North Carolina Insurance Commissioner Jim Long announced that an emergency cease and desist order was served on Continental Casualty Insurance Group, a company his department believes has targeted property owners in Topsail Beach with offers of low-cost flood insurance.
The company, which may also be known as Continental Casualty Group or CCIG Insurance Services, is neither a licensed insurance company in North Carolina, nor is it an eligible surplus lines insurer in this state. It is therefore unable to legally sell insurance products in North Carolina.
The Department of Insurance first received a tip in mid-January citing suspicions about Continental Casualty. The case was investigated by the Department’s Unauthorized Entities Unit, which looks into claims of companies illegally doing insurance business in the state.
Continental Casualty, which is apparently doing business from an office in Rochester Hills, Mich., is not licensed in Michigan either, according to that state’s insurance department.
Consumers who own property in the CBRA, or Coastal Barrier Resources Act, zones may have been attracted to Continental’s offers of $250,000 of flood insurance with either a flat $7,000 premium or 10 percent off the owner’s current policy premium.
Department officials believe at least 50 such policies may have already been sold, some of which could have been to Michigan residents who own property in North Carolina. Consumers who have already purchased a policy from Continental Casualty are urged to contact the N.C. Department of Insurance.
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