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Consumer Alert: Estate Planning

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Estate planning is not fun to think about and can be difficult, but it is important to have an estate plan for many reasons. An estate plan gives your loved ones a strategy to implement your exact wishes, avoids having a probate judge decide how to distribute your estate, and it keeps your heirs from having a large tax burden. The Florida Office of Financial Regulation encourages Floridians spend time getting their affairs in order to ease the burden on their loved ones.
Keep these tips in mind to help you create an estate plan:
  • Create a will and a living will. A will establishes your desired distribution of assets that are not already designated with a beneficiary or that are outside of a trust. Clearly describe your wishes and beneficiaries in the will, so that there are no questions about your desires. A living will, or advance directive, will provide guidance to your loved ones on any medical decisions they will be required to make in the event you are incapacitated.
  • Make a list of your debts. Create a detailed list of your debts, including credit cards, auto loans and mortgages. Include the amount you owe and contact information for each company. This will allow your loved ones to make arrangements to pay the debts without incurring additional penalties or fees.
  • Develop a catalog of electronic accounts and current login information. Keep all usernames and passwords for every online account you have in one place, so that your loved ones can access necessary accounts. Make sure this information is kept in a secure location.
  • Keep copies of retirement accounts and insurance policies in a central location. Be sure to note any designated beneficiary on each of your accounts, including alternate beneficiaries, as this will supersede what is noted in your will. Note any transfer on death (TOD) designations on any bank or brokerage accounts, as well, for the same reason.
Once you have your estate plan in place, regularly review and update all information, including beneficiaries. Aim to review your estate plan, including your will, every few years and after every major life event, such as marriage, divorce, relocation to another state, etc.
The Florida Office of Financial Regulation offers Floridians a robust online Consumer Knowledge Center, where you can find more information on several financial topics.

Consumer Alert: Romance Scams

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Online social platforms are everywhere, including dating websites. Unfortunately, scammers are trolling online social and dating platforms, looking to target unsuspecting victims. The Florida Office of Financial Regulation encourages Floridians to remain vigilant when navigating online social connections.
Romance scams can happen on social media networks and websites dedicated to romantic connections. Common claims by scammers, posing as online love interests, are that they would like to meet in person but cannot afford to, that they are living in another country or even that they are responsible for a sick relative. These false claims will usually lead to a request for money. If the person has a list of reasons why they cannot meet in person, especially any excuse relating to money, it may be a scam.
Below are some tips to help protect yourself from becoming a victim:
  • Remain wary of online friends who ask for money or for information about your financial situation, especially unsolicited friends.
  • Think twice before you post something on social media. Consider if the information could be used to help scam you.
  • Don’t give out location information or personal identifying information to anyone online.
  • Beware of anyone who “comes on strong,” is aggressive, or quickly asks you to move your relationship offline.
  • Be extremely cautious of any investment opportunity or business venture pitched through social media or online dating platforms. Do your homework on any opportunity before committing, and make sure that the business or individual is properly licensed.
As a real-life scenario of this type of scam, in the Orlando area from 2003 through 2013, Scott Campbell used online dating websites to target single women with an investment scam. He enticed more than 30 victims into investing in his fake musical recording and talent search business with promises of a portion of his company’s future profits. The Florida Office of Financial Regulation’s investigation revealed that Campbell spent most of the $1 million collected from his victims on gambling and personal living expenses. In February 2015, Campbell was sentenced to 20 years in prison and 10 years of probation.
If you are a victim of a romance scam, please file a complaint with the Federal Bureau of Investigation’s Internet Crime Complaint Center. If you feel that you may be a victim of investment fraud or to report suspicious activity, please file a complaint with the Florida Office of Financial Regulation online, www.flofr.com, or call (850) 487-9687.
The Florida Office of Financial Regulation offers an online Consumer Knowledge Center, where Floridians can learn more about how to spot potential scams.

Consumer Alert: Managing your finances after Hurricane Irma

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The Florida Office of Financial Regulation (OFR) encourages Floridians to take time to assess their finances following Hurricane Irma. Managing your financial obligations during this time may seem like the furthest thing from your mind; however, it is important to keep your finances in order. 
Whether you have a mortgage loan, non-mortgage loan, credit card or other expense, every Floridian experiencing financial distress as a result of Hurricane Irma should:

  • Proactively reach out to your lender to make them aware of your circumstances immediately.
  • Make sure to explain your situation in detail. Your lender may be willing to work with you.
Many of Florida’s financial services providers are proactively working with customers. Visit your lender’s website for more information. Given the volume of customers impacted by Hurricane Irma, contacting creditors may be difficult, but be persistent and make every effort to get in touch with them. The links below will help you locate and contact your financial services providers. If you are unable to find your provider’s information through these resources, please contact the OFR for assistance at (850) 487-9687 or via Twitter @FlFinancialReg.

CONSUMER ALERT: Know What You Are Signing for Repairs After Hurricane Irma

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Insurance Commissioner David Altmaier is encouraging Floridians who are now dealing with the aftermath of Hurricane Irma and assessing damage to their homes and businesses to be aware of what they may be signing for repair work. A homeowner who has a loss may contact a contractor, water extraction company, roofer, or a plumber to assist with emergency repairs. After assessing the damage, the homeowner may be presented with a document to sign before repair work begins, which could also contain what is known as an Assignment of Benefits (AOB). If signed by the homeowner, it may give the repair vendor the right to exclusively communicate with the insurance company, negotiate and endorse insurance claim payments and file a lawsuit against the insurance company, with or without the homeowners knowledge. AOBs have been a cost driver leading to rising homeowners insurance rates across the state due to unnecessary litigation associated with certain AOB claims.
“As Floridians return to their communities and begin the tedious process of evaluating damages to their homes and property following Irma, it is vital that they pay attention to any requests that may involve an AOB,” stated Commissioner Altmaier. “Homeowners are encouraged to file a claim directly with their insurance company to maintain control of the rights and benefits provided by their insurance policy in resolving a claim.”
The following are a few tips to assist homeowners:

  • Read your insurance policy and know what your responsibilities are following a loss.
  • Contact your insurance company prior to signing any document that may contain an AOB.
  • If the homeowner elects to sign the AOB, read everything carefully and do not feel pressured to sign it.
  • Beware of language that allows all proceeds of the claim to be made to anyone other than the homeowner or the homeowners mortgage company.
  • Do not sign the document if there are any blank spaces.

For more information, read the Office’s “Post-Loss Assignment of Benefits (AOB) Fact Sheet” or visit the Office’s “AOB Resources” webpage.

Consumer Alert: Equifax Data Breach

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Equifax Inc., a national credit reporting bureau, has announced that a cybersecurity incident potentially compromised the personal identifying information of approximately 143 million U.S. consumers. The Equifax hack includes names, addresses, birth dates, and Social Security Numbers. The Florida Office of Financial Regulation encourages Floridians to act now to protect their personal identifying information and reduce their risk of identity theft. 
Reduce your risk of identity theft by:
  • Changing your passwords on all your accounts regularly.
  • Checking your credit report at least annually with the three national credit reporting agencies (Equifax, Experian, and TransUnion).
  • Shredding or destroying all documents with personal identifying information when you are finished with them.
  • Never verifying or giving personal identifying information over the phone or through email, especially if the contact was unsolicited.
  • Request fraud alerts on your accounts and your credit report. 
Keep the “Three C’s” in mind if you think you may be a victim of identity theft:
  • Check: Watch for suspicious or unauthorized transactions on your financial, professional and personal accounts. Contact the sender immediately if financial statements or bills do not arrive on time.
  • Contact: File a report with the Federal Trade Commission, the FBI’s Internet Crime Complaint Center and local law enforcement. Contact your financial institutions to alert them, and to replace your debit and credit cards. Request a freeze of your credit reports from the three national credit reporting agencies (Equifax, Experian, and TransUnion).
  • Collect: Collect all evidence that you may have to support your claim. This could be cancelled checks, credit card receipts, unusual email messages, etc. 
Equifax has established a website for consumers to find out if they may have been impacted by the data breach. 
The Florida Office of Financial Regulation offers an online Consumer Knowledge Center, where Floridians can learn more about a variety of financial literacy topics, including how to protect themselves from identity theft.

Consumer Alert: Managing the Post-Storm Insurance Claims Filing Process

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As Hurricane Irma continues to impact Florida, residents affected by the storm will soon begin the process of surveying damages to their property and belongings. Chief Financial Officer Jimmy Patronis and Insurance Commissioner David Altmaier have the following tips to help consumers as they begin the process of filing insurance claims on damaged property and belongings:
Tip 1:  Locate all applicable insurance policies. This may include a homeowners’ policy, flood policy (flood coverage is not covered under a typical homeowners’ policy and is separate coverage) and an automobile policy (may cover damage to your car from flooding).
Tip 2:  Document all damaged property and belongings. Take photos or shoot video footage before attempting any temporary repairs. When you file an insurance claim, you may be asked for visual documentation of damages. A photographic home inventory is a handy resource for this situation. A free smartphone app developed by the National Association of Insurance Commissioners called “MyHome Scr.APP.book” can help you take and store a room-by-room log of photos.
Tip 3:  Contact your insurance company or insurance agent as soon as possible to report damages. Insurance policies require prompt reporting of claims, so it is important to act as soon as possible. If you need help finding your property insurance company’s website and contact information, click here. For a list of licensed insurance agents in Florida, click here.
Tip 4:  Cover damaged areas that may be exposed to the elements in order to prevent further damage. Your insurance company may reimburse the expense of these temporary repairs, so keep all receipts. Remove water-logged and otherwise damaged items from your house to prevent the spread of mold, but document them and do not dispose of any damaged property until your insurance company adjuster has had an opportunity to survey it.
CFO Patronis’ toll-free Insurance Consumer Helpline (1-877-693-5236) can answer business and consumer-oriented insurance-related questions. CFO Patronis has launched a Hurricane Irma Insurance Resources webpage to provide comprehensive insurance information. Access the webpage by clicking on the “Hurricane Irma” button on www.myfloridacfo.com
The Office of Insurance Regulation also has additional storm-related materials online. To visit their website, click here.

Consumer Alert: It’s Time to Evaluate Your Flood Insurance Coverage Before Hurricane Season

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floir
Insurance Commissioner David Altmaier is encouraging consumers to have flood insurance protection in place for their homes and businesses prior to the start of this year’s hurricane season. A basic homeowners insurance policy does not provide coverage for flooding. This coverage must be purchased separately through either the federally-administered National Flood Insurance Program (NFIP) or a private insurance company.
“Many residents of our state experienced substantial property damage and losses last year from flooding caused by Hurricanes Hermine and Matthew,” stated Altmaier. “Even a small amount of rising water can cause serious flooding, so it is important to evaluate your insurance coverage now and plan ahead for the upcoming hurricane season.”
In Florida, the vast majority of flood insurance is administered through the NFIP, which oftentimes can be purchased directly from a consumer’s existing insurance agent or company. Typically, there is a 30-day waiting period before an NFIP policy takes effect, so to have coverage in place for the June 1 start of hurricane season, the ideal purchase date would be May 1. Federal legislative reforms addressing the NFIP were instituted in 2012 and 2014. As a result of these changes, additional price and fee increases took effect on April 1, 2017 for all NFIP policies. To learn more about this coverage, and for more information about the recent federal reforms, visit the NFIP’s website.
Florida’s private flood insurance market is growing and there are now several insurance companies offering primary or excess flood insurance coverage to consumers. This coverage is usually offered at prices similar to or lower than those of the NFIP. For a list of flood insurance writers in Florida, visit the Office’s “Flood Insurance” webpage.
For more information about ways to prepare for hurricane season and resources to a variety of fact sheets and tips, visit the Office’s “Hurricane Season Resources” webpage.

Consumer Alert: Avoid Tax-Related Scams this Tax Season

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Commissioner of Agriculture Adam H. Putnam encourages Floridians to be wary of tax-related scams during this tax season. According to the Internal Revenue Service, common scams include: tax preparer phishing scams, IRS-impersonator phone scams and e-mail phishing scams. Last year, the Florida Department of Agriculture and Consumer Services received 31 tax-related complaints, with 17 specific to IRS scams.
“Tax season gives scam artists the perfect opportunity to steal consumers’ identities and hard-earned money,” said Commissioner of Agriculture Adam H. Putnam. “Floridians should be vigilant this tax season and protect their personal information.”
Consumers should be aware of the following information in order to protect themselves from scams:

  • The IRS contacts taxpayers by mail in most cases and will never ask for a credit card, prepaid debit card, money order or wire transfer immediately over the phone.
  • Never give out personal information over the phone, such as Social Security numbers, bank account numbers or credit/debit card numbers without verifying the source. To ensure the source is legitimate, hang up and call the entity using its official number.
  • Floridians who are unsure about their tax situation can reach the IRS at 1-800-829-1040.

The Florida Department of Agriculture and Consumer Services is the state’s clearinghouse for consumer complaints, protection and information. The call center is staffed with trained analysts who can respond to questions about programs and regulations under the department’s purview, provide information on a wide variety of topics or direct callers to the appropriate government agency.
For more information, visit FreshFromFlorida.com.

Office of Insurance Regulation Consumer Alert

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Florida NFIP Policyholders Have 60 More Days to File A
Proof of Loss Associated with Hurricane Matthew Claims;

Proof of Loss Extension Associated with Hurricane Hermine Claims Has Expired

At the request of Insurance Commissioner David Altmaier, the Federal Emergency Management Agency (FEMA) has granted another extension giving National Flood Insurance Program (NFIP) policyholders in Florida an additional 60 days to file a complete, signed, and sworn proof of loss in support of their insurance claim for flooding damages associated with Hurricane Matthew. Typically, NFIP policyholders have 60 days to file a proof of loss with their insurance company following the initial date of loss. With this latest extension, Florida NFIP policyholders will have received a total of 180 days to file a proof of loss for damage caused by Hurricane Matthew.
On Tuesday, January 31, 2017, the proof of loss extension for claims associated with Hurricane Hermine officially expired. However, policyholders who experienced flood damage from this storm should continue working with their flood insurance company. As soon as possible, these policyholders should also take action to complete the proof of loss with all supporting documentation related to their flood claim and submit it to their flood insurance company.
For more information and resources about filing a flood insurance claim with the NFIP, visit www.floodsmart.gov or the Office’s “Hurricane Season Resources” webpage. A copy of the FEMA bulletin for this extension can be accessed here.
​About the Florida Office of Insurance Regulation
The Florida Office of Insurance Regulation has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets. For more information about the Office, please visit www.floir.com or follow us on Twitter @FLOIR_comm and Facebook.