Florida Insurer Agrees $6.5 Million Settlement After Fraud Claim Allegation

US News Reporter

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An insurance company in Florida has agreed a $6.5 million settlement with the state's attorney general following allegations that it submitted numerous ineligible claims.

Universal Property & Casualty Insurance Company (UPCIC) had faced a year-long probe over allegations that it improperly backdated policies to secure higher reimbursements in the wake of Hurricane Irma in September 2017.

What To Know

On Tuesday, the Office of the Attorney General of Florida said in a statement that its investigation into UPCIC had identified "numerous unrelated claims" made by the company to the Florida Hurricane Catastrophe Fund (FHCF).

"As a result, the company agreed not to seek reimbursement for those claims, lowering the FHCF payout from Hurricane Irma to UPCIC by more than $30 million," it said.

UPCIC also agreed to pay more than "$4 million in fines and implement changes to its policies and procedures," according to the statement.

It added that the settlement agreement — in which UPCIC agreed to pay Florida $6.5 million — resolves the allegations that the company "fraudulently submitted numerous ineligible claims for reimbursement in violation of the Florida False Claims Act."

The Attorney General's office said it launched its investigation into UPCIC "following a whistleblower lawsuit filed in Leon County." The goal of the investigation was to determine whether the company's claims were in fact caused by Hurricane Irma.

In 2017, Hurricane Irma swept across Florida as one of the most powerful Atlantic storms on record, leaving behind a trail of devastation. Making landfall in the Florida Keys as a Category 4 storm, Irma brought winds exceeding 130 mph, widespread flooding and storm surges that overwhelmed coastal infrastructure.

The storm prompted mass evacuations and caused power outages affecting more than seven million customers across the state. Damage estimates in Florida reached about $50 billion, spanning residential, commercial and public infrastructure losses.

What People Are Saying

Florida Attorney General James Uthmeier said in a statement issued on Tuesday: "Our office secured the return of more than $30 million to the state's hurricane fund from fraudulent insurance submission allegations following Hurricane Irma.

"As Floridians, we know the impact that hurricanes can have on our state and how important recovery efforts are in a storm's aftermath in helping residents start to rebuild. This office is committed to a healthy and stable insurance market for Florida homeowners, meaning insurance companies must play by the rules."

UPCIC's chief executive officer Stephen Donaghy said in a statement shared with Newsweek: "We are pleased the review has come to a close and the state dismissed the case. We look forward to continuing to serve Floridians as market reforms are leading to more affordable home insurance options for consumers."