Bermuda-based White Mountains Insurance Group yesterday said a $575,000 administrative cost arising from a regulatory action against one of its reinsurance units was paid by the managing general agency that sold its health policies in Florida.

Florida insurance authorities pored over two years of evidence from both Sirius International Insurance Corporation, a White Mountains unit, and from International Medical Group of Indiana, Indianapolis because of allegations the parties jointly sold medical policies to Florida residents without an insurance licence.

Both companies were forced to pay disputed claims of more than $261,000 to settle the investigation and are barred from selling policies in the state until securing a licence from authorities.

A statement from Florida Insurance Commissioner Kevin McCarty?s office on Monday said that IMG and Sirius together paid a total of $836,344.30 in both administrative costs and to clear the disputed claims. Of that, $575,000 was levied on the companies as an administrative cost, according to the statement.

A White Mountains spokesperson yesterday told that IMG, not Sirius, satisfied the administrative charge. ?Sirius was not fined or assessed an administrative charge. IMG has paid all administrative fees,? he said, adding that an August 30 Consent Order between Mr. McCarty and the parties resolved all issues stemming from the investigation launched against Sirius and IMG by the Florida Office of Insurance Regulation in April.