The Prime Travel Protection Services mystery is solved
So who is Prime Travel Protection Services?
I asked that question yesterday after one reader lost two cruise vacations when his insurance claim wasn’t honored by the company. Specifically, he alleged that Prime Travel Protection Services, Travelers Protection Services, Vacation Protection Services and Trip Assured, are one and the same. This morning I got a call from Jerry Watson, the president of Prime Travel Protection, with the answer.
The four businesses appear to have at least one thing in common: him. “I was involved with all those companies,” he said.
Watson sold policies for Trip Assured and was a partner with Vacation Protection Services. After that company closed, he was a partner in Travelers Protection Services, but when he discovered what he calls “irregularities” with payouts, he quit to start a new business, Prime Travel Protection Services.
Earlier this year, when Travelers Protection Services ran into what he describes as “financial problems,” he acquired its assets.
“What I’m doing now, I think, is right,” he adds.
And what is Watson doing? The reason he acquired Travelers Protection Services was to protect the agents who had sold his former company’s travel protection products and, ultimately, to process the claims that had been made against it, he says.
He estimates there are currently 250 outstanding claims out of 60,000 policies underwritten by Travelers Protection Services. They could cost his company anywhere from $300,000 to $600,000.
I asked Watson if the products sold by his company as well as its predecessors, were insurance. “It’s not an insurance product,” he told me. For that reason, he said, it does not need to be registered as a licensed seller of insurance in Colorado. Technically, Prime Travel Protection Services insures itself, although it has business insurance that would take care of some of its outstanding claims if it were to go belly-up.
All of which brings us to the case of Paul Donahue. Here’s what he had to say about his grievances.
There were two claims from Mr. Donahue — one in February and one in April. We reviewed the medical records with a physician, and determined that he would have been able to travel. The conditions weren’t disabling. That’s what we based our denial on.
It would have been nice to tell Donahue of the formal denial. He’s still under the impression that his claims weren’t processed at all. But Watson says both the travel agent and the customer bear some responsibility for this misunderstanding.
People often don’t read the contract. We try to do everything we can to let them look at the policies, including giving them a free 10-day look. They can get a refund anytime before that 10 days. In a lot of cases, the agencies don’t understand what we’re selling.
Maybe this is one of those times. A traveler who though he was insured, but wasn’t. A travel agent who sold travel protection without fully understanding what it could — and couldn’t — do. And a travel protection company that, by its own admission, could have been clearer about its product.
You may also be interested in these articles
Comments
32 Responses to “The Prime Travel Protection Services mystery is solved”
Please share your thoughts...
Hmmmm. If it walks like a scam, looks like a scam and quacks like a scam, it’s well, you know…a duck. I need to go fill up on suspension of disbelief. Mine just ran out.
So the people reviewing these medical claims are physicians, right? Otherwise, it seems like these agents are taking their ‘trained’ medical opinion and over-riding the real trained physician, who had filled in the required paperwork. I can’t see how that would work. Is that even legal? Well, to be fair, I can’t believe this whole company is legal, so I am obviously not an expert on this…
Like Chicky said, I hear a quack coming from this company.
There is a reason why people don’t read the paper work they sign. People assume (usually falsely) that the promises that were made to them about the product *in plain English* are to be found back in the small print which is written in a different language: Legalspeak.
The problem is that very few people speak this language. In fact, speaking that language comes with the magic power of charging people at least $250 an hour to do translations.
So a person thought he bought travel insurance from a company, but ends up that the company doesn’t sell insurance products. I’m no expert, and I understand there are lots of shades of gray… but this sounds like a scam to me.
With all due respect, Chris, it sounds as bad as the Nigerian “help me transfer money” scam. When this scam works on a naive individual, it’s usually followed by another contact, where the latest scammer contacts the individual, poses as an FBI Agent, and pledges to help the person get his lost money back. After a couple of phone calls, though, he gets the person to send him some money to cover expenses, or uses some other dishonest method to get what is left, if anything, from the first scam.
No honest travel insurance company would dare to question the ability of a legitimate MD to decide when a patient of his can, or can’t travel. As a worst case, the insurance company might request binding arbitration, but Prime doesn’t seem to see any need for this, because they knw best. Even Trip Assured was smart enough to require more and more proofs of illness from the insured, until the individual gives up.
Early this year, I was diagnosed with an illness that required radiation treatment over a three month period. I had already booked a two week trip to Ireland, starting in June. The radiation treatment was scheduled for completion one week before the scheduled start of my trip. Fortunately, I had obtained insurance from a legitimate insurance company, through insuremytrip.com, a company that thousands of travelers use. Insuremytrip.com would not think of listing a company like Trip Assured, or what appears to be a clone of Trip Assured.
All that was required to have my insurance claim processed was to have my MD write a letter which was half a page long, detailing the medical findings, treatment plan, and why travel wasn’t recommended, because of radiation side effects. Much to my surprise, the claim was paid in full within three weeks. My experience with Trip Assured in 2004 was, to say the least, not a pleasant experience.
As Chicky said in a previous post, this new company certainly walks like a scam and talks like a scam. The company CEO appears to be dishing the same kind of bull that the CEO of Trip Assured used to dish to travel writers, State and Federal regulators, and Lawyers representing aggrieved clients. I wouldn’t let this comany off the hook this easily.
Mr. Donahue needs to file a complaint with the Attorney General’s office in his state as well as the state’s insurance commissioner. Over $300 and it’s not insurance? Please. The guy appears to be selling insurance without a license. Even if it’s not insurance, Mr. Donahue’s state may still regulate these types of products.
Secondly, quite often a non-physician makes medical decisions on claims. It’s wrong and won’t hold up in front of a judge. If the AG or Insurance Commissioner won’t do anything about this, it’s time for small claims court or justice court depending on the amount involved. If this is a justice court matter, Mr. Donahue should get an attorney. He can receive his attorneys’ fees if he prevails (which if the medical evidence is as he says it is, he should).
Of course, collecting a judgment will be difficult. This guy seems to be nothing but a scam artist, IMO. He likely closes companies and opens new ones with the same officers to avoid liability. This is why an attorney may be helpful–to try to pierce the corporate veil and go after him personally and attach his home and bank accounts, etc. if warranted. Someone really needs to investigate whether criminal charges are warranted, not just civil liability.
How is this not insurance exactly? I understand there are some ‘insurance’ products that don’t actually qualify as such.. say wedding day rain ‘insurance’. Not really insurance, more of a lottery.
But how is THIS not insurance? You pay a charge (premium), in order to be financially made whole in the case of a loss. You’re not paid according to a scheduled chart.. but ACTUAL amount of loss. Screams INSURANCE without a license.
It’s even sold by AGENTS!
I’d complain to the Department(s) of Insurance for both my state of residence as well as the State of Colorado. This is ridiculous.. and a fraud.
Nearly every state requires that in order to sell insurance, Agents and companies must prove that they’re financially stable. They must prove that they’re backed by responsible underwriters. They are also subject to strong regulation by the states in order to prevent fraud. Trip Assured tried to insist that they couldn’t be regulated by the state because they weren’t selling insurance. They were wrong.
Legendary Journeys and it’s partner, Prime Travel Protection Services have a serious problem. Legendary Journey’s website, http://www.GoLJ.com, states that they sell travel insurance, and when I clicked on the link, the next page of information was labeled “travel insurance” I’ve made screen copies of both. The problem that the two companies have is that either Legendary Journeys was sold a bill of goods, based on higher commissions by Prime, who told you that they were licensed to sell travel insurance. Obviously, they’re not licensed to sell travel insurance. Mr. Jerry Watson (See column by Chris Elliott) stated this fact to Chris Elliott on August 27 during a phone call. If this is the case, Legendary Journeys should sue Prime for fraud, because Prime was putting Legendary Journey’s company at risk. The other option, of course, is that Legendary Journeys was aware that they were not licensed to sell travel insurance, but they decided to sell Prime’s product as insurance anyway, to increase their company’s profits. There are no other options. This misrepresentation led to the demise of Trip Assured, after seven states issued “Cease and Desist” orders against them, all major cards refused to deal with them, and they became defendants in a huge class action suit.
There isn’t much doubt that the customer was defrauded, regardless of the merits of his claim for compensation. The only matter that has to be settled is whether he, and many other customers, were defrauded by Legendary Journeys, Prime, or both.
Chris, your inexplicable refusal to call this obvious rip-off scam a scam has really hurt your credibility.
Ouch! If you read both posts, it’s pretty clear that something is not right with this picture. Also, please see the tags on this story.
If they aren’t selling insurance, what are they selling?
They’re selling a fantasy that they can provide a product at much less than the going price. They convince people that they must be brilliant, because they saved more money than their friends. As long as you don’t have a claim, you’ve saved a few bucks. I fell for it once, four years ago, when I was enticed by Trip Assured’s low price. With sufficient persistence, I finally got my claim paid, but it took a lot of work and a lot of heartache. There’s more than one sucker born every minute. Barnum was modest.
Perhaps they are selling delicious cherry pies? No? Awww :-(
“When is insurance not insurance?” Sounds like a hear a sad punchline coming…
In Chris’s defense, I think he has to be careful with what he writes. For him to categorically state “This product is insurance, regardless of what the vendor says, and he admits he’s not licensed to sell insurance” would open him to charges of libel.
I don’t think he’s defending this company or individual at all - merely reporting on what the guy is saying. Seems to me the guy is making a pretty good case all on his own for being investigated by regulators.
There are three issues regarding this matter. One deals with Legendary Journeys owner, Adrian “Al” Ferguson. Mr. Ferguson holds a license issued by the state of Florida (#D077968) allowing him to sell travel insurance. By selling this unlicensed product to Mr. Donohue it is possible Mr. Ferguson could be prosecuted for aiding and abetting an unauthorized insurer by the Florida Department of Financial Services.
The second issue is clear. Prime Travel Protection is not licensed to sell insurance and their product is not insurance according to owner, Jerry Watson as quoted on this website. While Mr. Watson may feel he can skirt the law, the regulations are clear…if the contract promises reimbursement for a loss, then it is considered insurance and would fall under the jurisdiction of Florida’s Office of Insurance Regulation.
The third issue deals with the fact that some of these transactions were probably conducted through the mail. If it is determined that clients were defrauded, the offense could constitute mail fraud and that is a federal crime. This would be under the jurisdiction of the U.S. Attorney for the Southern District of Florida based on the location of Legendary Journeys or the U.S. Attorney for the District of Colorado based on the location of Prime Travel Protection.
While the outcome is speculation at this point, the facts are public information. Consider the following:
Traveler Protection Services (formerly known as Vacation Protection Services) was ordered to cease from selling, soliciting and negotiating travel protection to Tennessee residents without a license or certificate of authority. The Insurance Commissioner found that “Respondent sold travel protection to Tennessee residents although it was not licensed, nor was it issued a certificate of authority, in accordance with the law”. The order #12.10-04240J was signed by the respondent – Jerry A. Watson. At the time, Traveler Protection Services was located in DeKalb, IL where it was incorporated on April 15, 2005. The prior company, Vacation Protection Services was located in Tennessee where it was originally incorporated on January 12, 2004. On February 19, 2007 Prime Travel Protection was incorporated in Colorado. The registered agent for Prime Travel Protection is listed as Christine Watson, Mr. Watson’s spouse.
What is this all about? Well, you be the judge. However, what it doesn’t have anything to do with is Mr. Donohue’s claim. This isn’t about Mr. Donohue being able to travel, or if his physician’s report contained enough information to support his claim. This is about what is legal and what is not legal. Mr. Ferguson needs to cut his relationship with Prime Travel Protection, pay Mr. Donohue what he is owed and hope these amends will keep the authorities off his back. For Mr. Watson…time will tell. After Tennessee, Illinois and Colorado there are still 47 states left, countless consumers who will still think they are buying insurance and plenty of travel agents to sell for him.
Kevin Morgan has a good point. When you’re posting a blog like Chris does, you do have to watch what you’re saying. You can say, “This isn’t right” or “The person said it was a scam” or “This doesn’t sound like the right thing to do.” These are all opinions about someone’s actions. He could say, “The Better Business Bureau has issued a bulletin about this company” or “The Attorney General’s office said this was a scam.” If HE says “This is a scam,” then he is indeed, liable for, well, libel. Slander, actually. Libel is when it’s a lie and you know it’s a lie (or are fairly sure it is), but printed it as truth. Slander can be true–but if it is deleterious to character or business, and it doesn’t come from an official source, it’s in shaky territory. Chris is subject to the same strictures as someone who writes for a newspaper or reports for a TV station. He does have more protection by saying something is his personal opinion, not an official “fact,” but he still has to be careful.
So, Chris did what a good journalist does. He printed Mr. Donohue’s side of the story and said he was willing to talk to someone from Prime Travel. He spoke to Mr. Watson and printed his response, giving him a chance to defend his company. We, the readers, can then look at the facts we are given and make our own determinations about where the truth lies.
Travel Insurance is NOT insurance. It is not regulated. It is not licensed. It is not admitted and it is not guaranteed. It is a ponzi scheme whereby the cost to pay off people with claims comes from people who pay premiums later.
The cruise selling this stuff as insurance bear alot of the potential advertising liability here . . . .
Mr. Watson: “it’s not an insurance product”
State of Florida:
Statute 624.02 “Insurance” defined.–”Insurance” is a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies.
This looks like fraud on the part of Prime Travel Protection and misrepresentation on the part of Legendary Journeys.
Upon conducting my own research based on the details presented previously, I have sent the following information to Barry Lanier, Chief of the Bureau of Investigation for the Florida Department of Financial Services. The information below is an excerpt of what was provided to Mr. Lanier.
Florida public records confirm that Adrian L. Ferguson of Legendary Journeys in Sarasota possesses a valid insurance license - #D077968 – with expiration date 6/30/10. This license allows him to sell travel travel insurance….
The company’s client, Paul E. Donohue, a Florida resident was sold a trip protection contract by Legendary Journeys of Sarasota, FL issued by Prime Travel Protection of Arvada, CO. The contract appears to meet the statutory definition of insurance as defined in Florida statute 624.02…
Florida public records show no listing for a valid insurance license for Prime Travel Protection or a certificate of authority. The company’s owner, Jerry Watson was quoted by the media (see Elliott.org on August 27, 2008) that his product is not insurance. Mr. Watson was listed as the respondent for two companies – Traveler Protection Services formerly known as Vacation Protection Services in a cease and desist order (12.01-04240J) issued by the state of Tennessee. It was concluded by Tennessee’s insurance commissioner that the products being sold by Mr. Watson’s companies constituted contracts of insurance and therefore fell under the insurance laws of the state of Tennessee…
Because Mr. Donohue was sold this contract (which appears to meet the definition of insurance as defined by Florida law) by Legendary Journeys, I believe it falls within statute 626.901 (1) (a-h) – “Representing or aiding unauthorized insurer prohibited”…
Under section 626.901 (2) Legendary Journeys would be liable to pay Mr. Donohue’s claim. It appears they refuse to address the real issue of their representing an unauthorized user and are focused on the minutia of Mr. Donohue’s claim which is irrelevant. Lastly, section 626.902 addresses the penalties for this violation. Because Mr. Ferguson is a licensed agent he would fall under 626.902 (1) (a) and the penalty for aiding an unauthorized insurer would be a penalty of the third degree…imprisonment up to five years.
I am also forwarding the information presented to you to Mr. Troy Eid, U.S. Attorney for the District of Colorado and Mr. R. Alexander Acosta, U.S. Attorney for the Southern District of Florida. In my view, because some of these transactions may have been conducted through the United States Postal Service there could be grounds for federal prosecution based on 18 U.S.C. 1341…
The following is directly from Prime Travel Protection, Inc website-http://www.ptprotection.us/–on their home page “Unfortunately, bad things happen. Usually when we least expect them, which is why it’s important to protect yourself from the unknown. For a small investment, you can insure your travel plans against the worst, so you can fully enjoy that dream vacation worry-free, with complete Peace of Mind. Prime Travel Protection offers coverages geared to your specific needs.”
Wow, if that doesn’t scream INSURANCE, what does? Regardless of technical definition of inurance when it comes to regulations, Prime Travel Protection is marketing its products as inurance.
Chris-You have hit the nail right on the head. I have been scammed big time by Watson and friends. On both these trip cancellations my wife was unexpectantly physically not capable to take any of these trips. We had our physician completely fill out and sign the medical forms sent with my claims. Jerry Watson has obviously set himself up as GOD and has determined my physician is wrong. Watson has set himself up in various states and denied thousands of claims just like mine.His method is to wear the complaintant down and drop the whole thing. Further more on the web site of legendary Journeys - click on their “INSURANCE” box–everything right there–site claims its best to take out this insurance-it also says if you buy the “insurance” at the time of the first deposit on the trip any preexisting conditions are waived. There were no preexisting conditions but had there been they would been waived. I am out of pocket about $1,250.- on one trip-and the one with Legendary $5,878.-. I also will state that I am retired going on 78 years old and about at the bottom of our savings!! I really got taken to the cleaners here, and the people involved in the scam could care less. I thank you for making my problems be known to the public. Its a good thing there are people like yourself who can expose things like this so the whole world can see . Thanks Chris. Paul E. Donohue
Mr. Donahue, I urge you to find out what Senior Citizen legal aid is available to you in your county as well as follow up on some of the other suggestions written here. In my county, we have attorneys who are available for free consultation to seniors, no matter what income level. You may have the same kind of thing available to you.
At least send a letter to your Attorney General’s office. $7,000 is a lot of money. No agency wants to hear of a senior citizen potentially bilked out of this kind of money.
This guy needs to be stopped and he can only be stopped if a victim stands up to him.
Regarding the comments made against my company, Prime Travel Protection and myself, I felt that it was necessary to respond to these accusations and offer some clarification from my perspective.
Prime Travel Protection assumed the claims liabilities of Traveler Protection Services and subsequently assigned this responsibility to Universal Assurance Group to administrate the servicing of their claims. This assumption of liability was put in place in order to protect the rights of the consumers who had purchased the service contract of Traveler Protection Services.
Claims are processed based on the terms and conditions of our service contract, of which is provided to every client that purchases our plan.
Sometimes claims are denied (less than 10%) based on the information provided and compliance with the terms and conditions of the contract. Some claimants take issue with these decisions and prefer to voice their opinions in a public venue rather than to go to Arbitration or to settle in a court of law.
In the case of Mr. Donohue, the travel agency and our company gave him the opportunity to resolve his issue by having 2 other travel protection providers review his claim and if they stated that they would have paid his claim, then we would pay him as requested. He chose not to accept this offer.
Prime Travel Protection, Inc. offers a similar travel protection service contract and is underwritten by an A rated (AM Best) company, licensed to conduct business in all 50 states.
Furthermore, I was never an owner of Trip Assured as stated.
Jerry Watson, President of Prime Travel Protection, Inc.
Nice try, Jerry. Would you also be willing to state that you never worked for McKinley Johnson, the infamous CEO of Trip Assured in Crossville, TN, and that even the “Travel Protection” package that your latest company offers is just about word-for-word identical to that used by Trip Assured?
Would you also comment on the Cease-and-Desist order issued by the State of Tennessee, which you signed? How about some comments on the other states that are pursuing investigations against your company? You’ve been running your business in three states recently. Only 47 more states to go in order to keep ahead of the posse!
I am a victim of the Watson fraud. I suffered from a concussion after falling and slamming my head on a table. My doctor said that I should cancel my travel plans adding that if I were to travel it would be in a wheelchair. Watson’s policy states (under his heading “PLEASE READ THIS CAREFULLY”) “Once advised by your physician to cancel your travel plans, you must do so even if you think you will recover in time to travel as scheduled.” His employee told me to cancel. So I did. He tried many ways to deny my claim including a failure to notify him within 72 hours. All failed. Now he says he is denying my claim because the doctor did not mention the wheelchair. Of course, as he told me NOT to travel, I did NOT need a wheelchair to convalesce in my home. Do you think what he calls “medical professionals” are doctors? Of course not. If they were he would call them that. He denied receiving a letter until I had their signed receipt. Get “60 Minutes” on him. Never comes to the phone. Never returns calls.
One employee told me, “I may tell him you called and I may not.” Moved twice in the 9 months I have been dealing with him. Changed names at least that many times. This guy is a real loser. Get some consumer advocate to represent all of us. By the way, I read every word of his policy.
If you are interested in reading more about Watson, go to World Vacation Network, Inc.
This is what he seems to be doing with everyones claims he doesnt pay. I found this from World Vacation Network. Its his home address I am guessing. I didnt check public records.
http://www.zillow.com/homedetails/4220-NE-27th-Ave-Lighthouse-Point-FL-33064/42933292_zpid
Has anyone on here received payment on their claims yet?
can you delete the last comment i made. i beleive it is incorrect. thank you
The rascal Jerry Watson has denied a claim for me on a technicality. My wife had been prescribed ambien, for better sleep and a tiny dose of of a muscle relaxant for calmness. Thus, according to Jerry Watson, she had depression and was unable to travel on the day she booked (she played tennis that day!). This he claims trumps the pre health condition waiver clause.
Mr Watson’s new company is Prime Travel Protection Inc a few rooms from Prime Travel Protection Services in Arvada, CO. http://www.ptprotection.us
On the site he claims Ciela Capital Insurance Company Ltd are the underwriters and graded A- by A.M. Best. Ciela is non existant as far as I can tell. A.M. Best say they only grade insurance companies after stringent inspection and they have no record of any PTP or its predicessors nor of CIELA.
Watson previously claimed Access America were their underwriters but AA are insurers, not underwriters and have no record of PTP.
Watson claims to be a member of CLIA (Cruise Lines International Association Inc) but they have no record of PTP.
My travel agent, another Florida firm, Smartcruiser.com also called Palm Coast Travel and Smart Travel Group Ltd have ignored my demand letter and request for reimbursement . Smartcruiser document that they were providing INSURANCE coverage through Access America - somewhere down the line 10 months later a policy arrived from PTP. The 10 day review clause had expired 4 months earlier.
PTP, at the very least, are misrepresenting a product which fits the legal definition of insurance and claiming association with enterprises they do not have. Smartcruiser, if legitimate, should have known of all the mistruths and misrepresntations of PTP.
Action has been taken against both companies :-
Florida, California and Colorado Attorney Generals and each state insurance commissioner has received a detailed documented complaint.
I have reported both companies for mail fraud to the USPS Investigators.
Complaints have been filed with BBB.
Service in small claims court in CA, CO. and FL are underway.
A federal suit is being discussed with attorneys.
I am willing to direct a campaign which has been mapped out but remains under wraps so “you know who” will not know details.
I need contact with everybody involved with any of the PTP group’s misrepresentations or denied claims so that we may impliment a coordinated campaign and possibly get a class action suit underway.
I will need to have volunteers who are computer savvy to keep our records and deal with communication.
I am not a Lawyer nor do I have any financial interest except to retrieve my claim.
Altough stupid enough to get involved with PTP I do have a little experience: I was involved in a Nigerian scam (no, not the usual and obvious) this guy scammed my stockbrocker into wiring funds to him. I discovered, in two months, his name aliases, address in Nigeria, names of businesses used in Nigeria, Tiawan and Hong Kong. His bank account number in Lagos and his office in London. The FBI, MI5, Interpol and the Nigerian task force accomplished - nada. I sued the broker and, against all odds, received full refunding, 10 percent interest and ALL attorney fees ($190,000)
Please Mr Watson do not underestimate me or those kind people who have contributed to this forum .
Please contact via Chris Elliott’s site if he agrees.
Arthur
this is actually his home address - protected by a trust - color me shocked - NOT
http://www.co.jefferson.co.us/ats/displaygeneral.do?sch=403456&offset=1
Christine is also the Resident Agent listed with the Colorado Dept of State for Prime Travel Protection.
As it turns out, Cruise Value Center, a very large seller of cruises, closed down abruptly this week, leaving countless customers in the lurch. many of them were surprised, to say the least, to find that their final payments had not been forwarded to the cruiseline. Cruise Value Center also provided their customers, at additional cost, with Prime Travel Protection “insurance”.
Birds of a feather…….
AR and Harry
I have Googled Watsons house and it looks good. It seems there are many more travel agencies involved. My agent, I found, has 9 different names operating from the same address. It apears, in my humble opinion, that a nationwide scam or scams are in operation.
As I mentioned previously information is wonderful and appreciated , but, “where is the money”. Please volunteer your help everybody so we bring these people to justice.
Arthur