The Fla. Dept. of Monetary Products and services is the receiver for St. Johns Insurance Co, which was declared bancrupt. DFS hopes to shift insurance policies to Slide Insurance policy Co.
TALLAHASSEE, Fla. – In yet another blow to the state’s troubled insurance market, a Leon County circuit choose Friday appointed the Florida Division of Money Providers as a receiver for a assets-insurance policy firm that data explained as “insolvent.”
The office will liquidate the Orlando-based mostly St. Johns Insurance coverage Co. The department’s web page claimed it was trying to get court acceptance of a “transition plan” that would move procedures to Slide Insurance coverage Co., helpful Tuesday.
The get Friday by Circuit Judge Angela Dempsey arrived two days after Insurance coverage Commissioner David Altmaier despatched a letter to condition Chief Money Officer Jimmy Patronis indicating the organization agreed to receivership and acknowledged that “it is bancrupt.”
“The referral of this business to the (Department of Economic Services’) Division of Rehabilitation and Liquidation is the initially phase in a thorough strategy to provide a seamless changeover for all St. Johns Insurance Firm policyholders,” Altmaier wrote.
The letter, which was hooked up to the petition for receivership submitted in court docket, did not detail how many procedures are concerned. The information on the Section of Financial Services’ web-site said the court buy induced a approach in which the Florida Coverage Warranty Affiliation and the South Carolina House and Casualty Coverage Guaranty Affiliation will address existing claims.
St. Johns Insurance offered householders procedures in Florida and South Carolina, in accordance to its site. The Florida Insurance plan Warranty Association is a longstanding agency made to pay back statements of insolvent insurers.
Dempsey’s get arrived much less than two months soon after St. Johns Coverage notified agents that it was halting composing new enterprise.
The Feb. 15 see stated the company experienced employed “many approaches to control our threats,” these kinds of as not renewing policies, applying new policies for eligibility for business and earning level improvements. But it claimed, “At this time, St. Johns Insurance plan has built the hard selection to suspend all new enterprise producing statewide as of February 15, 2022, … This closure applies to all traces of small business.”
The receivership is a further indication of complications in Florida’s assets-insurance policies current market, the place insurers are shedding insurance policies and in search of large fee raises simply because of economic troubles.
The troubles have led to a surge in policies at the condition-backed Citizens Home Insurance policies Corp., which was established as an insurer of previous resort but has become a dominant player in the industry. As of Jan. 31, Citizens had 776,790 procedures, about a 75% raise around the earlier two years.
Supply: Information Company of Florida