Florida orders an unlicensed insurer to stop selling coverage

Florida's insurance commissioner ordered an unlicensed risk retention group and its principals to stop operating, Insurance Journal reports. The order came about two months after the owners were charged in connection with collecting thousands of dollars in premiums and keeping the money.

A policy is only worth something if a real, authorized insurer stands behind it. When an outfit is not licensed, there may be no one to pay your claim, and the Florida Insurance Guaranty Association generally protects policyholders of admitted carriers only. Before you pay, confirm the company on your declarations page is authorized in Florida. The Office of Insurance Regulation and the Department of Financial Services both offer lookup tools.

Be wary of coverage priced far below every other quote, especially for contractors and small businesses. A licensed independent agent can show you which carrier is actually on the paper and whether it is admitted or surplus lines.