October 15, 2010 - TALLAHASSEE, Fla. - Insurance Commissioner Kevin McCarty today announced the Florida Office of Insurance Regulation (Office) issued an Amended Notice and Order to Show Cause to American Medical and Life Insurance Co. (AMLI) alleging five counts of illegal activity.
Office investigators concluded that AMLI misrepresented to consumers, through advertisements by Cinergy Health Inc., the benefits and terms of the insurance policies that it underwrites; used un-appointed agents; failed to exercise appropriate oversight of the activities of its managing general agent, which issues its policies; failed to provide records to the Office in a timely manner; and used an unlicensed third party administrator to handle claims. AMLI, which is based in New York, is currently licensed to sell insurance products in Florida.
"Companies licensed to sell insurance products of any kind in Florida agree to follow the laws of our state," said the Office's General Counsel Steve Parton. "Our Office has the authority to revoke a company's license if we believe it is breaking those laws."
The Order requires AMLI to respond to the allegations stating why the Office should not revoke the company's certificate of authority and order it to cease and desist operations in Florida. AMLI has 21 days from receipt of this Order to respond.
About the Florida Office of Insurance Regulation
The Florida Office of Insurance Regulation has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets.
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