American Assurance, Affiliates Ordered by Fla. Regulator to Cease Business in State

Florida Insurance Commissioner Kevin McCarty has ordered American Assurance Underwriters Group and its affiliates, Worldwide Expatriate Administrators LLC and Worldwide Expatriate Advisors LLC, to stop marketing and selling insurance products in the state. The Florida Office of Insurance Regulation has issued a cease-and-desist order to AAUG, accusing the company of operating without state licensing.

AAUG, a British Virgin Islands captive, and its affiliates -- which sell insurance for periods in which people will be outside the United States -- have Florida offices through which products are being marketed and sold. The company does not hold a certificate of authority to do business there, the order said.

The company's Web site advertises "a broad array of administrative services for the international health insurance market," and it lists a Fort Lauderdale address. A company representative, Roy Alvarado, responded to a request for comment with a brief statement: "AAUG has not received an order from the Florida insurance regulator, and therefore the company has no comment at this time."

The company has 21 days to respond before the office issues a final cease-and-desist order.

The insurance department began investigating the insurer earlier this year, based on information from consumers. It's usually a series of consumer calls that sparks such examinations, said office spokesman Tom Zutell. "That's when our folks get involved." According to state law, unauthorized sale of insurance products without a license can constitute a criminal felony, he said.

Zutell said there are 834 health insurers licensed in Florida, and there have been only four actions on unauthorized companies selling health insurance in the past three years.

(Jesse A. Hamilton, Washington bureau manager: Jesse.Hamilton@ambest.com)