People's Trust Insurance Company

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People’s Trust Insurance Company is a Florida based homeowner's insurance company. Founded in March 2006 by Michael Gold with $10 million in capital. Headquarter in Boca Raton, Florida. The company offers discounted homeowner insurance by eliminating commissioned sales agents and offering necessary coverage to Florida homeowners, helping potential policyholders make their homes more damage-resistant to reduce the cost of their policies and offering to cut coverage that’s redundant or excessive. It solicits new business through direct mail and uses call centers to handle policyholder claims and answer their questions.

People’s Trust Insurance Company/Homeowners Insurance covers damages to property, such as homes, and different types can protect an insured from fire, floods, hurricanes and earthquakes, among other risks. Home insurance, specifically, covers 1st party protection against economic loss to their home/property and household belongings, as well as 3rd party (liability) protection for related damages and injuries from the property or activities connected to the property. When homeowners insurance policies offer both 1st and 3rd party protection it is known as a package policy, of which is a bundle of different lines of insurance into one policy and all required coverage must be included in a package policy, according to PTI’s Training Manual. “Insurance is given out by a contract or agreement between the insured and insurer, describing the term, coverage, premiums and deductibles, known as insurance policies”, PTI’s Training Manual.

Distribution[edit]

People’s Trust Homeowners Insurance is currently only available to consumers who live in the state of Florida, excluding the following counties: Bay, Calhoun, Escambia, Franklin, Gadsen, Gulf, Hernando, Holmes, Jackson, Jefferson, Liberty, Okaloosa, Pasco, Santa Rosa, Wakulla, Walton and Washington. People’s Trust provides quotes by both phone and on the company’s Website, and purchasing can only be done by phone. As of 2013, online quotes are no longer available, quotes are however available by email.


Correct the distribution system to read as follows: Since mid 2012 Peoples trust has opened up distribution of their product to two of the largest agencies in Florida. We Insure Florida and also the Brightway system. These two super agencies comprise collectively about 200 distribution points throughout the state.

Ceos[edit]

Competition[edit]

People’s Trust Insurance competes directly with Allstate, State Farm, Liberty Mutual, Nationwide, Security First, and Citizens Insurance Co. of America

Criticism[edit]

In March 2009, Florida Insurance Commissioner Kevin McCarty suspended People's Trust Insurance Co.'s ability to sell new policies until it complies with McCarty's requirements.

CFO Alex Sink announced earlier this month that her office investigated the Boca Raton-based company and found that it used some unlicensed agents until recently. The company sells policies by phone and online to avoid agent commissions. The suspension does not affect existing policies.

McCarty's office found, among other things that People's Trust failed to:

  1. Obtain inspection reports confirming replacement cost values
  2. Secure proof of protective devices
  3. Comply with several practices related to claims submission, investigation and payment
  4. Has 35,000 policies, more than its business plan allows at this point

At the time, an agreement struck between McCarty's office and People's Trust required the insurer to pay $155,000 in costs and penalties and deposit $500,000 with the state Bureau of Collateral Management.

History[edit]

People’s Trust Home Insurance began in 2006, when CEO Michael Gold took a high interest in the 400 percent jump in Florida’s homeowners’ insurance premiums. After studying and challenging the system and how it ran, Gold recruited top-tier professionals and investors, whom shared his interest, to create a company that could provide secure coverage at reasonable prices.

Michael Gold’s theory was to create a “direct to consumer

” type insurance agency in which eliminated the “insurance agent” process and saved customers thousands of dollars that went commission for the agents. Right away, Gold’s policies were selling through the roof, saving each of his customers 20-25 percent per annual premium, simply by eliminating insurance agents from the process. But by doing so, in March 2009, regulators threatened to pull his license for using unauthorized people to sell his insurance. Among other violations, Gold’s practice was shut down to new sales, fined $155,000 and ordered to deposit $500,000 with the state. Although this violation created quite a stumbling block for People’s Trust, Michael Gold said carrying out such orders and willingly fixing the problems that caused violations would only make them stronger, according to FloridaTrend.com.