Florida Insurance Commissioner Mike Yaworsky has ordered Hydrogen Deep, doing business as The Wave Insurance, and its principals to cease insurance operations in the state after regulators found the business was operating without the required authorization.
The Florida Office of Insurance Regulation said Christopher Jason Brossett, owner of Hydrogen Deep, was arrested in June on charges including grand theft while acting as an insurer and transacting insurance without a certificate of authority or licence.
Brady Allen Howard, identified by OIR as owner of The Wave Insurance, was arrested in July and accused of conspiring with Brossett to commit grand theft and operate without proper authorization. The criminal allegations remain subject to court proceedings.
OIR and the Florida Department of Financial Services said their investigation found the two men operated under company names, provided insurance quotes, collected premiums, issued insurance binders and certificates of insurance, and failed to pay claims. Regulators said more than $100,000 in premiums was collected and diverted for personal use.
The businesses solicited watersports and marine-livery operators in the Destin area and entered into insurance contracts, according to OIR. The regulator said the respondents misrepresented or concealed the status of the insurance products being sold.
Florida regulator orders immediate cease and desist
OIR’s Aug. 28 order requires Hydrogen Deep, The Wave and the respondents to stop activity that violates Florida insurance law. The regulator publicly announced the action on Sept. 28 following its market conduct examination.
Risk retention groups operate under a different regulatory structure from conventional insurers and generally rely on authorization from their domiciliary state when doing business elsewhere. According to the case record, Florida regulators found no authorization permitting Hydrogen Deep or The Wave to transact the insurance business at issue in Florida.
Operating without a required license and soliciting consumers is not only unacceptable, but it can also cause immediate danger to public health and safety.
Florida Insurance Commissioner Mike Yaworsky
The regulator said it is urging consumers to verify whether an insurer or insurance-related business has the required authorization before entering into a contract. OIR defines an unauthorized insurance entity as a person or business conducting insurance activity without the necessary state approval.
Principals face separate criminal cases
Brossett and Howard were booked into the Okaloosa County jail during the summer and later released on bond. Both were scheduled for an Oct. 12 pretrial conference, according to the information cited in the case reporting.
Howard is a licensed Florida insurance producer, according to state records cited in the report. His appointments included a life insurer rather than a property-casualty company.
The cease-and-desist action is separate from the pending criminal proceedings. OIR’s order addresses whether the companies and respondents were authorized to conduct insurance business, while the criminal cases concern allegations brought against Brossett and Howard individually.
