Comments on: Palm Coast Travel sues a customer — and me http://www.elliott.org/blog/palm-coast-travel-sues-a-customer-and-me/ Consumer advocate Christopher Elliott's site. Fri, 10 Feb 2012 05:25:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Donna McCane http://www.elliott.org/blog/palm-coast-travel-sues-a-customer-and-me/comment-page-3/#comment-45779 Donna McCane Tue, 17 Aug 2010 01:24:33 +0000 http://www.elliott.org/?p=10405#comment-45779 My sister-in-law booked a Norwegian Cruise through Smartcruiser.com and purchased the insurance for my husband, herself and me for 10/28/07. My husband's artery in his leg clotted and he had to have emergency surgery, so we were unable to go on the cruise. Thinking we would get our money back because we had insurance, it was an emergency, since I had just finished chemo for Breast Cancer and my sister-in-law is disabled we could not go on cruise. We filed all the paperwork and we recieved a letter saying the insurance company was filing bankruptcy and we have yet to get any of our $3300.00 back. My sister-in-law and I are both disabled and now so is my husband and that is a lot of money to us. Shouldn't someone make them pay us back our money? My sister-in-law booked a Norwegian Cruise through Smartcruiser.com and purchased the insurance for my husband, herself and me for 10/28/07. My husband’s artery in his leg clotted and he had to have emergency surgery, so we were unable to go on the cruise. Thinking we would get our money back because we had insurance, it was an emergency, since I had just finished chemo for Breast Cancer and my sister-in-law is disabled we could not go on cruise. We filed all the paperwork and we recieved a letter saying the insurance company was filing bankruptcy and we have yet to get any of our $3300.00 back. My sister-in-law and I are both disabled and now so is my husband and that is a lot of money to us. Shouldn’t someone make them pay us back our money?

]]> By: SLAPPed: Cautionary Tales About Free Speech and the Media « Media This Week http://www.elliott.org/blog/palm-coast-travel-sues-a-customer-and-me/comment-page-3/#comment-37070 SLAPPed: Cautionary Tales About Free Speech and the Media « Media This Week Mon, 05 Apr 2010 23:38:55 +0000 http://www.elliott.org/?p=10405#comment-37070 [...] the news — writing about allegations against the agency.  Here is his original blog post and his own commentary on the SLAPP case.  A man who shot two Siberian Huskies in a YouTube video sued a blogger for a [...] [...] the news — writing about allegations against the agency.  Here is his original blog post and his own commentary on the SLAPP case.  A man who shot two Siberian Huskies in a YouTube video sued a blogger for a [...]

]]> By: Palm Coast Travel fined $2,500 and placed on probation for selling unauthorized travel insurance http://www.elliott.org/blog/palm-coast-travel-sues-a-customer-and-me/comment-page-3/#comment-35788 Palm Coast Travel fined $2,500 and placed on probation for selling unauthorized travel insurance Sun, 14 Mar 2010 14:48:44 +0000 http://www.elliott.org/?p=10405#comment-35788 [...] by the state of Florida of selling unauthorized travel insurance, while at the same time trying to sue one of its own customers and me into silence, has quietly negotiated a settlement with insurance [...] [...] by the state of Florida of selling unauthorized travel insurance, while at the same time trying to sue one of its own customers and me into silence, has quietly negotiated a settlement with insurance [...]

]]> By: Florida accuses three more travel agencies — wait, make that five more agencies — of selling unlicensed insurance http://www.elliott.org/blog/palm-coast-travel-sues-a-customer-and-me/comment-page-3/#comment-34889 Florida accuses three more travel agencies — wait, make that five more agencies — of selling unlicensed insurance Tue, 02 Mar 2010 11:38:51 +0000 http://www.elliott.org/?p=10405#comment-34889 [...] Coast Travel is suing me in an apparent attempt to stop me from writing about the company. Perhaps these agencies would care [...] [...] Coast Travel is suing me in an apparent attempt to stop me from writing about the company. Perhaps these agencies would care [...]

]]> By: Ernest http://www.elliott.org/blog/palm-coast-travel-sues-a-customer-and-me/comment-page-3/#comment-34161 Ernest Tue, 16 Feb 2010 21:17:39 +0000 http://www.elliott.org/?p=10405#comment-34161 I just read the complaint and against Elliott and Lay. I would never go so far as to publically say it was chicken s**t but I will say that it has a distinctive hen house odor. I believe that all travel companies set themselves up so that they can take advantage of you. Thay are happy to call you 'their' customer until something goes wrong and you need them to do their job, then you are just a whining ungratefull customer. I am (now) biased against travel agencies and 3rd party coordinators as a result of several negative experiences in dealing with this type of companies. Reading the complaint by Palm coast travel just reinforced my belief that these companies are to be avoided. I do have a thought about this company. Do they post testimonials on their web site? Do they keep a file of letters to show potential customers just how good a company they are? Have they ever encouraged or offered an incentive for anyone to post a positive review? Have they ever, themselves, friends or employees, manufactured a positive review? Thats a whole lot of questions to ask. I don't know Mr Lay but I have posted on elliott.org's site. I think something is wrong when a dissatisfied customer can not complain and a journalist can not write. This is all my personal oponion. I have nothing to do with any of these guys. I am not saying anyone is being untruthfull or dishonest. I am not making any accusations, I am just saying what I think. Come to think of it, (it being palm coast travel,) 'me thinks thou doest protest too much' seems to fit here. I just read the complaint and against Elliott and Lay. I would never go so far as to publically say it was chicken s**t but I will say that it has a distinctive hen house odor.

I believe that all travel companies set themselves up so that they can take advantage of you. Thay are happy to call you ‘their’ customer until something goes wrong and you need them to do their job, then you are just a whining ungratefull customer.

I am (now) biased against travel agencies and 3rd party coordinators as a result of several negative experiences in dealing with this type of companies. Reading the complaint by Palm coast travel just reinforced my belief that these companies are to be avoided.

I do have a thought about this company. Do they post testimonials on their web site? Do they keep a file of letters to show potential customers just how good a company they are? Have they ever encouraged or offered an incentive for anyone to post a positive review? Have they ever, themselves, friends or employees, manufactured a positive review?

Thats a whole lot of questions to ask. I don’t know Mr Lay but I have posted on elliott.org’s site. I think something is wrong when a dissatisfied customer can not complain and a journalist can not write.

This is all my personal oponion. I have nothing to do with any of these guys. I am not saying anyone is being untruthfull or dishonest. I am not making any accusations, I am just saying what I think.

Come to think of it, (it being palm coast travel,) ‘me thinks thou doest protest too much’ seems to fit here.

]]> By: David http://www.elliott.org/blog/palm-coast-travel-sues-a-customer-and-me/comment-page-3/#comment-32152 David Mon, 01 Feb 2010 21:30:27 +0000 http://www.elliott.org/?p=10405#comment-32152 If you read the intent to issue a cease and desist (highlight my name) there are a number of statutes Smolinski's Palm Coast has been accused of violating besides what was is outined in 624.401. Included is Statute 626.901 - "Representing or aiding unauthorized insurer prohibited". Of course, this order was done almost 11 months ago and the DFS has no information as to a resolution. If you read the intent to issue a cease and desist (highlight my name) there are a number of statutes Smolinski’s Palm Coast has been accused of violating besides what was is outined in 624.401. Included is Statute 626.901 – “Representing or aiding unauthorized insurer prohibited”. Of course, this order was done almost 11 months ago and the DFS has no information as to a resolution.

]]> By: Harry Baxter http://www.elliott.org/blog/palm-coast-travel-sues-a-customer-and-me/comment-page-3/#comment-32139 Harry Baxter Mon, 01 Feb 2010 20:15:59 +0000 http://www.elliott.org/?p=10405#comment-32139 I also think that the wording in the statute, in Section 624.401, "No person shall action as an insurer....except as authorized by a subsisting Certificate of Authority" could get him. If he wasn't acting like an insurer when he sold this product, what was he acting like? As the old saying goes, "If it acts like a duck..." He will, of course, say that his Wife had an Insurance License, but I don't think that this will pass muster. Smolinski is the face of the franchise, and the word "insurance" appeared in his ads while he was selling illegal insurance. I also think that the wording in the statute, in Section 624.401, “No person shall action as an insurer….except as authorized by a subsisting Certificate of Authority” could get him. If he wasn’t acting like an insurer when he sold this product, what was he acting like? As the old saying goes, “If it acts like a duck…”
He will, of course, say that his Wife had an Insurance License, but I don’t think that this will pass muster. Smolinski is the face of the franchise, and the word “insurance” appeared in his ads while he was selling illegal insurance.

]]> By: Cliff Sousa http://www.elliott.org/blog/palm-coast-travel-sues-a-customer-and-me/comment-page-3/#comment-32124 Cliff Sousa Mon, 01 Feb 2010 19:25:45 +0000 http://www.elliott.org/?p=10405#comment-32124 I think 4000 is a conservative estimate. If Smolinski sold cruises to 50,000 travelers in 2009, what about 2003, 2004, 2005 and 2008 where it's confirmed he sold illegal insurance? If we just assume he sold 10,000 of these illegal plans those four years at an average price of $200 which is very low and a commission of 25% (which is low compared to what some people have claimed on this board), that's $2 million! According to Florida Statute Section 624.401, the sale of over $100,000 constitutes a first degree felony. Smolinski will claim to the detectives that what he sold was not insurance, but he's already dug himself in because in his lawsuit against Chris, he is arguing he believed PTP was legitimate because Watson told him it was licensed in 50 states. If he truly believed it wasn't insurance, then that argument about it being licensed is pointless. I think 4000 is a conservative estimate. If Smolinski sold cruises to 50,000 travelers in 2009, what about 2003, 2004, 2005 and 2008 where it’s confirmed he sold illegal insurance? If we just assume he sold 10,000 of these illegal plans those four years at an average price of $200 which is very low and a commission of 25% (which is low compared to what some people have claimed on this board), that’s $2 million! According to Florida Statute Section 624.401, the sale of over $100,000 constitutes a first degree felony. Smolinski will claim to the detectives that what he sold was not insurance, but he’s already dug himself in because in his lawsuit against Chris, he is arguing he believed PTP was legitimate because Watson told him it was licensed in 50 states. If he truly believed it wasn’t insurance, then that argument about it being licensed is pointless.

]]> By: Harry Baxter http://www.elliott.org/blog/palm-coast-travel-sues-a-customer-and-me/comment-page-3/#comment-32112 Harry Baxter Mon, 01 Feb 2010 18:37:09 +0000 http://www.elliott.org/?p=10405#comment-32112 Thanks, David. I stand corrected. However, if I reduce the number of policies that he sold to his customers to 4,000, which is 10% of what I quoted, he and his company would still reach the "magic number" quoted at the bottom of Florida Statute Section 624.401, where the most severe penalties kick in. Thanks, David. I stand corrected.
However, if I reduce the number of policies that he sold to his customers to 4,000, which is 10% of what I quoted, he and his company would still reach the “magic number” quoted at the bottom of Florida Statute Section 624.401, where the most severe penalties kick in.

]]> By: David http://www.elliott.org/blog/palm-coast-travel-sues-a-customer-and-me/comment-page-3/#comment-32106 David Mon, 01 Feb 2010 17:57:40 +0000 http://www.elliott.org/?p=10405#comment-32106 I find myself having to come to the defense of Mr. Smolinski. Harry has written that Palm Coast Travel sold 50,000 PTP policies in 12 months. I think what you meant, Harry was Smolinski's Palm Coast Travel sold cruises to 50,000 travelers. That's what is mentioned in the press release announcing Palm Coast's induction into Oceania's Connoiseur Club. We do know from published reports that Palm Coast sold illegal insurance from at least 2003-2005 (Sun-Sentinal, March 29, 2009) and they sold as recently as 2007-'08 based on Florida's intent to issue a cease and desist on March 5, 2009. How many policies sold is a matter for the investigators which brings me to another point... I was pleased to have received a call from the DFS Fraud Division last week. It appears they are really going to move now on this investigation. Do you know who I think is going to be the person to seal the fate of these travel agencies? Jerry Watson himself. I have a hunch the authorities are going to go to him to spill his guts. He's got nothing to lose and everything to gain by cooperating. I find myself having to come to the defense of Mr. Smolinski. Harry has written that Palm Coast Travel sold 50,000 PTP policies in 12 months. I think what you meant, Harry was Smolinski’s Palm Coast Travel sold cruises to 50,000 travelers. That’s what is mentioned in the press release announcing Palm Coast’s induction into Oceania’s Connoiseur Club. We do know from published reports that Palm Coast sold illegal insurance from at least 2003-2005 (Sun-Sentinal, March 29, 2009) and they sold as recently as 2007-’08 based on Florida’s intent to issue a cease and desist on March 5, 2009. How many policies sold is a matter for the investigators which brings me to another point…

I was pleased to have received a call from the DFS Fraud Division last week. It appears they are really going to move now on this investigation. Do you know who I think is going to be the person to seal the fate of these travel agencies? Jerry Watson himself. I have a hunch the authorities are going to go to him to spill his guts. He’s got nothing to lose and everything to gain by cooperating.

]]> By: Anthony Tomaselli http://www.elliott.org/blog/palm-coast-travel-sues-a-customer-and-me/comment-page-3/#comment-32101 Anthony Tomaselli Mon, 01 Feb 2010 17:24:57 +0000 http://www.elliott.org/?p=10405#comment-32101 My travel agent told me that they stopped selling these plans after I couldn't get my claim honored. I honestly don't think my agent knew what she was selling was illegal, although that's not an excuse. I do know that after I got burned her company started selling a real insurance plan (can't remember the name, but I did call the state and confirmed they were okay). I can't believe these travel agencies continued to sell these illegal insurance policies. I hope the state does something to them. My travel agent told me that they stopped selling these plans after I couldn’t get my claim honored. I honestly don’t think my agent knew what she was selling was illegal, although that’s not an excuse. I do know that after I got burned her company started selling a real insurance plan (can’t remember the name, but I did call the state and confirmed they were okay). I can’t believe these travel agencies continued to sell these illegal insurance policies. I hope the state does something to them.

]]> By: Frankie Leo http://www.elliott.org/blog/palm-coast-travel-sues-a-customer-and-me/comment-page-3/#comment-32029 Frankie Leo Mon, 01 Feb 2010 11:57:49 +0000 http://www.elliott.org/?p=10405#comment-32029 Anthony Tomaselli wrote: "Did any of these travel agencies sell this type of illegal insurance from more than one company? The posts are confusing and I’m getting into this in the “late innings”. From what I am reading some travel agencies jumped to a second illegal company to sell for after the first was closed. Is this accurate?" Yes, they did. Palm Coast Travel, Best Price Cruises, and Legendary Journeys, the three companies warned by the State of Florida early last year, sold products from Trip Assured, Vacation Protection Services, and Prime Travel Protection. The fact that they did this has been investigated and proven. Anthony Tomaselli wrote:
“Did any of these travel agencies sell this type of illegal insurance from more than one company? The posts are confusing and I’m getting into this in the “late innings”. From what I am reading some travel agencies jumped to a second illegal company to sell for after the first was closed. Is this accurate?”

Yes, they did. Palm Coast Travel, Best Price Cruises, and Legendary Journeys, the three companies warned by the State of Florida early last year, sold products from Trip Assured, Vacation Protection Services, and Prime Travel Protection. The fact that they did this has been investigated and proven.

]]> By: Harry Baxter http://www.elliott.org/blog/palm-coast-travel-sues-a-customer-and-me/comment-page-3/#comment-32025 Harry Baxter Mon, 01 Feb 2010 11:49:25 +0000 http://www.elliott.org/?p=10405#comment-32025 After I posted yesterday and used the word "felony", it occurred to me that I should provide supporting information to support such a claim. This is, I believe, enough supporting information. In the warning sent to Mr. Smolinski on March 11, 2009, Alex Sink, State of Florida CFO, cites violations of Florida Statute 624.401 by Mr. Smolinski and Palm Coast Travel. Here's what this Statute says: 624.401 Certificate of authority required.-- (1) No person shall act as an insurer, and no insurer or its agents, attorneys, subscribers, or representatives shall directly or indirectly transact insurance, in this state except as authorized by a subsisting certificate of authority issued to the insurer by the office, except as to such transactions as are expressly otherwise provided for in this code. (4)(a) Any person who acts as an insurer, transacts insurance, or otherwise engages in insurance activities in this state without a certificate of authority 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. (b) However, any person acting as an insurer without a valid certificate of authority who violates this section commits insurance fraud, punishable as provided in this paragraph. If the amount of any insurance premium collected with respect to any violation of this section: 3. Is $100,000 or more, the offender commits a felony of the first degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084, and the offender shall be sentenced to a minimum term of imprisonment of 2 years. When this warning was issued, Lee Smolinski did not have a "Certificate of Authority" (Insurance Agent's License). After receiving the warning, and after the demise of Prime Travel Protection, Smolinski signed a deal to sell Access America insurance. Access America is a legal insurance product. He continued to sell this insurance until the present time. However, he didn't obtain an Insurance Agent's license until January of 2010, which means that he violated the Statute for ten months. Smolinski has stated in the past that in a twelve month period, he sold approximately 50,000 PTP policies. Let's assume, then, that in ten months, from March 2009 through January 2010, he sold 41,600 Access America policies. Using an average policy cost of $500 and an average commission to Palm Coast Travel of 5.0% (I'm being VERY conservative), Palm Coast Travel would have received commissions of $1,040,000 in the ten month period. Please reread the section on Penalties, and then decide for yourself whether or not Mr. Smolinski continued to violate Florida Statute Section 624.401 after he was warned. After I posted yesterday and used the word “felony”, it occurred to me that I should provide supporting information to support such a claim. This is, I believe, enough supporting information.

In the warning sent to Mr. Smolinski on March 11, 2009, Alex Sink, State of Florida CFO, cites violations of Florida Statute 624.401 by Mr. Smolinski and Palm Coast Travel. Here’s what this Statute says:

624.401 Certificate of authority required.–
(1) No person shall act as an insurer, and no insurer or its agents, attorneys, subscribers, or representatives shall directly or indirectly transact insurance, in this state except as authorized by a subsisting certificate of authority issued to the insurer by the office, except as to such transactions as are expressly otherwise provided for in this code.

(4)(a) Any person who acts as an insurer, transacts insurance, or otherwise engages in insurance activities in this state without a certificate of authority 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.

(b) However, any person acting as an insurer without a valid certificate of authority who violates this section commits insurance fraud, punishable as provided in this paragraph. If the amount of any insurance premium collected with respect to any violation of this section:

3. Is $100,000 or more, the offender commits a felony of the first degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084, and the offender shall be sentenced to a minimum term of imprisonment of 2 years.

When this warning was issued, Lee Smolinski did not have a “Certificate of Authority” (Insurance Agent’s License). After receiving the warning, and after the demise of Prime Travel Protection, Smolinski signed a deal to sell Access America insurance. Access America is a legal insurance product. He continued to sell this insurance until the present time. However, he didn’t obtain an Insurance Agent’s license until January of 2010, which means that he violated the Statute for ten months.

Smolinski has stated in the past that in a twelve month period, he sold approximately 50,000 PTP policies. Let’s assume, then, that in ten months, from March 2009 through January 2010, he sold 41,600 Access America policies. Using an average policy cost of $500 and an average commission to Palm Coast Travel of 5.0% (I’m being VERY conservative), Palm Coast Travel would have received commissions of $1,040,000 in the ten month period.
Please reread the section on Penalties, and then decide for yourself whether or not Mr. Smolinski continued to violate Florida Statute Section 624.401 after he was warned.

]]> By: Anthony Tomaselli http://www.elliott.org/blog/palm-coast-travel-sues-a-customer-and-me/comment-page-3/#comment-31989 Anthony Tomaselli Mon, 01 Feb 2010 03:19:17 +0000 http://www.elliott.org/?p=10405#comment-31989 Did any of these travel agencies sell this type of illegal insurance from more than one company? The posts are confusing and I'm getting into this in the "late innings". From what I am reading some travel agencies jumped to a second illegal company to sell for after the first was closed. Is this accurate? Did any of these travel agencies sell this type of illegal insurance from more than one company? The posts are confusing and I’m getting into this in the “late innings”. From what I am reading some travel agencies jumped to a second illegal company to sell for after the first was closed. Is this accurate?

]]> By: Harry Baxter http://www.elliott.org/blog/palm-coast-travel-sues-a-customer-and-me/comment-page-3/#comment-31922 Harry Baxter Sun, 31 Jan 2010 15:43:50 +0000 http://www.elliott.org/?p=10405#comment-31922 I'm certainly not a legal expert, Cliff, but my understanding, from the exlanation given by Chris Elliott at the beginning of this blog (see above) is that he correctly quoted a Spokesperson, Nina Banister, of the Department of Financial Service, who said that her organization had ordered the agencies, including Palm Coast Travel, to stop selling the crap that they were selling (Prime Travel Protection)....and she was wrong. Nevertheless, Lee Smolinski sued Chris because Nina erred. I've seen Cease & Desist Orders, and FL didn't issue one in this case. However, there's no mistaking the fact that Florida intended to issue one (see press release) if the practice continued. This was a mistake on their part, in my opinion. Had they done what they should have done, they would have recognized that Palm Coast Travel and others had sold that garbage FOR SIX YEARS, and immediately penalized them. They probably rationalized that by early Spring, PTP and Jerry Watson were already exposed and nonfunctional, so a "slap on the wrist" was appropriate. It obviously wasn't. I'd also like to point out that Smolinski, after this notification, began to sell real travel insurance (only because he couldn't find another scam insurance vendor), without a insurance agent's license (He obtained one this month), and that action is still a felony. I’m certainly not a legal expert, Cliff, but my understanding, from the exlanation given by Chris Elliott at the beginning of this blog (see above) is that he correctly quoted a Spokesperson, Nina Banister, of the Department of Financial Service, who said that her organization had ordered the agencies, including Palm Coast Travel, to stop selling the crap that they were selling (Prime Travel Protection)….and she was wrong. Nevertheless, Lee Smolinski sued Chris because Nina erred. I’ve seen Cease & Desist Orders, and FL didn’t issue one in this case. However, there’s no mistaking the fact that Florida intended to issue one (see press release) if the practice continued. This was a mistake on their part, in my opinion. Had they done what they should have done, they would have recognized that Palm Coast Travel and others had sold that garbage FOR SIX YEARS, and immediately penalized them.
They probably rationalized that by early Spring, PTP and Jerry Watson were already exposed and nonfunctional, so a “slap on the wrist” was appropriate. It obviously wasn’t.
I’d also like to point out that Smolinski, after this notification, began to sell real travel insurance (only because he couldn’t find another scam insurance vendor), without a insurance agent’s license (He obtained one this month), and that action is still a felony.

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