The Florida Office of Insurance Regulation (FLOIR) has issued two separate cease and desist orders to companies for selling unauthorized surety insurance. Surety insurance involves a bond that guarantees performance of a contract which is most often related to construction projects.
FLOIR said that it has issued an order to Infinity Surety Company, Infinity Surety Agency and its president George Black with home offices in Saginaw, Texas, for selling unauthorized insurance products. A separate order has been issued to Morris Sears doing business as Abba Bonding with home offices in Lillian, Alabama, also for selling unauthorized insurance products.
According to FLOIR, its investigators determined Infinity that it has never been granted certificate of authority or license to transact insurance as surety company in Florida. Investigators discovered Infinity offered and sold around $2m worth of bonds to Florida contractors for business transactions with cities, counties and municipalities across state.
In addition, FLOIR investigators in a separate investigation had discovered that ABBA and Sears have never been authorized to sell insurance in the state of Florida. Investigators also found that ABBA and Sears sold millions of dollars of unlicensed surety bonds to construction companies in Florida.