Florida Specialty Insurance Company Liquidation: What You Need to Know
Understanding the Florida Specialty Insurance Company (FSIC) Situation
Navigating the aftermath of an insurance company liquidation can be stressful. We’re here to provide clarity and guidance for Florida policyholders affected by the FSIC situation.
In 2019, the Florida Office of Insurance Regulation ordered the liquidation of FSIC. This means the company ceased operations and can no longer write new policies or renew existing ones. KPMG LLP was appointed as the receiver to manage the company’s assets and oversee the claims process.
This event impacted policyholders across various insurance lines, including non-admitted insurance, commercial property, and auto. If you held a policy with FSIC, understanding your options and next steps is crucial.
What the Liquidation Means for Policyholders
Concerned about your coverage? Here’s what you should know if you were a Florida Specialty Insurance Company policyholder.
The Florida Insurance Guaranty Association (FIGA) stepped in to help policyholders recoup some of their losses after FSIC’s liquidation. Policyholders who switched to a different home insurance company, perhaps even finding a better deal through a Florida specialty insurance company, are entitled to a refund of their unearned premiums, minus a $100 statutory deduction.
If your unearned premium refund is less than $100, you may be eligible for a payout later, once sufficient funds become available. Premiums paid through mortgage companies will be refunded directly to the policyholder, not the mortgage company. It’s vital to update your contact information with the receiver to ensure you receive your refund.
Don’t hesitate to reach out to your agent or broker with any questions about your specific policy.
Why Did FSIC Go into Liquidation?
Unraveling the reasons behind FSIC’s financial troubles.
FSIC’s financial difficulties stemmed from a combination of factors, including mounting liabilities and a lack of liquid assets. While the company had been active in acquisitions, such as the purchase of Liberty National Life Insurance Company, these ventures ultimately contributed to its financial strain. The company simply couldn’t keep up with its obligations, leading to the inability to pay claims and the eventual liquidation order.
Next Steps for Affected Policyholders
Take action to protect your interests and secure the coverage you need.
If you were a Florida Specialty Insurance Company policyholder, it’s essential to take proactive steps. Contact the receiver for information about the claims process and any potential refunds. Simultaneously, explore alternative insurance options to ensure you have continued coverage.
Securing Your Future Coverage
Are you searching for reliable and affordable insurance in Florida? Secure your peace of mind by exploring coverage options today. Get a free quote now and compare rates from multiple providers.
New Insurance Regulations in Florida
Staying informed about changes in Florida’s insurance landscape.
FSIC’s liquidation prompted new regulations aimed at strengthening the financial stability of insurers operating in Florida. These regulations include a cap on assessments collected for liquidation costs and increased cash reserve requirements for non-admitted insurers. These measures are designed to protect policyholders and prevent similar situations in the future.
Finding the Right Insurance for You
Don’t wait—take control of your insurance needs today.
Navigating the insurance market can feel overwhelming, especially after experiencing a company liquidation. But finding the right coverage for your needs is crucial.
Compare quotes from different insurers, consider your coverage needs, and choose a policy that provides the protection you deserve. Click here to get started and discover insurance options tailored to your specific requirements.
Final Words
The liquidation of Florida Specialty Insurance Company (FSIC) serves as a stark reminder of the importance of understanding your insurance policy and the financial stability of your insurance provider. While the situation caused disruption and uncertainty for policyholders, the intervention of FIGA and the implementation of new regulations offer some protection and hope for a more stable insurance market in Florida. Taking proactive steps, such as staying informed about changes in regulations, comparing quotes from multiple providers, and understanding your coverage needs, can help you navigate the insurance landscape and secure the protection you deserve.