An Evergreen couple has been ordered by the Colorado Division of Insurance to stop selling travel insurance because they are not licensed.
Jerry and Christine Watson and their company, Prime Travel Protection Inc. of Arvada, were served with the cease-and-desist order last month.
About 200 Colorado residents bought travel insurance from Prime Travel Protection, with a number of them scheduled to take future trips, according to the order.
In addition, 20 to 30 people from six states have filed complaints against the company, said division spokeswoman Cameron Lewis.
“The biggest number of complaints have come from Florida,” Lewis said. Other states include California, Maryland, Massachusetts, New Jersey and New York.
The majority of complainants are believed to be older because the plans offered did not rely on age as an underwriting factor. The “seniors vs. crime” unit of the Florida attorney general’s office filed a complaint with the Colorado division.
One person complained her elderly mother broke her hip on a trip and couldn’t get a refund.
Insurance Commissioner Marcy Morrison urged consumers to check whether a company is licensed. If it’s not, she said, the company may not have met the proper legal requirements, including proving adequate financial reserves to cover claims.
The Colorado investigation showed Jerry Watson arranged for underwriting through a company based in the Republic of Vanuatu, an island nation in the South Pacific.
Jerry Watson incorporated Prime Travel Protection in Colorado in February 2007, and it sold travel insurance until Jan. 26.
Similar insurance plans were sold by companies that Jerry Watson previously ran — Vacation Protection Services in Tennessee and Traveler Protection Services in Illinois.
In May 2008, the state of Tennessee halted sales by Vacation Protection and Traveler Protection because Watson was not licensed.
Alan J. Schmitz of Centennial, the Watsons’ attorney, wrote Tuesday in an e-mail, “Sorry — no comment,” when contacted. The Watsons have until May 24 to demand a hearing.
Ann Schrader: 303-954-1967 or aschrader@denverpost.com
What can consumers do?
• Contact your insurance department or the attorney general’s office.
• Contact your credit card company in writing in the same billing cycle when it was charged.
• Colorado consumers may contact the Colorado Division of Insurance for more information on how to find a licensed agent or company.
• Consult a private attorney for legal advice regarding possible civil remedies.
Source: Colorado Department of Regulatory Agencies
