Florida insurance company agrees to pay $30M to state's hurricane fund following fraudulent claim allegations

TAMPA, Fla. (WFLA) — A Florida insurance company has agreed to pay more than $30 million to the state's hurricane fund following allegations that the company fraudulently submitted numerous ineligible claims for reimbursement, according to the attorney general's office.

Attorney General James Uthmeier said Tuesday that Universal Property & Casualty Insurance Company (UPCIC) will return the money to the Florida Hurricane Catastrophe Fund (FHCF).

The attorney general's office said the company violated the Florida False Claims Act.

Uthmeier said this is the first time the Office of the Attorney General has secured repayment related to an insurance fraud case.

"Thanks to the outstanding work of Associate Deputy Attorney General Nicholas Weilhammer, Director Liz Brady, and Assistant Attorney General Andrew Butler, our office secured the return of more than $30 million to the state's hurricane fund from fraudulent insurance submission allegations following Hurricane Irma," Uthmeier said. "As Floridians, we know the impact that hurricanes can have on our state and how important recovery efforts are in a storm's aftermath in helping residents start to rebuild. This office is committed to a healthy and stable insurance market for Florida homeowners, meaning insurance companies must play by the rules."

The attorney general's office said the hurricane fund "serves a vital role in stabilizing the Florida insurance market when hurricanes cause widespread or catastrophic damage."

It provides reimbursements to residential property insurance companies for a portion of their payments to homeowners for hurricane-related property damage.

In the event of widespread major hurricanes, like Hurricane Irma, the fund provides a backstop to the losses faced by insurance carriers.

During an investigation into UPCIC, the attorney general's office said that numerous unrelated claims were identified in the submissions from UPCIC to the FHCF following Hurricane Irma.

"As a result, the company agreed not to seek reimbursement for those claims, lowering the FHCF payout from Hurricane Irma to UPCIC by more than $30 million," the attorney general's office said in a news release.

Universal Property & Casualty Insurance Company agreed to pay more than $4 million in fines and implement changes to its policies and procedures, according to the attorney general.