Florida Specialty Insurance Company Liquidation: What You Need to Know

Navigating the Florida insurance market can be challenging, especially with recent changes and company liquidations. This article provides essential information about the Florida Specialty Insurance Company (FSIC) liquidation and guidance for affected policyholders. We’ll cover key details about the process, what it means for your coverage, and how to secure reliable insurance moving forward.

Understanding the FSIC Liquidation

In 2019, the Florida Office of Insurance Regulation (OIR) ordered the liquidation of FSIC. This decision followed the company’s inability to pay claims and its deteriorating financial situation. FSIC, once headquartered in Jacksonville, primarily serviced non-admitted insurance, commercial property, and auto insurance lines. The OIR appointed KPMG LLP as the receiver to manage FSIC’s assets and oversee the liquidation process. This included handling outstanding claims and distributing remaining funds to policyholders.

What Happened to FSIC’s Assets?

As of mid-2018, FSIC reported approximately $13.7 million in assets against $311.6 million in liabilities. This significant gap highlighted the company’s financial instability and ultimately led to its liquidation. The receivership aims to use the available assets to settle as many outstanding claims as possible. However, due to the substantial difference between assets and liabilities, full recovery for all policyholders might not be feasible.

What Does the Liquidation Mean for Policyholders? How FIGA Assists

If you held a policy with FSIC, the liquidation has direct implications for your coverage. Existing policies are no longer active, and FSIC cannot issue new policies or renewals. The Florida Insurance Guaranty Association (FIGA) steps in to help policyholders recover some of their losses in such situations.

FIGA acts as a safety net for policyholders of insolvent insurance companies. It provides a mechanism for recovering unearned premiums and, in some cases, covering unpaid claims. However, there are limitations to FIGA’s coverage, including a statutory deduction and a cap on the total amount it can pay per claim.

• Unearned Premiums: Policyholders are eligible to receive a refund of unearned premiums, subject to a $100 statutory deduction. If your unearned premium is less than $100, you may still be eligible for a refund later, depending on the available funds.
• Mortgage Company Payments: Refunds for premiums paid through mortgage companies will be sent directly to the policyholder, not the mortgage company.
• Change of Address: It’s crucial to inform the receiver of any name or address changes to ensure you receive your refund.

Navigating the Florida Insurance Landscape and New Regulations

The FSIC liquidation underscores the dynamic and sometimes volatile nature of the Florida insurance market. Finding reliable and affordable coverage is crucial for protecting your property. Compare options, understand coverage details, and choose an insurer with a strong financial standing.

Are you searching for a new insurance provider in Florida? Discover options that offer the coverage you need. Explore Florida specialty insurance companies and secure your future today.

The liquidation of FSIC and other insurers leaving Florida has prompted new regulations. These changes aim to strengthen the market and protect policyholders. Key updates include a cap on assessments for non-admitted insurers and increased minimum cash reserve requirements. These measures strive to ensure greater financial stability within the Florida insurance industry.

What to Do Now and Finding the Right Insurance Partner

If you were a policyholder with FSIC, take the following steps:

• Contact FIGA: Reach out to FIGA to understand the claims process and your eligibility for recovering unearned premiums or unpaid claims.
• Seek New Coverage: Secure a new insurance policy with a reputable and financially stable insurer. Compare quotes and coverage options to find the best fit for your needs.
• Review Policy Details: Carefully examine your new policy to ensure you have adequate coverage for your property and understand the terms and conditions.

Choosing the right insurance partner is vital, especially in Florida’s challenging insurance market. Look for an insurer with a strong track record, excellent customer service, and a clear claims process. Don’t hesitate to ask questions and compare options before making a decision.

Ready to find reliable insurance coverage in Florida? Secure a quote today and protect your property. Learn more about insurance options in Florida and gain peace of mind knowing you’re covered.

Final Words

The liquidation of Florida Specialty Insurance Company (FSIC) serves as a stark reminder of the importance of understanding your insurance coverage and the financial stability of your insurance provider. While FIGA provides a safety net, it’s crucial for policyholders to be proactive in securing new coverage with a reputable insurer and reviewing policy details. The evolving Florida insurance market requires vigilance and careful consideration to ensure adequate protection for your assets.