Balloon Coverage Was Hot Air, Says Florida

Florida regulators have moved against two domestic and two international companies for selling unauthorized commercial insurance policies in the state.

National Program Management, Suwannee, Ga., and Contractors Bonding Limited, Auckland, New Zealand, sold liability and physical damage insurance policies for hot air balloons.

International Fidelity and Surety, Ltd, Port Vila, Vanuatu, South Pacific, and ICM Group LLC, Hartford, have sold performance and labor and material bonds and a guaranty policy in Florida.

The companies were charged with engaging in the unauthorized transaction of insurance in Florida, directly or through an unauthorized agent or representative, and failure to file or seek approval of forms or rates, according to a Florida Department of Financial Services press release.

Insurance Regulation Commissioner Kevin McCarty said he will order the companies to pay fines and seek restitution of premiums paid by consumers.

CBL and NPM sold 87 liability and physical damage hot air balloon flight insurance policies, collecting over $98,000 in premiums.

The order comes on the heels of the signing into law by GOP Gov. Jeb Bush of a bill that strengthens Florida's laws on unauthorized insurance entities.

Florida department spokeswoman Valerie Beynon said there were no complaints of unpaid claims stemming from the policies.

Ms. Beynon said the department was made aware of the unauthorized insurance when one of the insureds became suspicious.

That is why she has been urging insureds to ensure their carriers are legitimately operating in the state. "Unauthorized entities like these are not only illegal but don't offer customers the assurance of benefiting from the consumer protection and solvency standards required of authorized companies."