18/05/2022

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Judge Approves Receivership for Property Insurer

3 min read

A judge named a receiver for Tampa-dependent property insurance company Avatar Property & Casualty Insurance plan Co. for “purposes of liquidation.” Avatar has 37K insurance policies.

TALLAHASSEE, Fla. – A Leon County circuit judge issued an purchase placing a Tampa-primarily based house insurer into point out receivership, as complications proceed to mount for property owners and insurance plan organizations.

Judge John Cooper on Monday appointed the Florida Division of Economical Products and services as receiver for the “purposes of liquidation” of Avatar Assets & Casualty Insurance plan Co.

The get came right after the division submitted a petition March 4 seeking appointment as receiver, declaring that Avatar was insolvent – about a week soon after a different circuit judge appointed the section as receiver for Orlando-primarily based St. Johns Insurance plan Co., which also was viewed as bancrupt.

Devin Galetta, communications director for the Department of Fiscal Products and services, stated Avatar experienced about 37,000 insurance policies in Florida as of March 2. The office has contracted with a corporation, Evaluation Means, LLC, to serve as a unique deputy receiver.

In notices to policyholders and agents dated Monday, the section explained Avatar guidelines will be canceled as of April 13, with promises for damages prior to that day taken care of by a plan acknowledged as the Florida Insurance coverage Guaranty Association.

“If you have not by now discussed this issue with your agent, make sure you call your agent right away to make positive that you get new protection to swap your Avatar plan,” said the recognize to policyholders, posted on a web-site about the liquidation. “Your agent is in the greatest placement to advise you as to your insurance policy alternatives.”

Galetta mentioned in an e mail that the division has “employed, with court docket approval, a particular deputy receiver to connect with policyholders on next methods and will operate as a result of the usual guaranty association process to go over existing claims. To even more guard policyholders, any prospects for insurance policies to be transferred to other organizations to avert loss of protection will be explored.”

The Avatar condition is in distinction to the receivership of St. Johns Coverage Co., whose guidelines were being transferred to Slide Insurance Co.

The receivership also arrives as the number of insurance policies in the state-backed Citizens Property Insurance plan Corp. proceeds to raise by hundreds a 7 days. Citizens, which was made as an insurer of last vacation resort, experienced 792,616 procedures as of the finish of February.

Michael Peltier, a Citizens spokesman, said Tuesday that Citizens expects to get some procedures since of the Avatar liquidation but that quite a few likely will be picked up by private insurers.

In a March 2 letter to condition Chief Money Officer Jimmy Patronis about pursuing the Avatar receivership, Coverage Commissioner David Altmaier explained the company experienced agreed to the go and acknowledged that it was insolvent.

“OIR (the Office of Insurance coverage Regulation) has labored intently with Avatar House & Casualty Insurance plan Organization to facilitate options for buyers so they have obtain to continuous protection in the voluntary industry,” Altmaier wrote. “While no insurer has expressed an desire in giving protection to all of Avatar’s policyholders, several insurers have expressed an curiosity in probably delivering coverage to some of Avatar’s policyholders by immediate solicitation by their appointed brokers.”

The Avatar receivership is the latest evidence of complications in the residence-insurance marketplace, as companies get rid of insurance policies and seek out huge charge will increase to test to cut down fiscal hazards.

Point out lawmakers regarded as proposals to bolster the current market and support change policies out of Citizens to personal insurers, but the Senate and House could not attain agreement on a plan right before the annual legislative session ended Monday.

Supply: News Service of Florida

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