A couple in Florida has lost hundreds of pounds after finding that their travel firm had sold them a fake travel insurance policy, it has been revealed.

George Fredrickson and his wife had booked an $8,000 sailing trip on the MSC Orchestra travelling through Sarasota with Legendary Journeys.

The couple were also sold a $432 travel cover by the travel agent from a firm called Traveller Protection Services.

However, when Mrs Fredrickson was advised by her doctor to stay home, the couple found that their travel insurance product was unlicensed and illegal and therefore were unable to get their money back despite being told that they would be reimbursed in the event of them needing to cancel the holiday.

Furthermore, the couple found that the Traveller Protection Services had gone out of business.

Yet Legendary Journeys stated that it was unaware that the insurance it sold the couple had been unlicensed.

Stew Carrier, a customer service specialist and group tour coordinator said: "As far as we were told by them, [they were] licensed to sell ... in Florida and all 50 states.

Legendary Journeys is not in the insurance business and we only act as the intermediary for the insurance provider."

Barry Resnick, a college professor from Orange said: "The perpetrator lines up a ring of travel agents, promising commissions up to four times what a legitimate insurance company would pay.

The product is masked to look like real insurance, promising compensation for specific potential future losses, in exchange for a payment."