Selling Unlicensed Insurance? A State Investigator May Call

The March 26th issue of Travel Weekly reported that weeks after the states of Florida and Colorado moved against an unlicensed travel protection company the state of Florida’s Division of Consumer Protection was still issuing new warnings to travel agents. The department issued cease-and-desist orders while warning travel agents that financial penalties may be imposed on them if and when they are found to be selling any travel protection plans not legally licensed as travel insurance in the state.

Agents, especially if presented with attractive pricing or commission offers by insurers with whom they are not familiar, must protect themselves by doing research. The insurer you sell must be legally licensed in all states where you sell travel, and its protection products must have government approval for sale. One key is to identify the insurer’s underwriter and learn its financial strength rating from a respected rating service such as A.M. Best. Travel Insured International is licensed in all states and its underwriter Arch Insurance is rated A (“excellent”) by A.M. Best.

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