Florida's top insurance regulator, Tom Gallagher, has launched an investigation into allegations of fraud against the state-run insurer of last resort.
"Due to the serious allegations of made against Citizens' Property Insurance Corporation Chief Operating Officer Paul Hulsebusch, I have directed our department's fraud detectives to immediately launch a criminal investigation and subpoena all documents related to his case," Mr. Gallagher said in a press statement.
Mr. Hulsebusch resigned last Friday.
Department of Financial Services spokesman Bob Lotane said that the focus of the inquiry centers on claims adjusting contracts that were allegedly pulled from one organization and steered to another in exchange for kickbacks.
The allegations first came to light in a lawsuit between the competing adjusting firms, Mr. Lotane said.
The claims involved were submitted to state insurance carriers last year and early this year in connection with the four hurricanes that hit the state in 2004, Mr. Lotane said.
Citizens was created by the Florida Legislature in 2002 and is run by an independent governing board whose members are appointed by various state officials.
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