Florida Insurance Company Settles for $6.5 Million Over Fraud Allegations
Universal Property & Casualty Insurance Company faces scrutiny after claims linked to Hurricane Irma are invalidated.
Universal Property & Casualty Insurance Company (UPCIC) has reached a settlement of $6.5 million with the Florida Attorney General's office amid allegations of submitting fraudulent claims to the Florida Hurricane Catastrophe Fund (FHCF).
This conclusion follows an extensive year-long investigation that revealed UPCIC submitted numerous ineligible claims, including attempts to backdate insurance policies to secure greater reimbursements following Hurricane Irma in September 2017.
The investigation, initiated after a whistleblower lawsuit in Leon County, sought to ascertain the legitimacy of UPCIC's insurance claims in relation to the damages caused by Hurricane Irma.
The hurricane was one of the most intense Atlantic storms recorded, making landfall in the Florida Keys as a Category 4 hurricane and producing wind speeds exceeding 130 mph.
It resulted in flooding and storm surges that devastated coastal areas, displacing residents and causing power outages that affected over seven million people.
Estimated damages from the storm have reached approximately $50 billion across residential, commercial, and public infrastructure.
In a statement released on Tuesday, the Florida Attorney General's office reported that the investigation identified numerous unrelated claims that UPCIC made to the FHCF.
As part of the settlement, UPCIC will refrain from seeking reimbursement for the ineligible claims, which will reduce the state’s obligations to the company by more than $30 million.
Additionally, UPCIC will pay over $4 million in fines and will implement reforms in its policies and procedures to prevent future infractions.
Florida Attorney General James Uthmeier emphasized the importance of accountability among insurance companies, noting the impact of hurricanes on Floridians and the necessity of maintaining a stable insurance market.
Uthmeier stated, "Our office secured the return of more than $30 million to the state's hurricane fund from fraudulent insurance submission allegations following Hurricane Irma."
In response, UPCIC’s CEO Stephen Donaghy expressed satisfaction with the resolution, stating the company looks forward to continuing its service to Florida residents during a time when the insurance market is undergoing reforms aimed at making home insurance more affordable.
The settlement aims to bolster the reserves of the FHCF in anticipation of the upcoming 2025 hurricane season, which meteorologists suggest could be particularly active.
This conclusion follows an extensive year-long investigation that revealed UPCIC submitted numerous ineligible claims, including attempts to backdate insurance policies to secure greater reimbursements following Hurricane Irma in September 2017.
The investigation, initiated after a whistleblower lawsuit in Leon County, sought to ascertain the legitimacy of UPCIC's insurance claims in relation to the damages caused by Hurricane Irma.
The hurricane was one of the most intense Atlantic storms recorded, making landfall in the Florida Keys as a Category 4 hurricane and producing wind speeds exceeding 130 mph.
It resulted in flooding and storm surges that devastated coastal areas, displacing residents and causing power outages that affected over seven million people.
Estimated damages from the storm have reached approximately $50 billion across residential, commercial, and public infrastructure.
In a statement released on Tuesday, the Florida Attorney General's office reported that the investigation identified numerous unrelated claims that UPCIC made to the FHCF.
As part of the settlement, UPCIC will refrain from seeking reimbursement for the ineligible claims, which will reduce the state’s obligations to the company by more than $30 million.
Additionally, UPCIC will pay over $4 million in fines and will implement reforms in its policies and procedures to prevent future infractions.
Florida Attorney General James Uthmeier emphasized the importance of accountability among insurance companies, noting the impact of hurricanes on Floridians and the necessity of maintaining a stable insurance market.
Uthmeier stated, "Our office secured the return of more than $30 million to the state's hurricane fund from fraudulent insurance submission allegations following Hurricane Irma."
In response, UPCIC’s CEO Stephen Donaghy expressed satisfaction with the resolution, stating the company looks forward to continuing its service to Florida residents during a time when the insurance market is undergoing reforms aimed at making home insurance more affordable.
The settlement aims to bolster the reserves of the FHCF in anticipation of the upcoming 2025 hurricane season, which meteorologists suggest could be particularly active.
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