in Travel Weekly
Florida warns agents to sell only authorized insurance products
By: Nadine Godwin
December 30, 2009
Florida issued a warning to the state’s travel agencies that they must be licensed to sell travel insurance in Florida, and they must sell only the products of insurers that have authority to sell in the state — or the consequences could be severe.
In the document, issued on Christmas Eve, the Department of Financial Services said it prepared the alert because a “significant” number of travel agencies have recently been identified as selling travel insurance without proper licenses or selling on behalf of companies that are not authorized to sell in Florida.
In the past year, the department has obtained cease-and-desist agreements from three travel agencies, warned four additional agencies that it intended to seek similar orders against them and filed complaints against two individual travel agents, all in connection with alleged improper sales of travel insurance.
The department said in its alert that selling on behalf of an unauthorized insurance firm is classified as a third-degree felony. Under Florida law, if an unauthorized insurance company fails to pay claims, the seller of the unauthorized policies can be held liable for those unpaid claims, it said.
In the three cease-and-desist orders this year, the agencies agreed in consent orders to pay administrative penalties, make good to those clients who had valid unpaid claims and refund premiums to those still holding policies or move them to an authorized insurer.
The agencies were High Performance Travel in South Daytona ($1,000 fine), Cruise Options in Plantation ($2,500 fine) and Cruise Supermarket in Plantation ($2,500 fine).
High Performance was selling for Prime Travel Protection and Traveler Protection Services, and the others sold for Prime Travel Protection. Both insurance firms were not authorized to sell in Florida, and both are now out of business.
Florida also served notices of intent to issue cease-and-desist orders against four travel agencies that it says were selling travel insurance without required licensing and also were selling for insurers not authorized to sell in Florida.
The agencies are Legendary Journeys, Sarasota; Palm Coast Travel (aka SmartCruiser.com), Lake Worth and Boca Raton; Super Travel of Palm Beach in West Palm Beach; and Vacation Superstore (dba Best Price Cruises), Port St. Lucie.
The state said the four also were selling products of the unlicensed Traveler Protection Services and/or Prime Travel Protection.
In response to the first of the orders, Legendary Journeys Vice President Al Ferguson said last March that his agency had stopped selling Prime Travel Protection in September 2008.
He also said the state was incorrect in stating that his agency is not licensed to sell travel insurance. He said the state requires that one person in each agency hold a “point-of-contact” insurance license for selling travel insurance, and the president of Legendary Journeys is that person.
The department also filed administrative complaints against Natalie Block, described as the sole director and officer of the Cruise Agency in Lake Worth and Coral Springs, Fla., and Cynthia Drubin Burdige, an employee of Bruce Travel in Plantation.
Block is accused of selling for Prime Travel Protection and/or a second unauthorized company, Universal Assurance Group. Burdige is accused of selling for Prime Travel Protection and/or the unauthorized Ciela Capital Insurance Company.
The department said legal resolution of these last six cases is still pending.
In its bulletin for travel agents, the Florida Department of Finance also noted that its investigations have led to criminal charges against sellers for unauthorized insurance companies.
Kyra Jennings, the department’s communications director, said the document included references to criminal charges in order to emphasize how serious it can be for a travel agency to violate the state’s insurance law.
However, none of the criminal arrests cited in the bulletin involved travel agencies. She said that in the last five years there have been four criminal investigations of travel agencies in the sale of insurance, but all cases were closed without arrests.