Posted on 10/01/2022 7:21:05 AM PDT by devane617
State regulators Friday asked a judge to place a property-insurance company in receivership, making it the sixth Florida property insurer declared insolvent this year amid widespread financial problems in the industry.
The Florida Department of Financial Services sought to be appointed receiver for FedNat Insurance Co., which canceled 56,500 policies in May and reached an agreement to transfer about 83,000 policies to another company in June.
Despite shedding the policies, FedNat remained responsible for claims and other types of obligations from before June 1, according to court documents. It notified the state Office of Insurance Regulation on Sept. 13 that it did not have enough money for what is known in the insurance industry as a “runoff” of the obligations.
“Respondent (FedNat) notified OIR that it had overstated its cash position and could not complete a solvent runoff,” said the court petition, filed by the Department of Financial Services’ Division of Rehabilitation and Liquidation. “OIR immediately sent an examiner to the company. On September 14, 2022, Respondent advised OIR that it did not have sufficient cash on hand to pay its obligations and debts as they come due in the normal course of business. Therefore, Respondent is insolvent as defined (by a section of state law) and delinquency proceedings are appropriate.”
(Excerpt) Read more at tallahasseereports.com ...
FIXED: Those of us in Florida saw this coming long ago and IAN just made it much worse.
The woman who paid the $11000 for tree cut up was quoted $9000/year with a $10000 deductible before cancelling in May.
Never count out the I AM in anything.
(Most) Insurance is a scam. I would love to drop homeowner’s insurance, but most lenders won’t let you. Short of losing my entire home, there’s not much I wouldn’t just sub out and/or fix myself. Going through an insurance company for anything is a waste of time and an exercise in patience.
ditto
I had FedNat last year and they covered the damages from a burst pipe excellently - It was about $50k in damages to property, personal items, and loss of use.
No surprise. Ins Cos have been doing that for decades.
They get the premiums, but when a disaster hits and they have many pay-outs, they declare insolvency or bankruptcy and cry for Congress to bail them out — which it usually does.
They get the premiums and $millions from the government. But they do get protection for their political donations.
We understand. How can anyone now aford insurance to rebuild some of the high risk places like Sanibel?
Surprised the libs haven’t been talking about government taking over the property insurance business because of how climate change is gonna bankrupt all the insurance companies.
I wonder how much of it can be... ‘let’s get DeSantis’, posibly urged by the FED.
Allstate has a "3 claims and you're screwed" rule for an insured property. Doesn't matter if it's 3 large claims in a year, or 3 small claims over a quarter of a century. Same insured, no time limit. I haven't parsed the policy to see if it's tied to the property, or if older claims in another state also count against the limit.
Insurers - good luck when they are needed most.
(I say that as someone whos's paid, paid, paid...and never filed a claim)
...then there are the (foreign/domestic) scam artists that "scam the scam"...including everyone who pays/paid into it.
If you had a paid for house, you would cancel your home insurance? Is it that expensive?
I bet many did not have flood insurance, as it would be cost prohibited on a sea level island in a hurricane zone.
FedNat was our insurer (through Allstate). Was switched 2 months ago to Monarch. I don’t have good feelings about all this...
“How can anyone now aford insurance to rebuild some of the high risk places like Sanibel?”
Most of the folks on Sanibel can afford to rebuild and not depend on Ins.
Our state Insurance commissioner said one time to a room full of Realtors, the insurance companies send your new policy after purchasing a new home, "it says welcome, here is a copy of your policy, if you choose to use it, you will be cancelled."
Overstating its cash position sounds like fraud. Those responsible should be sent to prison.
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