Florida has warned three travel agencies that sold insurance policies offered by bankrupt Prime Travel Protection Services of Arvada, Colo., that its activities may have run afoul of state insurance statues.
State authorities on March 5 issued an intent to order a cease and desist against Port St. Lucie, Fla.-based Vacation Superstore, which operates Best Price Cruises; Sarasota, Fla.-based Legendary Journeys and Lake Worth, Fla.-based Palm Coast Travel, which owns the site Smartcruiser.com.
Here are the filings against Vacation Superstore (PDF), Legendary Journeys (PDF) and Palm Coast Travel (PDF).
Florida had been investigating agents who sold the insurance offered by companies owned by Jerry Watson, including Prime Travel Protection and Vacation Protection Services.
Watson said his products are not insurance and that agents do not need a license to sell them. However, Florida investigators considered his products unlicensed insurance.
It is unclear whether the allegations will stop the agencies from selling other travel insurance products. The fate of the claims made against these agencies and Prime Travel Protection by travelers who bought the unlicensed policies are also uncertain. Previously, the agencies had indicated a willingness to review Prime Travel Protection-related claims, although there had been no reported settlements.
At this point, the Notice of Intention to Issue a Cease and Desist Order does not contain a final determination but only allegations that the agencies can contest.
Al Ferguson, Legendary Journeys’ vice president, said Florida’s orders would affect “a small number” of clients involved in the Prime Travel Protection and Vacation Protection Services bankruptcy, adding, “we will resolve each issue (hopefully) to the clients’ satisfaction.”
The notice from Florida is interested…and frankly very significant. A few notes that will come from this as I understand the reading:
1. This has nothing to do with travel services but the legal ability to sell travel insurance in Florida. It is important to make the distinction that this does not have anything to do with our CORE business but rather selling insurance.
2. The state, by examples, advises that the travel agents cited do not have license to sell insurance in Florida. We will quickly admit this fact. However, this interpretation means that no travel agent can sell insurance in Florida. While we have a single point of contact that carries the license to sell travel insurance, no other employee does. For that matter, I would suspect 99 percent of all travel agents in Florida do not carry an insurance license (like Allstate, and other core insurance brokers and sellers.) This is EXTREMELY important. Because, by this definition, we could not even sell Cruise Lines insurance that is offered by them because a Travel Agent does not have a license to sell INSURANCE. If this interpretation by the state is correct, dramatic changes are going to take place in Florida. I have been in the travel business for 28 years and this has never been the state’s position.
We will resolve this issue.
I asked John Cook, president of QuoteWright.com, for his analysis of Florida’s actions.
“This is an interesting turn,” he told me. “There are probably several infractions of Florida law.”
1. An unlicensed insurance company is selling policies in their state without being licensed.
2. the unlicensed insurance company is selling policies that have not been approved by the Florida Insurance Department.
3. The Florida agents who sold the products to consumers did not hold insurance agents licenses in Florida or if they did because they represent/ed a properly licensed company than they were not properly appointed by the unlicensed travel insurance company.
4. An individual or firm, whether properly licensed as an insurance agent or not, who sells an unlicensed product can be held responsible for the benefits promised under that product. This last part is important because even though the “service contract” company has gone into bankruptcy there is no protection for agents that sold the insurance and they may not only be subject to fines but they may also be held liable for any claims that otherwise would have been covered by the policy.
I think there will be more to come.
Update (March 12, 3:40 p.m.):
The state of Florida has issued the following press release:
Thursday, March 12, 2009 3:21 PM
Subject: CFO SINK NOTIFIES TRAVEL AGENCIES TO STOP REPRESENTING UNAUTHORIZED TRAVEL INSURERSFOR IMMEDIATE RELEASE CONTACT: Nina Banister or Jayme O’Rourke
March 12, 2009 (850) 413-2842CFO SINK NOTIFIES TRAVEL AGENCIES TO STOP REPRESENTING UNAUTHORIZED TRAVEL INSURERS
TALLAHASSEE-As a result of ongoing investigations into complaints about the sale of unauthorized travel insurance in Florida, Chief Financial Officer Alex Sink has notified three travel agencies that she intends to order them 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. was run by Jerry Watson in Colorado.
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 that 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. Other travel agencies are currently under investigation and may be named for selling this product.
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.
Consumers should also read the fine print before making a purchase, as the policies often contain exclusions for coverage, and obtain a schedule of benefits and a certificate of coverage. If the insurer providing travel insurance coverage is not licensed, claims may not be honored.
Floridians are encouraged to “verify before they buy” and contact the Department of Financial Services with any insurance questions or concerns. To verify licensure or to file a complaint, log on to www.MyFloridaCFO.com or call 1-877-My-FL-CFO (1-877-693-5236).
###
As a statewide elected officer of the Florida Cabinet, Chief Financial Officer Alex Sink 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. Sink also serves as the State Fire Marshal.
As I noted when I published this late yesterday, this is a fast-developing story. The original post contained information from an official source that was imprecise.
A representative from the state of Florida confirmed the intent to order a cease and desist yesterday. At the time, it was suggested to me that the agencies didn’t have a license to sell travel insurance and might also not have a license to sell travel.
This morning, I obtained the orders from a different source, which suggested the state’s actions only involved selling unauthorized insurance. I’ve updated the post to reflect that new information, and I apologize for any resulting confusion.
Update (March 13): John Cook responded to some of the comments on this post with an important point about liability.
There appears to be some confusion about whether or not travel agents have to be licensed in the State of Florida and at least one comment that this is new and that all or most travel agents are in violation.
Businesses in Florida have two types of licenses that they have to secure if they want to sell travel and travel insurance:
1. Seller of Travel registration: “Any seller of travel that has a business location in Florida or that offers to sell travel related services to persons in Florida for individuals or groups. As of July 1, 2008, an annual filing fee of $50 is required for each independent sales agent (s.559.928, F.S.).” This registration is with the Department of Agriculture and Consumer Services.
2. Travel Insurance License: “2-41 Resident Travel Insurance (Firm) Florida Statutes 626.321 (1) (c) defines “TRAVEL INSURANCE” as insurance against accidental personal injury or death covering the risk of travel. The license may be issued only too: To a full-time salaried employee of a common carrier or a full-time salaried employee or owner of a transportation ticket agency and may authorize the sale of such ticket policies only in connection with the sale of transportation tickets. No such policy shall be for duration of more than 48 hours or for the duration of a specified one-way trip or round trip.” This license is a limited license and does not have the same educational and/or examination requirements as required of life or personal lines insurance agents.
Just because a travel firm has registered with the Department of Agriculture and Consumer Services as a “Seller of Travel” it does not give them the authority to sell travel insurance without the Travel Insurance License that they must obtain from the Florida Department of Financial Services.
Contrary to some of the comments from readers many travel agents in Florida are licensed for travel insurance. A quick check on the Insurance Division’s web site shows that there are over 2,300 such agents in Florida.
Here is another section of Florida State Law that might help consumers. I mentioned it earlier but here is the specific:
Title XXXVII, 626.901 Representing or aiding unauthorized insurer prohibited.–
(2) If an unauthorized insurer fails to pay in full or in part any claim or loss within the provisions of any insurance contract which is entered into in violation of this section, any person who knew or reasonably should have known that such contract was entered into in violation of this section and who solicited, negotiated, took application for, or effectuated such insurance contract is liable to the insured for the full amount of the claim or loss not paid.
(3) No insurance contract entered into in violation of this section shall be deemed to have been rendered invalid thereby.
As I stated before it’s the responsibility of the travel agent to vet any company that they sell.
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The war is not won.
However the first battle against TPS and PTP was won with the closing of Watsons PTP.
The second battle was to establish that PTP and travel agents were guilty of selling unlicensed insurance has been won. Today the Florida authorities issued a cease and desist against three travel agents who knowingly booked fake travel insurance.
This opens the gate to criminal felony and obvious civil cases against BPC, LJ and Smartcruiser.
Several clients are resolved to demand retribution from these agents especially as the Florida law is on our side.
Personally I do not expect Smolinsli, Russo and Ferguson the give way until the eleventh hour. But they will acquiesce eventually and the penalties will be severe.
Chris – I think you are doing a great job on this, but when I think about how little the state of Florida cared about all the people who got ripped off by Windjammer Barefoot Cruises LTD – literally to the estimated tune of $10,000,000 I have to wonder where their priorities are…
The Florida sellers of travel division didn’t care, the state attorney general didn’t care, the consumer affairs division (patrt of the agriculture dept in FL) didn’t care. Finally the federal government (Customs & immigration) is on the case.
I spoke by phone several times to the FL Sellers of Travel people. They didn’t even require Windjammer to put up a bond for all the cruises they were selling when they didn’t have any ships left working.
Just color me disillusioned about FL state goverment and regulation enforcement.
One point.
What’s important here is the selling of insurance without a license. That’s a fairly serious charge that is sufficient to shut down a business.
I’m sure that the travel agencies have complied with the local rules for selling travel as these rules ae fairly innocuous. Travel agents and agencies aren’t licensed beyond a perfunctory business license ( just pay a small fee). They are registerd which requires certain things such as being bonded.
As Peter mentioned in his comments above, we shouldn’t be too smug about this. The first order of business, of course, is to make these greedy agencies pay for the damage that they’ve caused. Florida law is quite specific on the issue. They not only have to settle claims that they’ve ignored, but they also have to repay customers who purchased the scam travel products that they sold.
When this is finished, though, let’s not forget Jerry Watson, the “Music Man” of scam insurance products. Unlike Harold Hill, though, Jerry didn’t sell something as good as musical instruments to the citizens. He sold an illegal product over…and over…and over. He needs to be punished for this. Isn’t there some way that his personal property can be attached, as partial payment for the carnage that he caused? With any luck, he might have been dumb enough to not incorporate his business, making all of his personal assets fair game.
Wow, I know the insurance issue is a big deal – but based on the info from Chris, if the Seller of Travel License is also invalid, this could mean an astounding amount of penalties for these companies based on the information below.
Here’s an interesting tidbit from the Fla. Dept. of Agriculture :
What are the penalties for failure to register?
Civil or administrative fines of up to $5,000 for each violation, cease and desist order, and injunctive relief. Each sale or attempted sale may be considered a separate violation.
Found at: http://www.doacs.state.fl.us/onestop/cs/travel.html
Imagine, up to $5,000 PER BOOKING for violation. Some of these companies must book hundreds if not thousands of bookings PER MONTH. Do the math…we are talking serious penalties should the State decide to go after them on an individual booking basis.
I hope they all get what’s coming to them and maybe they can get a discount on the orange jumpsuits they should all soon be wearing!
I HAVE REAL INSURANCE!
After reading this blog I was scared to death because I booked with Smartcruiser.com and I bought insurance for a cruise leaving in April. But I just called my agent to find out about my insurance situation and I DO have a real policy with Access America. Access America is a real insurance company and I have used them before. I have a legit policy and I called Access America to make sure. I don’t know what you guys are talking about? Did this happen in the past? I don’t know but I can tell you Access America is licensed aren’t they? They told me they were.
I really don’t think Al Ferguson gets it. he makes a comment that reads as if every single person within a licensed company also has to get a license. As far as I know this is not the case. A primary license can normally be applied to employees and the company is responsible for those employees. It’s why the secretary at my state farm office can take my money and get me signed up. His problem is that his business does not have a license to sell the insurance products he is selling, nevermind the employees.
I’m also glad to read Mr Cook’s take on the situation in that it confirms what some here have been saying for quite some time in that the agent is ultimately responsible because they sold the product illegally and collected profits on an illegal product. They’ve become part of the scam and will be responsible for paying.
To: Al Ferguson…
You state, “this does not have anything to do with our CORE business but rather selling insurance.” I’m sorry, but you are wrong. Your CORE business is to represent the consumer by providing the best possible product and service. You failed and your excuses are not acceptable. You were warned multiple times and did not listen. You also have a track record of selling through other unauthorized companies. You state you will resolve this, then do so and reimburse those with outstanding claims and pay back all of those who bought the illegal policies.
Samantha – Did Mr. Smolinski tell you to post or is “Samantha” another one of Mr. Smolinski’s alter egos? Be sure to tell him congratulations on finally offering a legitimate insurance product in Access America to his clients. However, the Florida authorities are not going to forget the past – especially considering Palm Coast Travel/Smartcruiser is a repeat offender having included Trip Assured along with PTP in its portfolio of fraudulent insurance products offered to unsuspecting clients.
Mr. Elliott has brought most of this to our attention. I hope all of you that follow his blog will not rush to judgement. Several comments:
1. We have not sold VPS since Sept 2008. Important because we made a decision when (Mr. Elliott and others) began seeing issues with this company. We have been with Travelex and they are licensed to sell in Florida and we have had no issues with them.
2. Legendary Journeys has protected our clients. We have spent (approaching $100,000) to reinsure VPS pre-travelling guests with Travelex to ensure our clients have protection for cancellation and more importantly emergency medical transportation.
3. The clients that are effected are those from 2007/2008 that had valid claims and have not yet been paid. As near as we can determine that is approximately 20 to 25 reservations. We are reviewing and trying to satisfy all of them.
4. TO ALL THE LAYWERS IN THE BLOG: This will become interesting. Legendary Journeys has been in business a long time. We carry over 20,000 guests a year. You can’t be around that long and operate illegally. The states point is that EVERY TRAVEL AGENT must be licensed to sell insurance in Florida. This position is either wrong or dramatic change is coming. 99% of all travel agents in Florida do not carry an insurance license (like a State Farm or Allstate agent.) Travel Agents are $10 – $12 an hour employees that will never spend the money or time for insurance licensing. The state’s position for years is that you must have a point of contact license (which Legendary Journeys does.) I would suggest we all allow this issue to be evaluated and resolved without rushing to judgement.
5. NO MORE TRAVEL INSURANCE IN FLORIDA
If the state’s interpretation is correct, virtually every travel agency in Florida will stop selling travel insurance. Additionally, how can an agent even sell the cruise lines insurance…because that would still violate to license requirement. In fact, even if you purchased your cruise directly from the cruise line, how does that agent sell their own insurance…because they are not licensed to sell insurance in Florida. My point is that these is a dramatic and significant issue that has nothing to do with VPS/Prime bankruptcy.
We will satisfy every client that is effected by VPS. I would suggest to all of you that when you purchase your car insurance…how do you know the underwriter is licensed correctly in Florida? That’s our situation here. It is not our fault they were not licensed correctly or they ultimately went bankrupt. We made the correct decision to stop selling them in September 2008 and we have (and are) spending the resources to help our (SMALL NUMBER) of clients that are effected by their bankruptcy. We continue to lead by positive example. I hope all of you will fairly evaluate all the issues here. I think Mr Elliott is and we will do our best to solve the problem that the VPS bankruptcy as dropped into our lap. Al Ferguson, Vice President, Legendary Journeys
Mr Ferguson said:
“TO ALL THE LAYWERS IN THE BLOG: This will become interesting. Legendary Journeys has been in business a long time. We carry over 20,000 guests a year. You can’t be around that long and operate illegally”
Normally, you can’t operate for a long time when the BBB rates you as an “F” rated company either, but the fact that you spend more to advertise than you do to satisfy your wronged customers accounts, I believe for you “sucess”, which certainly discounts moral behavior as a factor.
From: Al Ferguson, Legendary Journeys
Mr. Elliott has brought most of this to our attention. I hope all of you that follow his blog will not rush to judgement. Several comments:
1. We have not sold VPS since Sept 2008. Important because we made a decision when (Mr. Elliott and others) began seeing issues with this company. We have been with Travelex and they are licensed to sell in Florida and we have had no issues with them.
LET ME BE FRANK, MR. FERGUSON…YOU ARE FULL OF IT. DO YOU WANT A PRIZE BECAUSE YOU HAVE DECIDED TO NOW USE A LEGITIMATE INSURANCE COMPANY? WHEN YOU SAW THE ISSUES REGARDING TRIP ASSURED IN 2006, THAT DIDN’T STOP YOU FROM CONTINUING TO SELL THE UNAUTHORIZED PRIME TRAVEL PROTECTION. THE STATE OF FLORIDA ISSUED A CEASE AND DESIST TO TRIP ASSURED AND YOU DIDN’T LEARN A THING, DID YOU? I CAN ONLY IMAGINE HAD IT NOT BEEN FOR MR. ELLIOTT AND OTHERS, YOU WOULD STILL BE SELLING MR. WATSON’S WORTHLESS GARBAGE TO YOUR CLIENTS FOR THAT BIG FAT COMMISSION AND OVERRIDE (AFTER THE EXCLUSIVE SIGNING BONUS), HUH?
2. Legendary Journeys has protected our clients. We have spent (approaching $100,000) to reinsure VPS pre-travelling guests with Travelex to ensure our clients have protection for cancellation and more importantly emergency medical transportation.
ISN’T THIS NICE OF YOU. YOU SPENT $100,000 TO PROTECT YOUR BEHIND BECAUSE YOU COULD CARE LESS ABOUT YOUR CLIENTS.
3. The clients that are effected are those from 2007/2008 that had valid claims and have not yet been paid. As near as we can determine that is approximately 20 to 25 reservations. We are reviewing and trying to satisfy all of them.
NO NEED TO REVIEW THEM, AL…JUST PAY THEM. YOU SOLD AN ILLEGAL PRODUCT, PAY UP AND STOP PUTTING THESE PEOPLE THROUGH ANY MORE GRIEF. MANY OF THESE PEOPLE ARE SENIOR CITIZENS. DO YOU HAVE ANY EMPATHY AT ALL? ONE OF YOUR CLIENTS, WHO FOR MONTHS TRIED DESPERATELY TO HAVE HIS CLAIM PAID, DIED THIS PAST MONDAY. HE SPENT HIS LAST DAYS SENDING E-MAILS AND MAKING PHONE CALLS REGARDING REIMBURSEMENT.
4. TO ALL THE LAYWERS IN THE BLOG: This will become interesting. Legendary Journeys has been in business a long time. We carry over 20,000 guests a year. You can’t be around that long and operate illegally. The states point is that EVERY TRAVEL AGENT must be licensed to sell insurance in Florida. This position is either wrong or dramatic change is coming. 99% of all travel agents in Florida do not carry an insurance license (like a State Farm or Allstate agent.) Travel Agents are $10 – $12 an hour employees that will never spend the money or time for insurance licensing. The state’s position for years is that you must have a point of contact license (which Legendary Journeys does.) I would suggest we all allow this issue to be evaluated and resolved without rushing to judgement.
I DON’T GIVE A DAMN ABOUT THE OTHER 99% OF FLORIDA TRAVEL AGENTS. STOP MAKING EXCUSES AND POINTING FINGERS. THE ISSUE MAY SET FUTURE PRECEDENT, BUT IT DOESN’T TAKE AWAY FROM WHAT YOU HAVE DONE.
5. NO MORE TRAVEL INSURANCE IN FLORIDA
If the state’s interpretation is correct, virtually every travel agency in Florida will stop selling travel insurance. Additionally, how can an agent even sell the cruise lines insurance…because that would still violate to license requirement. In fact, even if you purchased your cruise directly from the cruise line, how does that agent sell their own insurance…because they are not licensed to sell insurance in Florida. My point is that these is a dramatic and significant issue that has nothing to do with VPS/Prime bankruptcy.
We will satisfy every client that is effected by VPS. I would suggest to all of you that when you purchase your car insurance…how do you know the underwriter is licensed correctly in Florida? That’s our situation here. It is not our fault they were not licensed correctly or they ultimately went bankrupt. We made the correct decision to stop selling them in September 2008 and we have (and are) spending the resources to help our (SMALL NUMBER) of clients that are effected by their bankruptcy. We continue to lead by positive example. I hope all of you will fairly evaluate all the issues here. I think Mr Elliott is and we will do our best to solve the problem that the VPS bankruptcy as dropped into our lap.
HOW DO I KNOW THAT THE UNDERWRITER IS LICENSED? IF ITS LEGITIMATE INSURANCE THE INFORMATION AND LICENSURE DETAILS ARE PROVIDED ON THE POLICY. AND SECONDLY, I DON’T BUY MY INSURANCE FROM SOME FLY-BY-NIGHT OPERATION. LAST I CHECKED, STATE FARM WAS A LICENSED COMPANY. YOUR CLIENTS TRUSTED YOU TO DO THE SAME FOR THEM AND USE A REPUTABLE COMPANY. YES, IT IS NOT YOUR FAULT THAT PTP IS OUT OF BUSINESS, BUT IT IS YOUR FAULT YOU DIDN’T DO YOUR DUE DILIGENCE AND CHECK WITH THE FLORIDA AUTHORITIES. YOU WENT THROUGH THIS ONCE BEFORE WITH TRIP ASSURED…I WOULD HAVE THOUGHT YOU LEARNED YOUR LESSON. YES, YOU MADE THE CORRECT DECISION NOT TO SELL THIS CRAP, BUT DIDN’T YOU MAKE THE RIGHT DECISION IN ‘06 NOT TO SELL UNAUTHORIZED INSURANCE WHEN TRIP ASSURED WAS ORDERED TO CEASE AND DESIST?
Al Ferguson, Vice President, Legendary Journeys
I’m going to put it bluntly, Ferguson – you make me puke. For you to state, “We continue to lead by positive example” is shameful. You are a repeat offender in the sale of unauthorized insurance, your agency is rated “F” by the BBB and you continue to make excuses for your despicable behavior. I can only hope the authorities in Florida pursue action against you to the fullest extent of the law.
he agencies violated state law by selling insurance for Prime … question from selling travel insurance on behalf of unauthorized travel insurers. … But also unclear is whether the order could stop the agencies from selling other, legitimate travel insurance policies
As an armchair lawyer in this thread, this comment is most disturbing
” It is not our fault they were not licensed correctly or they ultimately went bankrupt. ”
-It IS your fault that you SOLD this insurance and it IS your duty to make sure you are selling a legitimate product. You can claim to be stupid once, but you have a pattern of doing this and any reasonable person would have learned to check out the companies they deal with, especially with so much at stake, both with the consumer’s money and the profit you have made. Plenty of people who really have no connection to you or the bogus insurance easily found information so for you to claim you had no idea is a complete fabrication of reality. Also, if you really book as much travel as you say, I would suspect you have a lawyer or two on retainer at the very least. These lawyers are either incompetent or comletely on board with these illegal activities. Either way they would also need to suffer from their actions, or should I say inactions.
As a manager where I work I make sure that every contractor we bring in has all applicable insurances and licenses/permits to do the required work. It’s standard business practice to know who you are dealing with and making sure that you CYA.
Samantha wrote:
I HAVE REAL INSURANCE!
Do you really? Please tell me when you booked your cruise, and whether you purchased the insurance from LJ. What does the initial invoice that you received from LJ say about your insurance.
Since you appear to be a satisfied customer, please tell us about how much your initial deposit was, and whether it is refundable. I’m somewhat stunned to find out that LJ often requires $1000+ non-refundable deposits for “early booked” cruises, despite the fact that no major cruise lines charge a penalty for cancellations that take place more than 90 days before sail date, and only a few travel agents charge any more than a nominal cancellation fee ($100 per cabin maximum) within this period.
Mr. Ferguson – feel free to chime in on this, since you carry “over 20,000 guests each year”. You attribute your success to providing a quality product. I attribute it to massive advertising to potential customers who don’t know any better. I’ve run into many repeat (40 cruises, minimum) cruisers in my travels, and I know that they didn’t book with your company.
Everyone’s oppinion is worthwhile. Yesterday afternoon the state of Florida clarified their posting to say the cease and desist order was to NOT sell VPS/Prime Insurance.
1. We stopped selling them September 2008. I thank Mr Elliott for fairly re-clarify the mistake on the first notice.
2. We have (we believe) 25 total clients effected by Prime’s bankruptcy.
3. We have spent nearly $100,000 to protect our clients with new insurance.
4. There are hundreds of agencies involved in this, and I encourage them all to step up to the same degree Legendary Journeys has.
5. Legendary Journeys has the CORRECT Travel Sellers license and has the CORRECT point of contact Insurance license. And we always have.
6. I accept any responsibility we had in supporting the insurance of VPS/Prime. It is clear now that was a mistake and all we can do is try to correct it. Our actions so far demonstrates we have and will continue to do so.
Al Ferguson
Vice President
Legendary Journeys
One thing the big four travel agents have in common is that they do not deny previous dealings with Mr Watson. By keeping quiet or, astutely guiding the topic away from this fact, it has not been pursued as it should.
Here is an example of Vacation Superstore Network (BPC) Ronald and Sandra Russo defending a suit brought against them in 2003 involving Trip Assured.
A group activist spoke to Mark Golden and confirmed Mr Russo settled out of court.
FLORIDA CIVIL CASE FILINGS
PLAINTIFF: GOLDEN, MARK
DEFENDANT: JOHNSON, MCKINLEY
TRIP ASSURED INC
VACATION SUPERSTORE NETWORK INC AKA
FILING DATE: 6/16/2003
CASE NUMBER: 48-2003-CC-007925-O
COURT: CIVIL
JUDGE: CHEEK, LEON B
FILING TYPE: COUNTY CIVIL
COUNTY: ORANGE
STATE: FLORIDA
*** DOCKET INFORMATION ***
DOCKET-INFO: 06/16/2003
CIVIL COVER SHEET,
COMPLAINT,
INITIAL JUDGE ASSIGNED KIRKLAND T R 72
Mr. Ferguson. Read Factuals post above. You were involved with Mr Watson in at least three companies all of which dissolved only to have the scam repeated by the same man.
I’m afraid you are incorrect in your calculation of clients affected. Every single premium, whether a claim was made or not, taken by you and every other travel agent was illegal.
That amounts to MILLIONS of dollars of traveler’s money.
The flow of that money went to Travel Agents approx 40%
Mr Watsons benefit fund approx 60%
Mr. Ferguson will you take responsibility for supporting the sale of Trip Assured prior to sales of VPS and PTP? You seem to continually avoid that issue.
I am sincerely confused by everybody is on this blog basing these Travel Agencies. If you sincerely feel that you have been hoodwinked into buying an illegal insurance policy then you should, obviously, excercise your right to legal action and pursue these companies in a court of law.
If, however, you as a consumer did not research the product you were buying, make an intelligent, and informed, decision, or ask the correct questions when purchasing your product then you made the initial mistake. In this instance both the consumer and supplier would be at fault.
However, it is clear from all of the information provided that:
1. These travel suppliers did what all smart business persons due – attempted to make the most money they could from a struggling market.
2. Attempted to provide a value ladened product to a notoriously stingy consumer base (meaning us – the seniors).
3. Comments on this blog, and towards the ONLY travel provider that has made an effort to respond to any claims are increasingly unfair. We hide behind our computer screens, and curse, and say negative things, but never consider the positives.
I have personally worked with and traveled with Al Ferguson both as a professional and a customer. I can attest to his knowledge, kindness, and ability to package an incredible travel product.
Al is a great guy, with a wonderful heart, and he is doing the best (I assume from reading this) that he can do while also attempting to keep his company ahead of the struggling market.
If you all can’t understand than then shame on you. I, however, will continue to purchase my travel through Legendary Journeys because they provide amazing value and travel packages you can’t get any where else.
Sincerely,
John Reiner
Sarasota, FL
With all due respect, Mr. Reiner, your defense of Mr. Ferguson is as strong as Mrs. Madoff’s defense of her husband, Bernie. Did it occur to you that he might treat you, as a Friend, quite a bit nicer than he’d treat the “22,000 yearly customers that he’s serviced?
Do you, in fact, know ANYTHING about this case? Your screed shown above doesn’t indicate that you do. Do you know about:
Mr. Ferguson’s “F” rating with the Better Business Bureau?
His eight year pattern of selling NOTHING but illegal insurance products?
His eight year association with Jerry Watson, a convicted felon, who tried to stay one step ahead of Insurance Authorities by moving to another state every couple of years, and changing the name of his company?
His acting as a “Judge and Jury” for claims than any legitimate insurance company would approve immediately?
No; I didn’t think that you did. Continue to have a friendly drink with Al whenever the mood strikes you, but buy your travel insurance from an outside source.
Al Ferguson,
I’m one of the clients that are effected from 2008 that had a valid claim and have not yet been paid. You said that “as near as we can determine that is approximately 20 to 25 reservations. We are reviewing and trying to satisfy all of them.”
When am I going to hear from you? Stew Carrier of your office has emailed me twice over the last two weeks that you are working on it. How long does it take to write a check and refund my money?
It is with great sadness that I inform you one of the pioneering “group” has passed on. I cannot mention the name without family approval. For months he waged a war against PTP and his travel agent and was determined to reach a resolution.
His spirit was an inspiration to the hundreds of us who are seeking recompense from travel agents.
His belief and ours is that an agent who was new to the Watson scams has some sympathy, although they also broke the law. For the others who followed Watson from one crooked company to the next, that is inexcusable.
The group will continue relentlessly to obtain satisfaction for ourselves and our departed colleague.
Mr. Baxter – I am familiar with what you have outlined.
Did you know that in order to keep an above average rating with the BBB you basically have to bend to whim and will of the consumer. Meaning ever a time a complaint is made, regardless of whether it is warranted or not, the BBB will not be satisfied until you provide a refund to the consumer – that’s it.
As a business owner I have experienced the unfairness of the BBB towards small business owners for many years. I continue to pay my dues because it helps me, in the long run.
I see from their website that LJ is not a BBB member – I can only assume that is because of the stringent requirements they make towards business owners.
As to your other claims – I guess they are just that, claims. How could any company sell an illegal product for more than 8 years and suffer no consequences? I think you are just a bitter man not willing to admit that a company is trying to make an effort to satisfy their customer base. Shame on tyou.
MR.REINER, I WON’T BEGIN THIS REPLY WITH…WITH ALL DUE RESPECT, BECAUSE EVERYTHING THAT YOU WRITE IS TOTALLY WRONG. SEE ANSWERS BELOW.
Did you know that in order to keep an above average rating with the BBB you basically have to bend to whim and will of the consumer. Meaning ever a time a complaint is made, regardless of whether it is warranted or not, the BBB will not be satisfied until you provide a refund to the consumer – that’s it.
NO. YOU’RE COMPLETELY WRONG ON THIS. BBB ALLOWS A NUMBER OF COMPLAINTS BASED ON THE SIZE OF THE BUSINESS, RECOGNIZING THAT SOME COMPLAINTS COME FROM CRANKS. BASED ON THE 22,000 CUSTOMERS THAT MR. FERGUSON SAYS HE ‘SERVICES” YEARLY, HE MUST ACCUMULATE A HUGE NUMBER OF COMPLAINTS.
HERE ARE THE THREE COMPANIES THAT FLORIDA HAS ACCUSED OF SELLING ILLEGAL INSURANCE PRODUCTS, WHICH IS A SERIOUS CRIME.
PALM COAST TRAVEL / SMARTCRUISER: BBB RATING: A MINUS
BEST PRICE CRUISES: BBB RATING; B MINUS
LEGENDARY JOURNEYS: BBB RATING: STILL AN F
IT APPEARS FROM THIS THAT LEGENDARY JOURNEYS IS THE WORST OF THE WORST.
As a business owner I have experienced the unfairness of the BBB towards small business owners for many years. I continue to pay my dues because it helps me, in the long run.
COULD YOU TELL US WHAT YOUR RATING WAS?
THIS IS THE CRITERIA THAT BBB (CHECK THEIR WEBSITE) USES TO EVALUATE BUSINESSES:
Reasons for this F rating include:
Number of complaints filed against business.
Failure to respond to complaints filed against business.
Number of complaints filed against business that were not resolved.
I see from their website that LJ is not a BBB member – I can only assume that is because of the stringent requirements they make towards business owners.
THOUSANDS OF COMPANIES ARE HAPPY WITH THE BBB. DID MR. FERGUSON EVER BELONG? DID THE ORGANIZATION THROW HIM OUT? BE CAREFUL ON YOUR NEXT REPLY….WE CAN CHECK.
As to your other claims – I guess they are just that, claims. How could any company sell an illegal product for more than 8 years and suffer no consequences?
NOW REALLY, THIS IS YOUR MOST ABSURD CLAIM. WHILE I AGREE THAT IN SOME WAY, BAD BEHAVIOR IS PUNISHED, IT ISN’T ALWAYS ON THIS EARTH.
HOW LONG DID BERNIE MADOFF SELL A BAD PRODUCT? 40 YEARS? BECAUSE OF THE WAY THAT GOVERNMENT OPERATES, EIGHT YEARS IS LIGHTNING FAST!
I think you are just a bitter man not willing to admit that a company is trying to make an effort to satisfy their customer base. Shame on you.
BITTER? WHAT DO YOU BASE THAT ON? I’M QUITE HAPPY WITH A WIFE AND CHILDREN THAT LOVE ME, AND ONE OF MY PRINCIPAL OCCUPATIONS IS TO HELP PEOPLE WHO ARE IN DANGER OF BEING DEFRAUDED BY UNSCRUPULOUS PRODUCT VENDORS. BY ALL INDICATIONS FROM THE BLOGS, I’M DOING THIS QUITE WELL. I’VE NEVER BEEN CHEATED BY ANY OF THESE THREE AGENCIES OR JERRY WATSON, AND I HOPE TO LIVE LONG ENOUGH TO SEE THAT NO ONE GETS CHEATED.
WFTV will air a follow up segment tonight on the news – Tuesday.
Hello,
It is really very sad news. As a marketer I wanted to more hands on use to see what might work effectively for clients. You blog is awesome. And I really appreciate you for the effort into this blog. You always provide the market place with great content and value.
Thanks,
Mark Smith(http://www.healthinsuranceinfo.org/)