Industry Insight: Florida Agent's Guilty Plea in $300K Premium Finance Fraud

Background: A Premium Finance Scheme Built on Nonexistent Businesses

A Florida insurance agent has pleaded guilty to fraudulently arranging more than $300,000 in premium financing for fake companies and then diverting much of the money to personal use. According to reporting by Insurance Journal, Daniel Raney, 41, managed Raney Insurance and Raney Ventures in Pensacola. He was arrested in August after the premium finance company, AFCO Direct, became suspicious, according to the arrest affidavit.

The matter reached regulators in June 2024, when AFCO's associate general counsel filed a complaint with the Florida Department of Financial Services (DFS) after installment payments on the premium finance loan had stopped. A DFS investigator explained that the purported coverage was from Lloyd's of London for two local businesses that did not exist.

Key Facts From the Record

• Amount at issue: More than $300,000 in premium financing arranged for fake companies.
• Additional diversion: Escambia County Circuit Court records show Raney allegedly diverted $38,588 in payments from a legitimate local business intended for an insurance audit on a general liability policy.
• Licensing: DFS records show Raney held property-casualty and surplus lines producer licenses as early as 2007. Those licenses have been suspended. He was once appointed with multiple national property insurers but was not actively appointed with any carriers.
• Plea terms: A plea agreement dropped three charges, which reduced the maximum prison time. Raney has not been sentenced but could face less than seven years in prison.

How the Scheme Worked

Premium financing lets a policyholder pay an insurer's premium through a lender and repay the lender in installments. In this case, the financing was allegedly arranged for businesses that did not exist, with coverage that was purportedly placed through Lloyd's of London. The lender advanced funds, and when installment payments stopped, the lender's suspicion triggered the complaint and investigation. The affidavit indicates the money did not go toward real coverage but was largely diverted for personal use.

The separate allegation involving a legitimate business is a reminder that agent misconduct is not limited to fabricated accounts. Payments intended for an audit on an actual general liability policy were allegedly diverted as well.

Why This Matters to Public Adjusters and Claims Professionals

Although this is a criminal matter rather than an appellate coverage decision, it carries practical lessons for professionals who handle property and casualty claims in Florida.

1. Confirm that coverage actually exists before building a claim

When a client reports a loss, the first question is whether a valid, in-force policy exists. A policy placed through a producer who is later found to have fabricated coverage may never have been bound with any carrier. Verifying the policy with the insurer directly, rather than relying solely on documents supplied through the agency, protects both the client and the adjuster's time.

2. Surplus lines and Lloyd's placements deserve extra verification

The purported coverage in this case was described as being from Lloyd's of London. Policies placed in the surplus lines market can be legitimate and valuable, but the same features that make them specialized can make verification more important. Confirm the issuing carrier, policy number, binder and effective dates through independent channels.

3. Premium payment trails matter

If a client paid premiums, audit charges or down payments through an agency, retain proof of every payment and where it was sent. In disputes over whether coverage was in force, a clear payment record can be central evidence, particularly where an agent may have failed to remit funds to the carrier or lender.

4. Check producer licensing and appointments

DFS maintains public licensing records. A producer's license status and carrier appointments can be checked before relying on that agent's representations. In this matter, the agent was licensed since at least 2007 but, at the time of the reporting, those licenses were suspended and he held no active carrier appointments.

Impact on Policyholders

Policyholders who pay through an agent are exposed when that agent misappropriates funds. A homeowner or business owner may believe coverage is in place only to learn after a loss that premiums were never remitted or that no policy was ever issued. Early warning signs can include missed or unexplained lender notices, inability to obtain a policy declarations page directly from the insurer, and requests to make payments to an individual rather than the carrier or an established premium finance company.

Policyholders who suspect a problem should contact the carrier directly to confirm the policy status, review any premium finance agreement they signed, and consider reporting concerns to DFS. Where a loss has already occurred, prompt legal review can help identify potential recovery avenues, including claims against responsible parties, depending on the facts.

Practical Takeaways

• Verify policy existence and status directly with the carrier at intake.
• Request the complete policy, declarations page and any binder from the insurer, not only from the agency.
• Document all premium and audit payments, including payee and method.
• Check producer license status and appointments through DFS records.
• Be cautious when a client's premium finance payments have stopped or lender notices appear.
• Escalate suspected agent misconduct promptly; delays can complicate recovery.

What Comes Next

Sentencing has not yet occurred. The plea agreement reduced the maximum exposure, and reporting indicates Raney could face less than seven years in prison. The outcome of sentencing, and any restitution ordered, will be relevant for affected lenders and businesses.

How Louis Law Group Can Help

Louis Law Group represents Florida policyholders in property damage insurance disputes and works alongside public adjusters and claims professionals. If your client's coverage is in question, a claim was denied, or you suspect an agent or intermediary has mishandled premiums, our team can review the documents and discuss options. Call us at (833) 657-4812 to speak with our team about your situation.

Source: Insurance Journal - Florida Insurance Agent Pleads Guilty in $300,000 Premium Finance Scheme