Recent Florida investigations reveal consumers should be very careful about which companies they buy travel insurance from, as state law requires such companies to be registered and licensed with the state.
Florida Chief Financial Officer Jeff Atwater's office recently announced that the Department of Financial Services has reached an agreement with at least one statewide travel agency to reimburse nearly $90,000 to victims. A department investigation found that the company sold unauthorized travel insurance offered by a third-party company to consumers from 2006 to 2008. Nearly two dozen of the victims were from Broward and Palm Beach counties, said Alexis Lambert, a spokesperson for Atwater's office.
Twenty agencies sold polices on behalf of Colorado-based Prime Travel Protection Services, Inc.¸ which was never licensed in Florida to sell insurance, authorities say.
What is travel insurance? Travel agencies often offer insurance products to protect consumers from losing deposits or travel package payments due to unforeseen circumstances, such as a forced trip cancellation due to illness or a trip interruption due to illness.
How to protect yourself:
Before purchasing travel insurance, verify that the company is licensed in Florida. Visit www.MyFloridaCFO.com or call the Consumer Helpline at 877-693-5236.
Read the fine print before making a purchase, as the policies often contain exclusions for coverage. If the insurer providing travel insurance coverage is not authorized, claims may not be honored.
What do you say? Have you been the victim of travel-related scams or problems? Send an email to dvasquez@sunsentinel.com.
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