Texas Insurance Company Ordered to Halt Operations in Florida
A Texas surety insurance firm, Infinity Surety, has been ordered by insurance regulators in Florida to cease business operations in the state because the officials say the company was never authorized to underwrite coverage in Florida.
The cease and desist order was issued by the Florida Office of Insurance Regulation against the insurance firm, which is based in Saginaw, Texas and against is president, George D. Black.
An initial order was issued on April 8, 2010 and neither the company nor its officers have contested the ruling or sought to have it rescinded.
The order was based on the fact that Infinity did not hold a certificate of authority or a license to transact insurance as a surety company in the state of Florida.
Investigators say that Infinity sold bonds worth approximately $2 million to Florida contractors for business transaction in cities, counties, utilities, and municipalities.
Similar charges have been levied against Infinity in Louisiana where the state department of insurance is actually suing the company.