Sirius Intl. Withdraws Application to do Business in Florida

Sirius International Insurance Corp. has agreed to withdraw an application it submitted to the Florida Office of Insurance Regulation for approval to do business in Florida as an eligible surplus lines insurer. The action occurred after representatives of Sirius and White Mountain Re, parent of Sirius, failed to convince attorneys for the Office of Insurance Regulation and the Florida Department of Financial Services during a March 10 meeting in Tallahassee, that the application should be approved.

This action came on the heels of a Notice of Denial, issued by the Florida Department of Financial Services March 7, of an application for licensure as a managing general agent filed by International Medical Group.

IMG acts as an administrator of health insurance programs underwritten by Sirius. Neither IMG nor Sirius is licensed in any manner to transact insurance in Florida.

Both Sirius and IMG had been the subject of consent orders issued by Florida’s Insurance Commissioner Aug. 30. Both entities agreed to cease and desist from transacting insurance in Florida without a license.

The 10-page Notice of Denial of IMG’s application spelled out the factual basis for denial and said IMG continued to solicit, market and administer insurance in Florida without complying with the licensing provisions of the Florida Insurance Code and in violation of the terms of the Consent Order issued on Aug. 30, 2005.

According to the Notice which was signed by Hazel C. Muhammad, bureau chief of the DFS Division of Agent & Agency Services, Bureau of Licensing, a consent order was filed by the Florida Insurance Commissioner on Aug. 30 as a result of an investigation by OIR into insurance-related activities conducted by IMG and Sirius in Florida. The consent order for IMG was signed by Joseph L. Brougher, IMG president.

The consent order spelled out the following concerns:

Sirius, a Swedish entity, issued Certificates of Insurance in Florida;

IMG marketed and administered the Certificates of Insurance issued by Sirius;

Neither Sirius nor IMG are eligible surplus lines carriers in Florida;

Neither Sirius nor IMG have received a Certificate of Authority to transact insurance business in Florida;

The Insurance Commissioner found that in certain circumstances the solicitation, marketing and issuing of Certificates of Insurance and the administration of claims evidenced by the documents produced by IMG, constituted transacting insurance within Florida; and

IMG had previously agreed in May, 2005 to cease and desist soliciting, marketing and issuing Certificates of Insurance for Global Medical Insurance related to any insured who has a Florida address or a Florida producer who has or could receive a commission.

By signing the Aug. 30 consent order, IMG agreed not to solicit, market or administer any insurance in Florida without complying with the licensing or eligibility provisions of the Florida Insurance Code as well as other provisions set out in the order.

Due to Sirius International’s withdrawal of its application, Sirius could be subject to punitive action for transacting insurance in Florida after it voluntarily agreed not to do so without holding the appropriate license or approval to do so.

Topics Florida