New York's insurance superintendent has taken to the airwaves to warn consumers about fake insurance as his inquiry continues into a phony insurance operation that was exposed by a fatal accident, a spokesman said yesterday.

Superintendent Howard Mills announced he had distributed a video to television stations telling consumers how to protect themselves from being hurt by fake insurance companies.

The issue was spotlighted in New York on Oct. 2 when the Ethan Allen tour boat capsized on Lake George, killing 20 people, and it was revealed that the insurance purchased by the vessel's operator was bogus.

A spokesman for Mr. Mills, Mike Barry, said the insurance issues related to the accident are "still under investigation."

Michael Allweiss--the Tampa, Fla., attorney representing Shoreline Cruises Inc., the boat owner--said he understands that, in addition to New York, Florida and Texas are probing the actions of United Re Insurance Ltd. brokerage, Global Property Owners Association Inc. and various principals involved with those firms.

Mr. Allweiss said that James Quirk, the Shoreline Cruises owner, had come across Global Property Owners and United Re Insurance Ltd. through an Internet search, and he had been shown financial statements and incorporation material, but it was "just a giant shell game."

Addresses involved with the company turned out to be a cyber office, which rents out a telephone number and receptionist, said Mr. Allweiss. Global, he noted, had a cyber office in South Florida, while the principals of United and Global were actually working out of Texas, and United Re lists a location on the island of St. Kitts in the West Indies.

"It's a pretty elaborate scam. They need to be stopped. I can only imagine how many other people are being victimized," said Mr. Allweiss.

Mr. Mills' public service announcement video on fake insurance is part of a "Stop, Call, Confirm" advertising campaign developed by the National Association of Insurance Commissioners.

The regulators advise consumers unsure of an insurer's legitimacy to stop before signing any documents and to call their state insurance department to confirm if the company is licensed in their state.

The NAIC said warning signs include:

o Policies costing far less than what other insurers are charging.

o Evasiveness on an agent's part when asked about licensing.

o A demand for cash-only premium payments.

o Sales pitches based on a "one-time offer" or "last chance for special savings."

The Ethan Allen case has led to a flurry of lawsuits against not only Shoreline, but the operators of another tour boat, which Shoreline accuses of toppling the Ethan Allen by hitting it with a huge wake.

Mr. Allweiss said Shoreline's defense is that "we've complied in every way, shape and form with New York law, and the accident was caused by large boat wake."

The National Transportation Safety Board is also investigating the incident.

Special Reports /

N.Y. Regulator Warns Of Insurer Scams

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