TALLAHASSEE, Fla. - Florida Insurance Commissioner Kevin McCarty today announced that he has issued an
Immediate Final Order to Peck & Peck Inc. (Peck & Peck), Green Cross Managed Health (Green Cross) and Depawix Health Resources Inc. (Depawix) to immediately cease and desist transacting the unauthorized marketing and selling of health insurance.
The Office of Insurance Regulation (Office) began investigating the activities of these companies earlier this year and has determined that they are marketing group and individual health insurance plans to small businesses and individuals, both directly and through licensed and unlicensed insurance agents, under the guise of selling an employment opportunity with Depawix that provides medical benefits. Groups and individuals who wish to participate in the Green Cross program are, in addition to any existing employment they may have with a Florida business, required to be “dually employed” by Depawix.
“Unauthorized sales of insurance products are serious violations of the law,” said Commissioner McCarty. “The Florida Legislature has determined that the unauthorized transaction of insurance constitutes an imminent and immediate threat to the health, safety, and welfare of the residents of this state.”
Among other requirements listed in the Immediate Final Order (IFO), the companies are required to report to the Office within 10 days of the issuance of the Order, a copy of all policies issued to residents of the State of Florida as well as a detailed spreadsheet compiling the information contained in all contracts issued. The Order also requires that the companies honor and otherwise fully service all valid claims on any and all policies the companies have executed.
The companies have 30 days to file an appeal of the Order with the District Court of Appeal.
The Office's investigation parallels a similar investigation by the Department of Financial Services' Division of Agent and Agency Services; the CFO has also issued an IFO against the agents and unlicensed representatives of these entities. Consumers may determine if an insurer is licensed in Florida by visiting the Company Search tool on
www.floir.com.
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About the Florida Office of Insurance Regulation
The Florida Office of Insurance Regulation (Office) has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets. Business units within the Office are organized based on regulatory expertise and include the areas of life and health, property and casualty, specialty lines and other regulated insurance entities. It is within the Office that the mission of public protection is implemented through regulatory oversight of insurance company solvency, policy forms and rates, market conduct performance and new company entrants to the Florida market.