Attorney General James Uthmeier successfully recovers tens of millions of dollars from Universal Property & Casualty Insurance for the Florida Hurricane Catastrophe Fund
Tallahassee, Florida – In a significant victory for Florida’s hurricane recovery efforts, Attorney General James Uthmeier has announced that Universal Property & Casualty Insurance Company (UPCIC) will return tens of millions of dollars to the Florida Hurricane Catastrophe Fund (FHCF) following allegations of fraudulent insurance claims. This resolution marks a major milestone as the first successful repayment related to an insurance fraud case handled by the Attorney General’s Office.
The fraudulent claims stemmed from UPCIC’s submissions to the FHCF, in which the company allegedly filed ineligible claims for reimbursement in violation of the Florida False Claims Act. As part of the agreement, UPCIC has agreed to pay back over $30 million to the state’s hurricane fund, funds that had originally been claimed after Hurricane Irma’s devastating impact in 2017.
“Thanks to the outstanding work of Associate Deputy Attorney General Nicholas Weilhammer, Director Liz Brady, and Assistant Attorney General Andrew Butler, our office secured the return of more than $30 million to the state’s hurricane fund from fraudulent insurance submission allegations following Hurricane Irma,” said Attorney General Uthmeier in a statement. “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.”
The Florida Hurricane Catastrophe Fund plays a crucial role in the state’s recovery efforts following major hurricanes, offering critical financial support to residential property insurance companies. The fund was designed to act as a backstop for insurers when catastrophic storms, like Hurricane Irma, cause widespread damage. It reimburses insurance companies for a portion of the claims they pay to homeowners whose properties are affected by hurricane-related damage. The FHCF is an essential tool that helps stabilize the insurance market by providing a financial safety net for carriers, preventing massive rate hikes or a collapse in coverage options after major storms.
However, after a whistleblower lawsuit was filed in Leon County, the Office of the Attorney General initiated an investigation into UPCIC’s claims submitted for reimbursement following Hurricane Irma. The investigation uncovered numerous claims submitted by UPCIC that were unrelated to the hurricane’s damage. This prompted further scrutiny and ultimately led to the company agreeing to retract these fraudulent claims.
As a result of the investigation, UPCIC voluntarily agreed not to seek reimbursement for the ineligible claims, which lowered the FHCF payout by more than $30 million. In addition to the repayment, UPCIC also agreed to pay over $4 million in fines. The settlement also requires the company to implement significant changes to its policies and procedures, ensuring that fraudulent submissions do not occur again in the future.
The role of the Florida Hurricane Catastrophe Fund is vital, especially in the aftermath of major storms that wreak havoc across the state. Hurricane Irma, which struck in 2017, caused massive destruction, and the state’s recovery efforts heavily relied on the funds provided through the FHCF. The fraud discovered by the Attorney General’s office undermined these recovery efforts, but this settlement ensures that taxpayers and homeowners will see a return of the funds that were improperly claimed.
Attorney General Uthmeier emphasized that this victory was not just a legal win but also a moral one for the state of Florida. “This office is committed to holding insurance companies accountable,” he said. “When insurance companies break the law and take advantage of systems meant to help Floridians, they must be held responsible.”
The case also serves as a warning to other insurance companies operating in the state. The Attorney General’s Office has made it clear that any fraudulent activity, especially in relation to claims for hurricane damages, will not be tolerated. The return of over $30 million to the state’s hurricane fund is an important step in maintaining the integrity of the system, ensuring that the funds intended for hurricane recovery are used properly and effectively.
The settlement between the Florida Attorney General’s Office and Universal Property & Casualty Insurance Company also serves as a reminder of the critical importance of vigilance and transparency in insurance claims. In the aftermath of a catastrophic event like a hurricane, the public and private sectors must work together to restore communities and support those who have been affected. Fraudulent claims only serve to hinder these efforts, delaying vital support and resources that homeowners desperately need.
In the wake of this settlement, Florida officials have called for continued diligence to protect the state’s insurance market and ensure that recovery funds are used as intended. The Attorney General’s Office has sent a strong message to the insurance industry: Florida is watching, and those who engage in fraudulent practices will be held accountable.
As the state looks toward future hurricane seasons, the case against UPCIC highlights the importance of accountability within the insurance sector and ensures that the Florida Hurricane Catastrophe Fund remains a reliable resource for future recovery efforts.
For now, this resolution provides a much-needed boost to the integrity of Florida’s insurance landscape, sending a clear message that fraud will not be tolerated and that those who attempt to exploit the system will face serious consequences. With these actions, the state aims to protect both its residents and the resources they rely on for recovery.
