GALLAGHER REVOKES LICENSE OF AGENT WHO SOLD BOGUS STUDENT ACCIDENT
POLICIES IN SOUTH FLORIDA
TALLAHASSEE—Tom Gallagher, Florida’s chief financial officer,
has revoked the license of a Miramar insurance agent who sold bogus student
accident insurance to schools, churches and athletic groups such as soccer
associations, football leagues and cheerleading groups.
Jeffrey Edward Born, 44, sold at least 39 policies that listed an insurer
that did not cover the policies in question. Born agreed to the revocation
and Gallagher permanently barred him from working in Florida’s insurance
business.
“It is unconscionable that this individual left hard-working families
and children vulnerable in an emergency,” said Gallagher, who as
CFO oversees the Department of Financial Services. “And I’ve
taken action to ensure he never rips off another insurance consumer in
Florida.”
The department’s Division of Agent and Agency Services, Bureau of
Investigation, conducted the investigation that led to Born’s license
revocation. Born worked with his brother, Greg, whose licenses were already
revoked in Illinois and Florida for selling policies through a bogus insurance
entity.
According to investigators, when the Born brothers started selling the
product, it was offered through Security Insurance Company (SIC) of Hartford,
but SIC of Hartford terminated its contract with the Born brothers in
July 2003. Subsequently, the two started their own company, Security Insurance
Company, and fraudulently used the forms and policies they had from SIC
of Hartford to send to their customers. As a result, other agents selling
the product saw contracts with the name of the licensed company on them
and didn't realize the documents were fraudulent.
Gallagher suggested consumers should take the extra precaution of contacting
the insurance company to verify coverage has been placed. Anyone who believes
they may have been a victim of this or another scam should visit the department’s
website at www.fldfs.com or call the department’s Consumer Helpline
at 1-800-342-2762.
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