Insurance company agrees to pay $30M to hurricane fund after filing bogus claims 8 years ago

An insurance company has reached a deal with Attorney General James Uthmeier to pay millions of dollars into the Florida Hurricane Catastrophe Fund (FHCF) following allegations of fraud.

Universal Property & Casualty Insurance Co. agreed to pay some $30 million following a state investigation into allegations the company submitted numerous fraudulent claims for reimbursement in Florida, an Attorney General’s news release said.

The reimbursement is a result of prosecutors applying the Florida False Claims Act. It’s the first time the top prosecutor’s office in the state has secured repayment from a fraud case relating to corporate hurricane claims of that size.

“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 September of 2017, Uthmeier said.

“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.”

But Universal Property officials disputed the Attorney General’s claims. In a report by The South Florida Sun-Sentinel, Universal said the amount of money associated with any agreement Uthmeier is claiming is just wrong.

A Universal spokesman told the South Florida Sun-Sentinel that a settlement agreement signed by its CEO on March 27 merely capped the state’s probe of issues that were resolved in 2023. “There is no amount to be paid by the company resulting from this review,” spokesman Travis Miller said in the Sun-Sentinel story.

The Attorney General’s Office investigation was triggered following a whistleblower lawsuit that was filed in Leon County. That’s when prosecutors began to look into the case and reviewed claims by Universal Property and if those claims were even caused by Hurricane Irma.

National Oceanic and Atmospheric Administration (NOAA) estimates claim that Irma caused about $50 billion in damage to Florida when it slammed the state eight years ago.

Investigations concluded that numerous claims filed by Universal Property with the FHCF had nothing to do with damage caused by Hurricane Irma. Universal Property officials agreed not to seek reimbursement of those claims only after the investigation.

The Attorney General’s Office said Universal Property also agreed to pay in excess of $4 million in fines to the state. The company also agreed to review and implement changes to its policies and procedures.