Florida insurance company settles case involving Hurricane Irma claims

One of Florida’s largest homeowners insurance companies is paying the state $6.5 million to settle allegations it filed “fraudulent” Hurricane Irma claims.

Fort Lauderdale-based Universal Property & Casualty Insurance Co. was accused of “fraudulently” submitting “numerous ineligible claims for reimbursement” from the state’s Hurricane Catastrophe Fund, the attorney general’s office said in a news release.

Insurance companies pay into the fund, which covers a portion of the companies’ hurricane-related claims.

Universal falsely dated an undisclosed number of claims as occurring as a result of 2017’s Hurricane Irma, an alleged violation of the Florida False Claims Act, according to the attorney general’s office.

Under an agreement with Florida’s attorney general, the company admits no wrongdoing but will “pay more than $4 million in fines” and change its policy and procedures, according to a news release from the attorney general’s office.

“This office is committed to a healthy and stable insurance market for Florida homeowners, meaning insurance companies must play by the rules,” Attorney General James Uthmeier said in a statement Tuesday.

The agreement states it’s “more efficient and valuable” for both parties to settle the case instead of litigating it.

Universal disputed some of the information released by the attorney general.

The office’s news release said it “secured the return of more than $30 million” to the catastrophe fund, and spokesperson Jeremy Redfern confirmed to the Herald/Times that the company was repaying $30 million.

But a spokesperson for Universal said the company was never paid for the claims, so it had nothing to pay back. As the catastrophe fund analyzed Universal’s claims, the fund withheld about $30 million.

A spokesperson for Universal also disputed that the company was being fined. It said it was settling the allegations for $6.5 million. According to the settlement, $2.4 million of that is going to repay the attorney general’s office expenses.

The allegations first came to light through a sealed whistleblower lawsuit filed in 2020, prompting the attorney general’s office to investigate.

In a statement, Universal said that it “fully and completely cooperated” with the state and “provided all requested information.” It said the former employee’s allegations contained “numerous fundamental factual inaccuracies and gross mischaracterizations.”

The disputed claims amounted to 1% of its Hurricane Irma claims, according to the company.

“We are pleased the review has come to a close and the state dismissed the case,” Universal CEO Stephen Donaghy said in a statement.

Universal was fined $1.3 million by state regulators in 2013 for canceling customers’ policies without justification and shifting profits to affiliate companies.

Universal paid more than $86 million in fees to affiliates in 2010. One of those affiliates made $44 million in profit while Universal lost money in 2009.

Clarification: This story has been updated to include a new headline and more information from Universal disputing information from the Florida attorney general’s office that it had to repay $30 million to the state’s Hurricane Catastrophe Fund. Universal also disputed the attorney general’s assertion that it agreed to pay more than $4 million in fines.

This story was originally published April 1, 2025 at 6:15 PM.