Florida's insurance commissioner has filed paperwork asking two life insurance companies why they should be allowed to keep their certificates to do business in Florida.

The move comes after the companies were accused of unfair and deceptive practices to solicit business from U.S. military personnel.

The two companies in question are American Fidelity of Pensacola and Trans World Assurance of San Mateo, California.

The state Office of Insurance Regulation says among the allegations it received allegations was that the companies sold insurance policies after providing gifts valued at over $25,
offered referral fees to military personnel who recruited others to buy policies and misrepresented that they were affiliated with the military.

There are also allegations that the companies hired a Marine corporal who used his military identification to gain access to a military base and picked up military personnel and drove them to the companies' offices.

The state has filed an Order to Show Cause. The order requires the insurance companies to show cause why their licenses should not be revoked. If they fail to respond within 21 days, the state can taken action against them.

The order is tied to a rule adopted last September by the Florida Financial Services Commission that is aimed at providing safeguards for military personnel who are targets of predatory sales practices.
     
(Copyright 2008 by The Associated Press.  All Rights Reserved.)