Florida Chief Financial Officer Alex Sink announced she wouldsuspend the license of new startup home insurer Peoples Trust forusing call center personnel who were not licensed to sellinsurance, a move drawing an angry response from the company.

Mike Gold, Peoples chief executive officer, said his firm beganselling insurance using non-agents after getting clearance from Ms.Sink's Department of Financial Services, and her move came afterpressure from an agents group that contributed to her campaign.

Ms. Sink yesterday issued an order to show cause notifyingPeoples if allegations of unlicensed sales are proven she "intendsto enter an order suspending or revoking [the company's] licensesand eligibility for licensure as a managing general agent,requiring you to cease and desist from transacting insurancethrough unlicensed employee practices, or to impose such penaltiesas may be provided..." under law.

CFO Sink in her announcement said the investigation revealedthat People's Trust MGA has allowed unlicensed agents to transactinsurance, committing numerous violations of the Florida InsuranceCode.

"People's Trust MGA is violating the people's trust by illegallyallowing unlicensed agents to sell insurance in our state," herstatement said, adding that she has called on Florida InsuranceCommissioner Kevin McCarty--who has primary responsibility forregulation, compliance and enforcement of statutes related tolicensed insurers and the monitoring of insurer market conduct--tolook into the matter.

She hopes Mr. McCarty will"take action regarding this blatantviolation."

Mr. McCarty's office said it would review documents she hadprovided "along with the evidence the office has gathered duringits comprehensive, ongoing investigation concerning People's TrustInsurance Company's compliance with the insurance code."

People's Trust is fully cooperating with the office to ensurecompliance with Florida statutes, Mr. McCarty's office said.

Mr. Gold said before his company obtained its license, he andhis attorney met with Hazel Muhammad, chief of the bureau oflicensing, in Ms. Sink's office and explained he would be sellinginsurance over the Internet with forms that consumers could fillout and a frequently asked questions section providing details.

His call center people, he said, would do no more than read whatwas on the Web site. He said Ms. Muhammad agreed the arrangementwas acceptable; however, a formal approval would take months, buthe could have his attorney draw up an account of the meeting andsend it to her. Mr. Gold said this was done Dec. 4, 2007 and thathis firm asked to be notified if there were any questions about itsinterpretations of what transpired.

Mr. Gold said on March 6, 2008 his operation was certified andby October was "writing thousands and thousands of policies." Hesaid his success angered agents with rival insurers who weregetting cancellations.

A complaint against him was filed by the Florida Association ofInsurance Agents, which yesterday announced its "appreciation" forCFO Sink's action.

"We are confident her actions have put a stop to further harmand we await similar results from the OIR regarding the numerousmarket conduct and Unfair Trade Practice allegations of People'sTrust Insurance Company," the group announced.

Mr. Gold said that he had been visited by agents from both theOIR and CFO's office and had shown them how his operation worked.He said he has now obtained licenses for most of his employees, andtwo weeks ago had license training completed for all his staff andintends to fight any action taken against him and clear hiscompany's name.

Ms Sink's biggest political supporters, he said, were theFAIA.

Kevin Cate, a spokesperson for Ms. Sink, said he would not"dignify" Mr. Gold's allegations of political pressure byresponding to them.

"Our department doesn't condone violations of the insurancecode," he said. As to the meeting with Ms. Muhammad, he said theCFO's office would honor a request for documents.