If you're spending hundreds or thousands of dollars on a travel package this summer, paying a little extra for travel insurance may be a smart way to protect your cash. But Florida authorities warn consumers to be careful about which companies they choose - as well as the type of coverage.
Checking travel insurance company licenses, asking the right questions before you sign the dotted line and reading the fine print are some of the best ways to make a smart choices, say experts.
This month, Florida Financial Chief Officer Jeff Atwater announced a crackdown on travel insurance outfits that underscores the point.
Dozens of Florida residents would be reimbursed for a total of $90,000 by Sarasota-based Legendary Journeys, a statewide travel agency, as a result of a 2-year-plus investigation, Atwater said. The ongoing probe involves a Colorado-based company called Prime Travel Protection Services, which sold travel insurance policies to Florida victims directly or indirectly via travel agencies like Legendary Journeys - despite the fact that Prime Travel was not licensed to sell travel insurance in Florida.
Prime Travel, which went out of business in 2009, sold the faulty travel insurance between 2006 and 2008.
Legendary Journeys representatives said the company did nothing wrong but agreed to pay administrative costs related to Prime Travel claims to protect their customers.
"We specifically have held fast that Legendary Journeys had the right insurance license and handled travel insurance exactly as Florida law required. Our settlement specifically acknowledges that Legendary Journeys has a travel insurance license in place and we did not violate insurance laws," said Al Ferguson, vice president of Legendary Journeys in an email.
"Legendary Journeys has stood behind every client we had that legitimately lost money from the Prime [Travel] bankruptcy," he said, adding "Legendary Journeys agreed to pay for administrative expenses to close the case."
Nearly two-dozen travelers who will divvy up the $90,000 reside in Broward and Palm Beach counties, said Alexis J. Lambert, a spokesperson for Atwater's office. The payments range from $80 to more than $10,000 per victim.
Checking travel insurance company licenses, asking the right questions before you sign the dotted line and reading the fine print are some of the best ways to make a smart choices, say experts.
This month, Florida Financial Chief Officer Jeff Atwater announced a crackdown on travel insurance outfits that underscores the point.
Dozens of Florida residents would be reimbursed for a total of $90,000 by Sarasota-based Legendary Journeys, a statewide travel agency, as a result of a 2-year-plus investigation, Atwater said. The ongoing probe involves a Colorado-based company called Prime Travel Protection Services, which sold travel insurance policies to Florida victims directly or indirectly via travel agencies like Legendary Journeys - despite the fact that Prime Travel was not licensed to sell travel insurance in Florida.
Legendary Journeys representatives said the company did nothing wrong but agreed to pay administrative costs related to Prime Travel claims to protect their customers.
"We specifically have held fast that Legendary Journeys had the right insurance license and handled travel insurance exactly as Florida law required. Our settlement specifically acknowledges that Legendary Journeys has a travel insurance license in place and we did not violate insurance laws," said Al Ferguson, vice president of Legendary Journeys in an email.
"Legendary Journeys has stood behind every client we had that legitimately lost money from the Prime [Travel] bankruptcy," he said, adding "Legendary Journeys agreed to pay for administrative expenses to close the case."
Nearly two-dozen travelers who will divvy up the $90,000 reside in Broward and Palm Beach counties, said Alexis J. Lambert, a spokesperson for Atwater's office. The payments range from $80 to more than $10,000 per victim.
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