Florida Specialty Insurance Company Liquidation: What You Need to Know

Understanding the Florida Specialty Insurance Company (FSIC) Situation

In 2019, the Florida Office of Insurance Regulation ordered the liquidation of Florida Specialty Insurance Company (FSIC). This action significantly impacted FSIC policyholders, raising crucial questions about coverage and claims. This article provides clarity on the situation and guidance for those affected.

The Reasons Behind FSIC’s Liquidation

FSIC primarily focused on non-admitted insurance, commercial property, and auto lines. Following the liquidation order, KPMG LLP was appointed as the receiver to manage financial matters and potential asset sales. The order also included an assessment on non-admitted insurers to cover liquidation costs, with a refund mechanism for policyholders after four years if funds remained.

What Led to the Liquidation?

FSIC, headquartered in Jacksonville, faced mounting financial difficulties leading up to the liquidation. As of June 30, 2018, they reported $13.7 million in assets against $311.6 million in liabilities. This substantial gap, coupled with an inability to pay claims, prompted regulatory action. Prior acquisitions, including Liberty National Life Insurance Company, likely contributed to the financial strain. Learn more about navigating the Florida insurance market.

Impact on Policyholders and Next Steps

Impact on Policyholders: Next Steps and Key Information

The liquidation of FSIC left many policyholders wondering about their coverage. Here’s a breakdown of what you need to know:

• Claims Processing: While FSIC can no longer issue or renew policies, existing claims will be administered by the appointed receiver.
• Florida Insurance Guaranty Association (FIGA): FIGA stepped in to assist policyholders in recovering some of their losses. Policyholders who switched to other insurers can receive a refund of unearned premiums, minus a $100 statutory deduction.
• Refunds: Those with unearned premiums below $100 may still be eligible for a refund once sufficient funds are available. Premiums paid through mortgage companies will be refunded directly to policyholders, not the mortgage company.
• Important Notice for Policyholders: If you’ve changed your name or address since your policy with FSIC, notify the receiver immediately to ensure you receive your refund.

Navigating the Florida Insurance Market

Finding Stable and Reliable Coverage in Florida

The FSIC situation underscores the importance of choosing a financially stable insurer.

Securing Your Future: Take Action Now

Don’t wait. Get the peace of mind you deserve by securing a quote with a trusted provider. Compare your options now and ensure your property is protected.

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Navigating the Changing Florida Insurance Landscape

The Florida insurance market is constantly evolving, and it’s crucial to stay informed. New regulations and market fluctuations can impact your coverage options and costs. Researching different insurers, comparing quotes, and understanding your needs are vital steps in finding the right policy. Don’t hesitate to consult with an insurance professional for personalized guidance.

Take Control of Your Insurance: Get a Free Quote Today!

Don’t let uncertainty about your insurance coverage keep you up at night. Take control of your future and get a free, no-obligation quote today. Explore reputable options and find the coverage that fits your needs and budget. Protecting your property is an investment in your peace of mind.

Final Words

The liquidation of Florida Specialty Insurance Company serves as a stark reminder of the importance of carefully selecting a financially sound insurance provider. Policyholders affected by the liquidation should be aware of the resources available to them, including the Florida Insurance Guaranty Association (FIGA) and the appointed receiver. By staying informed about the evolving insurance landscape and comparing options from reputable insurers, Florida residents can protect their assets and secure their financial future. Taking proactive steps to obtain quotes and understand coverage options is crucial for navigating the complexities of the insurance market and achieving peace of mind.