Florida shuts down The Wave Insurance after alleged $100,000 premium scheme

By Staff Reports

Florida Insurance Commissioner Mike Yaworsky ordered an immediate cease-and-desist against Hydrogen Deep LLC, doing business as The Wave Insurance, after regulators determined the company operated without the required license.

The action follows a market conduct investigation by the Florida Office of Insurance Regulation and the Florida Department of Financial Services.

Investigators said the company sold insurance, collected premiums, issued insurance binders and failed to pay claims without state authorization.

"Operating without a required license and soliciting consumers is not only unacceptable, but it can also cause immediate danger to public health and safety," Yaworsky said.

According to regulators, Christopher Jason Brossett, owner of Hydrogen Deep, was arrested in June on charges including grand theft while acting as an insurer and transacting insurance without a certificate of authority.

In July, authorities arrested Brady Allen Howard, owner of The Wave Insurance, on allegations of conspiring with Brossett to commit grand theft and operate a business without proper authorization.

State investigators said the pair targeted watersports and marine-livery businesses in the Destin area, providing insurance quotes, issuing insurance binders and certificates of insurance, and collecting premiums under various business names.

Regulators allege they collected more than $100,000 in premiums and diverted the funds for personal use.

The immediate final order states that the respondents' activities constituted a danger to public health, safety and welfare and requires them to cease insurance operations in Florida.

The case is the latest enforcement action involving unauthorized insurance activity in Florida.

Earlier this year, regulators ordered American Dream Auto Protect to stop conducting business in the state after determining it operated without the required authorization.

Florida officials warn that unlicensed insurance entities may lack the financial oversight and reserves required of authorized insurers, potentially leaving consumers without coverage when claims arise.

The Office of Insurance Regulation encourages consumers and businesses to verify that insurers and agents are properly licensed before purchasing coverage.