The state of Florida notified three large travel agencies earlier this week that insurance offered by Prime Travel Protection might be illegal. What does its actions mean for agencies and their customers, particularly those with policies underwritten by Prime Travel Protection and other companies owned by Jerry Watson? For an insider’s view, I turned to Al Ferguson, a vice president at Legendary Journeys, one of the agencies named in the orders.
PRIME TRAVEL PROTECTION
Florida has warned three travel agencies that sold insurance policies offered by bankrupt Prime Travel Protection Services of Arvada, Colo., that its activities may run afoul of state 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.
We’ve already heard from Prime Travel Protection’s customers and from the agents who sold its policies. But other than a form letter from its trustee, the company and its president, Jerry Watson, have remained silent. Until now.
Authorities in two states appear poised to take enforcement action against Prime Travel Protection and travel agents who sold its policies. “There’s an ongoing investigation,” says Chris Lines, a legislative liaison for Colorado’s regulatory agencies. “We expect it will come to a head in a matter of weeks.”
A trustee for bankrupt Prime Travel Protection, which sold what Florida investigators say was illegal insurance through a network of travel agencies, has promised to pay claims “to the greatest possible” over a three-year period.
Kay Schroll says she lost $6,820 — the price of two cruises — when she bought travel insurance through Legendary Journeys, but then had to cancel her vacations for health reasons. Her case is just one of many that have landed on my desk since the bankruptcy of Prime Travel Protection, the Colorado company that offered these unlicensed policies.
Florida’s Department of Financial Services has confirmed it is investigating travel agencies that sold insurance underwritten by Prime Travel Protection, a Colorado company that filed for bankruptcy protection last month and left thousands of travelers uninsured.
Virginia Hamlin is upset. A year ago she booked a Panama Canal through Legendary Journeys, a travel agency based in Sarasota, Fla. At the time she was offered a $177 “travel insurance” policy through Travel Protection Services.
Elliott is consumer advocate 
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