Sunshine State Insurance

A Florida judge has signed-off on a plan by regulators to allow a failed Florida property insurer’s policyholders to be assumed by another company, although policyholders will retain the option to seek coverage elsewhere.

Leon County Judge Kevin Carroll on Friday approved the deal that could result in Heritage Property and Casualty Insurance Co. assuming as many as 36,000 policyholders left seeking coverage due to the insolvency of the Sunshine State Insurance Co.

The Jacksonville, Fla.-based Sunshine State was taken over by the Department of Financial Services Division of Rehabilitation and Liquidation on June 3 after the state Office of Insurance Regulation reported the insurer could no longer meet the state’s capital requirements.

Sunshine State officials said that an accounting error related to its 2008 and 2011 catastrophic reinsurance treaties and a 2013 fourth quarter operational loss left the insurer in an untenable financial position.

Subsequent to taking over Sunshine State, the DFS held a bidding process that involved 10 companies that were evaluated based on a number of criteria including rates, surplus, catastrophic coverage and other financial considerations.

As a result, the Clearwater, Florida-based Heritage secured the non-exclusive rights to assume Sunshine State’s residential homeowner and condominium book of business.

DFS Spokesperson Chris Cate said the goal is to continue Sunshine State’s policyholders’ coverage with as little disruption as possible.

“We make it a top priority to ensure that the impacted policyholders are able to maintain coverage with a sound company and that families are protected in the event of a damaging storm or other unforeseeable disaster,” said Cate.

Please call L & S Insurance at 1-888-244-7400  for quotes on Home, Auto, Flood, Business & Commercial & Life & Financial products as well. Please enjoy the full article below;

Florida regulators have taken over an insolvent domestic residential property insurer, but a deal is in the works for another private company to assume the insurer’s 37,000 policies.

A Leon County Circuit Court judge issued an order earlier this week clearing the way for the state Department of Financial Services to take over Sunshine State Insurance Co.

In issuing the liquidation order, the judge cleared the way for United Property & Casualty Insurance Co. (UPC), which had looked into buying the insurer but pulled out of those talks, to assume Sunshine State’s existing policies.

Sunshine State’s financial woes became apparent in February when the insurer first reported to regulators that it would fail to meet a March 1 deadline to file its 2013 annual financial statement. Sunshine State reported that it had discovered an accounting error related to its 2008 and 2011 catastrophic reinsurance treaties. The cost of fixing those errors, plus an operation loss in the fourth quarter of 2013, forced the company officials to tell state regulators that it could no longer meet the state’s surplus requirements.

Insurance Commissioner Kevin McCarty then ordered Sunshine State to either increase its surplus by $15 million or be acquired or recapitalized by another company along with a good faith deposit as of May 15.

McCarty further ordered that if Sunshine State could not meet the May deadline, the insurer would be required to transfer its policies to another insurer or provide a 45-day written cancellation notice to its 37,684 policyholders.

United Insurance Holdings Corp., parent of UPC,  expressed an interest in purchasing Sunshine State in a letter of intent on May 15, the date regulators set for Sunshine State to either increase its surplus by $15 million or find a buyer.

However, a few weeks later, UPC President John Forney, in a letter to regulators, said that after a further review of Sunshine State it would no longer keep that commitment.

Please call L & S Insurance at 1-888-244-7400 for quotes on Home, Auto, Flood, Business & Commercial & life & Financial products as well. Please enjoy the full article below.

The execution of the letter of intent was previously announced by the company on May 15, 2014.

“While we are disappointed not to be able to move forward with this acquisition, we are confident that this decision is in the best interest of our shareholders,” said John Forney, president and CEO of UPC Insurance. “Our organic growth both in Florida and elsewhere continues to be robust, and that has always been the main driver of our policy growth. We will continue to seek other complementary growth opportunities, but we will always remain disciplined in our approach.”

The company did not immediately respond to an inquiry about why the transaction was terminated.

Please call L & S Insurance at 1-888-244-7400 for quotes on Home, Auto, Flood, Business & Commercial, and Life & Financial products as well. Please enjoy the full article below.

There are state regulated time frames for processing claims, but Hurricane Wilma claims have been allowed to be much longer than normal. The norm is within 60 days, But Wilma claims have been around for years. In this article by Julie Patel of the Fort lauderdale Sun Sentinal you will see that this claim submitted years after Wilma will now be declined because of the dates it was submitted. I am in agreement w/ the decision as you can always blame the Hurricane for old issues, but you should take care of your home and have it checked to be sure there are no problems. Florida is like Fraudula  and a  lot of Public adjustors just want to blame all unexplained claims to Hurricane Wilma still 4-6 years  later and this cannot still be allowed. Please read the full article below which was sent to us by our Friends at First State Insurance and please call L & S at 1-888-244-7400 for all of your Home, Auto, Business & COmmercial, Flood and even Life Insurance quotes.

19 named storms, 12 became Hurricanes and 5  were cat 3 or better. Wow, we did not even get hit here in S. Florida, but our prices are still on the rise!!  You have seen it happen and it will continue, but prices will continue to increase significantly and people are still being non renewed by their companies including State Farm, Federated, Home Wise,Sunshine State, Olympus and many other’s! We  now look to Citizens Insurance and will it change to become the Insurance company of last resort. That means higher prices and since deregulation will pass over the next legislative session in Tallahassee, prices will head North and Citizens rate increases  are a must for this to work! We will see how our New Governor R. Scott and his Insurance commissioner Choice will handle things this session after getting started in January. In the meantime, please call this office for quotes or do it through the blog page and please enjoy the end of Hurricane season article;

Julie Patel writes well on this issue w/ Insurance companies raising rates while the overhead is also rising.Where is the overhead expense coming from? I believe the cost of doing business and this whole mitigation inspection issue is to blame.Even if you have discounted rates, re-inspecting every home is expensive and some rates go up, but other’s come down as well and/or they loose the renewal because of the rates.I wonder If Governor Christ, the Lawmakers in Tall. and the insurance commissioner expected 3  years ago when our Governor promised to lower Insurance rates to Floridians.It does seem according to Julie’s article, that Sunshine State may have some financial issues and wants to drop a  lot of policyholder’s as well.Please read julie’s article on the subject and please contact our office for the best home Insurance quotes available and auto as well.