Indian Insurance Co. Told To Stop Sales In Fla.
NU Online News Service, July 2, 11:14 a.m. EDT?A Florida-based insurer that falsely claimed to be exempt from federal laws because it serves Seminole Indians has been ordered to stop doing business, Florida insurance regulators said.
"The Florida Office of Insurance Regulation has ordered the Native Assurance Company of Hollywood and Boca Raton to stop transacting insurance business in the state," said Robert Lotane, spokesman for the state's insurance regulation office.
Mr. Lotane explained that the company, which is not licensed in his state, has been soliciting business and promoting itself with agents to sell various lines of insurance, including workers' compensation as well as health and life insurance.
Under federal laws, insurers are exempted from state certifications if they are instead certified by Indian tribes. These insurers can then legally offer insurance to Indian tribes that have provided them with certifications, but the "Seminole tribe denied that it had any type of agreement with the Native Assurance Company," Mr. Lotane said.
"We also had a consumer in Florida who got a quote from the company for coverage, and the company was offering insurance to those outside the Seminole tribe," he noted. "We were contacted by agents and members of the public."
Kevin McCarty, director for the office of insurance regulation in Florida, said that, too often, "we have seen these entities collect premiums from consumers and then leave them with unpaid claims and often unable to secure legitimate insurance."
Mr. McCarty also added that unlike insurance carriers who submit to state oversight, "these companies don't contribute to the state pool that pays policyholder's claims, should their insurer go out of business."
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