Florida’s Department of Financial Services is in the early stages of a far-reaching investigation into the activities of Palm Coast Travel and its affiliated companies, according to documents released this week under the state’s Public Records Act.
The documents also raise new questions about the relationship between Access America, the largest travel insurance company in the world, and Palm Coast Travel, which also does business online as Smartcruiser.com.
In a prepared statement, Access America yesterday suggested its current and future relationship with Palm Coast, which is accused of selling unlicensed insurance, is an internal matter.
“Thus far we have been contacted by both customers identified in the Florida investigation and we are working to resolve each matter appropriately,” a spokesman said. “Access America will continue to take steps consistent with providing ongoing care for its customers.”
(Palm Coast Travel is suing one of its customers and me in an apparent attempt to stop us from writing about the company.)
The records, which were released under Section 119.07(2)(a) of the Florida Statutes, indicate Palm Coast Travel told customers they were Access America policyholders, when, in fact, they were probably not.
One email sent to customer Nancy Swinney from a Smartcruiser agent confirms her insurance policy as “AccessAmerica Insurance.” However, in new charges filed earlier this month against Palm Coast Travel by Florida regulators, the state charges that, “subsequent to [her] scheduled trip, her travel insurance was transferred from AccessAmerica to Prime Travel Protection, Inc.”
Prime Travel Protection closed last year amid charges it was offering unlicensed insurance products.
Another email, sent to customer Peter Lay, confirms his policy as “insurance provided by Access America.” The state alleges that “subsequent to the rescheduling of [his] trip, his travel insurance was transferred from AccessAmerica to Smart Travel Insurance and/or Prime Travel Protection, Inc.” (Lay is being sued by Palm Coast Travel.)
If Florida’s allegations are true — if consumers were told that they had an Access America policy when they did not — then Palm Coast Travel’s actions would be considered false advertising and misrepresentation under Section 626.951(1)(a), (b) and (e) of the Florida Statutes.
The corresponding penalty would be in accordance with Section 626.9521 of the Florida Statutes, which could include a $5,000 fine for each count of non-willful misrepresentation with a cap of $20,000 and a fine of up to $40,000 for willful conduct with a cap of $200,000, along with a revocation or suspension of its license.
As I mentioned in an earlier post, Florida’s actions are the least of Palm Coast Travel’s worries, for now. You really don’t want to get on the wrong side of Access America, the largest travel insurance provider in the world.
Access America wouldn’t comment on the record about its current or future relationship with Palm Coast Travel and Smartcruiser. It would not say on the record whether it will continue to do business with the agency.
It doesn’t have to. Under Florida law, an insurance company must give a 60-day termination notice. So check Smartcruiser.com in 60 days to see if it’s still selling Access America products.
(Photo of a beautiful origami, which may or may not be made out of Prime Travel Protection policies, by DougitDesign.com / Doug Aghassi)
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{ 10 comments… read them below or add one }
So glad you’re hanging in there with this story, in spite of their attempts to silence you. Can’t wait for the next chapter.
Keep up the great work, Chris. Don’t let them bully you and keep reporting the truth. I perused the Smartcruiser.com website this morning and there is no link for insurance. Last week I checked and there was a link toward the bottom of the page titled “insurance” that directed you to information about Access America. Maybe Access America has already severed ties with Smartcruiser. Can anyone confirm this?
I wonder if this is true, will any other insurance company work with Smartcruiser in the future? What started all of this? If I remember it was a claim for a few thousand dollars! This situation would make a great case study for a business school textbook.
If SmartCruiser / Palm Coast Travel sold customers an Access America Policy, yet neglected to actually get one, that isn’t just false advertising; it’s plain, old-fashioned fraud, and much more serious.
False advertising would be selling Access America as available in ads, but not making it available for purchase, but a travel invoice (or booking confirmation) isn’t an ad, it’s a contract. Not providing customers what you have explicitly confirmed they paid for is fraud.
I contacted AccessAmerica and sent them links to the Elliot post and the case document so they could see that in 2 cases Palm Coast “sold” AA to their clients but actually provided them with PTP, an unlicensed (in Fla.) product. They responded that they were aware of this situation and were investigating further.
@Christopher – I appreciate the little note at the bottom explaining the point of the graphic. I was wracking my brain trying to figure out the connection, until I spotted that. NOW I get it!
The “sinking ship” ones were hilarious…and a little more straighforward. This one was a bit more obsure, but just as fun. Can’t wait to see what graphic you choose for the NEXT Palm Coast Travel article! (Which I’m sure will be coming soon. BOY I’ll bet they’re sorry they sued you!)
Hmmm…how can you photographically depict a total, irreversible implosion? ;-)
Access America must have already responded. I see no information regarding insurance on Smartcruiser.com’s website.
@LeeAnne…click on my name and you will get a preview of the art work for a suggested graphic for the next Palm Coast article.
@Marcia – ROFL! Thanks for the laugh!
@Christopher – you might want to check out Marcia’s name for a great idea for a future Palm Coast article…hopefully in the VERY near future!
Hmmm…how can you photographically depict a total, irreversible implosion? ;-)
Would a mushroom cloud work?
Some states have laws prohibiting SLAPP (strategic lawsuit against public participation) suits – litigation intended to stifle criticism by forcing respondents to endure the expense of defending their speech. Is Florida one of those?
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