Florida Insurance Commissioner Orders Entities to Cease and Desist Sale of Unlicensed Insurance Products

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by   Jack McDermott    and       Brittany Benner

April 09, 2010

TALLAHASSEE, Fla. – Surety insurance involves a bond that guarantees the performance of a contract – most often related to construction projects.Insurance Commissioner Kevin McCarty announced the Florida Office of Insurance Regulation (Office) has issued two separate cease and desist orders to companies for selling unauthorized surety insurance.

The Office has issued an order to Infinity Surety Company, Infinity Surety Agency (collectively referred to as “Infinity” hereinafter) and its president George D. Black, Sr. (“Black”) with home offices in Saginaw, Texas, for selling unauthorized insurance products. A separate order has been issued to Morris C. Sears (“Sears”) doing business as Abba Bonding (“ABBA”) with home offices in Lillian, Alabama, also for selling unauthorized insurance products.

 Office investigators determined Infinity had never been granted a certificate of authority or license to transact insurance as a surety company in Florida. Investigators discovered Infinity offered and sold more than two million dollars worth of bonds to Florida contractors for business transactions with cities, counties and municipalities across the state.
 
In a separate investigation, Office investigators discovered ABBA and Sears have never been authorized to sell insurance in the state of Florida. Investigators found that ABBA and Sears sold millions of dollars of unlicensed surety bonds to construction companies in Florida. ABBA has since filed for bankruptcy in Alabama.
 
Under Florida Law, Infinity, Black, Sears and ABBA have 21 day to respond to the Office.
 
Consumers may determine if an insurer is licensed in Florida by visiting the Company Search tool on the Office’s Web site.
 
About the Florida Office of Insurance Regulation
The Florida Office of Insurance Regulation (Office) has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets.
Under Florida law a person or entity may not transact, administer, or market insurance products either in the State of Florida or from the State of Florida unless it is authorized to do so under a license issued by the Florida Office of Insurance Regulation.

Soreide Law Group will represent you in front of the Florida Office of Insurance Regulation.  To speak to a lawyer regarding licensing issues please call: (888) 760-6552, or visit our website at: www.floridaprofessionallicense.com.